Gen Digital Inc.

Previous wording

We have a 52/53-week fiscal year ending on the Friday closest to March 31. The three months ended October 3, 2025 and September 27, 2024 each consisted of 13 weeks. The six months ended October 3, 2025 consisted of 27 weeks, whereas the six months ended September 27, 2024 consisted of 26 weeks. Our 2026 fiscal year consists of 53 weeks and ends on April 3, 2026.

Current wording

We have a 52/53-week fiscal year ending on the Friday closest to March 31. The three months ended January 2, 2026 and December 27, 2024 each consisted of 13 weeks. The nine months ended January 2, 2026 consisted of 40 weeks, whereas the nine months ended December 27, 2024 consisted of 39 weeks. Our 2026 fiscal year consists of 53 weeks and ends on April 3, 2026.

Previous wording

Below are our financial highlights for the second quarter of fiscal 2026, compared to the corresponding period in the prior year:

Current wording

Below are our financial highlights for the third quarter of fiscal 2026, compared to the corresponding period in the prior year:

Previous wording

•Net revenues increased $246 million, primarily due to higher sales in both our Cyber Safety Platform products and Trust-Based Solutions, including an increase of $202 million due to the acquisition of MoneyLion, reported in Trust-Based Solutions.

Current wording

•Net revenues increased $254 million, primarily due to higher sales in both our Cyber Safety Platform products and Trust-Based Solutions, including an increase of $218 million due to the acquisition of MoneyLion, reported in Trust-Based Solutions.

Previous wording

•Operating income increased $36 million, primarily due to increased net revenues described above, offset by an increase in marketing costs, payment processing fees, amortization of intangible assets and compensation related expenses.

Current wording

•Operating income increased $59 million, primarily due to increased net revenues described above, largely offset by an increase in marketing costs, payment processing fees, amortization of intangible assets and compensation related expenses.

Previous wording

•Net income decreased $73 million and net income per share decreased $0.12, primarily due to a decrease in other income (expense), net resulting from changes in fair value and impairment of our non-marketable equity investments and an increase in income tax expense partially offset by an increase in operating income as discussed above.

Current wording

•Net income increased $33 million and net income per share increased $0.05, primarily due to an increase in operating income as discussed above and a decrease in other income (expense), net resulting from impairment of our non-marketable equity investments and gain on sale of nonfinancial assets. This is partially offset by an increase in income tax expense.

Previous wording

Below are our financial highlights for the first six months of fiscal 2026, compared to the corresponding period in the prior year:

Current wording

Below are our financial highlights for the first nine months of fiscal 2026, compared to the corresponding period in the prior year:

Previous wording

•Net revenues increased $538 million, primarily due to higher sales in both our Cyber Safety Platform products and Trust-Based Solutions, including an increase of $370 million due to the acquisition of MoneyLion, and an increase of $87 million due to the favorable impact from the additional week in the first quarter of fiscal 2026.

Current wording

•Net revenues increased $792 million, primarily due to higher sales in both our Cyber Safety Platform products and Trust-Based Solutions, including an increase of $588 million due to the acquisition of MoneyLion, and an increase of $87 million due to the favorable impact from the additional week in the first quarter of fiscal 2026.

Previous wording

•Operating income increased $65 million, primarily due to increased net revenues described above, offset by an increase in marketing costs, payment processing fees, amortization of intangible assets and compensation related expenses.

Current wording

•Operating income increased $124 million, primarily due to increased net revenues described above, largely offset by an increase in marketing costs, payment processing fees, amortization of intangible assets and compensation related expenses.

Previous wording

•Net income decreased $27 million and net income per share decreased $0.05, primarily due to a decrease in other income (expense), net resulting from changes in fair value and impairment of our non-marketable equity investments partially offset by an increase in operating income as discussed above.

Current wording

•Net income decreased $40 million and net income per share decreased $0.06, primarily due to an increase in income tax expense partially offset by an increase in operating income as discussed above.

Previous wording

•Cash and cash equivalents decreased by $305 million compared to March 28, 2025, primarily due to the cash consideration paid for our acquisition of MoneyLion, timing of principal payments of our Term A and B facilities and cash interest paid. This is partially offset by proceeds from the issuance of our Incremental Term Loan B and cash generated from operating activities during the first six months of fiscal 2026.

Current wording

•Cash, cash equivalents and restricted cash decreased by $387 million compared to March 28, 2025, primarily due to the cash consideration paid for our acquisition of MoneyLion, principal payments of our Term A and B facilities and share repurchases. This is partially offset by proceeds from the issuance of our Incremental Term Loan B and cash generated from operating activities during the first nine months of fiscal 2026.

Previous wording

•Contract liabilities decreased $61 million compared to March 28, 2025, primarily due to billing seasonality.

Current wording

•Contract liabilities decreased $17 million compared to March 28, 2025, primarily due to billing seasonality.

Previous wording

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 March 28, 2025 and significant policies adopted as a result of our acquisition of MoneyLion are included in Note 1 on this Form 10-Q. 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 October 3, 2025.

Current wording

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 March 28, 2025 and significant policies adopted as a result of our acquisition of MoneyLion are included in Note 1 on this Form 10-Q. 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 nine months ended January 2, 2026.

Previous wording

Net revenues increased $246 million, due to a $25 million increase in sales of our Cyber Safety Platform products and a $221 million increase in sales of our Trust-Based Solutions, including a $202 million increase in Trust-Based Solutions due to the acquisition of MoneyLion.

Current wording

Net revenues increased $254 million, due to a $20 million increase in sales of our Cyber Safety Platform products and a $234 million increase in sales of our Trust-Based Solutions, including a $218 million increase in Trust-Based Solutions due to the acquisition of MoneyLion.

Previous wording

Net revenues increased $538 million, due to a $114 million increase in sales of our Cyber Safety Platform products and a $424 million increase in sales of our Trust-Based Solutions, including a $370 million increase in Trust-Based Solutions due to the acquisition of MoneyLion. Net revenues also increased $87 million due to the favorable impact 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.

Current wording

Net revenues increased $792 million, due to a $134 million increase in sales of our Cyber Safety Platform products and a $658 million increase in sales of our Trust-Based Solutions, including a $588 million increase in Trust-Based Solutions due to the acquisition of MoneyLion. Net revenues also increased $87 million due to the favorable impact 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.

Previous wording

Revenue from Cyber Safety Platform increased $25 million and $114 million, respectively, during the three and six months ended October 3, 2025 due to growth across our cyber safety membership offerings and, for the six month period, the additional week in the first quarter of fiscal 2026. Revenue from Trust Based Solutions increased $221 million and $424 million, respectively, during the three and six months ended October 3, 2025 primarily due to the acquisition of MoneyLion, continued growth in our identity point solutions and, for the six month period, the additional week in the first quarter of fiscal 2026.

Current wording

Revenue from Cyber Safety Platform increased $20 million and $134 million, respectively, during the three and nine months ended January 2, 2026 due to growth across our cyber safety membership offerings and, for the nine month period, the additional week in the first quarter of fiscal 2026. Revenue from Trust-Based Solutions increased $234 million and $658 million, respectively, during the three and nine months ended January 2, 2026 primarily due to the acquisition of MoneyLion, continued growth in our identity point solutions and, for the nine month period, the additional week in the first quarter of fiscal 2026.

Previous wording

Percentage of revenue in Americas increased primarily due to our acquisition of MoneyLion during the three and six months ended October 3, 2025 as compared to the three and six months ended September 27, 2024.

Current wording

Percentage of revenue in Americas increased primarily due to our acquisition of MoneyLion during the three and nine months ended January 2, 2026 as compared to the three and nine months ended December 27, 2024.

Previous wording

Cost of revenues, increased $72 million, primarily due to a $46 million increase in partner revenue share in Trust-Based Solutions, a $12 million increase in payment processing fees and an $8 million increase in amortization of intangible assets.

Current wording

Cost of revenues increased $75 million, primarily due to a $43 million increase in partner revenue share mainly in Trust-Based Solutions, a $16 million increase in payment processing fees and an $11 million increase in amortization of intangible assets.

Previous wording

Cost of revenues, including the impact of one additional week, increased $149 million, primarily due to a $95 million increase in partner revenue share in Trust-Based Solutions, a $25 million increase in payment processing fees and a $16 million increase in amortization of intangible assets.

Current wording

Cost of revenues, including the impact of one additional week, increased $224 million, primarily due to a $133 million increase in partner revenue share mainly in Trust-Based Solutions, a $40 million increase in payment processing fees and a $27 million increase in amortization of intangible assets.

Previous wording

Sales and marketing expense increased $113 million, primarily due to a $55 million increase in loss on sale of Instacash Advances, a $27 million increase in marketing expenses, a $19 million increase in headcount costs and a $10 million increase in stock-based compensation expense.

Current wording

Sales and marketing expense increased $125 million, primarily due to a $55 million increase in loss on sale of Instacash Advances, a $41 million increase in marketing expenses, a $13 million increase in headcount costs and a $12 million increase in stock-based compensation expense.

Previous wording

Research and development expense increased $17 million, primarily due to an $8 million increase in headcount costs, a $4 million increase in stock-based compensation expense and a $3 million increase in equipment expenses.

Current wording

Research and development expense increased $12 million, primarily due to a $4 million increase in headcount costs, a $3 million increase in stock-based compensation expense and a $3 million increase in equipment expenses.

Previous wording

General and administrative expense remained relatively flat.

Current wording

General and administrative expense decreased $38 million, primarily due to a $53 million decrease in litigation settlement expense. This is partially offset by a $9 million increase in stock-based compensation expense.

Previous wording

Restructuring and other costs remained relatively flat. See Note 12 of the Notes to the Condensed Consolidated Financial Statements for details of the fiscal 2026 restructuring activities.

Current wording

Restructuring and other costs increased $9 million, primarily due to an increase in severance and termination benefits in connection with the April 2025 Plan. See Note 12 of the Notes to the Condensed Consolidated Financial Statements for details of the fiscal 2026 restructuring activities.

Previous wording

Sales and marketing expense, including the impact of one additional week, increased $227 million, primarily due to a $91 million increase in loss on sale of Instacash Advances, a $61 million increase in marketing expenses, a $40 million increase in headcount costs and a $25 million increase in stock-based compensation expense.

Current wording

Sales and marketing expense, including the impact of one additional week, increased $352 million, primarily due to a $146 million increase in loss on sale of Instacash Advances, a $102 million increase in marketing expenses, a $53 million increase in headcount costs and a $37 million increase in stock-based compensation expense.

Previous wording

Research and development expense, including the impact of one additional week, increased $45 million, primarily due to a $24 million increase in headcount costs, a $9 million increase in stock-based compensation expense and $6 million increase in occupancy and IT costs.

Current wording

Research and development expense, including the impact of one additional week, increased $57 million, primarily due to a $28 million increase in headcount costs, a $12 million increase in stock-based compensation expense and a $7 million increase in occupancy and IT costs.

Previous wording

General and administrative expense, including the impact of one additional week, increased $18 million, primarily due to a $22 million increase in stock-based compensation expense, a $16 million increase in headcount costs and an $8 million increase in provision for credit losses. This is partially offset by a $33 million decrease in litigation settlement expense.

Current wording

General and administrative expense, including the impact of one additional week, decreased $20 million, primarily due to a $86 million decrease in litigation settlement expense. This is partially offset by a $31 million increase in stock-based compensation expense, an $18 million increase in headcount costs and an $7 million increase in provision for credit losses on accounts receivables, net.

Previous wording

Restructuring and other costs increased $12 million, primarily due to an increase in severance and termination benefits in connection with the September 2022 and April 2025 Plans. See Note 12 of the Notes to the Condensed Consolidated Financial Statements for details of the fiscal 2026 restructuring activities.

Current wording

Restructuring and other costs increased $21 million, primarily due to an increase in severance and termination benefits in connection with the September 2022 and April 2025 Plans. See Note 12 of the Notes to the Condensed Consolidated Financial Statements for details of the fiscal 2026 restructuring activities.

Previous wording

Non-operating income (expense), net, increased by $61 million, primarily due to a $69 million change in fair value and impairment of our non-marketable equity investments.

Current wording

Non-operating income (expense), net, increased by $24 million, primarily due to a $49 million increase in change in fair value and impairment of our non-marketable equity investments. This is partially offset by a $15 million gain on sale of nonfinancial assets in the third quarter of fiscal 2026.

Previous wording

Our effective tax rate for the three and six months ended October 3, 2025 and three and six months ended September 27, 2024 differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, increases in valuation allowances, and the U.S. taxation on foreign earnings.

Current wording

Our effective tax rate for the three and nine months ended January 2, 2026 and three and nine months ended December 27, 2024, differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, increases in valuation allowances, and the U.S. taxation on foreign earnings.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law in the United States. The Act includes various provisions that are applicable to us beginning in fiscal year 2026. These provisions include an allowance to accelerate tax deductions of certain capital expenditures, research & experimentation expenditures, and an increase to the annual limitation of tax-deductible interest expenses. The impacts of the Act are included in our operating results for the three and six months ended October 3, 2025. The Act is not expected to have a material impact on our effective tax rate.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law in the United States. The Act includes various provisions that are applicable to us beginning in fiscal year 2026. These provisions include an allowance to accelerate tax deductions of certain capital expenditures, research & experimentation expenditures, and an increase to the annual limitation of tax-deductible interest expenses. The impacts of the Act are included in our operating results for the three and nine months ended January 2, 2026. The Act has not had, and is not expected to have, a material impact on our effective tax rate.

Previous wording

Net cash provided by operating activities of $525 million for the six months ended October 3, 2025 was primarily comprised of net income adjusted for the net effect of non-cash items. Changes in working capital sources and uses of cash include decreases in income taxes payable, Instacash Advances held for sale, contract liabilities, accounts payable and other liabilities.

Current wording

Net cash provided by operating activities of $1,066 million for the nine months ended January 2, 2026 was primarily comprised of net income adjusted for the net effect of non-cash items. Changes in working capital sources and uses of cash include decreases in Instacash Advances held for sale, income taxes payable, accounts receivable, net and accounts payable.

Previous wording

Net cash used in investing activities of $880 million for the six months ended October 3, 2025 was primarily related to the cash consideration paid for our acquisition of MoneyLion.

Current wording

Net cash used in investing activities of $822 million for the nine months ended January 2, 2026 was primarily related to the cash consideration paid for our acquisition of MoneyLion.

Previous wording

Net cash provided by financing activities of$48 million for the six months ended October 3, 2025 was primarily due to proceeds from the issuance of our Incremental Term Loan B of $741 million, net of debt issuance cost. This was partially offset by mandatory and voluntary prepayments of our Term A and B Facilities, quarterly dividend payments, and repurchases of common stock under our repurchase program.

Current wording

Net cash used in financing activities of$634 million for the nine months ended January 2, 2026 was primarily due to mandatory and voluntary prepayments of our Term A and B Facilities, repurchases of common stock under our repurchase program and quarterly dividend payments. This was partially offset by proceeds from the issuance of our Incremental Term Loan B of $741 million, net of debt issuance cost.

Previous wording

As of October 3, 2025, we had cash and cash equivalents of $691 million, excluding restricted cash, of which $380 million was held by our foreign subsidiaries. Our cash, cash equivalents and short-term investments are managed with the objective to preserve principal, maintain liquidity and generate investment returns. The participation exemption system under current U.S. federal tax regulations generally allows us to make distributions of non-U.S. earnings to the U.S. without incurring additional U.S. federal tax, however, these distributions may be subject to applicable state or foreign taxes.

Current wording

As of January 2, 2026, we had cash and cash equivalents of $616 million, excluding restricted cash, of which $403 million was held by our foreign subsidiaries. Our cash, cash equivalents and short-term investments are managed with the objective to preserve principal, maintain liquidity and generate investment returns. The participation exemption system under current U.S. federal tax regulations generally allows us to make distributions of non-U.S. earnings to the U.S. without incurring additional U.S. federal tax, however, these distributions may be subject to applicable state or foreign taxes.

Previous wording

During the six months ended October 3, 2025 and September 27, 2024, we executed repurchases of 5 million and 11 million of our common stock under our existing stock repurchase program for an aggregate amount of $134 million and $272 million, respectively. We did not have any stock repurchases during the three months ended October 3, 2025 and September 27, 2024.

Current wording

During the nine months ended January 2, 2026 and December 27, 2024, we executed repurchases of 16 million and 11 million of our common stock under our existing stock repurchase program for an aggregate amount of $434 million and $272 million, respectively.

Previous wording

Under our stock repurchase program, we may purchase shares of our outstanding common stock on the open market (including through trading plans intended to qualify under Rule 10b5-1 under the Exchange Act) and through accelerated stock repurchase transactions. As of October 3, 2025, the remaining balance of our stock repurchase authorization was $2,594 million and does not have an expiration date. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions and other investment opportunities.

Current wording

Under our stock repurchase program, we may purchase shares of our outstanding common stock on the open market (including through trading plans intended to qualify under Rule 10b5-1 under the Exchange Act) and through accelerated stock repurchase transactions. As of January 2, 2026, the remaining balance of our stock repurchase authorization was $2,294 million and does not have an expiration date. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions and other investment opportunities.

Previous wording

Our principal commitments consist of principal and interest payments related to our debt instruments, obligations under our purchase agreements, obligations under various non-cancellable leases and potential other legal contingencies. Due to the uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits and other long-term taxes as of October 3, 2025, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore, $1,544 million in long-term income taxes payable has been excluded from our quarterly review of timing of contractual obligations.

Current wording

Our principal commitments consist of principal and interest payments related to our debt instruments, obligations under our purchase agreements, obligations under various non-cancellable leases and potential other legal contingencies. Due to the uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits and other long-term taxes as of January 2, 2026, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore, $1,578 million in long-term income taxes payable has been excluded from our quarterly review of timing of contractual obligations.