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) July 3, 2026 April 3, 2026 ASSETS Current assets: Cash, cash equivalents and restricted cash $ 564 $ 411 Accounts receivable, net 378 361 Other current assets 286 295 Assets held for sale 40 14 Total current assets 1,268 1,081 Property and equipment, net 70 71 Intangible assets, net 2,046 2,096 Goodwill 10,938 10,996 Deferred income tax assets 1,135 1,153 Other long-term assets 187 192 Total assets $ 15,644 $ 15,589 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable $ 96 $ 96 Accrued compensation and benefits 75 115 Current portion of long-term debt 181 181 Contract liabilities 1,843 1,904 Other current liabilities 527 414 Total current liabilities 2,722 2,710 Long-term debt 7,975 8,015 Long-term contract liabilities 76 73 Deferred income tax liabilities 190 198 Long-term income taxes payable 1,614 1,588 Other long-term liabilities 411 394 Total liabilities 12,988 12,978 Commitments and contingencies (Note 15) Stockholders’ equity (deficit): Common stock and additional paid-in capital, $ 0.01 par value: 3,000 shares authorized; 599 and 598 shares issued and outstanding as of July 3, 2026 and April 3, 2026, respectively 2,354 2,341 Accumulated other comprehensive income (loss) ( 7 ) 1 Retained earnings (accumulated deficit) 309 269 Total stockholders’ equity (deficit) 2,656 2,611 Total liabilities and stockholders’ equity (deficit) $ 15,644 $ 15,589 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 July 3, 2026 July 4, 2025 Net revenues $ 1,336 $ 1,257 Cost of revenues 307 267 Gross profit 1,029 990 Operating expenses: Sales and marketing 300 297 Research and development 118 109 General and administrative 80 74 Amortization of intangible assets 56 54 Restructuring and other costs 32 10 Total operating expenses 586 544 Operating income (loss) 443 446 Interest expense ( 124 ) ( 156 ) Other income (expense), net 4 10 Income (loss) before income taxes 323 300 Income tax expense (benefit) 108 165 Net income (loss) $ 215 $ 135 Net income (loss) per share - basic $ 0.36 $ 0.22 Net income (loss) per share - diluted $ 0.36 $ 0.22 Weighted-average shares outstanding: Basic 599 617 Diluted 603 624 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 July 3, 2026 July 4, 2025 Net income (loss) $ 215 $ 135 Other comprehensive income (loss), net of taxes: Foreign currency translation gain (loss) ( 8 ) 59 Other comprehensive income (loss), net of taxes ( 8 ) 59 Comprehensive income (loss) $ 207 $ 194 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 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 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 ) Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued — ( 1 ) — ( 75 ) ( 76 ) Stock-based compensation — 54 — — 54 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 Balance as of March 28, 2025 617 $ 2,066 $ ( 33 ) $ 236 $ 2,269 Net income (loss) — — — 135 135 Other comprehensive income (loss), net of taxes — — 59 — 59 Common stock issued under employee stock incentive plans 6 — — — — Shares withheld for taxes related to vesting of stock units ( 2 ) ( 44 ) — — ( 44 ) Repurchases of common stock (1) ( 5 ) — — ( 134 ) ( 134 ) Cash dividends declared ($ 0.125 per share of common stock) and dividend equivalents accrued — ( 3 ) — ( 77 ) ( 80 ) Stock-based compensation — 66 — — 66 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 July 4, 2025 616 $ 2,179 $ 26 $ 160 $ 2,365 (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 CASH FLOWS (Unaudited, in millions) Three Months Ended July 3, 2026 July 4, 2025 OPERATING ACTIVITIES: Net income (loss) $ 215 $ 135 Adjustments: Amortization and depreciation 123 123 Stock-based compensation expense 54 66 Loss on sale of Instacash Advances 60 36 Deferred income taxes ( 9 ) 11 Loss on sale of property — 1 Non-cash operating lease expense 4 4 Foreign currency remeasurement loss (gain) ( 1 ) 86 Other 9 10 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net ( 13 ) 10 Accounts payable 1 ( 48 ) Accrued compensation and benefits ( 39 ) ( 21 ) Contract liabilities ( 56 ) ( 69 ) Income taxes payable 75 61 Instacash Advances held for sale, net ( 86 ) ( 47 ) Other assets ( 3 ) 58 Other liabilities 100 ( 7 ) Net cash provided by (used in) operating activities 434 409 INVESTING ACTIVITIES: Purchases of property and equipment ( 4 ) ( 4 ) Payments for acquisitions, net of cash acquired — ( 876 ) Payments for originations of notes receivable ( 85 ) — Proceeds from principal repayments of notes receivable 77 — Proceeds from the sale of property — 9 Other ( 3 ) ( 2 ) Net cash provided by (used in) investing activities ( 15 ) ( 873 ) FINANCING ACTIVITIES: Repayments of debt ( 45 ) ( 191 ) Proceeds from issuance of debt, net of issuance costs (1) — 741 Tax payments related to vesting of stock units ( 41 ) ( 44 ) Dividends and dividend equivalents paid ( 81 ) ( 82 ) Repurchases of common stock ( 100 ) ( 134 ) Net cash provided by (used in) financing activities ( 267 ) 290 Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash 1 ( 4 ) Change in cash, cash equivalents and restricted cash 153 ( 178 ) Beginning cash, cash equivalents and restricted cash 411 1,006 Ending cash, cash equivalents and restricted cash $ 564 $ 828 (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. 7 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 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 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 April 3, 2026. 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 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. 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 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. Note 2. Sale of Instacash Advances 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. 8 Table of Contents 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. Note 3. Business Combinations 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 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 (In millions) July 4, 2025 Net revenues $ 1,289 Net income (loss) $ 141 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. 9 Table of Contents 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 (Years) Developed technology $ 26 5 Customer relationships 20 9 Strategic partnerships 19 4 Trade names 3 3 Total identified intangible assets 68 Net liabilities assumed ( 7 ) Goodwill (1) 120 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. Note 4. Revenues Disaggregation of revenues The following table summarizes the components of our net revenues: Three Months Ended (In millions) July 3, 2026 July 4, 2025 Subscription and service revenue (1) $ 1,331 $ 1,253 Net interest income on notes receivable 5 4 Net revenues $ 1,336 $ 1,257 (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 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 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. 10 Table of Contents Note 5. Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill by segment are as follows: (In millions) Cyber Safety Platform Trust-Based Solutions Total Balance as of April 3, 2026 $ 7,391 $ 3,605 $ 10,996 Purchase accounting adjustment — ( 51 ) ( 51 ) Translation adjustments ( 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: July 3, 2026 April 3, 2026 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 1,259 $ ( 671 ) $ 588 $ 1,220 $ ( 620 ) $ 600 Developed technology 1,476 ( 885 ) 591 1,450 ( 825 ) 625 Other 182 ( 54 ) 128 179 ( 47 ) 132 Total finite-lived intangible assets 2,917 ( 1,610 ) 1,307 2,849 ( 1,492 ) 1,357 Indefinite-lived trade names 739 — 739 739 — 739 Total intangible assets $ 3,656 $ ( 1,610 ) $ 2,046 $ 3,588 $ ( 1,492 ) $ 2,096 Amortization expense for purchased intangible assets is summarized below: 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 and other 63 65 Cost of revenues Total $ 119 $ 119 As of July 3, 2026, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year: (In millions) Remainder of 2027 $ 355 2028 469 2029 294 2030 122 2031 23 Thereafter 44 Total $ 1,307 11 Table of Contents Note 6. Supplementary Information Cash, cash equivalents and restricted cash: (In millions) July 3, 2026 April 3, 2026 Cash $ 384 $ 283 Cash equivalents 149 119 Restricted cash 31 9 Total cash, cash equivalents and restricted cash $ 564 $ 411 Accounts receivable, net: (In millions) July 3, 2026 April 3, 2026 Trade receivable $ 235 $ 225 Notes receivable 143 135 Instacash Advances 11 10 Allowance for doubtful accounts ( 11 ) ( 9 ) Total accounts receivable, net $ 378 $ 361 Assets held for sale: (In millions) July 3, 2026 April 3, 2026 Instacash Advances held for sale $ 40 $ 14 Total assets held for sale $ 40 $ 14 Instacash Advances held for sale 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) July 3, 2026 April 3, 2026 Deferred revenue $ 1,249 $ 1,247 Customer deposit liabilities 594 657 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 12 Table of Contents Supplemental cash flow information: Three Months Ended (In millions) July 3, 2026 July 4, 2025 Income taxes paid (received), net of refunds $ 37 $ ( 6 ) Interest expense paid $ 79 $ 183 Cash paid for amounts included in the measurement of operating lease liabilities $ 6 $ 6 Originations of certain Instacash Advances held for sale $ ( 1,193 ) $ ( 835 ) Proceeds from the sale of certain Instacash Advances $ 1,107 $ 788 Non-cash operating activities: Operating lease assets obtained in exchange for operating lease liabilities $ — $ 17 Reduction (increase) of operating lease assets as a result of lease terminations and modifications $ — $ ( 4 ) Non-cash investing and financing activities: Purchases of property and equipment in current liabilities $ — $ 3 Note 7. 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, 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: July 3, 2026 April 3, 2026 (In millions) Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Money market funds $ 149 $ 149 $ — $ 97 $ 97 $ — Time deposits — — — 22 — 22 Total assets $ 149 $ 149 $ — $ 119 $ 97 $ 22 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 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 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. 13 Table of Contents Note 8. Debt The following table summarizes components of our debt: (In millions, except percentages) July 3, 2026 April 3, 2026 Effective Interest Rate 6.75 % Senior Notes due September 30, 2027 $ 900 $ 900 6.75 % Term B Facility due September 12, 2029 2,331 2,340 SOFR + % 7.125 % Senior Notes due September 30, 2030 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 + % 6.25 % Senior Notes due April 1, 2033 950 950 6.25 % Total principal amount 8,230 8,275 Less: unamortized discount and issuance costs ( 74 ) ( 79 ) Total debt 8,156 8,196 Less: current portion ( 181 ) ( 181 ) Total long-term debt $ 7,975 $ 8,015 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) Remainder of 2027 $ 136 2028 1,081 2029 181 2030 2,374 2031 2,799 Thereafter 1,659 Total future maturities of debt $ 8,230 Debt covenant compliance The Amended Credit Agreement, which includes our Term Loans and Revolving Facility, contains customary representations and warranties, affirmative and negative covenants. 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. 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. Note 9. 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. 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 14 Table of Contents 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. Note 10. Income Taxes The following table summarizes our effective tax rate for the periods presented: Three Months Ended (In millions, except percentages) July 3, 2026 July 4, 2025 Income (loss) before income taxes $ 323 $ 300 Income tax expense (benefit) $ 108 $ 165 Effective tax rate 33 % 55 % 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. 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. Note 11. Stockholders' Equity Dividends 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. 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 July 3, 2026, we had $ 1,994 million remaining under the authorization to be completed in future periods. 15 Table of Contents 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) July 3, 2026 July 4, 2025 Number of shares repurchased 4 5 Average price per share $ 25.61 $ 27.86 Aggregate purchase price $ 100 $ 134 Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss), net of taxes, consisted of foreign currency translation adjustments: (In millions) Foreign Currency Translation Adjustments Balance as of April 3, 2026 $ 1 Other comprehensive income (loss), net of taxes ( 8 ) Balance as of July 3, 2026 $ ( 7 ) Note 12. Stock-Based Compensation The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended (In millions) July 3, 2026 July 4, 2025 Cost of revenues $ 1 $ 2 Sales and marketing 16 24 Research and development 12 14 General and administrative 21 26 Restructuring and other costs 4 — Total stock-based compensation expense $ 54 $ 66 Income tax benefit for stock-based compensation expense $ ( 7 ) $ ( 9 ) 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. Note 13. 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. 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. 16 Table of Contents The components of basic and diluted net income (loss) per share are as follows: Three Months Ended (In millions, except per share amounts) July 3, 2026 July 4, 2025 Net income (loss) $ 215 $ 135 Net income (loss) per share - basic $ 0.36 $ 0.22 Net income (loss) per share - diluted $ 0.36 $ 0.22 Weighted-average shares outstanding - basic 599 617 Dilutive potentially issuable shares: Employee equity awards 4 7 Weighted-average shares outstanding - diluted 603 624 Anti-dilutive shares excluded from diluted net income per share calculation: Employee equity awards 12 3 Note 14. 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. 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, 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. 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. 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: (in millions) Cyber Safety Platform Trust-Based Solutions Corporate Consolidated Three Months Ended July 3, 2026 Net Revenues $ 846 $ 490 $ — $ 1,336 Other segment items (1) 327 341 — 668 Operating income (loss) $ 519 $ 149 $ ( 225 ) $ 443 Three Months Ended July 4, 2025 Net Revenues $ 869 $ 388 $ — $ 1,257 Other segment items (1) 339 268 — 607 Operating income (loss) $ 530 $ 120 $ ( 204 ) $ 446 (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 presents the reconciling items included in “Corporate” category: Three Months Ended (In millions) July 3, 2026 July 4, 2025 Amortization of intangible assets $ 119 $ 119 Stock-based compensation 54 66 Unallocated cost of revenue and operating expenses 52 19 Total $ 225 $ 204 17 Table of Contents 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 (In millions) July 3, 2026 July 4, 2025 Americas $ 961 $ 879 EMEA 274 268 APJ 101 110 Total net revenues $ 1,336 $ 1,257 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 $ 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. The table below represents cash, cash equivalents and restricted cash held in the U.S. and internationally in various foreign subsidiaries: (In millions) July 3, 2026 April 3, 2026 U.S. $ 258 $ 122 International 306 289 Total cash, cash equivalents and restricted cash $ 564 $ 411 The table below represents our property and equipment, net of accumulated depreciation and amortization, by geographic area, based on the physical location of the asset, at the end of each period presented: (In millions) July 3, 2026 April 3, 2026 U.S. $ 57 $ 59 Other countries (1) 13 12 Total property and equipment, net $ 70 $ 71 (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 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. Note 15. 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, 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 18 Table of Contents 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 Columbia University 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 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 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; 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. 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 (approximately $ 16 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 since 19 Table of Contents 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. 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 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 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. 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. Other 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 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.