Gen Digital reports $1.37B revenue

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For the Quarterly Period Ended July 3, October 2, 2026

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Quarterly Period Ended July 3, 2026

The number of shares of Gen common stock, $0.01 par value per share, outstanding as of August 4, October 26, 2026 was 598,587,032 593,276,080 shares.

Quarterly Period Ended October 2, 2026

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Financial Statements (Unaudited) 151 changes

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July 3, October 2, 2026 April 3, 2026

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Other current assets 286 295 295

Assets held for sale 40 16 14

Total current assets 1,268 1,298 1,081

Property and equipment, net 70 69 71

Intangible assets, net 2,046 1,927 2,096

Goodwill 10,938 10,930 10,996

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Other long-term assets 187 181 192

Total assets $ 15,644 15,548 $ 15,589

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Accounts payable $ 96 $ 96

Accounts payable $ 82 $ 96

Accrued compensation and benefits 75 79 115

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Contract liabilities 1,843 1,823 1,904

Other current liabilities 527 417 414

Total current liabilities 2,722 3,481 2,710

Long-term debt 7,975 7,036 8,015

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Deferred income tax liabilities 190 178 198

Long-term income taxes payable 1,614 1,625 1,588

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Total liabilities 12,988 12,807 12,978

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Common stock and additional paid-in capital, $ 0.01 par value: 3,000 shares authorized; 599 593 and 598 shares issued and outstanding as of July 3, October 2, 2026 and April 3, 2026, respectively

Accumulated other comprehensive income (loss) ( 7 18 ) 1

Retained earnings (accumulated deficit) 309 350 269

Total stockholders equity (deficit) 2,656 2,741 2,611

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July 3, 2026 July 4, 2025

Net revenues $ 1,336 $ 1,257

Cost of revenues 307 267

Gross profit 1,029 990

Sales and marketing 300 297

Research and development 118 109

General and administrative 80 74

Total operating expenses 586 544

Operating income (loss) 443 446

Interest expense ( 124 ) ( 156 )

Net income (loss) $ 215 $ 135

Three Months Ended Six Months Ended

October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025

Net revenues $ 1,369 $ 1,220 $ 2,705 $ 2,477

Cost of revenues 330 266 637 533

Gross profit 1,039 954 2,068 1,944

Sales and marketing 298 297 598 594

Research and development 112 100 230 209

General and administrative 66 60 146 134

Amortization of intangible assets 56 54 55 112 109

Restructuring and other costs 4 32 10 14

Total operating expenses 532 516 1,118 1,060

Operating income (loss) 507 438 950 884

Interest expense ( 123 ) ( 146 ) ( 247 ) ( 302 )

Other income (expense), net 4 10 2 ( 59 ) 6 ( 49 )

Income (loss) before income taxes 323 300 386 233 709 533

Income tax expense (benefit) 108 165 99 99 207 264

Net income (loss) $ 287 $ 134 $ 502 $ 269

Net income (loss) per share - basic $ 0.36 0.48 $ 0.22 $ 0.84 $ 0.44

Net income (loss) per share - diluted $ 0.36 0.48 $ 0.22 0.21 $ 0.83 $ 0.43

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Basic 596 616 598 617

Diluted 603 624 603 624

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHEN SIVE COMPREHENSIVE INCOME (LOSS)

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July 3, 2026 July 4, 2025

Net income (loss) $ 215 $ 135

Three Months Ended Six Months Ended

October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025

Net income (loss) $ 287 $ 134 $ 502 $ 269

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Comprehensive income (loss) $ 207 $ 194

Foreign currency translation gain (loss) ( 8 11 ) 59 ( 20 ) ( 19 ) 39

Net unrealized gain (loss) on interest rate derivative instruments ( 2 ) ( 2 )

Other comprehensive income (loss), net of taxes ( 8 11 ) 59 ( 22 ) ( 19 ) 37

Comprehensive income (loss) $ 276 $ 112 $ 483 $ 306

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Three months ended July 3, 2026

Three months ended October 2, 2026

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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

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Balance as of March 28, 2025 617 $ 2,066 $ ( 33 ) $ 236 $ 2,269

Net income (loss) 135 135 287 287

Other comprehensive income (loss), net of taxes 59 59 ( 11 ) ( 11 )

Common stock issued under employee stock incentive plans 6 7 7

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and 71 more changes in the filing

Business 186 changes

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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 and six months ended July 3, October 2, 2026 are not necessarily indicative of the results expected for the entire fiscal year.

We have a 52/53-week fiscal year ending on the Friday closest to March 31. Unless otherwise stated, references to three and six month periods in this report relate to fiscal periods ended July 3, October 2, 2026 and July 4, October 3, 2025. The three months ended July 3, October 2, 2026 and October 3, 2025 each consisted of 13 weeks. The six months ended October 2, 2026 consisted of 26 weeks, whereas the three six months ended July 4, October 3, 2025 consisted of 14 27 weeks. Our 2027 fiscal year consists of 52 weeks and ends on April 2, 2027.

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There have been no material changes to our significant accounting policies as of and for the three and six months ended July 3, October 2, 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.

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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 are unchanged from, and described in, Note 2, 3, Sale of Instacash Advances, of our Annual Report on Form 10-K for the fiscal year ended April 3, 2026.

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During the three and six months ended July 3, October 2, 2026, and July 4, 2025, we sold $ 1,193 1,322 million and $ 823 2,515 million, respectively, of Instacash Advances under the Purchase Agreement, compared with $ 1,005 million and $ 1,828 million, respectively, during the three and six months ended October 3, 2025. We had $ 37 million of unused capacity as of July 3, October 2, 2026. During the three and six months ended July 3, October 2, 2026, and July 4, 2025, we recognized losses of $ 60 69 million and $ 36 129 million, respectively, in loss on the mark-to-market and sale of Instacash Advances, which is compared with $ 55 million and $ 91 million, respectively, during the three and six months ended October 3, 2025. These losses were recorded in sales and marketing in our Condensed Consolidated Statements of Operations.

As of July 3, October 2, 2026, we were responsible for servicing $ 369 435 million of Instacash Advances sold under the Purchase Agreement. For During the three and six months ended July 3, October 2, 2026, and July 4, 2025, we recognized servicing income of $ 17 19 million and $ 12 36 million, respectively, in compared with $ 14 million and $ 26 million, respectively, during the three and six months ended October 3, 2025. This servicing income was recorded in Net revenues in our Condensed Consolidated Statements of Operations. As of July 3, October 2, 2026, we have a $ 77 62 million payable to Sound Point relating to the servicing activity, activities, which will be settled using restricted cash and receivables from payment processors recorded in Other current assets.

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(In millions) July 4, 2025

The following unaudited pro forma financial information represents the combined historical results for the three and six months ended July 4, October 3, 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 Six Months Ended

(In millions) October 3, 2025 October 3, 2025

Net revenues $ 1,289 1,220 $ 2,509

Net income (loss) $ 141 139 $ 285

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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:

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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 allocation of fiscal 2027, the purchase price may be subject to refinement within the measurement period, which may be up to one year from the acquisition date, as additional information about facts and circumstances that existed as of the acquisition date becomes available. Adjustments to the purchase price may require adjustments to goodwill prospectively. Goodwill is allocated to our Trust-Based Solutions segment. During the six months ended October 2, 2026, we recorded measurement period adjustments resulting in a decrease to goodwill of $ 51 54 million. net of tax, These adjustments 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. The adjustments also included a $ 3 million increase to other long-term assets related to deferred tax assets.

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

Three Months Ended Six Months Ended

(In millions) October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025

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(1) Subscription and service revenue includes amounts related to our Instacash Advances of $ 147 151 million and $ 97 298 million during for the three and six months ended July 3, October 2, 2026, respectively, compared with $ 114 million and July 4, $ 211 million for the three and six months ended October 3, 2025, respectively. Refer to Note 2 for additional information regarding our Instacash Advances.

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During the three and six months ended July 3, October 2, 2026, we recognized $ 765 769 million and $ 1,335 million from the contract liabilities balances as of July 3, 2026 and April 3, 2026, respectively. During the three and six months ended July 4, October 3, 2025, we recognized $ 800 758 million and $ 1,336 million from the contract liabilities balances as of July 4, 2025 and March 28, 2025, respectively.

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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, October 2, 2026, we had $ 1,325 1,274 million of remaining performance obligations, excluding customer deposit liabilities of $ 594 625 million, of which we expect to recognize approximately 94 % as revenue over the next 12 months.

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Purchase accounting adjustment ( 51 54 ) ( 51 54 )

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

Balance as of October 2, 2026 $ 7,382 $ 3,548 $ 10,930

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July 3, October 2, 2026 April 3, 2026

Customer relationships $ 1,259 $ ( 671 723 ) $ 588 536 $ 1,220 $ ( 620 ) $ 600

Developed technology 1,476 1,403 ( 885 874 ) 591 529 1,450 ( 825 ) 625

Other 182 ( 54 59 ) 128 123 179 ( 47 ) 132

Total finite-lived intangible assets 2,917 2,844 ( 1,610 1,656 ) 1,307 1,188 2,849 ( 1,492 ) 1,357

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Total intangible assets $ 3,656 3,583 $ ( 1,610 1,656 ) $ 2,046 1,927 $ 3,588 $ ( 1,492 ) $ 2,096

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Three Months Ended Six Months Ended Condensed Consolidated Statements of Operations Classification (In millions) July October 2, 2026 October 3, 2025 October 2, 2026 July 4, October 3, 2025

Customer relationships and other $ 56 $ 54 55 $ 112 $ 109 Operating expenses

Developed technology and other 63 65 62 66 125 131 Cost of revenues

Total $ 118 $ 121 $ 237 $ 240

As of July 3, October 2, 2026, future amortization expense related to intangible assets that have finite lives is as follows by fiscal year:

Remainder of 2027 $ 355 237

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Cash equivalents 149 119

(In millions) July 3, October 2, 2026 April 3, 2026

Cash equivalents 163 119

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Trade receivable $ 235 $ 225

(In millions) July 3, October 2, 2026 April 3, 2026

Trade receivable $ 256 $ 225

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Total accounts receivable, net $ 378 398 $ 361

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(In millions) July 3, October 2, 2026 April 3, 2026

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Instacash Advances held for sale as of July 3, October 2, 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.

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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

(In millions) July 3, October 2, 2026 April 3, 2026

Deferred revenue $ 1,249 1,198 $ 1,247

Customer deposit liabilities 594 625 657

Total short-term contract liabilities $ 1,843 1,823 $ 1,904

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

(In millions) October 2, 2026 October 3, 2025

Income taxes paid (received), net of refunds $ 37 200 $ ( 6 ) 326

Interest expense paid $ 79 239 $ 183 372

Cash paid for amounts included in the measurement of operating lease liabilities $ 6 11 $ 6 9

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Reduction (increase) of operating lease assets as a result of lease terminations and modifications $ $ ( 4 6 )

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Purchases of property and equipment in current liabilities $ $ 3 2

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July 3, October 2, 2026 April 3, 2026

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Money market funds $ 149 163 $ 149 163 $ $ 97 $ 97 $

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As of July 3, October 2, 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.

We did not have any activity related to our non-marketable equity investments during the three and six months ended October 2, 2026. During the three and six months ended October 3, 2025, we recognized an immaterial loss on sale of our non-marketable equity investments, an $ 80 million impairment of our non-marketable equity investments, and an $ 11 million increase in the fair value of our non-marketable equity investments, each of which was recorded in Other income (expense), net in our Condensed Consolidated Statements of Operations.

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As of July 3, October 2, 2026 and April 3, 2026, the total fair value of our current and long-term fixed-rate debt was $ 2,454 2,398 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.

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July 3, October 2, 2026 April 3, 2026 Effective

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Term B Facility due September 12, 2029 2,331 2,322 2,340 SOFR + %

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Extended Term A Facility due March 27, 2031 2,707 2,672 2,741 SOFR + %

Incremental Term B Facility due April 16, 2032 742 741 744 SOFR + %

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Less: current portion ( 181 ) ( 181 )

Total debt 8,156 8,116 8,196

Less: current portion ( 1,080 ) ( 181 )

Total long-term debt $ 7,975 7,036 $ 8,015

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and 106 more changes in the filing

MD&A 156 changes

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The discussion below contains forward-looking statements, which are subject to safe harbors under the Securities Act of 1933, as amended (the Securities Act) and the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements include statements that represent our expectations or beliefs concerning future events, including, without limitation, references to our ability to utilize our deferred tax assets, as well as statements including words such as expects, plans, anticipates, believes, estimates, predicts, goal, intent, momentum, projects, forecast, outlook, strategy, future, opportunity, plan, may, should, will, would, will be, and similar expressions. In addition, projections of our future financial performance; beliefs regarding our business and strategies; anticipated growth and trends in our businesses and in our industries; the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies from acquisitions, including, but not limited to, our acquisition of MoneyLion), expectations about certain markets, divestitures, restructurings, stock repurchases, financings, debt repayments and covenant compliance, investment activities and our liquidity; our funding arrangements and hedging activities; potential share issuances and dilution under our contingent value rights agreement; the outcome or impact of pending litigation, claims or disputes; risks associated with third party providers; evolving regulations and increased scrutiny from regulators; our intent to pay quarterly cash dividends in the future; plans for and anticipated benefits of our products and solutions; our development, deployment and use of artificial intelligence and related investments and costs; our customer acquisition, retention, conversion, cross-selling and pricing strategies; cybersecurity, data privacy and business continuity; our ability to attract and retain personnel; our accounting estimates, the timing of revenue and expense recognition and the anticipated effects of new accounting guidance; anticipated tax rates, benefits and expenses; the global macroeconomic outlook, including but not limited to, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates, and the impact of new trade policy, including the implementation of global tariffs; retaliatory trade regulations and policies; economic disruptions caused by the potential impact of volatility and conflict in the geopolitical and economic environment; general uncertainty in the financial and capital markets; and other global macroeconomic factors on our operations and financial performance; and other characterizations of future events or circumstances are forward-looking statements. These statements are only predictions, based on our current expectations about future events and may not prove to be accurate. We do not undertake any obligation to update these forward-looking statements to reflect events occurring or circumstances arising after the date of this report. These forward-looking statements involve risks and uncertainties, and our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements on the basis of several factors, including economic recessions, inflationary pressures and those other factors that we discuss in Part II Item 1A, Risk Factors, of this Quarterly Report on Form 10-Q and Item 1A, Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended April 3, 2026. We encourage you to read those sections carefully. There may also be other factors that have not been anticipated or that are not described in our periodic filings with the Securities and Exchange Commission (SEC), generally because we did not believe them to be significant at the time, which could cause actual results to differ materially from our projections and expectations. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

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.

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

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We have a 52/53-week fiscal year ending on the Friday closest to March 31. The three months ended July 3, October 2, 2026 and October 3, 2025 each consisted of 13 weeks. The six months ended October 2, 2026 consisted of 26 weeks, whereas the three six months ended July 4, October 3, 2025 consisted of 14 27 weeks. Our 2027 fiscal year consists of 52 weeks and ends on April 2, 2027.

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Net revenues $ 1,336 $ 1,257

Operating income (loss) $ 443 $ 446

Net income (loss) $ 215 $ 135

Net income (loss) per share - diluted $ 0.36 $ 0.22

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

The following tables provide present our key financial metrics for the periods presented:

Three Months Ended Six Months Ended

(In millions, except for per share amounts) July October 2, 2026 October 3, 2025 October 2, 2026 July 4, October 3, 2025

Net revenues $ 1,369 $ 1,220 $ 2,705 $ 2,477

Operating income (loss) $ 507 $ 438 $ 950 $ 884

Net income (loss) $ 287 $ 134 $ 502 $ 269

Net income (loss) per share - diluted $ 0.48 $ 0.21 $ 0.83 $ 0.43 (In millions) October 2, 2026 April 3, 2026

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Contract liabilities $ 1,919 1,899 $ 1,977

Below are our financial highlights for the first second quarter of fiscal 2027, compared to with the corresponding period in the prior year:

Net revenues increased $149 million, primarily due to increased sales in both our Trust-Based Solutions and Cyber Safety Platform products.

Operating income (loss) remained relatively flat, increased $69 million, primarily due to offsetting increases in increased net revenues, partially offset by increases in cost of revenues and operating expenses.

Net income (loss) increased $153 million and net income per share increased $0.27, primarily due to higher operating income and other income (expense), net, as well as lower interest expense.

Below are our financial highlights for the first six months of fiscal 2027, compared with the corresponding period in the prior year:

Net revenues increased $79 $228 million, primarily due to increased sales in both our Trust-Based Solutions and Cyber Safety Platform products, partially offset by the impact of the additional week in the first quarter of fiscal 2026 on both segments.

Operating income (loss) increased $66 million, primarily due to increased net revenues, partially offset by increases in cost of revenues and operating expenses.

Net income (loss) increased $80 $233 million and net income per share increased $0.14, $0.40, primarily due to a decrease in higher operating income and other income (expense), net, as well as lower interest and income tax expense.

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As a global company, our results of operations and cash flows may be influenced by global macroeconomic conditions and their impact on customer and partner behavior. Global macroeconomic conditions include, but are not limited to, increased fluctuating tariffs and an uncertain global trade environment, foreign currency exchange rate fluctuations, the impact of changes in interest rate fluctuations, rates and uncertainty regarding monetary policy, elevated inflation, or renewed inflationary pressures, ongoing and new geopolitical conflicts, the impacts of current and future trade regulations, instability in the global banking sector, volatility in financial markets and tightening credit conditions, slow growth and recession risks, unemployment and household financial stress and changes in legislation or regulations and actions by regulators, including changes in enforcement and administrative policies. any of These conditions may vary across the markets in which we operate, may be difficult to predict and may persist for an extended period.

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We continue to monitor the direct and indirect impacts of these global macroeconomic or other geopolitical factors. If the Adverse conditions and continued economic uncertainty continues, we may experience negative impacts on negatively affect customer acquisition, renewals, customer discretionary spending and collections, as well as sales and marketing efforts, customer deployments and product development. or other Volatility in financial metrics. markets and tightening credit conditions may also increase our cost of capital and financing expenses and adversely affect the availability, cost and terms of funding arrangements and refinancing. These conditions may require us to change, postpone or cancel strategic initiatives or growth plans. Additional broader implications of these events on our business, results of operations, cash flows and overall financial position still remain uncertain and could result in further adverse impacts to our reported results. For further discussion of the potential impacts of global macroeconomic conditions on our business, please see Liquidity, Capital Resources and Cash Requirements below, Part I, Item 3 and Risk Factors in Part II, Item 1A below.

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Our critical accounting policies and estimates were disclosed in Item 7, Management s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended April 3, 2026. There have been no other material changes in the matters for which we make critical accounting estimates in the preparation of our Condensed Consolidated Financial Statements during the three and six months ended July 3, October 2, 2026.

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July 3, 2026 July 4, 2025

Cost of revenues 23 21

Research and development 9 9

Total operating expenses 44 43

Operating income (loss) 33 35

Net income (loss) 16 % 11 %

Three Months Ended Six Months Ended

October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025

Net revenues 100 % 100 % 100 % 100 %

Cost of revenues 24 22 24 22

Gross profit 76 78 76 78

Sales and marketing 22 24 22 24

Research and development 8 8 9 8

General and administrative 6 6 5 5 5 5

Amortization of intangible assets 4 5 4 4

Restructuring and other costs 2 0 1 1

Total operating expenses 39 42 41 43

Operating income (loss) 37 36 35 36

Interest expense (9) (12) (9) (12)

Other income (expense), net 1 0 (5) 0 (2)

Income (loss) before income taxes 24 24 28 19 26 22

Income tax expense (benefit) 7 8 13 8 11

Net income (loss) 21 % 11 % 19 % 11 %

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(In millions, except for percentages) July 3, 2026 July 4, 2025 Change in %

Net revenues $ 1,336 $ 1,257 6 %

Net revenues increased $79 million, primarily due to a $102 million increase in sales of our Trust-Based Solutions, partially offset by a $23 million decrease in sales of our Cyber Safety Platform, due to the $56 million impact of the additional week in the first quarter of fiscal 2026. The additional week had a $31 million impact on our Trust-Based Solutions net revenues, for a total impact of $87 million across both segments.

Three Months Ended Six Months Ended

(In millions, except percentages) October 2, 2026 October 3, 2025 Change in % October 2, 2026 October 3, 2025 Change in %

Net revenues $ 1,369 $ 1,220 12 % $ 2,705 $ 2,477 9 %

Three Months Ended July 3, October 2, 2026 Compared with Three Months Ended July 4, October 3, 2025

Net revenues increased $149 million, due to a $105 million increase in sales of our Trust-Based Solutions and a $44 million increase in sales of our Cyber Safety Platform products.

Six Months Ended October 2, 2026 Compared with Six Months Ended October 3, 2025

Net revenues increased $228 million, due to a $207 million increase in sales of our Trust-Based Solutions and a $21 million increase in sales of our Cyber Safety Platform products. Net revenues for the prior year period included $87 million from the additional week in the first quarter of fiscal 2026, impacting both segment financials. Specifically, the additional week contributed $56 million to our Cyber Safety Platform and $31 million to Trust-Based Solutions.

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July 3, 2026 July 4, 2025

Cyber Safety Platform $ 846 $ 869

Trust-Based Solutions 490 388

July 3, 2026 July 4, 2025

Three Months Ended Six Months Ended

October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025

Cyber Safety Platform $ 858 $ 814 $ 1,704 $ 1,683

Trust-Based Solutions 511 406 1,001 794

October 2, 2026 October 3, 2025

Total paid customers 81 76 83 77

Revenue from Cyber Safety Platform decreased $23 increased $44 million and $21 million during the three and six months ended July 3, October 2, 2026, primarily respectively, due to an impact of growth across our Cyber Safety membership offerings. Cyber Safety Platform revenue for the six months ended October 3, 2025 included $56 million from the additional week in the first quarter of fiscal 2026. partially offset by growth across our Cyber Safety membership offerings. Revenue from Trust-Based Solutions increased $102 $105 million and $207 million during the three and six months ended July 3, October 2, 2026, respectively, primarily due to continued growth in our Financial Wellness offerings. partially offset by Trust-Based Solutions revenue for the impact of six months ended October 3, 2025 included $31 million from the additional week in the first quarter of fiscal 2026.

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We define paid customers as active users of our products and solutions, including subscribers with an active paid subscription to our products at the end of the reported period. Paid customers also includes include product users with a unique account and at least one revenue-generating transaction in the relevant active period of each respective product category, whether through our first-party personal finance products, transacting through our financial marketplaces or generating revenue through product usage. We exclude users on free trials and those who have not actively transacted in the relevant period of each respective product category.

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July 3, 2026 July 4, 2025

Three Months Ended Six Months Ended

October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025

Americas 72 % 71 % 72 % 71 %

EMEA 20 % 21 % 20 % 21 %

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(In millions, except for percentages) July 3, 2026 July 4, 2025 Change in %

Cost of revenues $ 307 $ 267 15 %

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Market risk 3 changes

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As of July 3, October 2, 2026, we had $2,450 million in aggregate principal amount of fixed-rate Senior Notes outstanding, with a carrying amount and a fair value of $2,454 $2,398 million, based on Level 2 inputs. The fair value of these notes fluctuates when interest rates change. Since these notes bear interest at fixed rates, the financial statement risk associated with changes in interest rates is limited to future refinancing of current debt obligations. If these notes were refinanced at higher interest rates prior to maturity, our total interest payments could increase by a material amount; however, this risk is mitigated by our strong cash position and expected future cash generated from operations. which will be sufficient to satisfy this increase in obligation.

As of July 3, October 2, 2026, we also had $5,780 $5,735 million outstanding debt with variable interest rates based on the Secured Overnight Financing Rate (SOFR). A hypothetical 100 basis point change in SOFR would have resulted in a $58 $57 million increase or decrease in interest expense on an annualized basis.

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We conduct business in numerous currencies through our worldwide operations, and our entities hold monetary assets or liabilities, earn revenues or incur costs in currencies other than each entity s functional currency, primarily in Euro, Japanese Yen, British Pound, Australian Dollar, Czech Koruna and Canadian Dollar. In addition, we charge our international subsidiaries for their use of intellectual property and technology and for certain corporate services provided. Our cash flow, results of operations and certain of our intercompany balances that are exposed to foreign exchange rate fluctuations may differ materially from expectations, and we may record significant gains or losses due to foreign currency fluctuations and related hedging activities. As a result, we are exposed to foreign exchange gains or losses, which impacts could impact our operating results.

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Controls and procedures 1 change

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There were no changes in Gen s internal control over financial reporting or in other factors that occurred during the first second quarter of fiscal 2027 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Risk factors 19 changes

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If the information provided to us by customers or other third parties is incorrect or fraudulent, we may misjudge a customer s qualifications to receive our products and services, and our results of operations may be harmed and we could be subject us to regulatory scrutiny or penalties.

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Our ability to use our deferred tax assets to offset future taxable income may be limited.

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An important part of our growth strategy involves continued investment in direct marketing efforts, indirect partner distribution channels, expanding partner relationships, freemium channels, our sales force, and infrastructure to add new customers. The number and rate at which new customers purchase our products and services depends depend on a number of factors, including those outside of our control, such as customers perceived need for our solutions and products, competition, general economic conditions, market transitions, product obsolescence, technological change, public awareness of security threats to IT systems, macroeconomic conditions, and other factors. New customers, if any, may subscribe or renew their subscriptions, or utilize our products and solutions, at lower rates than we have experienced in the past, introducing uncertainty about their economic attractiveness and potentially impacting our financial results.

Additionally, there are inherent challenges in measuring the usage of our products and solutions across our brands, platforms, regions, and internal systems, and therefore, calculation methodologies for direct customer counts may differ, which may impact our ability to measure the addition of new customers and our understanding of certain details of our business. The methodologies used to measure these metrics require judgment and are also susceptible to algorithms algorithmic or other technical errors. From time to time, we review our metrics and may discover inaccuracies or make adjustments to improve their accuracy, which can result in adjustments to our historical metrics. Our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to apply different methodologies for such adjustments. If investors do not perceive our operating metrics to be accurate, or if we discover material inaccuracies with respect to these figures, our reputation may be significantly harmed, and our results of operations and financial condition could be adversely affected.

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Many of Avira s and Avast s users are freemium subscribers, meaning they do not pay for its the basic services, and our growth strategy for their respective products depends upon attracting and converting Avira s and Avast s freemium users to a paid subscription option. Numerous factors, however, have previously and may continue to impede our ability to attract and retain free users, convert these users into paying customers and retain them as paying customers.

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Our future success depends upon our ability to recruit and retain key management, technical (including cyber security cybersecurity and AI experts), sales, marketing, e-commerce, finance and other personnel. Our officers and other key personnel are at will employees and we generally do not have employment or non-compete agreements with our employees. Competition is significant for people with the specific skills that we require, including in the areas of AI and machine learning, and especially in the locations where we have a substantial presence and need for such personnel.

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If the information provided to us by customers or other third parties is incorrect or fraudulent, we may misjudge a customer s qualifications to receive our products and services, and our results of operations may be harmed and we could be subject us to regulatory scrutiny or penalties.

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Given the digital nature of our platform, we are an attractive target for attacks designed to impede the performance and availability of our offerings, compromise sensitive information and harm our reputation as a leading cyber security cybersecurity company. In addition, we face the risk of cyberattacks by nation-states and state-sponsored actors, which may increase due to geopolitical tensions. These attacks may target us, our partners, suppliers, vendors or customers. Malicious hackers, state-sponsored actors, insiders and third-party service providers have attempted to penetrate, and in some cases succeeded in penetrating, our networks or those of our vendors. Such attempts are increasing in number and in technical sophistication, including through the use of AI, and have in the past and could in the future expose us and the affected parties, to risk of loss or misuse of proprietary, personal or confidential information or disruptions of our business operations. Additionally, deployment of agentic AI with access to our systems, data, and third-party tools creates an expanded surface for cyberattacks, as threat actors may exploit inadequate controls to manipulate agents into executing unauthorized actions, accessing sensitive information, or initiating malicious transactions, and the autonomous nature of these systems may enable attackers to conduct multi-step attacks that evade traditional security controls before detection occurs.

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We maintain a compliance program designed to enable us to comply with all applicable anti-money laundering, anti-terrorism financing and economic sanctions laws and regulations, including the Bank Secrecy Act (BSA), as amended by the USA PATRIOT Act of 2001, and its implementing regulations. This compliance program includes policies, procedures, processes and other internal controls designed to identify, monitor, manage and mitigate the risk of money laundering and terrorist financing and prevent our platform from being used to facilitate business in countries or with persons or entities that are the subject of sanctions administered by the Office of Foreign Assets Control and equivalent international authorities or that are otherwise the target of sanctions. These controls include procedures and processes to detect and report potentially suspicious transactions, perform customer due diligence, respond to requests from law enforcement and meet all recordkeeping and reporting requirements related to particular transactions involving currency or monetary instruments. Certain of our subsidiaries may be financial institutions under the BSA that are required to establish and maintain a BSA/AML compliance program. Additionally, we are required to maintain a BSA/AML compliance program under our agreements with our third-party partners, and certain state regulatory agencies have intimated they expect such program to be in place and followed.

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Our wholly-owned subsidiary, ML Wealth, is registered as an investment adviser under the Investment Advisers Act of 1940 (the Advisers Act) and is subject to regulation by the SEC. The Advisers Act, together with related regulations and interpretations of the SEC, impose imposes numerous obligations and restrictions on investment advisers, including requirements relating to the safekeeping of client funds and securities, limitations on advertising, disclosure and reporting obligations, prohibitions on fraudulent activities, restrictions on agency cross and principal transactions between an adviser and its advisory clients and other detailed operating requirements, as well as general fiduciary obligations.

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We cannot determine with any degree of certainty whether any legislative or regulatory changes will be enacted and, if enacted, the ultimate impact that any such potential legislation or implemented regulations, or any such potential regulatory actions by federal or state regulators, would have upon our business or our operating environment. These changes and uncertainties make our business planning more difficult and could result in changes to our business model, impair our ability to offer our existing or planned features, products and services or increase our cost of doing business.

In addition, numerous federal and state regulators have the authority to promulgate or change regulations that could have a similar effect on our third-party partners and service providers and restrict their business practices. New laws, regulations, rules, guidance and policies could require us to incur significant expenses to ensure compliance, adversely impact our profitability, limit our ability to continue existing or pursue new business activities, require us to change certain of our business practices or alter our relationships with customers, affect retention of key personnel or expose us to additional costs (including customer remediation). For example, the regulatory frameworks for an open banking paradigm and AI and machine learning technology are evolving and remain uncertain and may affect the operation of our platform and the way in which we use consumer data, AI and machine learning technology, including with respect to consumer protection laws and the laws and regulations governing financial services products. For additional information regarding risks related to the use of AI, see " --Issues in the development and deployment of AI, including generative AI and emerging AI-enabled cyber threats, could expose us to regulatory, privacy, IP, cybersecurity, operational and reputational risks.

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From time to time, we are involved in litigation, investigations, examinations and other legal or administrative proceedings initiated by governmental agencies or private parties. These matters may involve, among other things, labor and employment, discrimination and harassment, commercial disputes, class actions, general contract and tort claims, defamation, data privacy rights, antitrust, fraud, securities (including blue sky laws) violations, consumer protection laws, and other regulatory or compliance issues. Such matters may adversely affect our business, financial condition, results of operations and cash flows. Refer to Note 15 of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Refer to Note 15 of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

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Certain of our products are distributed with software licensed by its authors or other third parties under so-called open source licenses. Some of these licenses contain requirements that we make available source code for modifications or derivative works we create based upon the open source software and that we license such modifications or derivative works under the terms of a particular open source license or other license granting third parties certain rights of further use. By the terms of certain open source licenses, we could be required to release the source code of our proprietary software (which could include our proprietary source code or AI models) if we combine our proprietary software with open source software in a certain manner. Some open source software may include Gen AI software which may expose us to risks as the intellectual property ownership and license rights, including copyright, of Gen AI software and tools has have not been fully interpreted by U.S. courts or been fully addressed by federal, state, or international regulations. In addition to risks related to license requirements, using open source software, including open source software that incorporates or relies on Gen AI, can lead to greater risks than use of third- party third-party commercial software, as open source licensors generally do not provide warranties or controls on origin of the software. We cannot be sure that all open source, including open source that incorporates or relies on Gen AI, is submitted for approval prior to use in our products. In addition, many of the risks associated with usage of open source, including open source that incorporates or relies on Gen AI, may not or cannot be eliminated and could, if not properly addressed, negatively affect our business.

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As of July 3, October 2, 2026, we had an aggregate of $8,230 $8,185 million of outstanding indebtedness that will mature in calendar years 2027 through 2033, and $1,495 million, net of our letters of credit, available for borrowing under our revolving credit facility. See Note 8 of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information on our outstanding debt. Our ability to meet expenses, comply with the covenants and the springing maturity provisions under our debt instruments, pay interest and repay principal for our substantial level of indebtedness depends on, among other things, our operating performance, competitive developments, and financial market conditions, all of which are significantly affected by financial, business, economic and other factors. We are not able to control many of these factors. Accordingly, our cash flow may not be sufficient to allow us to pay principal and interest on our debt, including our 6.75% Senior Notes due 2027, 7.125% Senior Notes due 2030 and 6.25% Senior Notes due 2033 (collectively, the Senior Notes), and meet our other obligations. Our level of indebtedness could have other important consequences, including the following:

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The number, severity and timing of threat outbreaks and cyber security cybersecurity incidents;

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In connection with the MoneyLion acquisition, we entered into a Contingent Value Rights Agreement dated April 17, 2025 (the CVR Agreement ) governing the terms of the CVRs. Each CVR entitles its holder to receive $23.00 in shares of common stock, par value $0.01 per share, of Gen Digital (CVR Consideration) if, on any date prior to the second anniversary of the closing, (i) the Average VWAP (as defined in the CVR Agreement) of our common stock for 30 consecutive trading days is equal to or greater than $37.50 (subject to certain adjustments) or (ii) we undergo a change of control (each, a CVR Requirement and collectively the CVR Requirements ). To the extent neither of the CVR Requirements are is met, the CVR holders would not be entitled to receive the CVR Consideration. To the extent we are required to issue shares to the CVR holders under the CVR Agreement, our stockholders may be diluted.

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Changes to other tax laws, regulations, and interpretations thereof in multiple jurisdictions in which we operate. The Organisation for Economic Co-operation and Development ( OECD ) has proposed certain tax reforms, which, among other things, (1) shift taxing rights to the jurisdiction of the consumer ( (Pillar One) ) and (2) establish a global minimum tax rate of 15% for multinational companies ( (Pillar Two). ). Ireland, Czech Republic and certain jurisdictions in which we operate have enacted legislation to implement Pillar Two and other countries are actively considering changes to their tax laws to adopt certain parts of the OECD s proposals. Additionally, on June 28, 2025, the G7 released a joint statement that it had reached an understanding with the United States for a side-by-side system based on certain accepted principles, including that U.S.-parented groups would be exempt from certain provisions of Pillar Two. Furthermore, several countries have proposed or adopted digital services taxes on revenue earned by multinational companies from the provision of certain digital services, regardless of physical presence;

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Unregistered sales of stock 9 changes

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Stock repurchases during the three months ended July 3, October 2, 2026 were as follows:

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April 4, 2026 to May 1, 2026 $ $ 2,094

May 2, 2026 to May 29, 2026 2 $ 24.56 2 $ 2,035

May 30, 2026 to July 3, 2026 2 $ 26.87 2 $ 1,994

July 4, 2026 to July 31, 2026 $ $ 1,994

August 1, 2026 to August 28, 2026 6 $ 28.96 6 $ 1,823

August 29, 2026 to October 2, 2026 $ $ 1,823

Total number of shares repurchased 4 4 6 6

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(2) In May 2024, our Board of Directors authorized a new stock repurchase program through which we may repurchase shares of our common stock in an aggregate amount of up to $3 billion with no fixed expiration. Under our stock repurchase program, shares may be repurchased on the open market and through accelerated stock repurchase transactions. As of July 3, October 2, 2026, we have $1,994 $1,823 million remaining authorized to be completed in future periods with no expiration date.

Other information 6 changes

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Name Title Action Date Rule 10b5-1 (1)

Total Shares to be Sold Expiration Date (3)

Bryan Ko Chief Operating Officer, Chief Legal Officer and Secretary Adopt June 5, 2026 X Up to 108,100 shares (1) Intended to satisfy the affirmative defense of Rule 10b5-1(c).

(2) Non-Rule 10b5-1 trading arrangement as defined in Item 408 of Regulation S-K.

(3) Except as indicated by footnote, each trading arrangement permitted or permits transactions through and including the earlier of (i) the completion of all purchases or sales; (ii) the date listed in the table; or (iii) such date the arrangement is otherwise terminated according to its terms.

During the fiscal quarter ended July 3, October 2, 2026, none of our directors or officers informed us of the adoption or termination of a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as defined in Regulation S-K, Item 408. except as described in the table below:

Exhibits 3 changes

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10.01 Master Receivables Purchase Agreement, dated as of June 30, 2024, by and among Sound Point Capital Management, LP, SP Main Street Funding I LLC, the additional purchasers from time to time party thereto, and ML Plus LLC, as amended through May 28, 2026.

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101 The following financial information from Gen Digital Inc.'s Inc. s Quarterly Report on Form 10-Q for the quarter ended July 3, October 2, 2026 is formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) Condensed Consolidated Statements of Stockholders Equity (Deficit), (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags.

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* Indicates a management contract or compensatory plan or arrangement.

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