What changed in this filing

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Item 1. Financial Statements

2026-02-06 compared with 2025-11-07 · 166 added, 186 removed, 740 unchanged (32% of the section changed)

3 unchanged sentences

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

October 3, 2025 March 28, 2025

January 2, 2026 March 28, 2025

Current assets:

1 unchanged sentence

$ 619 $ 1,006

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

Accounts receivable, net

Other current assets 257 245

11 unchanged sentences

Accrued compensation and benefits 116 105

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

Current portion of long-term debt

Contract liabilities 1,822 1,846

11 unchanged sentences

3,000 shares authorized;

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

606 and 617 shares issued and outstanding as of January 2, 2026 and March 28, 2025, respectively

Accumulated other comprehensive income (loss) 19 ( 33 )

7 unchanged sentences

(Unaudited, in millions, except per share amounts)

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Net revenues $ 1,240 $ 986 $ 3,717 $ 2,925

23 unchanged sentences

(Unaudited, in millions)

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Net income (loss) $ 192 $ 159 $ 461 $ 501

8 unchanged sentences

(Unaudited, in millions, except share amounts)

Three months ended October 3, 2025

Three months ended January 2, 2026

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

Shares Amount

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

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

Net income (loss) — — — 192 192

Other comprehensive income (loss), net of taxes — — 15 — 15

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

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

Repurchases of common stock (1)

( 11 ) ( 3 ) — ( 300 ) ( 303 )

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

1 unchanged sentence

Stock-based compensation — 54 — — 54

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)

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

Nine months ended January 2, 2026 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)

Shares Amount

12 unchanged sentences

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

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

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

(1) Amount includes excise tax on share repurchases.

3 unchanged sentences

(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)

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

Shares Amount

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

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 )

Common stock issued under employee stock incentive plans 1 6 — — 6

Shares withheld for taxes related to vesting of stock units

— ( 1 ) — — ( 1 )

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

1 unchanged sentence

Stock-based compensation — 33 — — 33

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

Six months ended September 27, 2024

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)

10 unchanged sentences

Stock-based compensation — 97 — — 97

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

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

(1) Amount includes excise tax on share repurchases.

3 unchanged sentences

(Unaudited, in millions)

Six Months Ended

October 3, 2025 September 27, 2024

Nine Months Ended

January 2, 2026 December 27, 2024

OPERATING ACTIVITIES:

5 unchanged sentences

Deferred income taxes — ( 50 )

Loss on sale of property 1 —

Gain on sale of nonfinancial assets ( 15 ) —

Non-cash operating lease expense 13 11

Change in fair value and impairment of non-marketable equity investments 79 30

Legal contract dispute cost — 42

Foreign currency remeasurement loss (gain) 86 ( 14 )

Other 21 ( 6 )

Changes in operating assets and liabilities, net of acquisitions:

14 unchanged sentences

Proceeds from the sale of property 21 —

Proceeds from sale of nonfinancial assets 40 —

Other ( 1 ) ( 1 )

10 unchanged sentences

Change in cash, cash equivalents and restricted cash

( 305 ) ( 109 )

Beginning cash, cash equivalents and restricted cash

11 unchanged sentences

GAAP) for interim financial information.

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

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

In the opinion of management, the unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods.

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

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

The results of operations for the three and nine months ended January 2, 2026 are not necessarily indicative of the results expected for the entire fiscal year.

Fiscal calendar

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

Unless otherwise stated, references to three and 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.

Unless otherwise stated, references to three and nine month periods in this report relate to fiscal periods ended January 2, 2026 and December 27, 2024.

The three months ended January 2, 2026 and December 27, 2024 each consisted of 13 weeks.

The nine months ended January 2, 2026 consisted of 40 weeks, whereas the nine months ended December 27, 2024 consisted of 39 weeks.

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

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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 $ 40 million as of October 3, 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

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

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

Government Regulation

5 unchanged sentences

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.

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

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

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

With the exception of those discussed in Note 2 and new significant accounting policies as a result of our acquisition of MoneyLion, there have been no material changes to our significant accounting policies as of and for the three and nine months ended January 2, 2026, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025.

Recent Accounting Standards

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This is effective for fiscal years beginning after December 15, 2024.

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

We will adopt the standard in our Annual Report on Form 10-K for the fiscal year ended April 3, 2026.

The adoption of the standard will modify our disclosures but will not have an impact on our consolidated financial position, results of operations or statement of cash flows.

ASU 2024-03, Income Statement - Reporting Comprehensive Income (Subtopic 220-40):

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In November 2024, the FASB issued new guidance requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods.

This is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

This is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after

December 15, 2027.

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

4 unchanged sentences

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

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

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

Sale of Instacash Advances

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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.

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

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

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

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

with a one-year extension option upon mutual agreement.

During the three and 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.

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

During the three and nine months ended January 2, 2026, we sold $ 1,084 million and $ 2,912 million, respectively, of Instacash Advances under the Purchase Agreement and had $ 24 million of unused capacity as of January 2, 2026.

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

6 unchanged sentences

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

During the three and 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.

During the three and nine months ended January 2, 2026, we recognized $ 55 million and $ 146 million, respectively, in loss on the mark-to-market and sale of Instacash Advances, which is recorded in sales and marketing in our Condensed Consolidated Statement of Operations.

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

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 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.

As of January 2, 2026, we were responsible for servicing $ 275 million of Instacash Advances sold under the Purchase Agreement.

For the three and nine months

ended January 2, 2026, we recognized $ 16 million and $ 42 million, respectively, in servicing income, recorded in Net revenues in our Condensed Consolidated Statement of Operations.

As of January 2, 2026, we have $ 23 million payable to Sound Point relating to the servicing activity, which will be settled using restricted cash and receivables from payment processors recorded in Other current assets.

Refer to Note 7 for a breakdown of our Instacash Advances balance, which are included in accounts receivable, net in our Condensed Consolidated Balance Sheets.

Business Combinations

3 unchanged sentences

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

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

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

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

1 unchanged sentence

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.

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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.

During the third quarter of fiscal 2026, we recorded measurement period adjustments resulting in an increase to goodwill of $ 8 million, net of tax, primarily related to pre-acquisition litigation of MoneyLion, which resulted in an increase of $ 2 million to other long-term assets and an increase of $ 10 million to other long-term obligations.

The preliminary goodwill of $ 567 million represents the excess of the consideration transferred over the fair values of the assets acquired and liabilities assumed.

22 unchanged sentences

Impact on operating results

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.

Our results of operations for the three and nine months ended January 2, 2026 includes $ 218 million and $ 588 million, respectively, of net revenues attributable to MoneyLion beginning April 17, 2025.

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

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

We recognized immaterial transaction costs for the three and six months ended October 3, 2025.

We recognized immaterial transaction costs for the three and nine months ended January 2, 2026.

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

Unaudited pro forma information

The following unaudited pro forma financial information represents the combined historical results for the three and 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 following unaudited pro forma financial information represents the combined historical results for the three and nine months ended January 2, 2026 and December 27, 2024, as if the acquisition had been completed on March 30, 2024, the first day of fiscal 2025.

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

1 unchanged sentence

The following table summarizes the unaudited pro forma financial information:

Three Months Ended

Six Months Ended

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

Three Months Ended Nine Months Ended

(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Net revenues $ 1,240 $ 1,118 $ 3,749 $ 3,304

3 unchanged sentences

The following table summarizes the components of our net revenues:

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Subscription and service revenue (1)

2 unchanged sentences

$ 1,240 $ 986 $ 3,717 $ 2,925

(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.

(1) Subscription and service revenue includes amounts related to our Instacash Advances of $ 127 million and $ 338 million, during the three and nine months ended January 2, 2026, respectively.

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

Contract liabilities

During the three and 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.

During the three and nine months ended January 2, 2026, we recognized $ 740 million and $ 1,677 million from the contract liabilities balances at October 3, 2025 and March 28, 2025, respectively.

During the three and nine months ended December 27, 2024, we recognized $ 742 million and $ 1,620 million from the contract liabilities balances as of September 27, 2024 and March 29, 2024, respectively.

Remaining performance obligations

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

As of 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.

As of January 2, 2026, we had $ 1,250 million of remaining performance obligations, excluding customer deposit liabilities of $ 656 million, of which we expect to recognize approximately 94 % as revenue over the next 12 months.

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

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Translation adjustments

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

Balance as of January 2, 2026 $ 7,402 $ 3,445 $ 10,847

Intangible assets, net

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

October 3, 2025 March 28, 2025

January 2, 2026 March 28, 2025

(In millions) Gross

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Amortization expense for purchased intangible assets is summarized below:

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

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

(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Customer relationships and other $ 55 $ 43 $ 164 $ 130 Operating expenses

1 unchanged sentence

Total $ 122 $ 99 $ 362 $ 301

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

As of January 2, 2026, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:

(In millions)

2 unchanged sentences

Total $ 1,473

Asset purchase agreement

In October 2025, we entered into a purchase agreement to sell certain developed technology and assets for $ 40 million plus the assumption of liabilities related to our digital identity offering to a third-party, who previously licensed the use of the intellectual property from us.

We completed the transaction in November 2025.

Pursuant to the sale, we derecognized developed technology and other assets, net of associated liabilities, with an aggregate carrying value of approximately $ 22 million.

We accounted for the transaction as a sale of nonfinancial assets under ASC Topic 610-20, Gains and Losses from the Derecognition of Nonfinancial assets .

We recognized a gain on sale of nonfinancial assets of approximately $ 15 million during the three and nine months ended January 2, 2026, which is included as part of Other income (expense), net in our Condensed Consolidated Statement of Operations.

Supplementary Information

Cash, cash equivalents and restricted cash:

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

(In millions) January 2, 2026 March 28, 2025

Cash $ 332 $ 462

4 unchanged sentences

Accounts receivable, net:

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

(In millions) January 2, 2026 March 28, 2025

Trade receivable $ 237 $ 173

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Assets held for sale:

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

(In millions) January 2, 2026 March 28, 2025

Properties held for sale $ — $ 22

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Properties held for sale

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.

In October 2025, we completed the sale of certain land and buildings in Dublin, Ireland, which were previously classified to assets held for sale during the fourth quarter of fiscal year 2023 for cash consideration of $ 12 million, net of transaction costs, and recognized an immaterial gain on sale.

Instacash Advances held for sale

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

Instacash Advances held for sale as of January 2, 2026, represent Instacash Advances that we originated and are pending sale under the Purchase Agreement.

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

Short-term contract liabilities:

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

(In millions) January 2, 2026 March 28, 2025

Deferred revenue $ 1,166 $ 1,189

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Supplemental cash flow information:

Six Months Ended

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

Nine Months Ended

(In millions) January 2, 2026 December 27, 2024

Income taxes paid (received), net of refunds $ 371 $ 394

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Reduction (increase) of operating lease assets as a result of lease terminations and modifications $ ( 6 ) $ ( 13 )

$ ( 6 ) $ ( 12 )

Non-cash investing and financing 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:

October 3, 2025 March 28, 2025

January 2, 2026 March 28, 2025

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

3 unchanged sentences

$ 284 $ 264 $ 20 $ 547 $ 544 $ 3

(1) The fair value of the interest rate swaps are less than $ 1 million as of January 2, 2026.

Financial instruments not recorded at fair value on a recurring basis include our non-marketable equity investments and long-term debt.

Non-marketable equity investments

As of 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.

As of January 2, 2026 and March 28, 2025, the carrying value of our non-marketable equity investments was $ 16 million and $ 109 million, respectively, and is included in Other long-term assets in our Condensed Consolidated Balance Sheets.

During the three and nine months ended January 2, 2026, we sold an equity interest in a non-marketable equity investment.

In connection with the sale, we received both cash proceeds and non-cash proceeds in the form of an equity investment.

We recognized a gain of $ 11 million, which is included in Other income (expense), net in our Condensed Consolidated Statement of Operations.

We also recognized other immaterial losses on sale of our non-marketable equity investments during the three and nine months ended January 2, 2026, in Other income (expense), net in our Condensed Consolidated Statement of Operations.

We recognized impairments of $ 10 million and $ 90 million on our non-marketable equity investments during the three and nine months ended January 2, 2026, respectively, in Other income (expense), net in our Condensed Consolidated Statement of Operations.

We recognized an impairment of $ 30 million on our non-marketable equity investments during the three and nine months ended December 27, 2024, in Other income (expense), net in our Condensed Consolidated Statement of Operations.

Current and long-term debt

As of 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.

As of January 2, 2026 and March 28, 2025, the total fair value of our current and long-term fixed rate debt was $ 2,514 million and $ 2,475 million, respectively.

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

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The following summarizes our lease costs:

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Operating lease costs $ 5 $ 3 $ 14 $ 10

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Other information related to our operating leases was as follows:

October 3, 2025 March 28, 2025

January 2, 2026 March 28, 2025

Weighted-average remaining lease term 4.3 years 4.7 years

1 unchanged sentence

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

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

As of January 2, 2026, the maturities of our lease liabilities by fiscal year are as follows:

(In millions)

5 unchanged sentences

(In millions, except percentages)

October 3, 2025 March 28, 2025 Effective

January 2, 2026 March 28, 2025 Effective

Interest Rate

12.50 % ROAR 2 SPV Credit Facility due December 2025

$ 40 $ — 12.50 %

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

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Total long-term debt $ 8,167 $ 7,968

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

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

(In millions)

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Total future maturities of debt $ 8,494

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 bears interest at a rate of 12.5 % and matures on December 21, 2025.

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

that was previously consolidated as a variable interest entity (VIE) (the ROAR 2 SPV Borrower), entered into a credit agreement (the ROAR 2 SPV Credit Facility) to finance a portion of MoneyLion’s notes receivables.

Under this arrangement, MoneyLion sold certain originated loans and receivables to the ROAR 2 SPV Borrower, which pledged these receivables and related cash flows, along with required cash collateral, to secure borrowings under the ROAR 2 SPV Credit Facility.

The underlying loans and receivables were originated and serviced by other wholly owned subsidiaries.

The ROAR 2 SPV Borrower was evaluated for consolidation and previously was determined to be a VIE requiring consolidation.

In December 2025, the ROAR 2 SPV Credit Facility was repaid and expired in accordance with its terms and there is no longer a variable interest.

We continue to consolidate ROAR 2 SPV Finance LLC as a wholly-owned subsidiary under the voting equity interest model.

Debt covenant compliance

The Amended Credit Agreement contains customary representations and warranties, affirmative and negative covenants.

The Amended Credit Agreement, which includes our Term Loans and Revolving Facility, contains customary representations and warranties, affirmative and negative covenants.

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

provided that such maximum consolidated leverage ratio will increase to

5.75 to 1.0 for the four fiscal quarters ending immediately should we acquire property, business or assets in an aggregate amount greater than $ 250 million.

In addition, the Amended Credit Agreement contains customary events of default under which our payment obligations may be accelerated, including, among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of certain covenants, payment and acceleration cross defaults with certain other indebtedness, certain undischarged judgments, bankruptcy, insolvency or inability to pay debts, change of control, the occurrence of certain events related to the Employee Retirement Income Security Act of 1974 (ERISA), and 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 $ 100 million of accounts receivable, net in our Condensed Consolidated Balance Sheets.

As of October 3, 2025, we were in compliance with all financial debt covenants.

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.

As of January 2, 2026, 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.

As of January 2, 2026 and March 28, 2025, the notional amounts of foreign exchange contracts not designated as hedging instruments were $ 279 million and $ 230 million, respectively.

Interest rate swap

4 unchanged sentences

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

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.

As of January 2, 2026 and March 28, 2025, the notional amount of interest rate swap contracts designated as cash flow hedges were $ 1,000 million.

As of January 2, 2026, we estimate that an immaterial amount of net deferred losses related to our interest rate hedges will be recognized in earnings over the next 12 months.

The activity related to our foreign currency exchange forward contracts and interest rate swaps was immaterial as of January 2, 2026 and March 28, 2025, and for the three and nine months ended January 2, 2026 and December 27, 2024.

Restructuring and Other Costs

6 unchanged sentences

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.

October 3, 2025, we have incurred cumulative costs of $ 138 million related to the September 2022 Plan.

As of January 2, 2026, we have incurred cumulative costs of $ 138 million related to the September 2022 Plan.

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

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The total estimated cost of the plan is approximately $ 30 million, of which $ 19 million has been incurred to date under the April 2025 Plan.

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

As of January 2, 2026, we had a restructuring liability of $ 8 million related to the April 2025 Plan.

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

Three Months Ended Six Months Ended

Three Months Ended Nine Months Ended

(In millions, except percentages)

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

January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Income (loss) before income taxes $ 309 $ 208 $ 842 $ 742

1 unchanged sentence

Effective tax rate 38 % 24 % 45 % 32 %

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.

Our effective tax rate for the three and nine months ended January 2, 2026 and three and nine months ended December 27, 2024, differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, increases in valuation allowances, and the U.S.

taxation on foreign earnings.

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

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

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

The impacts of the Act are included in our operating results for the three and nine months ended January 2, 2026.

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

Stockholders' Equity

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.

On February 5, 2026, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in March 2026.

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

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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 October 3, 2025, there were 12 million CVRs outstanding, subject to the achievement of specified stock price conditions.

As of January 2, 2026, there were 12 million CVRs outstanding.

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

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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 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

As of January 2, 2026, we had $ 2,294 million remaining under the authorization to be completed in future periods.

The following table summarizes activity related to our stock repurchase program during three and nine months ended January 2, 2026 and December 27, 2024:

Three Months Ended Nine Months Ended

(In millions, except per share amounts)

October 3, 2025 September 27, 2024

January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Number of shares repurchased 11 — 16 11

1 unchanged sentence

Aggregate purchase price $ 300 $ — $ 434 $ 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)

5 unchanged sentences

Other comprehensive income (loss), net of taxes 55 ( 3 ) 52

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

Balance as of January 2, 2026 $ 19 $ — $ 19

Stock-Based Compensation

5 unchanged sentences

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

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Cost of revenues $ ( 4 ) $ 1 $ ( 1 ) $ 3

5 unchanged sentences

Income tax benefit for stock-based compensation expense $ ( 9 ) $ ( 4 ) $ ( 26 ) $ ( 12 )

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.

As of January 2, 2026, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 412 million, which will be recognized over an estimated weighted-average amortization period of 2.56 years.

Net Income (Loss) Per Share

4 unchanged sentences

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

Three Months Ended Six Months Ended

Three Months Ended Nine Months Ended

(In millions, except per share amounts)

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

January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Net income (loss) $ 192 $ 159 $ 461 $ 501

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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.

8 unchanged sentences

(In millions)

Three Months Ended October 3, 2025

Three Months Ended January 2, 2026

$ 819 $ 421 $ — $ 1,240

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$ 503 $ 126 $ ( 196 ) $ 433

Six Months Ended October 3, 2025

Nine Months Ended January 2, 2026

$ 2,502 $ 1,215 $ — $ 3,717

3 unchanged sentences

$ 1,533 $ 369 $ ( 585 ) $ 1,317

Three Months Ended September 27, 2024

Three Months Ended December 27, 2024

Net Revenues $ 799 $ 187 $ — $ 986

1 unchanged sentence

Operating income (loss) $ 479 $ 98 $ ( 203 ) $ 374

Six Months Ended September 27, 2024

Nine Months Ended December 27, 2024

Net Revenues $ 2,368 $ 557 $ — $ 2,925

4 unchanged sentences

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

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Amortization of intangible assets

6 unchanged sentences

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

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

(In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024

Americas $ 880 $ 647 $ 2,623 $ 1,924

7 unchanged sentences

Revenues from customers inside the U.S.

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.

were $ 824 million and $ 2,452 million during the three and nine months ended January 2, 2026, respectively, and $ 589 million and $ 1,752 million during the three and nine months ended December 27, 2024, respectively.

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

1 unchanged sentence

and internationally in various foreign subsidiaries:

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

(In millions) January 2, 2026 March 28, 2025

International 403 359

2 unchanged sentences

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) October 3, 2025 March 28, 2025

(In millions) January 2, 2026 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 six months ended October 3, 2025 and September 27, 2024.

No individual end-user customer accounted for 10% or more of our net revenues during the nine months ended January 2, 2026 and December 27, 2024.

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

October 3, 2025 March 28, 2025

January 2, 2026 March 28, 2025

E-commerce partner A

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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 a third patent but did find that two Columbia professors were coinventors of this patent.

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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Avast announced the decision to terminate its provision of data to, and wind down, Jumpshot on January 30, 2020.

As Avast has previously disclosed, it has been in communication with certain regulators and authorities prior to completion of the acquisition of Avast, and we will continue cooperating fully in respect of all regulatory enquiries.

As Avast has previously disclosed, it has been in communication with certain regulators and authorities prior to completion of our acquisition of Avast, and we will continue cooperating fully in respect of all regulatory enquiries.

On December 23, 2019, the United States Federal Trade Commission (FTC) issued a Civil Investigative Demand (CID) to Avast seeking documents and information related to its privacy practices, including Jumpshot's past use of consumer information that was provided to it by Avast.

2 unchanged sentences

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 was approximately $ 15 million.

On February 27, 2020, the Czech Office for Personal Data Protection (the Czech DPA) initiated offense proceedings concerning Avast`s practices with respect to Jumpshot.

The Czech DPA issued a decision in March 2022 finding that Avast had violated the GDPR and issued a fine of CZK 351 million.

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

Avast has now paid the fine levied by the DPA.

Avast paid the fine levied by the DPA.

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

2 unchanged sentences

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.

At this stage, the fine has been returned but the matter remains pending.

We have accrued an immaterial amount as our current estimate of probable loss from this matter.

On March 27, 2024, Stichting CUIC – Privacy Foundation for Collective Redress, a Dutch foundation (the Foundation), filed its writ of summons to initiate a collective action.

3 unchanged sentences

On April 18, 2024, we received a letter before action from counsel in the United Kingdom asserting it may bring a representative action on behalf of a class of Avast users in the United Kingdom and Wales for breach of contract and misuse of private information and seeking unspecified damages and a permanent injunction.

No lawsuit has commenced.

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

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

Gen Digital Inc.

and Jumpshot Inc.

(later restyled as Karwowski v.

Gen Digital Inc.

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

The claims related to Jumpshot, and Jumpshot, Inc.

as a defendant, were dismissed on July 9, 2024, as a result of a Motion to Dismiss brought by the Company.

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

Judgment was entered by the Court on October 23, 2024, as to those claims and on November 22, 2024, Plaintiffs filed a Notice of Appeal regarding the earlier dismissed Jumpshot-related claims and on October 27, 2025, the Ninth Circuit Court of Appeal affirmed the dismissal order and denied Plaintiffs’ appeal.

No lawsuit has been filed.

We have reached an agreement in principle to resolve this matter, subject to final documentation and approval.

The expected cost to resolve the matter is immaterial, and we do not expect the resolution to have a material adverse effect on our financial condition, results of operations or cash flows.

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

5 unchanged sentences

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 Southern District of New York (“SDNY”) against MoneyLion Technologies Inc.

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

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

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

The court issued 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.

The court issued

its decision on September 29, 2025, finding that MoneyLion breached the parties’ agreements and awarding the Sellers Members damages and attorneys’ fees and costs, for which we have accrued $ 48 million as a pre-acquisition contingency in Other long-term obligations in our Condensed Consolidated Balance Sheet.

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

2 unchanged sentences

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 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.

The matter was fully resolved pursuant to a stipulated final judgment and order approved by the court on November 24, 2025.

As part of the settlement, MoneyLion is providing refunds to relevant consumers.

There is no fine involved in the settlement.

The impact of the settlement was not material.

NYAG Litigation

3 unchanged sentences

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.

The Company maintains that the Attorney General’s claims are without merit and intends to vigorously defend against the lawsuit.

The Company maintains that the Attorney General’s claims are without merit and is vigorously defending against the lawsuit.

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

2 unchanged sentences

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 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.

During the three and nine months ended January 2, 2026, we incurred $ 10 million and $ 18 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations.

During the three and nine months ended December 27, 2024, we incurred $ 63 million and $ 103 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations.

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