What changed in this filing

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Item 1. Financial Statements

2026-08-07 compared with 2026-02-06 · 197 added, 463 removed, 443 unchanged (60% of the section changed)

3 unchanged sentences

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

January 2, 2026 March 28, 2025

July 3, 2026 April 3, 2026

Current assets:

Cash, cash equivalents and restricted cash

$ 619 $ 1,006

Accounts receivable, net

26 unchanged sentences

3,000 shares authorized;

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

599 and 598 shares issued and outstanding as of July 3, 2026 and April 3, 2026, respectively

Accumulated other comprehensive income (loss) ( 7 ) 1

7 unchanged sentences

(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

Three Months Ended

July 3, 2026 July 4, 2025

Net revenues $ 1,336 $ 1,257

23 unchanged sentences

(Unaudited, in millions)

Three Months Ended Nine Months Ended

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

Three Months Ended

July 3, 2026 July 4, 2025

Net income (loss) $ 215 $ 135

1 unchanged sentence

Foreign currency translation gain (loss) ( 8 ) 59

Net unrealized gain (loss) on interest rate derivative instruments ( 1 ) 9 ( 3 ) ( 10 )

Other comprehensive income (loss), net of taxes ( 8 ) 59

4 unchanged sentences

(Unaudited, in millions, except share amounts)

Three months ended January 2, 2026

Three months ended July 3, 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

Balance as of April 3, 2026 598 $ 2,341 $ 1 $ 269 $ 2,611

Net income (loss) — — — 215 215

Other comprehensive income (loss), net of taxes — — ( 8 ) — ( 8 )

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

Shares withheld for taxes related to vesting of stock units ( 2 ) ( 40 ) — — ( 40 )

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

( 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 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)

Balance as of July 3, 2026 599 $ 2,354 $ ( 7 ) $ 309 $ 2,656

Three months ended July 4, 2025 Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity (Deficit)

Shares Amount

12 unchanged sentences

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

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

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

(1) Amount includes excise tax on share repurchases.

3 unchanged sentences

(Unaudited, in millions)

Nine Months Ended

January 2, 2026 December 27, 2024

Three Months Ended

July 3, 2026 July 4, 2025

OPERATING ACTIVITIES:

1 unchanged sentence

Amortization and depreciation 123 123

Impairments and write-offs of current and long-lived assets — 2

Stock-based compensation expense 54 66

1 unchanged sentence

Deferred income taxes ( 9 ) 11

Gain on sale of nonfinancial assets ( 15 ) —

Loss on sale of property — 1

Non-cash operating lease expense 4 4

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

Legal contract dispute cost — 42

Foreign currency remeasurement loss (gain) ( 1 ) 86

6 unchanged sentences

Instacash Advances held for sale, net

( 86 ) ( 47 )

Other assets ( 3 ) 58

3 unchanged sentences

Purchases of property and equipment ( 4 ) ( 4 )

Purchase of non-marketable equity investments — ( 4 )

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

Proceeds from sale of non-marketable equity investments 13 —

Payments for originations of notes receivable ( 85 ) —

Proceeds from principal repayments of notes receivable 77 —

Proceeds from the sale of property — 9

Proceeds from sale of nonfinancial assets 40 —

Other ( 3 ) ( 2 )

2 unchanged sentences

Repayments of debt ( 45 ) ( 191 )

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

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

Proceeds from issuance of debt, net of issuance costs (1)

Tax payments related to vesting of stock units ( 41 ) ( 44 )

6 unchanged sentences

Ending cash, cash equivalents and restricted cash

(1) Issuance costs paid for issuance of debt for three months ended July 4, 2025 were $ 9 million.

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

3 unchanged sentences

Gen Digital Inc.

is a global company powering Digital Freedom 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.

is a global leader in consumer Cyber Safety and Trust-Based Solutions, empowering people around the world to live safer digital lives while building confidence and control over their financial futures.

Through its trusted brands, including Norton, Avast, LifeLock and MoneyLion, Gen offers cybersecurity, online privacy, identity protection and financial wellness solutions to consumers worldwide.

Basis of presentation

2 unchanged sentences

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.

The results of operations for the three months ended July 3, 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.

Unless otherwise stated, references to three month periods in this report relate to fiscal periods ended July 3, 2026 and July 4, 2025.

The three months ended July 3, 2026 consisted of 13 weeks, whereas the three months ended July 4, 2025 consisted of 14 weeks.

Our 2027 fiscal year consists of 52 weeks and ends on April 2, 2027.

8 unchanged sentences

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.

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.

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

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.

There have been no material changes to our significant accounting policies as of and for the three months ended July 3, 2026, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended April 3, 2026.

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.

Our Instacash Advance product overview and accounting policy for Instacash Advances, including our conclusion that financial asset accounting is appropriate and our application of sale accounting under ASC 860, Transfers and Servicing , upon sale of Instacash Advances, is unchanged from, and described in, Note 2, Sale of Instacash Advances, of our Annual Report on Form 10-K for the fiscal year ended April 3, 2026.

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

During the first quarter of fiscal 2027, we entered into an amendment to the Purchase Agreement that increased the aggregate facility limit from $ 225 million to $ 300 million, provided for an increase in the aggregate facility limit upon notice to and at the sole discretion of Sound Point of up to $ 100 million, and extended the scheduled termination date from June 30, 2026 to July 30, 2028, unless earlier terminated in accordance with its terms.

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 the aggregate facility limit at any given time and, upon notice to Sound Point, we may request such ratable increase in unused commitments.

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

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.

During the three months ended July 3, 2026 and July 4, 2025, we sold $ 1,193 million and $ 823 million, respectively, of Instacash Advances under the Purchase Agreement and had $ 37 million of unused capacity as of July 3, 2026.

During the three months ended July 3, 2026 and July 4, 2025, we recognized $ 60 million and $ 36 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 Statements of Operations.

As of July 3, 2026, we were responsible for servicing $ 369 million of Instacash Advances sold under the Purchase Agreement.

For the three months ended July 3, 2026 and July 4, 2025, we recognized $ 17 million and $ 12 million, respectively, in servicing income, recorded in Net revenues in our Condensed Consolidated Statements of Operations.

As of July 3, 2026, we have a $ 77 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 6 for a breakdown of our Instacash Advances balance included in accounts receivable, net, in our Condensed Consolidated Balance Sheets.

These Instacash Advances are not eligible to be sold under the Purchase Agreement, and we have no intent to sell.

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

Fair value of assumed and converted equity awards

Fair value of CVRs

Total consideration 1,029

Less cash acquired

Net consideration transferred $ 970

Fair value of assets acquired and liabilities assumed

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

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

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

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

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

(In millions) April 17, 2025

Accounts receivable (1)

Other current assets 51

Assets held for sale

Property and equipment 2

Operating lease assets 14

Intangible assets 347

Other long-term assets 51

Total assets acquired 1,186

Accounts payable

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:

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

Customer and partner relationships (1)

Developed technology (2)

Finite-lived trade names and other (3)

Total identified intangible assets $ 347

(1) Customer and partner relationships include marketplace partner relationships, banking partner relationships, and customer relationships of $ 42 million, $ 4 million, and $ 56 million, respectively.

Marketplace partner relationships were valued using the multi-period excess earnings method (MPEEM), which is a form of the income approach, which considers significant assumptions like discount rate, long-term growth rate, and attrition factor.

Banking partner relationships and customer relationships were valued using the replacement cost approach.

The replacement cost approach is a valuation method that relies on estimating the replacement costs of assets based on the cost that a market participant would incur to generate the acquired portfolio of relationships.

(2) Developed technology was valued using the Relief-from-Royalty method, which is a form of the income approach, which considers significant assumptions like long-term growth rates, royalty rates, discount rates, and obsolescence rates.

(3) Finite-lived trade names and other include content library and the MoneyLion trade name intangibles of $ 14 million and $ 70 million, respectively.

Content library was valued using the replacement cost approach, which relies on estimating the replacement cost of the asset based on the cost of a market participant would incur to reconstruct a substitute asset of comparable utility.

The MoneyLion trade name was valued using the Relief-from-Royalty method, which considers significant assumptions like long-term growth rates, royalty rates, discount rates, and probability of use.

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

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

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

Impact on operating results

Our results of operations for the three 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.

Fiscal 2026 MoneyLion acquisition

On December 10, 2024, we entered into a definitive agreement to acquire MoneyLion and we completed the acquisition on April 17, 2025 for total consideration of approximately $ 951 million, net of cash acquired.

The consideration paid included cash and the fair value of assumed and converted equity awards and contingent value rights (CVRs).

We accounted for the MoneyLion acquisition as a business combination and finalized our purchase price accounting during the fourth quarter of fiscal 2026.

Refer to our Annual Report on Form 10-K for the fiscal year ended April 3, 2026 for additional information related to the MoneyLion acquisition, including the form of consideration paid and the allocation of purchase price.

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 following unaudited pro forma financial information represents the combined historical results for the three months ended July 4, 2025, 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 pro forma 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

Three Months Ended

(In millions) July 4, 2025

Net revenues $ 1,289

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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.

Fiscal 2026 acquisition

On March 10, 2026, we acquired all of the outstanding shares of a technology-enabled company that provides a digital personal insurance marketplace platform in the United States for a total purchase consideration of $ 175 million, net of $ 6 million cash acquired.

The platform delivers insurance comparison and advisory services using data-driven matching capabilities, real-time bidding technology, and conversational interfaces supported by licensed insurance advisors.

The acquisition brings additional insurance capabilities into the Engine marketplace.

The following table represents our preliminary aggregate purchase price allocation to total identifiable intangible assets acquired and net assets assumed based on their estimated fair values as of March 10, 2026:

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

Developed technology $ 26 5

Customer relationships 20 9

Strategic partnerships 19 4

Trade names 3 3

Total identified intangible assets 68

Net liabilities assumed

Total aggregate purchase price $ 181

(1) Non-deductible for tax purposes.

The allocation of the purchase price is based upon a preliminary valuation, and 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.

Goodwill is allocated to our Trust-Based Solutions segment.

During the first quarter of fiscal 2027, we recorded measurement period adjustments resulting in a decrease to goodwill of $ 51 million, net of tax, primarily related to the preliminary valuation of identifiable intangible assets acquired, which resulted in the recognition of $ 68 million of identifiable intangible assets, consisting of developed technology, customer relationships, strategic partnerships and trade names, and a $ 17 million deferred tax liability associated with these assets.

Pro forma financial information has not been presented for this acquisition as the impact to our Condensed Consolidated Financial Statements was not material.

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

Three Months Ended

(In millions) July 3, 2026 July 4, 2025

Subscription and service revenue (1)

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$ 1,336 $ 1,257

(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.

(1) Subscription and service revenue includes amounts related to our Instacash Advances of $ 147 million and $ 97 million, during the three months ended July 3, 2026 and July 4, 2025, respectively.

Refer to Note 2 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.

During the three months ended July 3, 2026, we recognized $ 765 million from the contract liabilities balances as of April 3, 2026.

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

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.

As of July 3, 2026, we had $ 1,325 million of remaining performance obligations, excluding customer deposit liabilities of $ 594 million, of which we expect to recognize approximately 94 % as revenue over the next 12 months.

See Note 14 for tabular disclosures of disaggregated revenue by reportable segment and geographic region.

Goodwill and Intangible Assets

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:

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

(In millions)

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Trust-Based Solutions

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

Acquisitions — 567 567

Balance as of April 3, 2026 $ 7,391 $ 3,605 $ 10,996

Purchase accounting adjustment — ( 51 ) ( 51 )

Translation adjustments

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

( 5 ) ( 2 ) ( 7 )

Balance as of July 3, 2026 $ 7,386 $ 3,552 $ 10,938

Intangible assets, net

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

January 2, 2026 March 28, 2025

July 3, 2026 April 3, 2026

(In millions) Gross

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Amortization expense for purchased intangible assets is summarized below:

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

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

Three Months Ended Condensed Consolidated Statements of Operations Classification

(In millions) July 3, 2026 July 4, 2025

Customer relationships and other $ 56 $ 54 Operating expenses

Developed technology 67 56 198 171 Cost of revenues

Developed technology and other 63 65 Cost of revenues

Total $ 119 $ 119

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

As of July 3, 2026, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:

(In millions)

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Total $ 1,307

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) January 2, 2026 March 28, 2025

(In millions) July 3, 2026 April 3, 2026

Cash $ 384 $ 283

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Total cash, cash equivalents and restricted cash

$ 619 $ 1,006

Accounts receivable, net:

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

(In millions) July 3, 2026 April 3, 2026

Trade receivable $ 235 $ 225

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Assets held for sale:

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

Properties held for sale $ — $ 22

(In millions) July 3, 2026 April 3, 2026

Instacash Advances held for sale

Total assets held for sale

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.

Instacash Advances held for sale as of July 3, 2026 and April 3, 2026, represent Instacash Advances that we originated and are pending sale under the Purchase Agreement.

Refer to Note 2 for additional information regarding the sale of our Instacash Advances.

Short-term contract liabilities:

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

(In millions) July 3, 2026 April 3, 2026

Deferred revenue $ 1,249 $ 1,247

1 unchanged sentence

Total short-term contract liabilities $ 1,843 $ 1,904

Other current liabilities:

(In millions) July 3, 2026 April 3, 2026

Income taxes payable $ 83 $ 47

Other taxes payable 121 131

Accrued legal fees 29 30

Accrued royalties 76 78

Accrued interest 45 6

Unremitted collections from servicing of Instacash Advances 77 32

Current operating lease liabilities 20 19

Other accrued liabilities 76 71

Total other current liabilities $ 527 $ 414

Supplemental cash flow information:

Nine Months Ended

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

Three Months Ended

(In millions) July 3, 2026 July 4, 2025

Income taxes paid (received), net of refunds $ 37 $ ( 6 )

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Proceeds from the sale of certain Instacash Advances

$ 1,107 $ 788

Non-cash operating activities:

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For financial instruments measured at fair value, fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

When determining fair value,

we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability.

When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability.

The three levels of inputs that may be used to measure fair value are:

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

January 2, 2026 March 28, 2025

July 3, 2026 April 3, 2026

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

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Time deposits — — — 22 — 22

Interest rate swaps (1)

$ 149 $ 149 $ — $ 119 $ 97 $ 22

(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.

As of July 3, 2026 and April 3, 2026, the carrying value of our non-marketable equity investments was $ 16 million, and is included in Other long-term assets in our Condensed Consolidated Balance Sheets.

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.

As of July 3, 2026 and April 3, 2026, the total fair value of our current and long-term fixed-rate debt was $ 2,454 million and $ 2,443 million, respectively.

The fair value of our variable-rate debts approximated their carrying value.

The fair values of all our debt obligations were based on Level 2 inputs.

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

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

Total lease payments 76

Imputed interest ( 9 )

Present value of lease liabilities $ 67

The following table summarizes components of our debt:

(In millions, except percentages)

January 2, 2026 March 28, 2025 Effective

July 3, 2026 April 3, 2026 Effective

Interest Rate

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

6.75 % Senior Notes due September 30, 2027

3 unchanged sentences

600 600 7.13 %

Extended Term A Facility due March 27, 2031 2,707 2,741 SOFR + %

Incremental Term B Facility due April 16, 2032 742 744 SOFR + %

7 unchanged sentences

Total long-term debt $ 7,975 $ 8,015

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

As of July 3, 2026, the future contractual maturities of debt by fiscal year, based on the currently effective stated maturity dates in force and excluding the impact of any earlier maturity that could result from a springing maturity date, are as follows:

(In millions)

2 unchanged sentences

Total future maturities of debt $ 8,230

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, 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.

The Revolving Facility and Extended Term A Facility are subject to a covenant that we maintain a consolidated leverage ratio less than or equal to 5.25 to 1.0;

provided that such maximum consolidated leverage ratio will increase to 5.75 to 1.0 for the four fiscal quarters ending immediately after 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.

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.

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.

The Extended Term A Facility and the Revolving Facility (contractually maturing on March 27, 2031) are subject to a “springing maturity” provision.

Under this provision, the maturity dates of these facilities will be accelerated if we do not maintain a minimum liquidity threshold ahead of our other upcoming debt maturities.

The Springing Maturity Dates are July 1, 2027, June 13, 2029 and July 1, 2030, which are 91 days before the stated maturity of the 6.75 % Senior Notes (due 2027), the Term B Facility and the 7.125 % Senior Notes (due 2030), respectively.

As of July 3, 2026, we were in compliance with all financial debt covenants and satisfied the applicable minimum liquidity threshold under the springing maturity provision.

Restructuring and Other Costs

3 unchanged sentences

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.

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.

Fiscal 2027 Plan

During the first quarter of fiscal 2027, our Board of Directors approved a restructuring plan (the Fiscal 2027 Plan) to improve efficiency and align the operations with our strategic priorities.

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

Implementation is expected to be completed toward

the end of fiscal 2027.

The total estimated cost of the plan is approximately $ 50 million, of which $ 32 million has been incurred to date under the Fiscal 2027 Plan.

As of July 3, 2026, we had a restructuring liability of $ 15 million related to the Fiscal 2027 Plan.

Restructuring summary

Roll forwards of our activities and liability balances related to our Fiscal 2027 Plan are presented in the tables below:

(in millions) Liability Balance as of April 3, 2026 Costs, Net of Adjustments Cash Payments Non-Cash Items Liability Balance as of July 3, 2026

Severance and termination benefit costs $ — $ 28 $ ( 13 ) $ — $ 15

Stock-based compensation charges — 4 — ( 4 ) —

Total $ — $ 32 $ ( 13 ) $ ( 4 ) $ 15

The restructuring liabilities are included in Other current liabilities in our Condensed Consolidated Balance Sheets.

Restructuring and other costs summary

Our restructuring and other costs related to the Fiscal 2027 Plan are presented in the table below:

Three Months Ended

(In millions) July 3, 2026

Severance and termination benefit costs $ 28

Stock-based compensation charges 4

Total restructuring and other costs $ 32

Occasionally, we incur costs related to past restructuring plans.

Charges incurred during the three months ended July 3, 2026, and the related liability balances as of July 3, 2026, were immaterial.

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

Three Months Ended Nine Months Ended

Three Months Ended

(In millions, except percentages)

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

July 3, 2026 July 4, 2025

Income (loss) before income taxes $ 323 $ 300

1 unchanged sentence

Effective tax rate 33 % 55 %

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.

Our effective tax rate for the three months ended July 3, 2026 and July 4, 2025, 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, stock-based compensation, 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.

The effective tax rate decreased primarily due to foreign currency movements on the remeasurement of unrecognized tax benefits and deferred tax liabilities on intangible assets.

Stockholders' Equity

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.

On August 6, 2026, we announced that our Board of Directors declared a cash dividend of $ 0.125 per share of common stock to be paid in September 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 (DERs), respectively, which will be paid out if and when the underlying shares are released.

However, the 4 million assumed RSUs under the MoneyLion Inc.

Amended and Restated Omnibus Incentive Plan (the MoneyLion Plan) will not be entitled to DERs.

See our Annual Report on Form 10-K for the fiscal year ended April 3, 2026 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:

Three Months Ended Nine Months Ended

As of July 3, 2026, we had $ 1,994 million remaining under the authorization to be completed in future periods.

The following table summarizes activity related to our stock repurchase program during the three months ended July 3, 2026 and July 4, 2025:

Three Months Ended

(In millions, except per share amounts)

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

July 3, 2026 July 4, 2025

Number of shares repurchased 4 5

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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:

Accumulated other comprehensive income (loss), net of taxes, consisted of foreign currency translation adjustments:

(In millions) Foreign Currency

Translation Adjustments Unrealized Gain (Loss) On

Derivative Instruments Total

Balance as of March 28, 2025 $ ( 36 ) $ 3 $ ( 33 )

Translation Adjustments

Balance as of April 3, 2026 $ 1

Other comprehensive income (loss), net of taxes ( 8 )

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

Balance as of July 3, 2026 $ ( 7 )

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

Three Months Ended

(In millions) July 3, 2026 July 4, 2025

Cost of revenues $ 1 $ 2

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Income tax benefit for stock-based compensation expense $ ( 7 ) $ ( 9 )

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.

As of July 3, 2026, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $ 524 million, which will be recognized over an estimated weighted-average amortization period of 2.55 years.

Net Income (Loss) Per Share

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Dilutive potentially issuable common shares include the dilutive effect of employee equity awards.

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 volume-weighted average share price equals or exceeds $ 37.50 over any 30 consecutive trading days from December 10, 2024 until April 17, 2027.

As of July 3, 2026 and April 3, 2026, there were 12 million CVRs outstanding.

The 12 million CVRs are excluded from the diluted net income per share calculation as the contingent conditions for issuance of common shares have not yet been met within the period.

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

Three Months Ended Nine Months Ended

Three Months Ended

(In millions, except per share amounts)

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

July 3, 2026 July 4, 2025

Net income (loss) $ 215 $ 135

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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.

Trust-Based Solutions includes our identity, personal financial management, and financial marketplace 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.

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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.

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

Cyber Safety Platform

(in millions) Cyber Safety Platform

Trust-Based Solutions

(In millions)

Three Months Ended January 2, 2026

$ 819 $ 421 $ — $ 1,240

Other segment items (1)

316 295 — 611

Operating income (loss)

$ 503 $ 126 $ ( 196 ) $ 433

Nine Months Ended January 2, 2026

Three Months Ended July 3, 2026

$ 846 $ 490 $ — $ 1,336

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$ 519 $ 149 $ ( 225 ) $ 443

Three Months Ended December 27, 2024

Net Revenues $ 799 $ 187 $ — $ 986

Other segment items (1)

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

Nine Months Ended December 27, 2024

Three Months Ended July 4, 2025

Net Revenues $ 869 $ 388 $ — $ 1,257

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(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

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

Three Months Ended

(In millions) July 3, 2026 July 4, 2025

Amortization of intangible assets

$ 122 $ 99 $ 362 $ 301

Stock-based compensation

Unallocated cost of revenue and operating expenses

$ 196 $ 203 $ 585 $ 515

Geographic information

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

Three Months Ended Nine Months Ended

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

Three Months Ended

(In millions) July 3, 2026 July 4, 2025

Americas $ 961 $ 879

EMEA 263 240 788 706

APJ 97 99 306 295

Total net revenues

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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.

were $ 907 million and $ 819 million during the three months ended July 3, 2026 and July 4, 2025, respectively.

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

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and internationally in various foreign subsidiaries:

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

(In millions) July 3, 2026 April 3, 2026

International 306 289

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

(In millions) July 3, 2026 April 3, 2026

Other countries (1)

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Significant customers and e-commerce partners

No individual end-user customer accounted for 10% or more of our net revenues during the nine months ended 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

No individual end-user customer accounted for 10% or more of our net revenues during the three months ended July 3, 2026 and July 4, 2025.

No individual e-commerce partner accounted for 10% or more of our total billed and unbilled accounts receivable, prior to allowance of doubtful accounts, as of July 3, 2026 and April 3, 2026.

Commitments and Contingencies

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Litigation contingencies

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

From time to time, we are involved in legal proceedings, including, but not limited to, regulatory proceedings, claims, mediations, arbitrations and litigation, incidental to our 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.

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

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

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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.

Trustees of Columbia University in the City of New York v.

NortonLifeLock

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

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.

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

No damages were awarded related to this patent.

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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 .

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

We posted the required surety bond and appealed the judgment to the Federal Circuit Court of Appeals.

The Federal Circuit issued its decision on appeal and remanded the case to the district court for further proceedings, including consideration of whether Columbia’s patents are patent-eligible and, if the patent claims are determined to be eligible, to reduce the damages award to eliminate the royalty based on foreign sales and reconsider its attorneys’ fees and enhanced damages decisions.

At this time, our current estimate of probable losses from this matter, within a range of potential outcomes, is approximately $ 256 million, which is 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;

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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 our 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.

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.

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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.

The Czech DPA issued a decision in March 2022 finding that Avast had violated the GDPR and issued a fine of CZK 351 million (approximately $ 16 million).

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

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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.

We have since

entered into a final settlement agreement resolving this matter.

The settlement amount is immaterial, and the resolution did not have, and is not expected 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.

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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 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.

alleging, among other things, breaches of the Membership Interest Purchase Agreement governing the acquisition of MALKA.

MoneyLion filed counterclaims against the Seller 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 Seller Members damages and attorneys’ fees and costs, for which we have accrued $ 67 million in other long-term obligations in our Condensed Consolidated Balance Sheet.

MoneyLion plans to appeal the judgment to the Second Circuit Court of Appeals.

NYAG Litigation

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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.

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

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.

We are involved in a number of other judicial, arbitrable, administrative proceedings and government inquiries that are incidental to our business, including certain matters relating to products and services offered in the ordinary course of business subject to lending and other consumer laws and regulations.

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.

During the three months ended July 3, 2026 and July 4, 2025, we incurred $ 24 million and $ 5 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