Gen Digital (GEN) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue reached $965M, up 2%–3% year-over-year, with Cyber Safety bookings up 4% in constant currency and a record direct customer count of 39.3M, up 1.1M year-over-year.

• Non-GAAP EPS was $0.53, up 13% in USD and 15% in constant currency; GAAP EPS was $0.29, flat year-over-year.

• Operating income rose to $564M non-GAAP (up 4%) and $417M GAAP (up 16%), with operating margin improving to 58.4% non-GAAP and 43% GAAP.

• Strategic focus remains on innovation, customer-centricity, and expanding Cyber Safety adoption globally, supported by strong US performance and international expansion.

• Cash and cash equivalents declined to $644M, mainly due to stock repurchases, debt repayments, and dividends.

Financial highlights

• Q1 bookings: $913M, up 3% in USD and 4% in constant currency; Cyber Safety bookings up 4% year-over-year in constant currency.

• Q1 revenue: $965M, up 2% in USD and 3% in constant currency; Cyber Safety revenue up 4% in constant currency.

• Direct revenue: $850M, up 3% in constant currency; partner revenue: $101M, up 4% year-over-year (6% in constant currency).

• Free cash flow for Q1 was $262M; operating cash flow was $264M, up 17% year-over-year.

• Net income was $335M non-GAAP (up 11%) and $181M GAAP (down from $187M), with the difference mainly due to higher tax expense.

Outlook and guidance

• Q2 FY25 non-GAAP revenue expected at $965M–$975M; non-GAAP EPS at $0.53–$0.55.

• FY25 non-GAAP revenue guidance reaffirmed at $3.89B–$3.93B; non-GAAP EPS at $2.17–$2.23, up 12%–15% in constant currency.

• Cyber Safety bookings growth expected at 3%–5% and revenue growth at 3%–4% in constant currency.

• Management expects existing cash, cash flow from operations, and undrawn credit facilities to be sufficient for at least the next 12 months.

• Continued FX headwinds expected, primarily from the Japanese yen.