What changed in this filing

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Item 1. Financial Statements

2025-11-07 compared with 2025-08-13 · 210 added, 168 removed, 716 unchanged (35% of the section changed)

3 unchanged sentences

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

July 4, 2025 March 28, 2025

October 3, 2025 March 28, 2025

Current assets:

1 unchanged sentence

$ 701 $ 1,006

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

Accounts receivable, net, including amounts held by a VIE of $ 100 million as of October 3, 2025

Other current assets 254 245

11 unchanged sentences

Accrued compensation and benefits 98 105

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

Current portion of long-term debt, including amounts held by a VIE of $ 40 million as of October 3, 2025

Contract liabilities 1,768 1,846

11 unchanged sentences

3,000 shares authorized;

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

617 shares issued and outstanding as of both October 3, 2025 and March 28, 2025

Accumulated other comprehensive income (loss) 4 ( 33 )

2 unchanged sentences

Total liabilities and stockholders’ equity (deficit)

$ 16,051 $ 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

July 4, 2025 June 28, 2024

Three Months Ended Six Months Ended

October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Net revenues $ 1,220 $ 974 $ 2,477 $ 1,939

23 unchanged sentences

(Unaudited, in millions)

Three Months Ended

July 4, 2025 June 28, 2024

Three Months Ended Six Months Ended

October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Net income (loss) $ 134 $ 161 $ 269 $ 342

1 unchanged sentence

Foreign currency translation gain (loss) ( 20 ) 27 39 22

Net unrealized gain (loss) on interest rate derivative instruments ( 2 ) ( 19 ) ( 2 ) ( 19 )

Other comprehensive income (loss), net of taxes ( 22 ) 8 37 3

4 unchanged sentences

(Unaudited, in millions, except share amounts)

Three months ended July 4, 2025

Three months ended October 3, 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 July 4, 2025 616 $ 2,179 $ 26 $ 160 $ 2,365

Net income (loss) — — — 134 134

Other comprehensive income (loss), net of taxes — — ( 22 ) — ( 22 )

Common stock issued under employee stock incentive plans 1 7 — — 7

Shares withheld for taxes related to vesting of stock units — ( 4 ) — — ( 4 )

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

— ( 2 ) — ( 77 ) ( 79 )

Stock-based compensation — 56 — — 56

Balance as of October 3, 2025 617 $ 2,236 $ 4 $ 217 $ 2,457

Six months ended October 3, 2025 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)

Shares Amount

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

3 unchanged sentences

Shares withheld for taxes related to vesting of stock units

( 2 ) ( 48 ) — — ( 48 )

Repurchases of common stock (1)

5 unchanged sentences

Fair value of CVR issued in connection with business acquisitions — 73 — — 73

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

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

Balance as of October 3, 2025 617 $ 2,236 $ 4 $ 217 $ 2,457

(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 September 27, 2024 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)

Shares Amount

Balance as of March 29, 2024 623 $ 2,227 $ 11 $ ( 98 ) $ 2,140

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

Net income (loss) — — — 161 161

3 unchanged sentences

— ( 1 ) — — ( 1 )

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 September 27, 2024 616 $ 1,995 $ 14 $ 89 $ 2,098

Six months ended September 27, 2024

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

Shares Amount

Balance as of March 29, 2024 623 $ 2,227 $ 11 $ ( 98 ) $ 2,140

Net income (loss) — — — 342 342

Other comprehensive income (loss), net of taxes — — 3 — 3

Common stock issued under employee stock incentive plans 5 6 — — 6

Shares withheld for taxes related to vesting of restricted stock units ( 1 ) ( 25 ) — — ( 25 )

Repurchases of common stock (1)

3 unchanged sentences

Stock-based compensation — 64 — — 64

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

Balance as of September 27, 2024 616 $ 1,995 $ 14 $ 89 $ 2,098

(1) Amount includes excise tax on share repurchases.

3 unchanged sentences

(Unaudited, in millions)

Three Months Ended

July 4, 2025 June 28, 2024

Six Months Ended

October 3, 2025 September 27, 2024

OPERATING ACTIVITIES:

1 unchanged sentence

Amortization and depreciation 248 211

Impairments and write-offs of current and long-lived assets — 3

Stock-based compensation expense 122 64

3 unchanged sentences

Non-cash operating lease expense 9 7

Change in fair value and impairment of non-marketable equity investments 69 —

Foreign currency remeasurement loss (gain) 89 14

Other 21 ( 6 )

11 unchanged sentences

Purchases of property and equipment ( 13 ) ( 4 )

Purchase of non-marketable equity investments — ( 4 )

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

Proceeds from sale of non-marketable equity investments 4 —

Proceeds from the sale of property 9 —

4 unchanged sentences

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

Net proceeds from sales of common stock under employee stock incentive plans 7 6

Tax payments related to vesting of stock units ( 47 ) ( 25 )

21 unchanged sentences

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

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

The results of operations for the three and six months ended October 3, 2025 are not necessarily indicative of the results expected for the entire fiscal year.

Fiscal calendar

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

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

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

Unless otherwise stated, references to three and six month periods in this report relate to fiscal periods ended October 3, 2025 and September 27, 2024.

The three months ended October 3, 2025 and September 27, 2024 each consisted of 13 weeks.

The six months ended October 3, 2025 consisted of 27 weeks, whereas the six months ended September 27, 2024 consisted of 26 weeks.

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

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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.

The aggregate principal amount outstanding is $ 40 million as of October 3, 2025.

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

7 unchanged sentences

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.

Refer to Note 3 for discussion on revenue recognition related to our Instacash Advances.

Net Interest Income on Notes Receivables

6 unchanged sentences

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.

The allowance is based on management’s assessment of several factors, with primary consideration given to recent trends in delinquencies and charge-offs, given the short-term nature of our receivables.

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

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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.

The currently outstanding contingent value rights (CVRs) issued as part of the MoneyLion acquisition consideration are classified as equity under these conditions.

Government Regulation

7 unchanged sentences

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.

With the exception of those discussed in Note 2 and new significant accounting policies as a result of our acquisition of MoneyLion, there have been no material changes to our significant accounting policies as of and for the three and six months ended October 3, 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

10 unchanged sentences

We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures.

ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

In September 2025, the FASB issued new guidance to improve the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods, including methods that entities may use to develop software in the future.

This is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods.

We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures.

There have been no other material changes in recently issued or adopted accounting standards from those disclosed in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025.

20 unchanged sentences

The Purchase Agreement allows the purchasers to acquire, on a committed basis and subject to certain conditions and concentration limits, a majority of our eligible Instacash Advances, up to an aggregate facility limit of $ 225 million at any given time.

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

During the three 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.

The Purchase Agreement has an initial two-year term beginning on June 30, 2024,

with a one-year extension option upon mutual agreement.

During the three and six months ended October 3, 2025, we sold $ 1,005 million and $ 1,828 million, respectively, of Instacash Advances under the Purchase Agreement and had $ 36 million of unused capacity as of October 3, 2025.

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

4 unchanged sentences

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.

Turbo Fees and Tips are recognized after performance is completed and cash is collected.

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

During the three 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.

During the three and six months ended October 3, 2025, we recognized $ 55 million and $ 91 million, respectively, in loss on the mark-to-market and sale of Instacash Advances, which is recorded in sales and marketing in our Condensed Consolidated Statement of Operations.

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

3 unchanged sentences

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.

As of October 3, 2025, we were responsible for servicing $ 249 million of Instacash Advances sold under the Purchase Agreement.

For the three and six months ended October 3, 2025, we recognized $ 14 million and $ 26 million, respectively, in servicing income, recorded in Net revenues in our Condensed Consolidated Statement of Operations.

As of October 3, 2025, we have $ 31 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 in our Condensed Consolidated Balance Sheets.

Business Combinations

28 unchanged sentences

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:

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

(In millions) April 17, 2025

17 unchanged sentences

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 primary areas of preliminary purchase price allocation that are not yet finalized include certain tax and litigation matters.

During the second quarter of fiscal 2026, we recorded measurement period adjustments resulting in an increase to goodwill of $ 32 million, net of tax, primarily related to pre-acquisition litigation of MoneyLion and revised estimates of receivables and contract liabilities recognized, which resulted in a decrease of $ 15 million to accounts receivable, an increase of $ 11 million to current liabilities, a decrease of $ 5 million to contract liabilities and an increase of $ 18 million to other long-term obligations.

The impact of these estimates on our Condensed Consolidated Statement of Operations was immaterial.

The preliminary goodwill of $ 559 million represents the excess of the consideration transferred over the fair values of the assets acquired and liabilities assumed.

22 unchanged sentences

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.

Our results of operations for the three and six months ended October 3, 2025 includes $ 202 million and $ 370 million, respectively, of net revenues attributable to MoneyLion beginning April 17, 2025.

It is impracticable to provide after-tax earnings attributable to MoneyLion subsequent to the acquisition due to the integration of our operations.

We do not consider MoneyLion to be a separate operating unit or separate reporting segment, but rather an integrated brand, selling and marketing strategy within our Trust-Based Solutions segment.

We recognized immaterial transaction costs for the three and six months ended October 3, 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 following unaudited pro forma financial information represents the combined historical results for the three and six months ended October 3, 2025 and September 27, 2024, as if the acquisition had been completed on March 30, 2024, the first day of fiscal 2025.

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

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

1 unchanged sentence

Three Months Ended

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

Six Months Ended

(In millions) October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Net revenues $ 1,220 $ 1,101 $ 2,509 $ 2,186

Net income (loss) $ 139 $ 139 $ 285 $ 302

The unaudited pro forma financial information is provided for informational purposes only and is not indicative of future operations or results that would have been achieved had the acquisition been completed as of the beginning of fiscal 2025.

Disaggregation of revenues

The following table summarizes the components of our net revenues:

Three Months Ended

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

Three Months Ended Six Months Ended

(In millions) October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Subscription and service revenue (1)

2 unchanged sentences

$ 1,220 $ 974 $ 2,477 $ 1,939

(1) Subscription and service revenue includes amounts related to our Instacash Advances of $ 114 million and $ 211 million, during the three and six months ended October 3, 2025, respectively.

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

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.

During the three and six months ended October 3, 2025, we recognized $ 758 million and $ 1,336 million from the contract liabilities balances at July 4, 2025 and March 28, 2025, respectively.

During the three and six months ended September 27, 2024, we recognized $ 733 million and $ 1,261 million from the contract liabilities balances as of June 28, 2024 and March 29, 2024, respectively.

Remaining performance obligations

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

As of 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.

As of October 3, 2025, we had $ 1,262 million of remaining performance obligations, excluding customer deposit liabilities of $ 600 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.

17 unchanged sentences

Translation adjustments

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

Balance as of October 3, 2025 $ 7,395 $ 3,434 $ 10,829

Intangible assets, net

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

July 4, 2025 March 28, 2025

October 3, 2025 March 28, 2025

(In millions) Gross

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Amortization expense for purchased intangible assets is summarized below:

Three Months Ended Condensed Consolidated Statements of Operations Classification

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

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

(In millions) October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Customer relationships and other $ 55 $ 44 $ 109 $ 87 Operating expenses

1 unchanged sentence

Total $ 121 $ 102 $ 240 $ 202

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

As of October 3, 2025, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:

(In millions)

4 unchanged sentences

Cash, cash equivalents and restricted cash:

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

(In millions) October 3, 2025 March 28, 2025

Cash $ 394 $ 462

4 unchanged sentences

Accounts receivable, net:

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

(In millions) October 3, 2025 March 28, 2025

Trade receivable $ 193 $ 173

1 unchanged sentence

Instacash Advances

Turbo Fees and Tips

Allowance for doubtful accounts ( 7 ) ( 2 )

1 unchanged sentence

Assets held for sale:

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

(In millions) October 3, 2025 March 28, 2025

Properties held for sale $ 11 $ 22

2 unchanged sentences

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.

On October 3, 2025, we entered into an agreement to sell certain land and buildings in Dublin, Ireland, which were reclassified to assets held for sale during the fourth quarter of fiscal year 2023, and are currently carried at the lower of its carrying value or fair value less costs to sell of approximately $ 11 million.

Subsequent to October 3, 2025, the transaction closed for cash consideration of approximately $ 13 million, net of transaction costs, and we recognized an immaterial gain on sale.

During the three and six months ended October 3, 2025, there were no impairments on our held for sale property.

During the three and six months ended September 27, 2024, we recognized immaterial 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.

Instacash Advances held for sale as of October 3, 2025, represent Instacash Advances that we originated and are pending sale under the Purchase Agreement.

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

Short-term contract liabilities:

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

(In millions) October 3, 2025 March 28, 2025

Deferred revenue $ 1,168 $ 1,189

2 unchanged sentences

Supplemental cash flow information:

Three Months Ended

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

Six Months Ended

(In millions) October 3, 2025 September 27, 2024

Income taxes paid (received), net of refunds

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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:

July 4, 2025 March 28, 2025

October 3, 2025 March 28, 2025

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

Money market funds $ 257 $ 257 $ — $ 544 $ 544 $ —

Time deposits 40 — 40 — — —

Interest rate swaps 1 — 1 3 — 3

2 unchanged sentences

Non-marketable equity investments

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

As of October 3, 2025 and March 28, 2025, the carrying value of our non-marketable equity investments was $ 35 million and $ 109 million, respectively, and is included in Other long-term assets in our Condensed Consolidated Balance Sheets.

We recognized an immaterial loss on sale of our non-marketable equity investments during the three and six months ended October 3, 2025, in Other income (expense), net in our Condensed Consolidated Statement of Operations.

We recognized an impairment of $ 80 million on our non-marketable equity investments during the three and six months ended October 3, 2025, in Other income (expense), net in our Condensed Consolidated Statement of Operations.

We recorded an increase in the fair value of our non-marketable equity investments of $ 11 million during the three and six months ended October 3, 2025, in Other income (expense), net in our Condensed Consolidated Statement of Operations.

Current and long-term debt

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

As of October 3, 2025 and March 28, 2025, the total fair value of our current and long-term fixed rate debt was $ 2,550 million and $ 2,475 million, respectively.

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

4 unchanged sentences

The following summarizes our lease costs:

Three Months Ended

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

Three Months Ended Six Months Ended

(In millions) October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Operating lease costs $ 4 $ 4 $ 9 $ 7

3 unchanged sentences

Other information related to our operating leases was as follows:

July 4, 2025 March 28, 2025

October 3, 2025 March 28, 2025

Weighted-average remaining lease term 4.4 years 4.7 years

1 unchanged sentence

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

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

As of October 3, 2025, the maturities of our lease liabilities by fiscal year are as follows:

(In millions)

5 unchanged sentences

(In millions, except percentages)

July 4, 2025 March 28, 2025 Effective

October 3, 2025 March 28, 2025 Effective

Interest Rate

16 unchanged sentences

Total long-term debt $ 8,421 $ 7,968

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

As of October 3, 2025, the future contractual maturities of debt by fiscal year are as follows:

(In millions)

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(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.

The ROAR 2 SPV Credit Facility bears interest at a rate of 12.5 % and matures on December 21, 2025.

Debt covenant compliance

1 unchanged sentence

Each of the Revolving Facility and Term A Facility are subject to a covenant that we maintain a consolidated leverage ratio less than or equal to (i) 6.0 to 1.0 from the second quarter of fiscal 2023 through the last day of the second quarter of fiscal 2024, (ii) 5.75 to 1.0 following the last day of the second quarter of fiscal 2024 through the last day of the second quarter of fiscal 2025 and (iii) 5.25 to 1.0 for each fiscal quarter thereafter;

provided that such maximum consolidated leverage ratio will increase to 5.75 to 1.0 for the four fiscal quarters ending immediately should we acquire property, business or assets in an aggregate amount greater than $ 250 million.

In addition, the Amended Credit Agreement contains customary events of default under which our payment obligations may be accelerated, including, among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of certain covenants, payment and acceleration cross defaults with certain other indebtedness, certain undischarged judgments, bankruptcy, insolvency or inability to pay debts, change of control, the

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

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.

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 $ 100 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.

As of October 3, 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.

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We do not hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates.

As of October 3, 2025 and March 28, 2025, the notional amounts of foreign exchange contracts not designated as hedging instruments were $ 238 million and $ 230 million, respectively.

Interest rate swap

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Cash flows related to these hedges are classified under operating activities in our Condensed Consolidated Statements of Cash Flows.

Summary of derivative instruments

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

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

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

Foreign exchange contracts not designated as hedging instrument (1)

$ 238 $ 230 $ — $ — $ — $ —

Interest rate swap contracts designated as cash flow hedge

1,000 1,000 3 3 — —

Total $ 1,238 $ 1,230 $ 3 $ 3 $ — $ —

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

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

Three Months Ended

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

Interest rate swap contracts designated as cash flow hedge

$ ( 2 ) $ ( 4 )

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

Three Months Ended Condensed Consolidated Statements of Operations Classification

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

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

Interest rate swap contracts designated as cash flow hedge

2 4 Interest expense

Total $ 11 $ 1

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

As of October 3, 2025 and March 28, 2025, the notional amount of interest rate swap contracts designated as cash flow hedges were $ 1,000 million.

As of October 3, 2025, we estimate that an immaterial amount of net deferred gains related to our interest rate hedges will be recognized in earnings over the next 12 months.

The activity related to our foreign currency exchange forward contracts and interest rate swaps was immaterial as of October 3, 2025 and March 28, 2025, and for the three and six months ended October 3, 2025 and September 27, 2024.

Restructuring and Other Costs

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

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

October 3, 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.

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The total estimated cost of the plan is approximately $ 30 million, of which $ 8 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.

As of October 3, 2025, we had a restructuring liability of $ 2 million related to the April 2025 Plan.

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

Three Months Ended

Three Months Ended Six Months Ended

(In millions, except percentages)

July 4, 2025 June 28, 2024

October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Income (loss) before income taxes $ 233 $ 258 $ 533 $ 534

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Effective tax rate 42 % 38 % 50 % 36 %

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.

Our effective tax rate for the three and six months ended October 3, 2025 and three and six months ended September 27, 2024, differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, increases in valuation allowances, and the U.S.

taxation on foreign earnings.

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

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

The Act includes various provisions that are applicable to us beginning in fiscal year 2026.

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

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

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

The impacts of the Act are included in our operating results for the three and six months ended October 3, 2025.

The Act is not expected to have a material impact on our effective tax rate.

Stockholders' Equity

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.

On November 6, 2025, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in December 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.

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Contingent value rights

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

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

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

As of October 3, 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.

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Under our stock repurchase program, we may purchase shares of our outstanding common stock on the open market and through accelerated stock repurchase transactions.

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

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

Three Months Ended

As of October 3, 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 six months ended October 3, 2025 and September 27, 2024:

Six Months Ended

(In millions, except per share amounts)

July 4, 2025 June 28, 2024

October 3, 2025 September 27, 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 October 3, 2025 and September 27, 2024.

Accumulated other comprehensive income (loss)

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Other comprehensive income (loss), net of taxes 39 ( 2 ) 37

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

Balance as of October 3, 2025 $ 3 $ 1 $ 4

Stock-Based Compensation

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The following table sets forth the stock-based compensation expense recognized for our equity incentive plans:

Three Months Ended

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

Three Months Ended Six Months Ended

(In millions) October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Cost of revenues $ 1 $ 1 $ 3 $ 2

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General and administrative 22 14 48 26

Restructuring and other costs 1 — 1 —

Total stock-based compensation expense $ 56 $ 33 $ 122 $ 64

Income tax benefit for stock-based compensation expense $ ( 8 ) $ ( 4 ) $ ( 17 ) $ ( 8 )

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.

As of October 3, 2025, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 494 million, which will be recognized over an estimated weighted-average amortization period of 2.66 years.

Net Income (Loss) Per Share

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The components of basic and diluted net income (loss) per share are as follows:

Three Months Ended

Three Months Ended Six Months Ended

(In millions, except per share amounts)

July 4, 2025 June 28, 2024

October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Net income (loss) $ 134 $ 161 $ 269 $ 342

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(In millions)

Three Months Ended July 4, 2025

Three Months Ended October 3, 2025

$ 814 $ 406 $ — $ 1,220

Other segment items (1)

314 283 — 597

Operating income (loss)

$ 500 $ 123 $ ( 185 ) $ 438

Three Months Ended June 28, 2024

Six Months Ended October 3, 2025

$ 1,683 $ 794 $ — $ 2,477

Other segment items (1)

653 551 — 1,204

Operating income (loss)

$ 1,030 $ 243 $ ( 389 ) $ 884

Three Months Ended September 27, 2024

Net Revenues $ 789 $ 185 $ — $ 974

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Operating income (loss) $ 470 $ 97 $ ( 165 ) $ 402

Six Months Ended September 27, 2024

Net Revenues $ 1,569 $ 370 $ — $ 1,939

Other segment items (1)

633 175 — 808

Operating income (loss) $ 936 $ 195 $ ( 312 ) $ 819

(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

Three Months Ended Six Months Ended

(In millions) October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Amortization of intangible assets

$ 121 $ 102 $ 240 $ 202

Stock-based compensation

Unallocated cost of revenue and operating expenses

$ 185 $ 165 $ 389 $ 312

Geographic information

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

Three Months Ended

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

Three Months Ended Six Months Ended

(In millions) October 3, 2025 September 27, 2024 October 3, 2025 September 27, 2024

Americas $ 864 $ 641 $ 1,743 $ 1,277

EMEA 257 233 525 466

APJ 99 100 209 196

Total net revenues

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Revenues from customers inside the U.S.

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

were $ 809 million and $ 1,628 million during the three and six months ended October 3, 2025, respectively, and $ 584 million and $ 1,163 million during the three and six months ended September 27, 2024, respectively.

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

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and internationally in various foreign subsidiaries:

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

(In millions) October 3, 2025 March 28, 2025

International 380 359

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

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

(In millions) October 3, 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 three months ended July 4, 2025 and June 28, 2024.

No individual end-user customer accounted for 10% or more of our net revenues during the six months ended October 3, 2025 and September 27, 2024.

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

July 4, 2025 March 28, 2025

October 3, 2025 March 28, 2025

E-commerce partner A

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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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Litigation contingencies

From time to time, we are involved in legal proceedings, including, but not limited to, regulatory proceedings, claims, mediations, arbitrations and litigation, arising out of the ordinary court of business.

We evaluate contingent liabilities including threatened or pending litigation in accordance with the authoritative guidance on contingencies.

We assess the likelihood of any adverse judgements or outcomes from potential claims or proceedings for accrual or disclosure in our Condensed Consolidated Financial Statements.

We assess the likelihood of any adverse judgments or outcomes from potential claims or proceedings for accrual or disclosure in our Condensed Consolidated Financial Statements.

A determination of the amount of an accrual required, if any, for these contingencies is made after the analysis of each separate matter.

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District Court for the Eastern District of Virginia.

Columbia originally brought suit alleging infringement of six patents owned by the university.

We won a favorable claim construction order on all six patents, and the claim construction was upheld by the Federal Circuit in 2016 on all but U.S.

8,601,322 and 8,074,115.

We also sought inter partes review by the Patent Trial and Appeal Board of the claims of the ‘322 and ‘115 Patents and all but two claims of the ‘322 Patent and three claims of the ‘115 Patent were invalidated.

The remaining claims of the ‘322 and ‘115 Patents were the only claims that remained in suit at trial.

The jury found that our Norton Security products and Symantec Endpoint Protection products (the latter of which were sold by us to Broadcom as part of an Asset Purchase Agreement dated November 4, 2019) willfully infringe the ‘322 and ‘115 Patents through the use of SONAR/BASH behavioral protection technology.

The jury found that our Norton Security products and Symantec Endpoint Protection products (the latter of which were sold by us to Broadcom as part of an Asset Purchase Agreement dated November 4, 2019) willfully infringed two patents through the use of SONAR/BASH behavioral protection technology.

The jury awarded damages in the amount of $ 185 million.

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We believe that we have ceased the use of the technology found by the jury to infringe.

The jury also found that we did not fraudulently conceal its prosecution of U.S.

8,549,643 but did find that two Columbia professors were coinventors of this patent.

The jury also found that we did not fraudulently conceal its prosecution of a third patent but did find that two Columbia professors were coinventors of this patent.

No damages were awarded related to this patent.

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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.

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

At this time, our current estimate of probable losses from this matter is approximately $ 605 million, which we have accrued and recorded as part of Other long-term liabilities in the Condensed Consolidated Balance Sheets .

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Avast responded cooperatively to the CID and related follow-up requests from the FTC.

On October 29, 2021, staff at the FTC sent Avast a draft complaint and proposed settlement order.

We engaged in ongoing negotiations with the FTC staff and have reached a negotiated agreement on the terms of a Consent Decree resolving this investigation, the terms of which are now final.

We engaged in ongoing negotiations with the FTC staff and reached a negotiated agreement on the terms of a Consent Decree resolving this investigation, the terms of which are now final.

This includes a provision for a non-material amount of monetary relief, which has been paid.

On February 27, 2020, the Czech Office for Personal Data Protection (the Czech DPA) initiated offense proceedings concerning Avast`s practices with respect to Jumpshot, the Czech DPA issued a decision in March 2022 finding that Avast had violated the GDPR and issued a fine of CZK 351 million, which is approximately $ 15 million.

Avast appealed the decision, which was affirmed by the Czech DPA on April 10, 2024.

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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.

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 October 7, 2025, the court affirmed the decision regarding liability;

however, it vacated the DPA’s decision regarding the determination of the fine.

Both the DPA and the Company have filed cassation complaints with the Supreme Administrative Law Court.

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

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

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

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

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

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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.

MoneyLion filed counterclaims against the Sellers Members alleging, among other things, fraud, negligent misrepresentation, conversion, breach of fiduciary duties and breach of contract.

The court issued its decision on September 29, 2025, finding that MoneyLion breached the parties’ agreements and awarding the Sellers Members damages of $ 39.5 million, which has been accrued as a pre-acquisition contingency in Other long-term obligations in our Condensed Consolidated Balance Sheet, plus attorneys’ fees and costs to be determined.

On October 28, 2025, MoneyLion filed a notice of appeal.

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

CFPB Litigation

On September 29, 2022, the Consumer Financial Protection Bureau (the “CFPB”) initiated a civil action in the United States District Court for the 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.

On September 29, 2022, the Consumer Financial Protection Bureau (the “CFPB”) initiated a civil action in the United States District Court for the SDNY against MoneyLion Technologies Inc., ML Plus LLC and the Company's 37 state lending subsidiaries, alleging violations of the Military Lending Act and the Consumer Financial Protection Act.

The 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.

On October 15, 2025, the parties notified the court that they have reached an agreement in principle to fully resolve this action and that they are in the process of documenting that agreement.

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.

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.

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That motion remains pending.

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

The Company maintains that the Attorney General’s claims are without merit and intends 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.

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The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our business, results of operations, financial condition or cash flows.

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

During the three and six months ended October 3, 2025, we incurred $ 3 million and $ 8 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations.

During the three and six months ended September 27, 2024, we incurred $ 25 million and $ 40 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations.

Subsequent Events

On October 28, 2025, we entered into a purchase agreement to sell certain developed technology and assets for $ 40 million plus the assumption of liabilities.

The sale is subject to customary closing conditions and is expected to close during the third quarter of fiscal 2026.

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