Gen Delivers Record Q4 and Full Year Fiscal 2025 Results
Gen raises the bar with accelerated revenue growth in FY26
TEMPE, Ariz. and PRAGUE, May 6, 2025 /PRNewswire/ -- 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 comprehensive platform of trusted solutions that empowers millions of people around the world to confidently grow, manage, and protect every aspect of their digital and financial lives."
Fiscal Year 2025 Financial Highlights
Fiscal Year 2025 GAAP Results
-- Revenue of $3,935 million, up 4%
-- Operating income of $1,610 million, up 45%
-- Operating margin of 41%, up 12 pts
-- Diluted EPS of $1.03, up 9%
-- Operating cash flow of $1,221 million
Fiscal Year 2025 Non-GAAP Results
-- Revenue of $3,935 million, up 4% in USD and constant currency
-- Bookings of $3,989 million, up 3% in USD and 4% in constant currency
-- Operating income of $2,298 million, up 4% in USD and constant currency
-- Operating margin of 58.4%, up 30 bps
-- Diluted EPS of $2.22, up 14% in USD and 15% in constant currency
Q4 Fiscal Year 2025 Financial Highlights
Q4 GAAP Results
-- Revenue of $1,010 million, up 5%
-- Operating income of $417 million, up 5%
-- Operating margin of 41%, flat year-over-year
-- Diluted EPS of $0.23, up 11%
-- Operating cash flow of $473 million
Q4 Non-GAAP Results
-- Revenue of $1,010 million, up 5% in USD and constant currency
-- Bookings of $1,076 million, up 3% in USD and 5% in constant currency
-- Operating income of $590 million, up 4% in USD and constant currency
-- Operating margin of 58.4%, down 30 bps
-- Diluted EPS of $0.59, up 12% in USD and 13% in constant currency
"We ended fiscal year 2025 with record revenue and profit, reflecting the strength of our operating model and disciplined execution," said Natalie Derse, CFO of Gen. "Over the past several years, Gen has significantly transformed, and this year marks an important milestone in that journey. Our leadership in Cyber Safety enables our strategic expansion into Trust-Based Solutions and opens new pathways to accelerate growth. As we enter the new fiscal year, we are confident in our ability to deliver against our operational and financial objectives."
Non-GAAP Q1 Fiscal Year 2026 Guidance
-- Q1 FY26 Revenue expected to be in the range of $1,180 million to $1,210
million
-- Q1 FY26 EPS expected to be in the range of $0.59 to $0.61
Non-GAAP Fiscal Year 2026 Guidance
-- FY26 Revenue expected to be in the range of $4,700 million to $4,800
million
-- FY26 EPS expected to be in the range of $2.46 to $2.54
Quarterly Cash Dividend
Gen's Board of Directors has approved a regular quarterly cash dividend of $0.125 per common share to be paid on June 11, 2025, to all shareholders of record as of the close of business on May 19, 2025.
Q4 Fiscal Year 2025 Earnings Call
May 6, 2025
2 p.m. PT / 5 p.m. ET
Webcast & Dial-in instructions at Investor.GenDigital.com. A replay will be posted following the call. For additional details regarding Gen's results and outlook, please see the Financials section of the Investor Relations website at Investor.GenDigital.com.
About Gen
Gen (NASDAQ: GEN) is a global company dedicated to powering Digital Freedom through its trusted consumer brands including Norton, Avast, LifeLock, MoneyLion and more. The Gen family of consumer brands is rooted in providing financial empowerment and cyber safety for the first digital generations. Today, Gen empowers people to live their digital lives safely, privately and confidently for generations to come. Gen brings award-winning products and services in cybersecurity, online privacy, identity protection and financial wellness to nearly 500 million users in more than 150 countries. Learn more at GenDigital.com.
Forward-Looking Statements
This press release 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 historical fact are statements that could be deemed forward-looking statements, including, but not limited to, the quotes under "Fiscal Year 2025 Results" and "Q4 Fiscal Year 2025 Results" including expectations relating to achievement of long-term objectives, and the statements under "Non-GAAP Q1 Fiscal Year 2026 Guidance" and "Non-GAAP Fiscal Year 2026 Guidance" including expectations relating to Q1 Fiscal Year 2026 and Fiscal Year 2026 non-GAAP revenue and non-GAAP EPS, and any statements of assumptions underlying any of the foregoing. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies and associated cost savings from any such acquisitions); divestitures, restructurings, stock repurchases, financings, debt repayments and investment activities; the outcome or impact of pending litigation, claims or disputes; difficulties in executing the operating model for the consumer Cyber Safety business; lower than anticipated returns from our investments in direct customer acquisition; difficulties in retaining our existing customers and converting existing non-paying customers to paying customers; difficulties and delays in reducing run rate expenses and monetizing underutilized assets; the successful development of new products and upgrades and the degree to which these new products and upgrades gain market acceptance; our ability to maintain our customer and partner relationships; the anticipated growth of certain market segments; fluctuations and volatility in our stock price; our ability to successfully execute strategic plans; the vulnerability of our solutions, systems, websites and data to intentional disruption by third parties; changes to existing accounting pronouncements or taxation rules or practices; and general business and macroeconomic changes in the U.S. and worldwide, including economic recessions, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates or tax rates, and ongoing and new geopolitical conflicts, and other global macroeconomic factors on our operations and financial performance. Additional information concerning these and other risk factors is contained in the Risk Factors sections of our most recent reports on Form 10-K and Form 10-Q. We encourage you to read those sections carefully. There may also be other factors that have not been anticipated or are not described in our periodic filings, 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. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments.
Use of Non-GAAP Financial Information
We use non-GAAP measures of operating margin, operating income, net income and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics of revenues, and constant currency revenues. These non-GAAP financial measures are provided to enhance the user's understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing Gen's performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release, and which can be found, along with other financial information including the Earnings Presentation, on the investor relations page of our website at Investor.GenDigital.com. No reconciliation of the forecasted range for non-GAAP revenues and EPS guidance is included in this release because most non-GAAP adjustments pertain to events that have not yet occurred. It would be unreasonably burdensome to forecast, therefore we are unable to provide an accurate estimate.
GEN DIGITAL INC.
Condensed Consolid
ated Balance Sheets
(1)
(Unaudited, in millions)
March 28, 2025 March 29, 2024
ASSETS
Current assets:
Cash and cash equivalents $1,006 $846
Accounts receivable, net 171 163
Other current assets 245 334
Assets held for sale 22 15
Total current assets 1,444 1,358
Property and equipment, net 60 72
Intangible assets, net 2,267 2,638
Goodwill 10,237 10,210
Other long-term assets 1,487 1,515
Total assets $15,495 $15,793
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $94 $66
Accrued compensation and benefits 105 78
Current portion of long-term debt 291 175
Contract liabilities 1,846 1,808
Other current liabilities 515 599
Total current liabilities 2,851 2,726
Long-term debt 7,968 8,429
Long-term contract liabilities 77 76
Deferred income tax liabilities 222 261
Long-term income taxes payable 1,420 1,490
Other long-term liabilities 688 671
Total liabilities 13,226 13,653
Total stockholders' equity (deficit) 2,269 2,140
Total liabilities and stockholders' equity $15,495 $15,793
__________________________
(1) During the first quarter of fiscal year 2025, we identified and made a revision to our historical practice of when we
recognize revenue from certain customers.
We concluded that the impact of the revision was an immaterial correction to prior period financial statements. However, for
comparative purposes we have
corrected for this in prior periods reported above.
GEN DIGITAL INC.
Condensed Consolidated Statements of Operations
(1)
(Unaudited, in millions, except per share amounts)
Three Months Ended Year Ended
March 28, 2025 March 29, 2024 March 28, 2025 March 29, 2024
Net revenues $1,010 $964 $3,935 $3,800
Cost of revenues 199 190 776 731
Gross profit 811 774 3,159 3,069
Operating expenses:
Sales and marketing 196 181 745 733
Research and development 81 80 329 332
General and administrative 67 45 291 604
Amortization of intangible assets 44 50 174 233
Restructuring and other costs 3 21 7 57
Impairment of intangible assets 3 3
Total operating expenses 394 377 1,549 1,959
Operating income (loss) 417 397 1,610 1,110
Interest expense (135) (161) (578) (669)
Other income (expense), net 5 (24) (3) 6
Income (loss) before income taxes 287 212 1,029 447
Income tax expense (benefit) 145 81 386 (160)
Net income (loss) $142 $131 $643 $607
Net income (loss) per share - basic $0.23 $0.21 $1.04 $0.95
Net income (loss) per share - diluted $0.23 $0.21 $1.03 $0.95
Weighted-average shares outstanding:
Basic 616 630 617 637
Diluted 624 637 624 642
__________________________
(1) During the first quarter of fiscal year 2025, we identified and made a revision to our historical practice of when we
recognize revenue from certain customers.
We concluded that the impact of the revision was an immaterial correction to prior period financial statements. However, for
comparative purposes we have
corrected for this in prior periods reported above.
GEN DIGITAL INC.
Condensed Consolidated Statements of Cash Flows
(1)
(Unaudited, in millions)
Three Months Ended Year Ended
March 28, 2025 March 29, 2024 March 28, 2025 March 29, 2024
OPERATING ACTIVITIES:
Net income (loss) $142 $131 $643 $607
Adjustments:
Amortization and depreciation 104 111 419 485
Impairments and write-offs of current and long-lived assets 5 (2) 7 (3)
Stock-based compensation expense 36 31 133 138
Deferred income taxes 18 (21) (32) (991)
Gain on sale of properties - (9)
Non-cash operating lease expense 5 3 16 18
Impairment on non-marketable equity investments - 40 30 40
Legal contract dispute cost (Note 1) 24 66
Other 15 (3) 11 22
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net (19) (53) 7
Accounts payable (9) 6 26 (12)
Accrued compensation and benefits 11 14 27 (24)
Contract liabilities 63 78 36 47
Income taxes payable 56 105 (80) 446
Other assets 11 906 86 861
Other liabilities 11 (1) (114) 432
Net cash provided by (used in) operating activities 473 1,398 1,221 2,064
INVESTING ACTIVITIES:
Purchases of property and equipment (3) (3) (15) (20)
Purchase of non-marketable equity investments - (4)
Payments for acquisitions, net of cash acquired (84) (84)
Proceeds from the sale of properties - 25
Other 4 1 3 (3)
Net cash provided by (used in) investing activities (83) (2) (100) 2
FINANCING ACTIVITIES:
Repayments of debt and related equity component (1,164) (658) (1,311) (1,183)
Proceeds from issuance of debt, net of issuance costs 941 941
Net proceeds from sales of common stock under employee stock incentive plans 5 6 11 12
Tax payments related to vesting of stock units (1) (1) (26) (26)
Dividends and dividend equivalents paid (77) (78) (313) (323)
Repurchases of common stock - (300) (272) (441)
Net cash provided by (used in) financing activities (296) (1,031) (970) (1,961)
Effect of exchange rate fluctuations on cash and cash equivalents 29 (9) 9 (9)
Change in cash and cash equivalents 123 356 160 96
Beginning cash and cash equivalents 883 490 846 750
Ending cash and cash equivalents $1,006 $846 $1,006 $846
__________________________
(1) During the first quarter of fiscal year 2025, we identified and made a revision to our historical practice of when we
recognize revenue from certain customers.
We concluded that the impact of the revision was an immaterial correction to prior period financial statements. However, for
comparative purposes we have
corrected for this in prior periods reported above.
GEN DIGITAL INC.
Reconciliation of Selected GAAP Measures to Non-GAAP Measures
(1) (2) (3)
(Unaudited, in milli
ons, except per share amounts)
Three Months Ended Year Ended
March 28, 2025 March 29, 2024 March 28, 2025 March 29, 2024
Operating income (loss) $417 $397 $1,610 $1,110
Stock-based compensation 37 31 134 138
Amortization of intangible assets 100 107 401 462
Impairment of intangible assets 3 3
Restructuring and other costs 3 21 7 57
Acquisition and integration costs 1 4 11 24
Litigation costs 4 6 65 418
Legal contract dispute cost 24 66
Other 1 1
Operating income (loss) (Non-GAAP) $590 $566 $2,298 $2,209
Operating margin 41.3 % 41.2 % 40.9 % 29.2 %
Operating margin (Non-GAAP) 58.4 % 58.7 % 58.4 % 58.1 %
Net income (loss) $142 $131 $643 $607
Adjustments to net income (loss)
Stock-based compensation 37 31 134 138
Amortization of intangible assets 100 107 401 462
Impairment of intangible assets 3 3
Restructuring and other costs 3 21 7 57
Acquisition and integration costs 1 4 11 24
Litigation costs 4 6 65 418
Legal contract dispute cost 24 66
Other 4 (1) 6
Non-cash interest expense 6 7 26 27
Loss (gain) on equity investments - 40 30 40
Loss (gain) on sale of properties - (9)
Total adjustments to GAAP income (loss) before income taxes 182 215 749 1,157
Adjustment to GAAP provision for income taxes 42 (13) (5) (512)
Total adjustment to income (loss), net of taxes 224 202 744 645
Net income (loss) (Non-GAAP) $366 $333 $1,387 $1,252
Diluted net income (loss) per share $0.23 $0.21 $1.03 $0.95
Adjustments to diluted net income (loss) per share:
Stock-based compensation 0.06 0.05 0.21 0.21
Amortization of intangible assets 0.16 0.17 0.64 0.72
Impairment of intangible assets 0.00 0.00
Restructuring and other costs 0.00 0.03 0.01 0.09
Acquisition and integration costs 0.00 0.01 0.02 0.04
Litigation costs 0.01 0.01 0.10 0.65
Legal contract dispute cost 0.04 0.11
Other 0.01 (0.00) 0.01
Non-cash interest expense 0.01 0.01 0.04 0.04
Loss (gain) on equity investments - 0.06 0.05 0.06
Loss (gain) on sale of properties - (0.01)
Total adjustments to GAAP income (loss) before income taxes 0.29 0.34 1.20 1.80
Adjustment to GAAP provision for income taxes 0.07 (0.02) (0.01) (0.80)
Total adjustment to income (loss), net of taxes 0.36 0.32 1.19 1.00
Diluted net income (loss) per share (Non-GAAP) $0.59 $0.52 $2.22 $1.95
Diluted weighted-average shares outstanding 624 637 624 642
Diluted weighted-average shares outstanding (Non-GAAP) 624 637 624 642
__________________________
(1) This presentation includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a
substitute for financial
information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A.
(2)
Amounts may not add due to rounding.
(3) During the first quarter of fiscal year 2025, we identified and made a revision to our historical practice of when we
recognize revenue from certain customers.
We concluded that the impact of the revision was an immaterial correction to prior period financial statements. However, for
comparative purposes we have
corrected for this in prior periods reported above.
GEN DIGITAL INC.
Constant Currency Adjusted Revenues and Cyber Safety Metrics (1)
(Unaudited, in m
illions, except per user data and percentages)
Constant Currency Adjusted Revenues
(Non-GAAP)
Three Months Ended
Year Ended
March 28, March 29, Variance in March 28, March 29, Variance in
% %
2025 2024 2025 2024
Revenues $1,010 $964 5 % $3,935 $3,800 4 %
Exclude foreign exchange impact (2) 2 11
Constant currency adjusted revenues $1,012 $964 5 % $3,946 $3,800 4 %
(Non-GAAP)
Cyber Safety Metrics
Three Months Ended Year Ended
March 28, December 27, March 29, March 28, March 29,
2025
2024 2024 2025 2024
Direct customer revenues $877 $869 $844 $3,456 $3,341
Partner revenues $121 $105 $105 $429 $396
Total Cyber Safety revenues $998 $974 $949 $3,885 $3,737
Legacy revenues (3) $12 $12 $15 $50 $63
Direct customer count (at quarter end) 40.4 40.1 39.1 40.4 39.1
Direct average revenue per user (ARPU) $7.27 $7.27 $7.22 $7.26 $7.22
Retention rate 78 % 78 % 77 % 78 % 77 %
__________________________
(1) During the first quarter of fiscal year 2025, we identified and made a revision to our historical practice of when we
recognize revenue from certain customers.
We concluded that the impact of the revision was an immaterial correction to prior period financial statements. However, for
comparative purposes we have
corrected for this in prior periods reported above.
(2)
Calculated using year ago foreign exchange rates.
(3) Legacy revenues includes revenues from products or solutions from markets that we have exited and in which we no longer
operate, have been discontinued
or identified to be discontinued, or remain in maintenance mode as a result of integration and product portfolio decisions.
GEN DIGITAL INC.
Appendix A
Explanation of Non-GAAP Measures and Other Items
Objective of non-GAAP measures: We believe our presentation of non-GAAP financial measures, when taken together with corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company's operating performance for the reasons discussed below. Our management team uses these non-GAAP financial measures in assessing our performance, as well as in planning and forecasting future periods. Due to the importance of these measures in managing the business, we use non-GAAP measures in the evaluation of management's compensation. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Stock-based compensation: This consists of expenses for employee restricted stock units, performance-based awards, stock options and our employee stock purchase plan, determined in accordance with GAAP. We evaluate our performance both with and without these measures because stock-based compensation is a non-cash expense and can vary significantly over time based on the timing, size, nature and design of the awards granted, and is influenced in part by certain factors that are generally beyond our control, such as the volatility of the market value of our common stock. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation to facilitate the comparison of our results to those of other companies in our industry.
Amortization of intangible assets: Amortization of intangible assets consists of amortization of acquisition-related intangibles assets such as developed technology, customer relationships and trade names acquired in connection with business combinations. We record charges relating to the amortization of these intangibles within both cost of revenues and operating expenses in our GAAP financial statements. Under purchase accounting, we are required to allocate a portion of the purchase price to intangible assets acquired and amortize this amount over the estimated useful lives of the acquired intangible assets. However, the purchase price allocated to these assets is not necessarily reflective of the cost we would incur to internally develop the intangible asset. Further, amortization charges for our acquired intangible assets are inconsistent in size and are significantly impacted by the timing and valuation of our acquisitions. We eliminate these charges from our non-GAAP operating results to facilitate an evaluation of our current operating performance and provide better comparability to our past operating performance.
Impairment of intangible assets: Impairment of intangible assets consists of non-cash charges primarily due to our legacy product and solutions from markets that we have exited and in which we no longer operate, have been discontinued or identified to be discontinued, or remain in maintenance mode as a result of integration and product portfolio decisions. We exclude these charges from our non-GAAP results to facilitate a more meaningful evaluation of current operating performance and comparisons to past operating performance.
Restructuring and other costs: Restructuring charges are costs associated with a formal restructuring plan and are primarily related to employee severance and benefit arrangements, contract termination costs, and assets write-offs, as well as other exit and disposal costs. Included in other exit and disposal costs are costs to exit and consolidate facilities in connection with restructuring events. We exclude restructuring and other costs from our non-GAAP results as we believe that these costs are incremental to core activities that arise in the ordinary course of our business and do not reflect our current operating performance, and that excluding these charges facilitates a more meaningful evaluation of our current operating performance and comparisons to our past operating performance.
Acquisition-related and integration costs: These represent the transaction and business integration costs related to significant acquisitions that are charged to operating expense in our GAAP financial statements. These costs include incremental expenses incurred to affect these business combinations such as advisory, legal, accounting, valuation, and other professional or consulting fees. We exclude these costs from our non-GAAP results as they have no direct correlation to the operation of our business, and because we believe that the non-GAAP financial measures excluding these costs provide meaningful supplemental information regarding the spending trends of our business. In addition, these costs vary, depending on the size and complexity of the acquisitions, and are not indicative of costs of future acquisitions.
Litigation costs: We may periodically incur charges or benefits related to litigation settlements, legal contingency accruals and third-party legal costs related to certain legal matters. We exclude these charges and benefits when associated with a significant matter because we do not believe they are reflective of ongoing business and operating results.
Legal contract dispute cost: During fiscal 2025, we incurred charges in connection with an e-commerce partner settlement. In order to resolve all open disputes with the partner, we entered into a legal settlement agreement which included our release of claims to valid outstanding accounts receivable totaling $66 million. In fiscal 2025, $66 million of accounts receivable has been charged off as G&A expense. We exclude these charges and benefits when associated with a significant matter because we do not believe they are reflective of ongoing business and operating results.
Non-cash interest expense and amortization of debt issuance costs: In accordance with GAAP, we separately account for the value of the conversion feature on our convertible notes as a debt discount that reflects our assumed non-convertible debt borrowing rates. We amortize the discount and debt issuance costs over the term of the related debt. We exclude the difference between the imputed interest expense, which includes the amortization of the conversion feature and of the issuance costs, and the coupon interest payments. We extinguished our remaining convertible debt on August 15, 2022. During fiscal 2023, we also started amortizing the debt issuance costs associated with our senior credit facilities, which were secured upon close of the acquisition of Avast. We believe that excluding these costs provides meaningful supplemental information regarding the cash cost of our debt instruments and enhance investors' ability to view the Company's results from management's perspective.
Gain (loss) on extinguishment of debt: We record gains or losses on extinguishment of debt. Gains or losses represent the difference between the fair value of the exchange consideration and the carrying value of the liability component of the debt at the date of extinguishment. We exclude the gain or loss on debt extinguishment in our non-GAAP results because they are not reflective of our ongoing business.
Gain (loss) on equity investments: We record gains or losses, unrealized and realized, on equity investments in privately-held companies. We exclude the net gains or losses because we do not believe they are reflective of our ongoing business.
Gain (loss) on sale of properties: We periodically recognize gains or losses from the disposition of land and buildings. We exclude such gains or losses because they are not reflective of our ongoing business and operating results.
Income tax effects and adjustments: We use a non-GAAP tax rate that excludes (1) the discrete impacts of changes in tax legislation, (2) most other significant discrete items, (3) unrealized gains or losses from remeasurement of foreign currency denominated deferred tax items and uncertain tax benefits, and (4) the income tax effects of the non-GAAP adjustment to our operating results described above. We believe making these adjustments facilitates a better evaluation of our current operating performance and comparisons to past operating results. Our tax rate is subject to change for a variety of reasons, such as significant changes in the geographic earnings mix due to acquisition and divestiture activities or fundamental tax law changes in major jurisdictions where we operate.
Diluted GAAP and non-GAAP weighted-average shares outstanding: Diluted GAAP and non-GAAP weighted-average shares outstanding are generally the same, except in periods when there is a GAAP loss from continuing operations. In accordance with GAAP, we do not present dilution for GAAP in periods in which there is a loss from continuing operations. However, if there is non-GAAP net income, we present dilution for non-GAAP weighted-average shares outstanding in an amount equal to the dilution that would have been presented had there been GAAP income from continuing operations for the period.
Bookings: Bookings are defined as customer orders received that are expected to generate net revenues in the future. We present the operational metric of bookings because it reflects customers' demand for our products and services and to assist readers in analyzing our performance in future periods.
Free cash flow: Free cash flow is defined as cash flows from operating activities less purchases of property and equipment. Free cash flow is not a measure of financial condition under GAAP and does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period, and thus should not be considered as an alternative to cash flows from operating activities or as a measure of liquidity.
(Unlevered) Free cash flow: Free cash flow is defined as cash flows from operating activities less purchases of property and equipment. Unlevered free cash flow excludes cash interest expense payments. Free cash flow is not a measure of financial condition under GAAP and does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period, and thus should not be considered as an alternative to cash flows from operating activities or as a measure of liquidity.
Constant currency adjusted revenues (Non-GAAP): Non-GAAP constant currency adjusted revenues are defined as revenues adjusted for the fair value of acquired contract liabilities and foreign exchange impact, calculated by translating current period revenue using the year ago currency conversion rate.
Direct customer count: Direct customers is a metric designed to represent active paid users of our products and solutions who have a direct billing and/or registration relationship with us at the end of the reported period. Average direct customer count presents the average of the total number of direct customers at the beginning and end of the applicable period.?We exclude users on free trials from our direct customer count. Users who have indirectly purchased and/or registered for our products or solutions through partners are excluded unless such users convert or renew their subscription directly with us or sign up for a paid membership through our web stores or third-party app stores. While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring usage of our products and solutions across brands, platforms, regions, and internal systems, and therefore, calculation methodologies may differ. The methodologies used to measure these metrics require judgment and are also susceptible to algorithms or other technical errors. We continually seek to improve our estimates of our user base, and these estimates are subject to change due to improvements or revisions to our methodology. 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. We generally do not intend to update previously disclosed metrics for any such inaccuracies or adjustments that are deemed not material.
Direct average revenues per user (ARPU): ARPU is calculated as estimated direct customer revenues for the period divided by the average direct customer count for the same period, expressed as a monthly figure. We monitor ARPU because it helps us understand the rate at which we are monetizing our consumer customer base.
Retention rate: Retention rate is defined as the percentage of direct customers as of the end of the period from one year ago who are still active as of the most recently completed fiscal period. We monitor the retention rate to evaluate the effectiveness of our strategies to improve renewals of subscriptions.
CONTACTS
Investor Contact Media Contact
Jason Starr Audra Proctor
Gen
Gen
IR@GenDigital.com Press@GenDigital.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/gen-delivers-record-q4-and-full-year-fiscal-2025-results-302447712.html
SOURCE Gen Digital Inc.
