Gen Digital Inc. 10-Q

Item 1. Financial Statements (Unaudited) GEN DIGITAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except par value per share amounts) January 2, 2026 March 28, 2025 ASSETS Current assets: Cash, cash equivalents and restricted cash $ 619 $ 1,006 Accounts receivable, net 361 171 Other current assets 257 245 Assets held for sale 16 22 Total current assets 1,253 1,444 Property and equipment, net 69 60 Intangible assets, net 2,212 2,267 Goodwill 10,847 10,237 Deferred income tax assets 1,258 1,218 Other long-term assets 192 269 Total assets $ 15,831 $ 15,495 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable $ 83 $ 94 Accrued compensation and benefits 116 105 Current portion of long-term debt 240 291 Contract liabilities 1,822 1,846 Other current liabilities 427 515 Total current liabilities 2,688 2,851 Long-term debt 8,167 7,968 Long-term contract liabilities 84 77 Deferred income tax liabilities 220 222 Long-term income taxes payable 1,583 1,420 Other long-term liabilities 757 688 Total liabilities 13,499 13,226 Commitments and contingencies (Note 18) Stockholders’ equity (deficit): Common stock and additional paid-in capital, $ 0.01 par value: 3,000 shares authorized; 606 and 617 shares issued and outstanding as of January 2, 2026 and March 28, 2025, respectively 2,281 2,066 Accumulated other comprehensive income (loss) 19 ( 33 ) Retained earnings (accumulated deficit) 32 236 Total stockholders’ equity (deficit) 2,332 2,269 Total liabilities and stockholders’ equity (deficit) $ 15,831 $ 15,495 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 3 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share amounts) Three Months Ended Nine Months Ended January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Net revenues $ 1,240 $ 986 $ 3,717 $ 2,925 Cost of revenues 268 193 801 577 Gross profit 972 793 2,916 2,348 Operating expenses: Sales and marketing 307 182 901 549 Research and development 96 84 305 248 General and administrative 70 108 204 224 Amortization of intangible assets 55 43 164 130 Restructuring and other costs 11 2 25 4 Total operating expenses 539 419 1,599 1,155 Operating income (loss) 433 374 1,317 1,193 Interest expense ( 137 ) ( 141 ) ( 439 ) ( 443 ) Other income (expense), net 13 ( 25 ) ( 36 ) ( 8 ) Income (loss) before income taxes 309 208 842 742 Income tax expense (benefit) 117 49 381 241 Net income (loss) $ 192 $ 159 $ 461 $ 501 Net income (loss) per share - basic $ 0.31 $ 0.26 $ 0.75 $ 0.81 Net income (loss) per share - diluted $ 0.31 $ 0.26 $ 0.74 $ 0.80 Weighted-average shares outstanding: Basic 611 616 615 618 Diluted 618 623 622 624 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHEN SIVE INCOME (LOSS) (Unaudited, in millions) Three Months Ended Nine Months Ended January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Net income (loss) $ 192 $ 159 $ 461 $ 501 Other comprehensive income (loss), net of taxes: Foreign currency translation gain (loss) 16 ( 69 ) 55 ( 47 ) Net unrealized gain (loss) on interest rate derivative instruments ( 1 ) 9 ( 3 ) ( 10 ) Other comprehensive income (loss), net of taxes 15 ( 60 ) 52 ( 57 ) Comprehensive income (loss) $ 207 $ 99 $ 513 $ 444 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 5 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (Unaudited, in millions, except share amounts) Three months ended January 2, 2026 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit) Shares Amount Balance as of October 3, 2025 617 $ 2,236 $ 4 $ 217 $ 2,457 Net income (loss) — — — 192 192 Other comprehensive income (loss), net of taxes — — 15 — 15 Shares withheld for taxes related to vesting of stock units — ( 4 ) — — ( 4 ) Repurchases of common stock (1) ( 11 ) ( 3 ) — ( 300 ) ( 303 ) Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued — ( 2 ) — ( 77 ) ( 79 ) Stock-based compensation — 54 — — 54 Balance as of January 2, 2026 606 $ 2,281 $ 19 $ 32 $ 2,332 Nine months ended January 2, 2026 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit) Shares Amount Balance as of March 28, 2025 617 $ 2,066 $ ( 33 ) $ 236 $ 2,269 Net income (loss) — — — 461 461 Other comprehensive income (loss), net of taxes — — 52 — 52 Common stock issued under employee stock incentive plans 7 7 — — 7 Shares withheld for taxes related to vesting of stock units ( 2 ) ( 52 ) — — ( 52 ) Repurchases of common stock (1) ( 16 ) ( 3 ) — ( 434 ) ( 437 ) Cash dividends declared ($ 0.375 per share of common stock) and dividend equivalents accrued — ( 7 ) — ( 231 ) ( 238 ) Stock-based compensation — 176 — — 176 Fair value of replacement awards issued in connection with business acquisitions — 21 — — 21 Fair value of CVR issued in connection with business acquisitions — 73 — — 73 Balance as of January 2, 2026 606 $ 2,281 $ 19 $ 32 $ 2,332 (1) Amount includes excise tax on share repurchases. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements 6 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (Unaudited, in millions, except share amounts) Three months ended December 27, 2024 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit) Shares Amount Balance as of September 27, 2024 616 $ 1,995 $ 14 $ 89 $ 2,098 Net income (loss) — — — 159 159 Other comprehensive income (loss), net of taxes — — ( 60 ) — ( 60 ) Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued — ( 2 ) — ( 77 ) ( 79 ) Stock-based compensation — 33 — — 33 Balance as of December 27, 2024 616 $ 2,026 $ ( 46 ) $ 171 $ 2,151 Nine months ended December 27, 2024 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit) Shares Amount Balance as of March 29, 2024 623 $ 2,227 $ 11 $ ( 98 ) $ 2,140 Net income (loss) — — — 501 501 Other comprehensive income (loss), net of taxes — — ( 57 ) — ( 57 ) Common stock issued under employee stock incentive plans 5 6 — — 6 Shares withheld for taxes related to vesting of restricted stock units ( 1 ) ( 25 ) — — ( 25 ) Repurchases of common stock (1) ( 11 ) ( 274 ) — — ( 274 ) Cash dividends declared ($ 0.375 per share of common stock) and dividend equivalents accrued — ( 5 ) — ( 232 ) ( 237 ) Stock-based compensation — 97 — — 97 Balance as of December 27, 2024 616 $ 2,026 $ ( 46 ) $ 171 $ 2,151 (1) Amount includes excise tax on share repurchases. The accompanying notes are an integral part of these Condensed Consolidated Financial Statements 7 Table of Contents GEN DIGITAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) Nine Months Ended January 2, 2026 December 27, 2024 OPERATING ACTIVITIES: Net income (loss) $ 461 $ 501 Adjustments: Amortization and depreciation 374 315 Impairments and write-offs of current and long-lived assets — 2 Stock-based compensation expense 175 97 Loss on sale of Instacash Advances 146 — Deferred income taxes — ( 50 ) Gain on sale of nonfinancial assets ( 15 ) — Non-cash operating lease expense 13 11 Change in fair value and impairment of non-marketable equity investments 79 30 Legal contract dispute cost — 42 Foreign currency remeasurement loss (gain) 86 ( 14 ) Other 35 10 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net ( 66 ) ( 34 ) Accounts payable ( 52 ) 35 Accrued compensation and benefits 11 16 Contract liabilities ( 1 ) ( 27 ) Income taxes payable ( 113 ) ( 136 ) Instacash Advances held for sale, net ( 148 ) — Other assets 72 75 Other liabilities 9 ( 125 ) Net cash provided by (used in) operating activities 1,066 748 INVESTING ACTIVITIES: Purchases of property and equipment ( 19 ) ( 12 ) Purchase of non-marketable equity investments — ( 4 ) Payments for acquisitions, net of cash acquired ( 876 ) — Proceeds from sale of non-marketable equity investments 13 — Proceeds from the sale of property 21 — Proceeds from sale of nonfinancial assets 40 — Other ( 1 ) ( 1 ) Net cash provided by (used in) investing activities ( 822 ) ( 17 ) FINANCING ACTIVITIES: Repayments of debt ( 660 ) ( 147 ) Proceeds from issuance of debt, net of issuance costs of $ 9 million 741 — Net proceeds from sales of common stock under employee stock incentive plans 7 6 Tax payments related to vesting of stock units ( 52 ) ( 25 ) Dividends and dividend equivalents paid ( 236 ) ( 236 ) Repurchases of common stock ( 434 ) ( 272 ) Net cash provided by (used in) financing activities ( 634 ) ( 674 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash 3 ( 20 ) Change in cash, cash equivalents and restricted cash ( 387 ) 37 Beginning cash, cash equivalents and restricted cash 1,006 846 Ending cash, cash equivalents and restricted cash $ 619 $ 883 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 8 Table of Contents GEN DIGITAL INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Description of Business and Significant Accounting Policies Business Gen Digital Inc. is a global company powering Digital Freedom through its family of consumer brands including Norton, Avast, LifeLock, MoneyLion, and more. Our portfolio spans Cyber Safety Platform and Trust-Based Solutions, delivering services that enable people to grow, manage, and protect their digital and financial lives. From cybersecurity and online privacy to identity protection and financial empowerment, our products and services are designed to meet the real-world needs of today’s digital generation. Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) for interim financial information. In the opinion of management, the unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025. The results of operations for the three and nine months ended January 2, 2026 are not necessarily indicative of the results expected for the entire fiscal year. Fiscal calendar We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three and nine month periods in this report relate to fiscal periods ended January 2, 2026 and December 27, 2024. The three months ended January 2, 2026 and December 27, 2024 each consisted of 13 weeks. The nine months ended January 2, 2026 consisted of 40 weeks, whereas the nine months ended December 27, 2024 consisted of 39 weeks. Our 2026 fiscal year consists of 53 weeks and ends on April 3, 2026. Use of estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and accompanying Notes. Such estimates include, but are not limited to, valuation of business combinations including acquired intangible assets and goodwill, loss contingencies, provision for credit losses, valuation of our contingent value rights (CVRs), the recognition and measurement of current and deferred income taxes, including assessment of unrecognized tax benefits, and valuation of assets and liabilities. On an ongoing basis, management determines these estimates and assumptions based on historical experience and on various other assumptions that are believed to be reasonable. Third-party valuation specialists are also utilized for certain estimates. Actual results could differ from such estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment as a result of macroeconomic factors such as inflation, fluctuations in foreign currency exchange rates relative to the U.S. dollar, our reporting currency, changes in interest rates, ongoing and new geopolitical conflicts, and such differences may be material to the Condensed Consolidated Financial Statements. Significant accounting policies Significant accounting policies assumed and adopted as a result of our acquisition of MoneyLion. Revenue Recognition We adopted additional revenue recognition policies for Trust-Based Solutions that differ from our prior subscription-based software revenue model. Refer to our revenue recognition policy in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025. Specifically, MoneyLion recognizes revenue from stand-ready referral arrangements based on variable transaction prices within the period in which services are provided, to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Refer to Note 3 for discussion on revenue recognition related to our Instacash Advances. Net Interest Income on Notes Receivables Net interest income on notes receivables is generated by interest earned on our Credit Builder Loan product, which are classified as notes receivables within accounts receivable, net on the Condensed Consolidated Balance Sheet. Interest income and the related accrued interest receivables on notes receivables are accrued based upon the daily principal amount outstanding except for loans that are on nonaccrual status. We recognize interest income using the effective interest method. Our policy is to suspend recognition of interest income on notes receivables and place the loan on nonaccrual status when the account is 60 days or more past due on a contractual basis or when, in our estimation, the collectability of the account is uncertain and has not yet been charged-off. 9 Table of Contents Allowance for Losses We maintain an allowance for credit losses on trade receivables, notes receivables and related accrued interest, and retained Instacash Advances to cover current expected credit losses as of the balance sheet date. The allowance is recorded through a provision for credit losses, and subsequent charge-offs, net of recoveries, are applied directly against this allowance. The allowance is based on management’s assessment of several factors, with primary consideration given to recent trends in delinquencies and charge-offs, given the short-term nature of our receivables. Our policy is to charge-off notes receivables, related accrued interest, and certain trade receivables, net of expected recoveries, in the month an account becomes 90 days contractually past due. If an account is deemed to be uncollectible prior to this date, we will charge-off the receivable in the month it is determined to be uncollectible. We determine the past due status using the contractual payment terms (credit quality indicator). Sale of Instacash Advances Sales of Instacash Advances (the amount advanced to the customer) are accounted for as a sale when we determine that the Instacash Advances meet all the necessary criteria, including legal isolation for transferred assets, lack of constraint on the transferee to pledge or exchange the transferred assets for their benefit and the transfer of control. As a result, we no longer record these Instacash Advances in our Condensed Consolidated Financial Statements. We have also concluded that our continuing involvement in the sales arrangement does not affect this determination. We retain the servicing rights for the Instacash Advances sold and receive a market-based service fee for servicing the assets sold. Instacash Advances held for sale are recorded at the lower of cost or fair value. If fair value is lower than cost, the difference between cost and fair value is recorded as a component of loss on sale within our sales and marketing expense in the Condensed Consolidated Statement of Operations. If we no longer have the intent to sell Instacash Advances held for sale, they are reclassified to Accounts Receivables, net. Contingent Value Rights We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity and ASC 815, Derivatives and Hedging . The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of liability pursuant to ASC 480, and whether the warrants meet all the requirements for equity classification under ASC 815, including whether the warrants are indexed to our own common stock, among other conditions for equity classification. The currently outstanding CVRs issued as part of the MoneyLion acquisition consideration are classified as equity under these conditions. Government Regulation We are subject to various state and federal laws and regulations in each of the states in which we operate, which are subject to change and may impose significant costs or limitations on the way we conduct or expand our business. Our consumer loans are originated under individual state laws, which may carry different rate and rate limits, and have varying terms and conditions depending upon the state in which they are offered. We are also subject to state licensing requirements of each individual U.S. state in which we operate, including with respect to certain consumer lending, life insurance and mortgage products and services that we offer directly or to which we connect consumers through third parties. Other governmental regulations include, but are not limited to, imposed limits on certain charges, insurance products and required licensing and qualifications. Restricted Cash Restricted cash consists of cash required to be held in reserve by our vendors to support loan and Instacash Advance processing and funding activities. All cash accounts are held in federally insured institutions, which may at times exceed federally insured limits. With the exception of those discussed in Note 2 and new significant accounting policies as a result of our acquisition of MoneyLion, there have been no material changes to our significant accounting policies as of and for the three and nine months ended January 2, 2026, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended March 28, 2025. Note 2. Recent Accounting Standards Recently issued authoritative guidance not yet adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. In December 2023, the FASB issued new guidance to update income tax disclosure requirements, requiring disaggregated information about an entity’s effective tax rate reconciliation as well as income taxes paid. This is effective for fiscal years beginning after December 15, 2024. We will adopt the standard in our Annual Report on Form 10-K for the fiscal year ended April 3, 2026. The adoption of the standard will modify our disclosures but will not have an impact on our consolidated financial position, results of operations or statement of cash flows. ASU 2024-03, Income Statement - Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures. In November 2024, the FASB issued new guidance requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. This is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after 10 Table of Contents December 15, 2027. We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures. ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. In September 2025, the FASB issued new guidance to improve the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods, including methods that entities may use to develop software in the future. This is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures. Note 3. Sale of Instacash Advances Instacash Advance Product Overview Instacash Advances are our non-recourse earned wage access (EWA) product that provides customers with early access to their anticipated income deposits. Customers who link a bank account can access Instacash Advances at any time during a regular deposit period, up to an approved limit. This product gives customers financial flexibility to address short-term cash needs. Instacash Advance eligibility is based on verification of the customer’s identity, the linked bank account and identification of recurring income deposits. Repayments are made via pre-authorized bank debits, which customers may cancel without penalty, modify, defer, or reschedule within allowable limits. Customers must be current on Instacash Advance repayments in order to access new ones. Instacash Advances do not bear interest or mandatory fees. There are no fees for standard fund delivery, although expedited delivery is available for an optional fee (Turbo Fee). Customers may also leave an optional tip (Tip) for use of the service. Accounting for Instacash Advances Instacash Advances are not loans. The customer has no contractual obligation to repay an Instacash Advance although the customer must be current on Instacash Advance repayments to request another Instacash Advance. At the point of Instacash Advance origination, the customer requests an available Instacash Advance amount, decides whether to incur an optional Turbo Fee and leave a Tip, confirms the scheduled repayment date and authorizes automatic debit repayment. In the absence of directly applicable authoritative guidance, although Instacash Advances do not meet the U.S. GAAP definition of financial assets, we believe that financial asset accounting is the most relevant for financial reporting purposes, as there is a history of customers repaying the amount advanced. We originate Instacash Advances with an intent to immediately sell, and sales of Instacash Advances are accounted for as sales under ASC 860, Transfers and Servicing (ASC 860), when all required conditions are met, including legal isolation of the transferred assets, no constraints on the transferee’s ability to pledge or exchange the assets, and no effective control over the assets. Instacash Advances are sold pursuant to a Master Receivables Purchase Agreement (the Purchase Agreement) with Sound Point Capital Management LP (Sound Point). The Purchase Agreement allows the purchasers to acquire, on a committed basis and subject to certain conditions and concentration limits, a majority of our eligible Instacash Advances, up to an aggregate facility limit of $ 225 million at any given time. The Purchase Agreement has an initial two-year term beginning on June 30, 2024, with a one-year extension option upon mutual agreement. During the three and nine months ended January 2, 2026, we sold $ 1,084 million and $ 2,912 million, respectively, of Instacash Advances under the Purchase Agreement and had $ 24 million of unused capacity as of January 2, 2026. Optional Turbo Fees and Tips associated with Instacash Advances are excluded from the sale and are not transferred under the Purchase Agreement. Each Instacash Advance portfolio is initially priced at a fixed discount based on historical portfolio performance and loss rates. Future purchase prices are subject to adjustment based on the updated portfolio performance and changes to the applicable discount rate. Consistent with ASC 860, Instacash Advances sold under the Purchase Agreement are removed from our balance sheet. We retain the associated servicing rights and earn a market-based servicing fee. Turbo Fees and Tips associated with Instacash Advances are not transferred under the Purchase Agreement. Turbo Fees and Tips are recognized after performance is completed and cash is collected. Instacash Advances that have been originated and are pending sale under the Purchase Agreement are classified as held for sale and are measured at the lower of cost or fair value. During the three and nine months ended January 2, 2026, we recognized $ 55 million and $ 146 million, respectively, in loss on the mark-to-market and sale of Instacash Advances, which is recorded in sales and marketing in our Condensed Consolidated Statement of Operations. If an Instacash Advance does not qualify for sale pursuant to the Purchase Agreement or if the intent to sell ceases, the Instacash Advance is reclassified to Accounts receivable, net, and carried at net realizable value. In connection with the Purchase Agreement, MoneyLion Technologies Inc. (the Servicer), a wholly owned subsidiary of ours, entered into a Servicing Agreement with Sound Point and the purchasers party thereto. Under this agreement, we are responsible for servicing the sold receivables, including collections, remittances, and reporting. We earn a fixed percentage of net collections as a servicing fee, which is recognized as income when collections are received. As of January 2, 2026, we were responsible for servicing $ 275 million of Instacash Advances sold under the Purchase Agreement. For the three and nine months 11 Table of Contents ended January 2, 2026, we recognized $ 16 million and $ 42 million, respectively, in servicing income, recorded in Net revenues in our Condensed Consolidated Statement of Operations. As of January 2, 2026, we have $ 23 million payable to Sound Point relating to the servicing activity, which will be settled using restricted cash and receivables from payment processors recorded in Other current assets. Refer to Note 7 for a breakdown of our Instacash Advances balance, which are included in accounts receivable, net in our Condensed Consolidated Balance Sheets. Note 4. Business Combinations Acquisition of MoneyLion On December 10, 2024, we entered into a definitive agreement to acquire MoneyLion. We completed the acquisition of MoneyLion on April 17, 2025. MoneyLion extends our identity solutions into offering comprehensive financial wellness through MoneyLion’s full-featured personal finance platform that includes credit building and financial management services. Under the terms of the definitive agreement, each share of Class A common stock, par value $ 0.0001 per share, of MoneyLion, that was issued and outstanding as of immediately prior to the effective time of the acquisition was automatically cancelled, extinguished, and converted into the right to receive cash in an amount equal to $ 82.00 , without interest thereon. Additionally, we cancelled all in-the money outstanding stock options, whether vested or unvested, and converted into the right to receive (i) an amount in cash, without interest thereon, equal to the product obtained by multiplying (a) the number of in-the-money outstanding stock option immediately prior to the close by (b) the excess, if any, of MoneyLion’s closing stock price over the exercise price per share of such in-the-money stock option and (ii) one CVR in respect of each in-the-money stock option immediately prior to the close. Any outstanding stock option with an exercise price greater than or equal to MoneyLion’s closing stock price per share was forfeited and canceled for no consideration. We paid cash consideration of approximately $ 935 million for 100 % of MoneyLion’s issued and outstanding common stock and in-the-money outstanding stock options. In addition, for each share owned, MoneyLion shareholders received at closing one CVR that entitles the holder to a contingent payment of $ 23.00 in the form of shares of our common stock (issuable based on an assumed share price of $ 30.48 per Gen share) if our average volume-weighted average share price reaches at least $ 37.50 per share over 30 consecutive trading days from December 10, 2024 until April 17, 2027. As of the close of the acquisition, we issued 12 million CVRs representing a fair value of approximately $ 73 million. Refer to Note 14 for further discussion on the CVRs. Additionally, all outstanding and unvested restricted stock units (RSUs) and performance share units (PSUs) were assumed and converted into 4 million service-based RSUs of Gen’s common stock. The conversion was calculated by multiplying the total number of unvested RSUs and PSUs by an equity conversion ratio of 3.48 . All converted RSUs will vest in accordance with the vesting period set forth in the original award agreement assuming continued service by the recipients through such date. The total fair value of these converted restricted stock awards was approximately $ 92 million, which $ 21 million was for pre-combination services and therefore, represents purchase consideration and $ 71 million will be recognized as stock-compensation expense over the requisite service period. Consideration transferred The total preliminary consideration for the acquisition of MoneyLion was approximately $ 970 million, net of cash acquired, and consisted of the following: (In millions) April 17, 2025 Cash consideration for outstanding MoneyLion common shares $ 935 Fair value of assumed and converted equity awards 21 Fair value of CVRs 73 Total consideration 1,029 Less cash acquired 59 Net consideration transferred $ 970 Fair value of assets acquired and liabilities assumed We accounted for the acquisition of MoneyLion as a business combination. The identifiable assets acquired, and liabilities assumed of MoneyLion were recorded at their estimated fair values as of the acquisition date. The allocation of purchase price requires management to make significant estimates and assumptions in determining the fair values of the assets acquired and liabilities assumed, especially with respect to intangible assets. Third-party valuation specialists were also utilized for certain estimates. Our preliminary allocation of the aggregate purchase price, based on the estimated fair values of the assets acquired and liabilities assumed, as of the acquisition date, inclusive of measurement period adjustments, is as follows: 12 Table of Contents (In millions) April 17, 2025 Assets: Accounts receivable (1) $ 140 Other current assets 51 Assets held for sale 14 Property and equipment 2 Operating lease assets 14 Intangible assets 347 Goodwill 567 Other long-term assets 51 Total assets acquired 1,186 Liabilities: Accounts payable 41 Current liabilities 108 Contract liabilities 1 Operating lease liabilities 14 Other long-term obligations 52 Total liabilities assumed 216 Total purchase price $ 970 (1) Gross accounts receivable at acquisition date and the amount of receivables expected to be collected are materially the same. The allocation of the purchase price is based upon a preliminary valuation, as additional information becomes available, our estimates and assumptions may be subject to refinement within the measurement period, which may be up to one year from the acquisition date. Adjustments to the purchase price may require adjustments to goodwill prospectively. The primary areas of preliminary purchase price allocation that are not yet finalized include certain tax and litigation matters. During the third quarter of fiscal 2026, we recorded measurement period adjustments resulting in an increase to goodwill of $ 8 million, net of tax, primarily related to pre-acquisition litigation of MoneyLion, which resulted in an increase of $ 2 million to other long-term assets and an increase of $ 10 million to other long-term obligations. The preliminary goodwill of $ 567 million represents the excess of the consideration transferred over the fair values of the assets acquired and liabilities assumed. It is attributable to the expected synergies of the acquisition, including future cost savings from planned integration of infrastructure, facilities, personnel and systems, and other benefits that are anticipated to be generated by combining both companies. Goodwill is allocated to our Trust-Based Solutions Segment. The goodwill recognized is not expected to be deductible for U.S. tax purposes. See Note 6 for further information on goodwill. Preliminary identified intangible assets and their respective useful lives, as of April 17, 2025, are as follows: 13 Table of Contents (In millions, except for useful lives) Fair Value Weighted-Average Estimated Useful Life (Years) Customer and partner relationships (1) $ 102 3 Developed technology (2) 161 5 Finite-lived trade names and other (3) 84 8 Total identified intangible assets $ 347 (1) Customer and partner relationships include marketplace partner relationships, banking partner relationships, and customer relationships of $ 42 million, $ 4 million, and $ 56 million, respectively. Marketplace partner relationships were valued using the multi-period excess earnings method (MPEEM), which is a form of the income approach, which considers significant assumptions like discount rate, long-term growth rate, and attrition factor. Banking partner relationships and customer relationships were valued using the replacement cost approach. The replacement cost approach is a valuation method that relies on estimating the replacement costs of assets based on the cost that a market participant would incur to generate the acquired portfolio of relationships. (2) Developed technology was valued using the Relief-from-Royalty method, which is a form of the income approach, which considers significant assumptions like long-term growth rates, royalty rates, discount rates, and obsolescence rates. (3) Finite-lived trade names and other include content library and the MoneyLion trade name intangibles of $ 14 million and $ 70 million, respectively. Content library was valued using the replacement cost approach, which relies on estimating the replacement cost of the asset based on the cost of a market participant would incur to reconstruct a substitute asset of comparable utility. The MoneyLion trade name was valued using the Relief-from-Royalty method, which considers significant assumptions like long-term growth rates, royalty rates, discount rates, and probability of use. Financing In connection with our acquisition of MoneyLion, we entered into the Second Amendment to Amended and Restated Credit Agreement (the Second Amendment) with certain financial institutions to fund a portion of the cash consideration paid, in which they agreed to provide to us a $ 750 million Incremental Term B Facility, which matures on April 16, 2032. We incurred $ 9 million of debt issuance costs associated with the Incremental Term B Facility, which was capitalized and included in long-term debt in our Condensed Consolidated Balance Sheets. See Note 10 for further information about this debt instrument and the related debt covenants. Impact on operating results Our results of operations for the three and nine months ended January 2, 2026 includes $ 218 million and $ 588 million, respectively, of net revenues attributable to MoneyLion beginning April 17, 2025. It is impracticable to provide after-tax earnings attributable to MoneyLion subsequent to the acquisition due to the integration of our operations. We do not consider MoneyLion to be a separate operating unit or separate reporting segment, but rather an integrated brand, selling and marketing strategy within our Trust-Based Solutions segment. We recognized immaterial transaction costs for the three and nine months ended January 2, 2026. These costs were primarily associated with legal and professional services, which were expensed as incurred and included in general and administrative expenses in our Condensed Consolidated Statement of Operations. Unaudited pro forma information The following unaudited pro forma financial information represents the combined historical results for the three and nine months ended January 2, 2026 and December 27, 2024, as if the acquisition had been completed on March 30, 2024, the first day of fiscal 2025. The results below include the alignment of fiscal reporting periods and the impact of nonrecurring proforma adjustments, including amortization of acquired intangible assets, interest on debt issued to finance the acquisition, stock-based compensation related to awards issued in conjunction with the acquisition, acquisition-related transaction costs, accounting policy alignment and the income tax effect of other pro forma adjustments. The unaudited pro forma results do not include any anticipated synergies or other expected benefits of the acquisition. The following table summarizes the unaudited pro forma financial information: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Net revenues $ 1,240 $ 1,118 $ 3,749 $ 3,304 Net income (loss) $ 205 $ 129 $ 488 $ 433 The unaudited pro forma financial information is provided for informational purposes only and is not indicative of future operations or results that would have been achieved had the acquisition been completed as of the beginning of fiscal 2025. 14 Table of Contents Note 5. Revenues Disaggregation of revenues The following table summarizes the components of our net revenues: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Subscription and service revenue (1) $ 1,236 $ 986 $ 3,705 $ 2,925 Net interest income on notes receivable 4 — 12 — Net revenues $ 1,240 $ 986 $ 3,717 $ 2,925 (1) Subscription and service revenue includes amounts related to our Instacash Advances of $ 127 million and $ 338 million, during the three and nine months ended January 2, 2026, respectively. Refer to Note 3 for additional information regarding our Instacash Advances. Contract liabilities During the three and nine months ended January 2, 2026, we recognized $ 740 million and $ 1,677 million from the contract liabilities balances at October 3, 2025 and March 28, 2025, respectively. During the three and nine months ended December 27, 2024, we recognized $ 742 million and $ 1,620 million from the contract liabilities balances as of September 27, 2024 and March 29, 2024, respectively. Remaining performance obligations Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and, when applicable, amounts that will be billed and recognized as revenue in future periods. As of January 2, 2026, we had $ 1,250 million of remaining performance obligations, excluding customer deposit liabilities of $ 656 million, of which we expect to recognize approximately 94 % as revenue over the next 12 months. See Note 17 for tabular disclosures of disaggregated revenue by reportable segment and geographic region. Note 6. Goodwill and Intangible Assets Goodwill Subsequent to the completion of our acquisition of MoneyLion on April 17, 2025, our portfolio now spans two reportable segments, Cyber Safety Platform and Trust-Based Solutions. See Note 17 for additional information on our reportable segments and Note 4 for additional information on our acquisition of MoneyLion. We perform an impairment assessment of goodwill at the reporting unit level at least annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. As a result of the change in reportable segments, our reporting units also changed. We used the relative fair value method to allocate goodwill to the associated reporting units. In connection with the preparation of our Condensed Consolidated Financial Statements for the fiscal quarter ended July 4, 2025, we tested goodwill for impairment immediately before and after the change. As a result of these analyses, we determined that goodwill was not impaired before or after the change. To determine the fair value of a reporting unit, we utilized a combination of the income and market approaches, applying equal weighting to both. The income approach is estimated through discounted cash flow analysis, which requires us to use significant estimates and assumptions, including long-term growth rates, discount rates, and other inputs. The market approach estimates the fair value of the reporting unit by utilizing the market comparable method, which is based on various market-based valuation multiples. The changes in the carrying amount of goodwill allocated to our reportable segments are as follows: (In millions) Cyber Safety Platform Trust-Based Solutions Total Balance as of March 28, 2025 $ 7,371 $ 2,866 $ 10,237 Acquisitions — 567 567 Translation adjustments 31 12 43 Balance as of January 2, 2026 $ 7,402 $ 3,445 $ 10,847 15 Table of Contents Intangible assets, net The following table summarizes the components of our intangible assets, net: January 2, 2026 March 28, 2025 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 1,222 $ ( 572 ) $ 650 $ 1,159 $ ( 442 ) $ 717 Developed technology 1,451 ( 766 ) 685 1,332 ( 595 ) 737 Other 180 ( 42 ) 138 98 ( 24 ) 74 Total finite-lived intangible assets 2,853 ( 1,380 ) 1,473 2,589 ( 1,061 ) 1,528 Indefinite-lived trade names 739 — 739 739 — 739 Total intangible assets $ 3,592 $ ( 1,380 ) $ 2,212 $ 3,328 $ ( 1,061 ) $ 2,267 Amortization expense for purchased intangible assets is summarized below: Three Months Ended Nine Months Ended Condensed Consolidated Statements of Operations Classification (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Customer relationships and other $ 55 $ 43 $ 164 $ 130 Operating expenses Developed technology 67 56 198 171 Cost of revenues Total $ 122 $ 99 $ 362 $ 301 As of January 2, 2026, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) Remainder of 2026 $ 115 2027 460 2028 456 2029 281 2030 110 Thereafter 51 Total $ 1,473 Asset purchase agreement In October 2025, we entered into a purchase agreement to sell certain developed technology and assets for $ 40 million plus the assumption of liabilities related to our digital identity offering to a third-party, who previously licensed the use of the intellectual property from us. We completed the transaction in November 2025. Pursuant to the sale, we derecognized developed technology and other assets, net of associated liabilities, with an aggregate carrying value of approximately $ 22 million. We accounted for the transaction as a sale of nonfinancial assets under ASC Topic 610-20, Gains and Losses from the Derecognition of Nonfinancial assets . We recognized a gain on sale of nonfinancial assets of approximately $ 15 million during the three and nine months ended January 2, 2026, which is included as part of Other income (expense), net in our Condensed Consolidated Statement of Operations. 16 Table of Contents Note 7. Supplementary Information Cash, cash equivalents and restricted cash: (In millions) January 2, 2026 March 28, 2025 Cash $ 332 $ 462 Cash equivalents 284 544 Restricted cash 3 — Total cash, cash equivalents and restricted cash $ 619 $ 1,006 Accounts receivable, net: (In millions) January 2, 2026 March 28, 2025 Trade receivable $ 237 $ 173 Notes receivable 132 — Instacash Advances 1 — Allowance for doubtful accounts ( 9 ) ( 2 ) Total accounts receivable, net $ 361 $ 171 Assets held for sale: (In millions) January 2, 2026 March 28, 2025 Properties held for sale $ — $ 22 Instacash Advances held for sale 16 — Total assets held for sale $ 16 $ 22 Properties held for sale In October 2025, we completed the sale of certain land and buildings in Dublin, Ireland, which were previously classified to assets held for sale during the fourth quarter of fiscal year 2023 for cash consideration of $ 12 million, net of transaction costs, and recognized an immaterial gain on sale. Instacash Advances held for sale Instacash Advances held for sale as of January 2, 2026, represent Instacash Advances that we originated and are pending sale under the Purchase Agreement. Refer to Note 3 for additional information regarding the sale of our Instacash Advances. Short-term contract liabilities: (In millions) January 2, 2026 March 28, 2025 Deferred revenue $ 1,166 $ 1,189 Customer deposit liabilities 656 657 Total short-term contract liabilities $ 1,822 $ 1,846 Supplemental cash flow information: Nine Months Ended (In millions) January 2, 2026 December 27, 2024 Income taxes paid (received), net of refunds $ 371 $ 394 Interest expense paid $ 465 $ 445 Cash paid for amounts included in the measurement of operating lease liabilities $ 15 $ 13 Originations of certain Instacash Advances held for sale $ ( 2,912 ) $ — Proceeds from the sale of certain Instacash Advances $ 2,764 $ — Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ 18 $ 4 Reduction (increase) of operating lease assets as a result of lease terminations and modifications $ ( 6 ) $ ( 13 ) Non-cash investing and financing activities: Purchases of property and equipment in current liabilities $ — $ 1 Note 8. Financial Instruments and Fair Value Measurements For financial instruments measured at fair value, fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, 17 Table of Contents we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability. The three levels of inputs that may be used to measure fair value are: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active markets or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. We monitor and review the inputs and results of these valuation models to help ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes. Assets measured and recorded at fair value on a recurring basis The following table summarizes our financial instruments measured at fair value on a recurring basis: January 2, 2026 March 28, 2025 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 264 $ 264 $ — $ 544 $ 544 $ — Time deposits 20 — 20 — — — Interest rate swaps (1) — — — 3 — 3 Total assets $ 284 $ 264 $ 20 $ 547 $ 544 $ 3 (1) The fair value of the interest rate swaps are less than $ 1 million as of January 2, 2026. Financial instruments not recorded at fair value on a recurring basis include our non-marketable equity investments and long-term debt. Non-marketable equity investments As of January 2, 2026 and March 28, 2025, the carrying value of our non-marketable equity investments was $ 16 million and $ 109 million, respectively, and is included in Other long-term assets in our Condensed Consolidated Balance Sheets. During the three and nine months ended January 2, 2026, we sold an equity interest in a non-marketable equity investment. In connection with the sale, we received both cash proceeds and non-cash proceeds in the form of an equity investment. We recognized a gain of $ 11 million, which is included in Other income (expense), net in our Condensed Consolidated Statement of Operations. We also recognized other immaterial losses on sale of our non-marketable equity investments during the three and nine months ended January 2, 2026, in Other income (expense), net in our Condensed Consolidated Statement of Operations. We recognized impairments of $ 10 million and $ 90 million on our non-marketable equity investments during the three and nine months ended January 2, 2026, respectively, in Other income (expense), net in our Condensed Consolidated Statement of Operations. We recognized an impairment of $ 30 million on our non-marketable equity investments during the three and nine months ended December 27, 2024, in Other income (expense), net in our Condensed Consolidated Statement of Operations. Current and long-term debt As of January 2, 2026 and March 28, 2025, the total fair value of our current and long-term fixed rate debt was $ 2,514 million and $ 2,475 million, respectively. The fair value of our variable rate debt approximated their carrying value. The fair values of all our debt obligations were based on Level 2 inputs. Note 9. Leases We lease certain facilities, equipment and data center co-locations under operating leases that expire on various dates through fiscal 2033. Our leases generally have terms that range from 1 year to 9 years for our facilities, 1 year to 4 years for equipment and 1 year to 5 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions and leasehold improvement incentives. The following summarizes our lease costs: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Operating lease costs $ 5 $ 3 $ 14 $ 10 Short-term lease costs — 1 1 2 Variable lease costs 1 1 3 3 Total lease costs $ 6 $ 5 $ 18 $ 15 18 Table of Contents Other information related to our operating leases was as follows: January 2, 2026 March 28, 2025 Weighted-average remaining lease term 4.3 years 4.7 years Weighted-average discount rate 6.09 % 5.71 % See Note 7 for cash flow information related to our operating leases. As of January 2, 2026, the maturities of our lease liabilities by fiscal year are as follows: (In millions) Remainder of 2026 $ 3 2027 23 2028 16 2029 14 2030 12 Thereafter 8 Total lease payments 76 Less: Imputed interest ( 9 ) Present value of lease liabilities $ 67 Note 10. Debt The following table summarizes components of our debt: (In millions, except percentages) January 2, 2026 March 28, 2025 Effective Interest Rate Term A Facility due September 12, 2027 $ 2,949 $ 3,519 SOFR + % 6.75 % Senior Notes due September 30, 2027 900 900 6.75 % Term B Facility due September 12, 2029 2,349 2,386 SOFR + % 7.125 % Senior Notes due September 30, 2030 600 600 7.13 % Incremental Term B Facility due April 16, 2032 746 — SOFR + % 6.25 % Senior Notes due April 1, 2033 950 950 6.25 % Total principal amount 8,494 8,355 Less: unamortized discount and issuance costs ( 87 ) ( 96 ) Total debt 8,407 8,259 Less: current portion ( 240 ) ( 291 ) Total long-term debt $ 8,167 $ 7,968 As of January 2, 2026, the future contractual maturities of debt by fiscal year are as follows: (In millions) Remainder of 2026 $ 60 2027 240 2028 3,649 2029 44 2030 2,237 Thereafter 2,264 Total future maturities of debt $ 8,494 Other debt In December 2021, ROAR 2 SPV Finance LLC, a wholly owned indirect subsidiary of MoneyLion Inc. that was previously consolidated as a variable interest entity (VIE) (the ROAR 2 SPV Borrower), entered into a credit agreement (the ROAR 2 SPV Credit Facility) to finance a portion of MoneyLion’s notes receivables. Under this arrangement, MoneyLion sold certain originated loans and receivables to the ROAR 2 SPV Borrower, which pledged these receivables and related cash flows, along with required cash collateral, to secure borrowings under the ROAR 2 SPV Credit Facility. The underlying loans and receivables were originated and serviced by other wholly owned subsidiaries. The ROAR 2 SPV Borrower was evaluated for consolidation and previously was determined to be a VIE requiring consolidation. In December 2025, the ROAR 2 SPV Credit Facility was repaid and expired in accordance with its terms and there is no longer a variable interest. We continue to consolidate ROAR 2 SPV Finance LLC as a wholly-owned subsidiary under the voting equity interest model. Debt covenant compliance 19 Table of Contents The Amended Credit Agreement, which includes our Term Loans and Revolving Facility, contains customary representations and warranties, affirmative and negative covenants. Each of the Revolving Facility and Term A Facility are subject to a covenant that we maintain a consolidated leverage ratio less than or equal to (i) 6.0 to 1.0 from the second quarter of fiscal 2023 through the last day of the second quarter of fiscal 2024, (ii) 5.75 to 1.0 following the last day of the second quarter of fiscal 2024 through the last day of the second quarter of fiscal 2025 and (iii) 5.25 to 1.0 for each fiscal quarter thereafter; provided that such maximum consolidated leverage ratio will increase to 5.75 to 1.0 for the four fiscal quarters ending immediately should we acquire property, business or assets in an aggregate amount greater than $ 250 million. In addition, the Amended Credit Agreement contains customary events of default under which our payment obligations may be accelerated, including, among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of certain covenants, payment and acceleration cross defaults with certain other indebtedness, certain undischarged judgments, bankruptcy, insolvency or inability to pay debts, change of control, the occurrence of certain events related to the Employee Retirement Income Security Act of 1974 (ERISA), and a change of control event. As of January 2, 2026, we were in compliance with all financial debt covenants. Note 11. Derivatives Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flow associated with changes in foreign currency exchange rates and interest rates. These hedging contracts reduce, but do not entirely eliminate the impact of adverse foreign exchange rates and interest rate movements. We do not use our derivative instruments for speculative trading purposes. By using derivative financial instruments to hedge exposures to changes in foreign exchange and interest rates, we are exposed to credit risk; however, we mitigate this risk by entering into hedging instruments with highly rated institutions that can be expected to fully perform under the terms of the applicable contracts. Foreign currency exchange forward contracts We conduct business in numerous currencies throughout our worldwide operations, and our entities hold monetary assets or liabilities, earn revenues, or incur costs in currencies other than the entity’s functional currency. As a result, we are exposed to foreign exchange gains or losses, which impacts our operating results. As part of our foreign currency risk mitigation strategy, we have entered into monthly foreign exchange forward contracts to hedge foreign currency balance sheet exposure. These forward contracts are not designated as hedging instruments. We do not hedge our foreign currency exposure in a manner that entirely offsets the effects of the changes in foreign exchange rates. As of January 2, 2026 and March 28, 2025, the notional amounts of foreign exchange contracts not designated as hedging instruments were $ 279 million and $ 230 million, respectively. Interest rate swap In March 2023, we entered into interest rate swap agreements to mitigate risks associated with the variable interest rate of our Term A Facility. These pay-fixed, receive-floating rate interest rate swaps have the economic effect of hedging the variability of forecasted interest payments until their maturity on March 31, 2026. Pursuant to the agreements, we have effectively converted $ 1 billion of our variable rate borrowings under our Term A Facility to fixed rates, with $ 500 million at a fixed rate of 3.762 % and $ 500 million at a fixed rate of 3.55 %. These arrangements are designated as cash flow hedges for accounting purposes and as such, we will recognize the changes in the fair value of these interest rate swaps in Accumulated other comprehensive income (loss) (AOCI), and the periodic settlements or accrued settlements of the swap will be recognized within or against interest expense in our Condensed Consolidated Statements of Operations. Cash flows related to these hedges are classified under operating activities in our Condensed Consolidated Statements of Cash Flows. As of January 2, 2026 and March 28, 2025, the notional amount of interest rate swap contracts designated as cash flow hedges were $ 1,000 million. As of January 2, 2026, we estimate that an immaterial amount of net deferred losses related to our interest rate hedges will be recognized in earnings over the next 12 months. Summary The activity related to our foreign currency exchange forward contracts and interest rate swaps was immaterial as of January 2, 2026 and March 28, 2025, and for the three and nine months ended January 2, 2026 and December 27, 2024. Note 12. Restructuring and Other Costs Our restructuring and other costs consist primarily of severance and termination benefits, contract cancellation charges, asset write-offs and impairments and other exit and disposal costs. Severance costs generally include severance payments, outplacement services, health insurance coverage and legal costs. Contract cancellation charges primarily include penalties for early termination of contracts and write-offs of related prepaid assets. Other exit and disposal costs include costs to exit and consolidate facilities in connection with restructuring events. September 2022 Plan In connection with our acquisition of Avast, our Board of Directors approved a restructuring plan (the September 2022 Plan) to realize cost savings and operational synergies, which became effective upon the close of acquisition on September 12, 2022. 20 Table of Contents Actions under this plan included the reduction of our workforce, contract terminations, facilities closures, the sale of underutilized facilities, and stock-based compensation charges for accelerated equity awards to certain terminated employees. As of January 2, 2026, we have incurred cumulative costs of $ 138 million related to the September 2022 Plan. The majority of actions under the plan were completed by March 28, 2025, and thus the remaining activity and accrual balance are immaterial and we anticipate incurring only immaterial additional expenses during fiscal year 2026 as the plan winds down. April 2025 Plan In connection with our acquisition of MoneyLion, our Board of Directors approved a restructuring plan (the April 2025 Plan). Actions under this plan include the reduction of our workforce, contract terminations, facilities consolidation, asset write-offs and other restructuring costs. The total estimated cost of the plan is approximately $ 30 million, of which $ 19 million has been incurred to date under the April 2025 Plan. As of January 2, 2026, we had a restructuring liability of $ 8 million related to the April 2025 Plan. Note 13. Income Taxes The following table summarizes our effective tax rate for the periods presented: Three Months Ended Nine Months Ended (In millions, except percentages) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Income (loss) before income taxes $ 309 $ 208 $ 842 $ 742 Income tax expense (benefit) $ 117 $ 49 $ 381 $ 241 Effective tax rate 38 % 24 % 45 % 32 % Our effective tax rate for the three and nine months ended January 2, 2026 and three and nine months ended December 27, 2024, differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, increases in valuation allowances, and the U.S. taxation on foreign earnings. On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law in the United States. The Act includes various provisions that are applicable to us beginning in fiscal year 2026. These provisions include an allowance to accelerate tax deductions of certain capital expenditures, research & experimentation expenditures, and an increase to the annual limitation of tax-deductible interest expenses. The impacts of the Act are included in our operating results for the three and nine months ended January 2, 2026. The Act has not had, and is not expected to have, a material impact on our effective tax rate. Note 14. Stockholders' Equity Dividends On February 5, 2026, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in March 2026. All shares of common stock issued and outstanding and all RSUs and performance-based restricted stock units (PRUs) as of the record date will be entitled to the dividend and dividend equivalent rights, respectively, which will be paid out if and when the underlying shares are released. However, the 4 million unvested RSUs assumed in connection with the acquisition of Avast and the 4 million assumed RSUs under the MoneyLion Plan will not be entitled to dividend equivalent rights (DERs). See Note 15 for further information about these equity awards. Any future dividends and DERs will be subject to the approval of our Board of Directors. Contingent value rights In connection with the acquisition of MoneyLion, we issued 12 million equity-classified CVRs to MoneyLion shareholders and optionholders. The CVRs entitle holders to receive a contingent payment of $ 23.00 per CVR, payable in shares of Gen’s common stock, if our average volume-weighted average share price equals or exceeds $ 37.50 over any 30 consecutive trading days from December 10, 2024 until April 17, 2027. The CVRs were recorded as a component of additional paid-in capital at a fair value of approximately $ 73 million as of the acquisition date, based on a Monte-Carlo simulation valuation model. As of January 2, 2026, there were 12 million CVRs outstanding. Refer to Note 4 for additional information regarding the CVRs and our acquisition of MoneyLion. Stock repurchase program Under our stock repurchase program, we may purchase shares of our outstanding common stock on the open market and through accelerated stock repurchase transactions. As of January 2, 2026, we had $ 2,294 million remaining under the authorization to be completed in future periods. The following table summarizes activity related to our stock repurchase program during three and nine months ended January 2, 2026 and December 27, 2024: 21 Table of Contents Three Months Ended Nine Months Ended (In millions, except per share amounts) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Number of shares repurchased 11 — 16 11 Average price per share $ 26.57 $ — $ 26.94 $ 24.65 Aggregate purchase price $ 300 $ — $ 434 $ 272 Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss), net of taxes, consisted of foreign currency translation adjustments and unrealized gain (loss) on derivative instruments: (In millions) Foreign Currency Translation Adjustments Unrealized Gain (Loss) On Derivative Instruments Total Balance as of March 28, 2025 $ ( 36 ) $ 3 $ ( 33 ) Other comprehensive income (loss), net of taxes 55 ( 3 ) 52 Balance as of January 2, 2026 $ 19 $ — $ 19 Note 15. Stock-Based Compensation MoneyLion equity awards In connection with our acquisition of MoneyLion, all the outstanding RSUs and certain PSUs of the MoneyLion Inc. Amended and Restated Omnibus Incentive Plan (the MoneyLion Plan) were assumed and converted into 4 million unvested RSUs. The assumed and converted awards generally retain the terms and conditions under which they were originally granted. Upon vesting, the assumed and converted RSUs and any additional shares granted will settle into shares of our common stock. The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Cost of revenues $ ( 4 ) $ 1 $ ( 1 ) $ 3 Sales and marketing 21 9 64 27 Research and development 12 9 39 27 General and administrative 23 14 71 40 Restructuring and other costs 1 — 2 — Total stock-based compensation expense $ 53 $ 33 $ 175 $ 97 Income tax benefit for stock-based compensation expense $ ( 9 ) $ ( 4 ) $ ( 26 ) $ ( 12 ) As of January 2, 2026, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 412 million, which will be recognized over an estimated weighted-average amortization period of 2.56 years. Note 16. Net Income (Loss) Per Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share also includes the incremental effect of dilutive potentially issuable common shares outstanding. Dilutive potentially issuable common shares include the dilutive effect of employee equity awards. The 12 million CVRs are excluded from the diluted net income per share calculation as the contingent conditions for issuance of common shares have not yet been met within the period. The components of basic and diluted net income (loss) per share are as follows: 22 Table of Contents Three Months Ended Nine Months Ended (In millions, except per share amounts) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Net income (loss) $ 192 $ 159 $ 461 $ 501 Net income (loss) per share - basic $ 0.31 $ 0.26 $ 0.75 $ 0.81 Net income (loss) per share - diluted $ 0.31 $ 0.26 $ 0.74 $ 0.80 Weighted-average shares outstanding - basic 611 616 615 618 Dilutive potentially issuable shares: Employee equity awards 7 7 7 6 Weighted-average shares outstanding - diluted 618 623 622 624 Anti-dilutive shares excluded from diluted net income per share calculation: Employee equity awards 6 — 6 — Note 17. Segment and Geographic Information Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who manages and reviews financial information presented on an operating segment basis for the purpose of making decisions and assessing financial performance. The CODM assesses operating performance of each segment based on regularly provided segment revenue, segment operating income (loss) and margin, by comparing actual margin results to historical results and previously forecasted financial information. Operating results by segment include costs or expenses directly attributable to each segment, and costs or expenses that are leveraged across our portfolio and therefore allocated between our two segments. Our CODM reviews expenses on a consolidated basis and the expenses associated with our corporate investments. Prior to fiscal year 2026, we operated as one reportable segment, with consolidated net income (loss) serving as the primary measure of segment profit or loss. Subsequent to the completion of our acquisition of MoneyLion on April 17, 2025, our portfolio now spans two reportable segments, Cyber Safety Platform and Trust-Based Solutions, with the primary measure of segment profit or loss being updated to segment operating income (loss). Cyber Safety Platform includes our security, comprehensive suites, and privacy products, which deliver technology solutions and superior threat protection to help people navigate the digital world, securely, privately and with confidence. Trust-Based Solutions includes our identity, reputation, and financial wellness products, which provide innovative solutions and insights that empower consumers to manage their identity, reputation and finances confidently. The “Corporate” category includes expenses that are not allocated to either Cyber Safety Platform or Trust-Based Solutions for purposes of making operating decisions or assessing segment-level financial performance. The expenses include restructuring and other costs, acquisition and integration costs, litigation settlement charges, and amortization of intangible assets. Our operating segments are not evaluated using asset information. Our CODM delegates the review of the segment performance to the general manager of each respective segment. There are no intersegment transactions. The accounting policies for segment reporting are the same as for our consolidated financial statements. The following table presents details of our reportable segments and the “Corporate” category: 23 Table of Contents Cyber Safety Platform Trust-Based Solutions Corporate Consolidated (In millions) Three Months Ended January 2, 2026 Net Revenues $ 819 $ 421 $ — $ 1,240 Other segment items (1) 316 295 — 611 Operating income (loss) $ 503 $ 126 $ ( 196 ) $ 433 Nine Months Ended January 2, 2026 Net Revenues $ 2,502 $ 1,215 $ — $ 3,717 Other segment items (1) 969 846 — 1,815 Operating income (loss) $ 1,533 $ 369 $ ( 585 ) $ 1,317 Three Months Ended December 27, 2024 Net Revenues $ 799 $ 187 $ — $ 986 Other segment items (1) 320 89 — 409 Operating income (loss) $ 479 $ 98 $ ( 203 ) $ 374 Nine Months Ended December 27, 2024 Net Revenues $ 2,368 $ 557 $ — $ 2,925 Other segment items (1) 953 264 — 1,217 Operating income (loss) $ 1,415 $ 293 $ ( 515 ) $ 1,193 (1) Other segment items for our Cyber Safety Platform and Trust-Based Solutions include product costs, infrastructure and facilities expense, and compensation and benefits excluding stock-based compensation and expenses identified in “Corporate”. The table below are the reconciling items included in “Corporate” category: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Amortization of intangible assets $ 122 $ 99 $ 362 $ 301 Stock-based compensation 53 33 175 97 Unallocated cost of revenue and operating expenses 21 71 48 117 Total $ 196 $ 203 $ 585 $ 515 Geographic information Net revenues by geography are based on the billing addresses of our customers. The following table represents net revenues by geographic area for the periods presented: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Americas $ 880 $ 647 $ 2,623 $ 1,924 EMEA 263 240 788 706 APJ 97 99 306 295 Total net revenues $ 1,240 $ 986 $ 3,717 $ 2,925 Note: The Americas include U.S., Canada and Latin America; EMEA includes Europe, Middle East and Africa; APJ includes Asia Pacific and Japan. Revenues from customers inside the U.S. were $ 824 million and $ 2,452 million during the three and nine months ended January 2, 2026, respectively, and $ 589 million and $ 1,752 million during the three and nine months ended December 27, 2024, respectively. No other individual country accounted for more than 10% of revenues. The table below represents cash, cash equivalents and restricted cash held in the U.S. and internationally in various foreign subsidiaries: 24 Table of Contents (In millions) January 2, 2026 March 28, 2025 U.S. $ 216 $ 647 International 403 359 Total cash, cash equivalents and restricted cash $ 619 $ 1,006 The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented: (In millions) January 2, 2026 March 28, 2025 U.S. $ 59 $ 50 Other countries (1) 10 10 Total property and equipment, net $ 69 $ 60 (1) No individual country represented more than 10% of the respective totals. Significant customers and e-commerce partners No individual end-user customer accounted for 10% or more of our net revenues during the nine months ended January 2, 2026 and December 27, 2024. E-commerce partners that accounted for over 10% of our total billed and unbilled accounts receivable, prior to allowance of doubtful accounts, were as follows: January 2, 2026 March 28, 2025 E-commerce partner A — % 11 % Note 18. Commitments and Contingencies Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, subsidiaries and other parties with respect to certain matters, including, but not limited to, product warranties and losses arising out of our breach of agreements or representations and warranties made by us, including claims alleging that our software infringes on the intellectual property rights of a third party. In addition, our bylaws contain indemnification obligations to our directors, officers, employees, and agents, and we have entered into indemnification agreements with our directors and certain of our officers to give such directors and officers additional contractual assurances regarding the scope of the indemnification set forth in our bylaws and to provide additional procedural protections. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. We monitor the conditions that are subject to indemnification to identify if a loss has occurred. Historically, we have not incurred material costs as a result of obligations under these agreements, and we have not accrued any material liabilities related to such indemnification obligations in our Condensed Consolidated Financial Statements. Litigation contingencies From time to time, we are involved in legal proceedings, including, but not limited to, regulatory proceedings, claims, mediations, arbitrations and litigation, arising out of the ordinary course of business. We evaluate contingent liabilities including threatened or pending litigation in accordance with the authoritative guidance on contingencies. We assess the likelihood of any adverse judgments or outcomes from potential claims or proceedings for accrual or disclosure in our Condensed Consolidated Financial Statements. A determination of the amount of an accrual required, if any, for these contingencies is made after the analysis of each separate matter. Because of uncertainties related to these matters, we base our estimates on the information available at the time of our assessment. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise our estimates and disclosures. We classify our accruals for litigation contingencies in our Condensed Consolidated Balance Sheets as part of Other current liabilities or Other long-term liabilities based on when we expect to pay the claim, if at all. If the period of expected payment is within one year, we classify the amount as short-term; otherwise, it is classified as long-term. The exact timing of payment is subject to uncertainty and could change significantly from our estimated payment period. Trustees of the University of Columbia in the City of New York v. NortonLifeLock As previously disclosed, on May 2, 2022, a jury returned its verdict in a patent infringement case filed in 2013 by the Trustees of Columbia University in the City of New York (Columbia) in the U.S. District Court for the Eastern District of Virginia. The jury found that our Norton Security products and Symantec Endpoint Protection products (the latter of which were sold by us to Broadcom as part of an Asset Purchase Agreement dated November 4, 2019) willfully infringed two patents through the use of SONAR/BASH behavioral protection technology. The jury awarded damages in the amount of $ 185 million. Columbia did not seek injunctive relief against us. We believe that we have ceased the use of the technology found by the jury to infringe. The jury 25 Table of Contents also found that we did not fraudulently conceal its prosecution of a third patent but did find that two Columbia professors were coinventors of this patent. No damages were awarded related to this patent. On September 30, 2023, the court entered its judgment, which awarded Columbia (i) enhanced damages of 2.6 times the jury award; (ii) prejudgment interest, post-judgment interest, and supplemental damages to be calculated in accordance with the parties’ previous agreement; and (iii) attorneys’ fees subject to the parties meeting and conferring as to amount. We have complied with the court’s order and submitted a stipulation regarding the final calculations of all outstanding interest, royalties and attorneys’ fees. We have posted the required surety bond and have appealed the judgment to the Federal Circuit Court of Appeals, which remains pending. At this time, our current estimate of probable losses from this matter is approximately $ 609 million, which we have accrued and recorded as part of Other long-term liabilities in the Condensed Consolidated Balance Sheets . There is a reasonable possibility that a loss may be incurred in excess of our accrual for this matter; however, such incremental loss cannot be reasonably estimated. Jumpshot Matters At the end of 2019, Avast came under media scrutiny for provision of Avast customer data to its data analytics subsidiary Jumpshot Inc. Jumpshot was a subsidiary of Avast with its own management team and technical experts. Avast announced the decision to terminate its provision of data to, and wind down, Jumpshot on January 30, 2020. As Avast has previously disclosed, it has been in communication with certain regulators and authorities prior to completion of our acquisition of Avast, and we will continue cooperating fully in respect of all regulatory enquiries. On December 23, 2019, the United States Federal Trade Commission (FTC) issued a Civil Investigative Demand (CID) to Avast seeking documents and information related to its privacy practices, including Jumpshot's past use of consumer information that was provided to it by Avast. Avast responded cooperatively to the CID and related follow-up requests from the FTC. We engaged in ongoing negotiations with the FTC staff and reached a negotiated agreement on the terms of a Consent Decree resolving this investigation, the terms of which are now final. This includes a provision for a non-material amount of monetary relief, which has been paid. On February 27, 2020, the Czech Office for Personal Data Protection (the Czech DPA) initiated offense proceedings concerning Avast`s practices with respect to Jumpshot. The Czech DPA issued a decision in March 2022 finding that Avast had violated the GDPR and issued a fine of CZK 351 million. Avast appealed the decision, which was affirmed by the Czech DPA on April 10, 2024. Avast paid the fine levied by the DPA. On June 15, 2024, Avast brought a judicial action in the administrative law court challenging the decision of the Czech DPA. On October 7, 2025, the court affirmed the decision regarding liability; however, it vacated the DPA’s decision regarding the determination of the fine. Both the DPA and the Company have filed cassation complaints with the Supreme Administrative Law Court. At this stage, the fine has been returned but the matter remains pending. We have accrued an immaterial amount as our current estimate of probable loss from this matter. On March 27, 2024, Stichting CUIC – Privacy Foundation for Collective Redress, a Dutch foundation (the Foundation), filed its writ of summons to initiate a collective action. The Foundation has asserted it represents the interests of Avast customers in the Netherlands whose data was provided to Jumpshot and that by doing so Avast violated the requirements of the GDPR and other provisions in Dutch and European Union privacy and consumer law, entitling those customers to damages and other compensation, all of which we dispute. No specific amount of damages has been alleged to date. At this stage, the matter remains pending, and we are unable to assess whether any material loss or adverse effect is probable or estimate the range of any potential loss. On April 18, 2024, we received a letter before action from counsel in the United Kingdom asserting it may bring a representative action on behalf of a class of Avast users in the United Kingdom and Wales for breach of contract and misuse of private information and seeking unspecified damages and a permanent injunction. No lawsuit has been filed. We have reached an agreement in principle to resolve this matter, subject to final documentation and approval. The expected cost to resolve the matter is immaterial, and we do not expect the resolution to have a material adverse effect on our financial condition, results of operations or cash flows. The outcome of the regulatory proceedings, government enforcement actions and litigation is difficult to predict, and the cost to defend, settle or otherwise resolve these matters may be significant. Plaintiffs or regulatory agencies or authorities in these matters may seek recovery of large or indeterminate amounts or seek to impose sanctions, including significant monetary penalties, as well as equitable relief. The monetary and other impact of these litigations, proceedings or actions may remain unknown for substantial periods of time. Further, an unfavorable resolution of litigations, proceedings or actions could have a material adverse effect on our business, financial condition, and results of operations and cash flows. The amount of time that will be required to resolve these matters is unpredictable, and these matters may divert management’s attention from the day-to-day operations of our business. Any future investigations or additional lawsuits may also adversely affect our business, financial condition, results of operations and cash flows. MALKA Seller Members Litigation On July 21, 2023, Jeffrey Frommer, Lyusen Krubich, Daniel Fried and Pat Capra, the former equity owners of MALKA, a subsidiary of MoneyLion (collectively, the “Seller Members”), brought a civil action in the Southern District of New York (“SDNY”) against MoneyLion Technologies Inc. alleging, among other things, breaches of the Membership Interest Purchase Agreement (the “MIPA”) governing the acquisition of MALKA. MoneyLion filed counterclaims against the Sellers Members alleging, among other things, fraud, negligent misrepresentation, conversion, breach of fiduciary duties and breach of contract. The court issued 26 Table of Contents its decision on September 29, 2025, finding that MoneyLion breached the parties’ agreements and awarding the Sellers Members damages and attorneys’ fees and costs, for which we have accrued $ 48 million as a pre-acquisition contingency in Other long-term obligations in our Condensed Consolidated Balance Sheet. On October 28, 2025, MoneyLion filed a notice of appeal. See Note 4 for details regarding our purchase price allocation for our acquisition of MoneyLion. CFPB Litigation On September 29, 2022, the Consumer Financial Protection Bureau (the “CFPB”) initiated a civil action in the United States District Court for the SDNY against MoneyLion Technologies Inc., ML Plus LLC and the Company's 37 state lending subsidiaries, alleging violations of the Military Lending Act and the Consumer Financial Protection Act. The matter was fully resolved pursuant to a stipulated final judgment and order approved by the court on November 24, 2025. As part of the settlement, MoneyLion is providing refunds to relevant consumers. There is no fine involved in the settlement. The impact of the settlement was not material. NYAG Litigation On April 14, 2025, the Office of the Attorney General of the State of New York filed a civil action in the Supreme Court of the State of New York, County of New York, against MoneyLion Inc. The complaint alleges, among other things, that MoneyLion’s earned wage access product violates New York’s civil and criminal usury laws and asserts claims of fraud, deceptive, and false advertising practices under state law, as well as abusive and deceptive practices under the federal Consumer Financial Protection Act. On April 28, 2025, the Attorney General filed an amended complaint, adding MoneyLion Technologies Inc. and ML Plus LLC as defendants. The Company maintains that the Attorney General’s claims are without merit and is vigorously defending against the lawsuit. However, if a loss is incurred, we will adjust the acquisition accounting for MoneyLion if it occurs within the measurement period. Other We are involved in a number of other judicial, arbitrable and administrative proceedings that are incidental to our business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually or in the aggregate, is not expected to have a material adverse effect on our business, results of operations, financial condition or cash flows. During the three and nine months ended January 2, 2026, we incurred $ 10 million and $ 18 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations. During the three and nine months ended December 27, 2024, we incurred $ 63 million and $ 103 million, respectively, related to the estimated accrual and final resolutions of our litigation contingencies in our Condensed Consolidated Statements of Operations.