Gen Digital (GEN) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue reached $986 million, up 4% year-over-year, with strong operating and net income growth and the fifth consecutive quarter of double-digit EPS growth.

• Direct customer base reached 40.1 million, up 1.2 million year-over-year, with strong international and mobile growth.

• Continued innovation in AI-powered scam detection and identity protection, including the launch of Norton Genie and expansion of Avast Secure Identity.

• Announced acquisition of MoneyLion for ~$1 billion in cash plus stock, expected to close in the first half of fiscal 2026, to expand financial wellness offerings and more than double the addressable market.

• Major e-commerce partner agreement terminated due to missed payments, resulting in $66 million in receivables written off and customer migration underway.

Financial highlights

• Q3 revenue was $986 million, up 4% year-over-year in both USD and constant currency.

• Operating income was $577 million non-GAAP (up 4%) and $374 million GAAP (up 13%), with non-GAAP operating margin at 58.5% and GAAP at 38%.

• Net income was $350 million non-GAAP (up 11%) and $159 million GAAP, with diluted EPS at $0.56 non-GAAP (up 15%) and $0.26 GAAP (up 18%).

• Free cash flow for Q3 was $318 million; cash and equivalents at quarter end were $883 million, with total liquidity of $2.4 billion.

• Debt principal at quarter end was $8.57 billion, with net leverage at 3.3x Debt/EBITDA and $1.5 billion undrawn revolving credit facility.

Outlook and guidance

• FY25 non-GAAP revenue guidance raised to $3,915–$3,930 million, with EPS guidance of $2.20–$2.22, representing 14–15% growth.

• Q4 FY25 non-GAAP revenue expected between $990–$1,005 million; EPS between $0.57–$0.59.

• Regular quarterly cash dividend of $0.125 per share declared for March 2025.

• Management expects continued focus on driving stockholder returns, managing financial risk, and maintaining flexibility for strategic options.

• Ongoing macroeconomic uncertainties, including FX, inflation, and geopolitical risks, may impact future results.