Core Insights - Gen Digital Inc. reported fiscal Q4 earnings on May 6, indicating stable growth in both revenue and net income, marking a solid conclusion to FY2025 [1] - The acquisition of MoneyLion has been completed, and the company is now focused on integrating this new business into its operations [1] Financial Performance - The earnings report reflects a consistent performance in the company's financials, showcasing both top-line and bottom-line growth [1] Strategic Moves - The completion of the MoneyLion acquisition is a significant strategic development for Gen Digital, as it aims to enhance its business operations through integration [1]

Core Insights - Gen Digital Inc. (GEN) reported strong fourth-quarter fiscal 2025 results, with both revenues and earnings exceeding the Zacks Consensus Estimate [1][3] - The company’s non-GAAP earnings were 59 cents per share, surpassing the estimate by 1.7% and reflecting an 11.3% year-over-year improvement [1][2] - Non-GAAP revenues reached $1.01 billion, marking a 5% year-over-year increase, driven by heightened demand for AI-driven cyber safety solutions [3][5] Financial Performance - Non-GAAP gross profit grew 4.3% year over year to $868 million, although gross margin contracted by 40 basis points to 85.9% [8] - Non-GAAP operating income totaled $590 million, up 4.2% year over year, with an operating margin of 58.4%, down 30 basis points [9] - The company generated operating cash flow of $1.221 billion and free cash flow of $1.206 billion for the full fiscal year [11] Revenue Breakdown - Cyber Safety revenues amounted to $998 million, with Direct Customer revenues increasing 3.9% to $877 million and Partner revenues rising 15.2% to $121 million [5] - The average direct monthly revenue per user (ARPU) was $7.27, slightly up from $7.22 in the previous year [6] - Quarterly bookings advanced 3% year over year to $1.076 billion, with an increase in average direct customer count to 40.4 million [6] Balance Sheet and Cash Flow - Gen Digital ended the quarter with cash and cash equivalents of $1.006 billion, an increase from $883 million in the previous quarter [10] - Long-term debt decreased to $7.968 billion from $8.429 billion year over year [10] - The company paid out $77 million in dividends during the fourth quarter and repurchased stocks worth $272 million [11] Future Guidance - For the first quarter of fiscal 2026, Gen Digital anticipates revenues between $1.18 billion and $1.21 billion, with non-GAAP earnings projected between 59 cents and 61 cents [12] - For fiscal 2026, the company projects revenues in the range of $4.7 billion to $4.8 billion and earnings per share between $2.54 and $2.56 [13]

Core Viewpoint - Gen Digital reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and showing an increase from $0.53 per share a year ago, indicating a positive earnings surprise of 1.72% [1] - The company also posted revenues of $1.01 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.20% and up from $967 million year-over-year [2] Financial Performance - Over the last four quarters, Gen Digital has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $996.46 million, while for the current fiscal year, it is $2.39 on revenues of $4.03 billion [7] Market Position - Gen Digital shares have declined approximately 5.9% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The Zacks Industry Rank places Technology Services in the top 24% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] Future Outlook - The sustainability of Gen Digital's stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current estimate revisions trend for Gen Digital is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Gen Digital (GEN) Q4 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Jason Starr - VP - IRVincent Pilette - CEO, President & DirectorNatalie Derse - Chief Financial OfficerSaket Kalia - Managing DirectorRoger Boyd - Executive Director Conference Call Participants Andrew Nowinski - AnalystTomer Zilberman - AnalystDan Bergstrom - Analyst Operator Good afternoon, everyone. Thank you for standing by. My name is Tamiya, and I will be your conference operator today. Today's call is being recorded ...

Financial Data and Key Metrics Changes - Fiscal year 2025 marked a transformative year for the company, achieving total bookings of $4 billion, up 4% year over year, with revenue exceeding the high end of annual guidance [6][24] - Non-GAAP operating margin reached a record 58.4%, reflecting strong cost controls and operational efficiencies [7][25] - Non-GAAP EPS was $2.22, up 15% year over year, at the high end of annual guidance [7][25] - Unlevered free cash flow was nearly $2 billion, with net leverage at 3.2 times EBITDA [7][34] Business Line Data and Key Metrics Changes - The core cyber safety offerings, including security and privacy, and identity theft protection, drove broad-based growth [6][24] - Direct revenue in Q4 was $877 million, up 4% in constant currency, with a total Q4 revenue of $1.01 billion, marking a 5% increase [26][34] - The identity category grew double digits internationally, with significant contributions from LifeLock following heightened consumer awareness [12][13] Market Data and Key Metrics Changes - The company expanded its customer base by 1.3 million to over 40 million direct paid customers, with a total of over 65 million direct and indirect paid customers [13][14] - The partner revenue in Q4 was $121 million, up 15% year over year, driven by growth in the employee benefits channel [31][34] Company Strategy and Development Direction - The company is committed to increasing innovation pace and expanding geographic reach, particularly in the cyber safety landscape [9][10] - The acquisition of MoneyLion aims to enhance financial wellness offerings and expand the total addressable market [14][15] - The business will operate under two segments: Cyber Safety Platform and Trust Based Solutions, focusing on advanced technology and innovative solutions [17][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic uncertainties, citing a strong subscription model and high customer retention [67][68] - For fiscal year 2026, the company expects revenue between $4.7 billion and $4.8 billion, representing 6% to 8% pro forma growth [21][40] - Non-GAAP EPS for fiscal year 2026 is projected to be between $2.46 and $2.54, indicating double-digit growth [40] Other Important Information - The company plans to continue a balanced capital allocation strategy, focusing on share repurchases and debt pay down [48][49] - The Q4 ending cash balance was over $1 billion, with significant liquidity available [34][35] Q&A Session Summary Question: Guidance for fiscal year 2026 and MoneyLion growth visibility - Management confirmed that guidance is based on maintaining current momentum, with MoneyLion expected to grow at around 24% to 25% [45][46] Question: Capital allocation strategy regarding share repurchases - Management indicated a balanced approach to capital allocation, focusing on both share buybacks and debt reduction [48][49] Question: Impact of MoneyLion's customer network on potential subscribers - The acquisition is expected to enhance cross-selling opportunities and improve customer offerings, leveraging MoneyLion's existing customer base [54][56] Question: Signs of demand resilience amid macro uncertainty - Management highlighted the strong subscription model and customer retention as key factors supporting business resilience [67][68] Question: Indirect revenue growth outlook - Indirect revenue is expected to grow at a sustainable, profitable high single-digit rate, with strong contributions from employee benefits and telco partnerships [81][86]

Gen Digital (GEN) Q4 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Jason Starr - VP - IRVincent Pilette - CEO, President & DirectorNatalie Derse - Chief Financial OfficerSaket Kalia - Managing DirectorRoger Boyd - Executive Director Conference Call Participants Andrew Nowinski - AnalystTomer Zilberman - AnalystDan Bergstrom - Analyst Operator Good afternoon, everyone. Thank you for standing by. My name is Tamiya, and I will be your conference operator today. Today's call is being recorded ...

Q4 FY25 Earnings May 6, 2025 Forward-Looking Statements This presentation contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of histo ...

TEMPE, Ariz. & PRAGUE – May 6, 2025 – Gen Digital Inc. (NASDAQ: GEN), a global leader dedicated to powering Digital Freedom, released its results for its fiscal year 2025 fourth quarter and full year, which ended March 28, 2025. "Our record results and accelerated growth are driven by our mission to meet the ever-evolving needs of today's digital consumers," said Vincent Pilette, CEO of Gen. "Now with the successful acquisition of MoneyLion, we've taken the next step forward in building the most comprehensi ...

Core Insights - The article discusses potential investment opportunities in GENK, indicating a possible long position in the stock or related derivatives within the next 72 hours [1]. Group 1 - The analyst has no current stock or derivative positions in the companies mentioned but may initiate a beneficial long position soon [1]. - The article expresses the author's personal opinions and is not influenced by any compensation from the companies discussed [1]. Group 2 - There is a disclaimer regarding past performance not guaranteeing future results, emphasizing that no specific investment advice is provided [2]. - The views expressed may not reflect those of the broader platform, highlighting the independent nature of the analysts involved [2].

Core Insights - Gen Digital Inc. (GEN) is set to report its fourth-quarter fiscal 2025 results on May 6, with expected non-GAAP revenues between $990 million and $1,005 million, reflecting a year-over-year growth of 3.2% [1] - The company anticipates non-GAAP earnings per share in the range of 57-59 cents, with a consensus estimate of 58 cents, indicating a year-over-year increase of 9.4% [2] Revenue Expectations - The Consumer Security segment's revenue is estimated at $632.9 million, showing a year-over-year increase of 1.9%, while the Identity and Information Protection division is projected to generate $354 million, reflecting a growth of 4.1% [4] - The increase in average direct paying customers by 400,000 to 40.1 million in the third quarter is expected to positively influence revenue growth [3] Market Dynamics - The demand for cybersecurity products has surged due to a significant rise in global hacking incidents, which has likely benefited Gen Digital's performance [3] - The launch of Norton Small Business Premium, a comprehensive cybersecurity solution, is anticipated to have contributed to sales growth in the upcoming quarter [4] Challenges - The company's performance may be negatively impacted by a decline in IT spending, driven by high interest rates and inflation affecting consumer spending [6] - Enterprises are reportedly deferring substantial IT investments due to a weakening global economy and ongoing macroeconomic and geopolitical challenges [6] Earnings Prediction - Current analysis indicates that Gen Digital does not have a strong likelihood of beating earnings expectations, with an Earnings ESP of -1.16% and a Zacks Rank of 4 (Sell) [7]