Financial Data and Key Metrics Changes - Q3 bookings reached $1.3 billion, up 27% year-over-year, and revenue was $1.2 billion, up 26% year-over-year [20][25] - Non-GAAP EPS increased by 14% year-over-year, reaching $0.64 [25][30] - Operating income was $629 million, translating to a 51% operating margin [25][27] Business Line Data and Key Metrics Changes - Cyber safety segment bookings grew 5% year-over-year, with revenue increasing by 3% [20][24] - MoneyLion experienced nearly 40% revenue growth in Q3, driven by strong customer demand for personal financial products [22][13] - LifeLock's monitored financial accounts grew double digits year-over-year to nearly 50 million [12][22] Market Data and Key Metrics Changes - The paid customer base increased to over 78 million, with 500,000 new cyber safety direct customers added [24][25] - Engine processed over 360 million inquiries annually, reflecting strong marketplace growth [16][22] Company Strategy and Development Direction - The company aims to build a trusted AI-powered platform focusing on cyber safety and financial wellness [4][11] - The introduction of the Agent Trust Hub and Norton Neo browser highlights the company's commitment to enhancing security in AI interactions [10][18] - The strategy emphasizes the convergence of identity threats and financial risks, positioning the company as a leader in both domains [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted the increasing complexity of cyber threats, with scams evolving to exploit consumer behavior [6][8] - The company raised its revenue and EPS guidance for fiscal 2026, reflecting strong performance and momentum [29][30] - Management expressed confidence in the long-term growth potential driven by AI and the integration of MoneyLion [30][31] Other Important Information - The company generated $541 million in operating cash flow and $535 million in free cash flow during Q3 [27][28] - A quarterly cash dividend of $0.125 per common share was approved, reflecting the company's commitment to returning capital to shareholders [29][30] Q&A Session Summary Question: How is Gen addressing the trust consumers need in AI? - Management acknowledged the growing need for trust in AI and highlighted the launch of the Agent Trust Hub to validate AI agents and skills [33][36] Question: What is the status of MoneyLion's transition to subscriptions? - Management confirmed a cautious approach to transitioning MoneyLion towards subscriptions, with strong growth in personal financial offerings [39][40] Question: Can you elaborate on the Equifax partnership? - The partnership with Equifax aims to enhance consumer financial solutions and improve risk visibility, leveraging differentiated datasets [48][50] Question: What are the trends in first-party versus third-party products in the MoneyLion marketplace? - Management noted balanced growth in both first-party and third-party products, with strong performance in short-term lending [52][54] Question: What are the plans for capital deployment moving forward? - Management emphasized a balanced approach to capital deployment, focusing on dividends, debt paydown, and opportunistic share buybacks [76][78]

Financial Data and Key Metrics Changes - Q3 bookings reached $1.3 billion, up 27% year-over-year, and revenue was $1.2 billion, up 26% year-over-year [20] - Non-GAAP EPS increased by 14% year-over-year, reaching $0.64 [25] - Operating income was $629 million, translating to a 51% operating margin, consistent with expectations [25] Business Line Data and Key Metrics Changes - Cyber Safety segment bookings grew 5% and revenue grew 3%, driven by demand for cyber safety subscriptions [20] - MoneyLion reported nearly 40% revenue growth in Q3, supported by strong customer demand for personal financial products [22] - LifeLock's monitored financial accounts grew double digits year-over-year to nearly 50 million [12] Market Data and Key Metrics Changes - The paid customer base increased to over 78 million, with 500,000 new cyber safety direct customers added [24] - Engine processed over 360 million inquiries annually, reflecting strong marketplace growth [16] - The partnership with Equifax is expected to enhance alerts and insights for customers, driving incremental product adoption [50] Company Strategy and Development Direction - The company aims to build a trusted AI-powered platform focusing on cyber safety and financial wellness [4] - The introduction of the Agent Trust Hub aims to validate the safety of AI agents and skills, addressing emerging consumer risks [10][39] - The strategy emphasizes unifying AI and data-driven platforms to deliver personalized guidance and enhance customer experience [16][17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing convergence of cyber safety and financial wellness needs, indicating a shift in consumer behavior [11] - The company remains focused on long-term value creation and maintaining strong operating margins while investing in growth initiatives [30][31] - The outlook for Q4 and fiscal year 2026 includes raised revenue and EPS guidance, reflecting strong momentum [29][30] Other Important Information - The company generated $541 million in operating cash flow and $535 million in free cash flow during Q3 [27] - A regular quarterly cash dividend of $0.125 per common share was approved, to be paid on March 11, 2026 [29] - The company is exploring refinancing options for its term loan maturing in September 2028 [28] Q&A Session Questions and Answers Question: How is Gen thinking about the role it can play in consumer AI? - Management confirmed that the revolution of AI is happening and emphasized the need for trust and security in AI interactions, highlighting the launch of the Agent Trust Hub [35][39] Question: What is the status of the MoneyLion business and its shift towards subscriptions? - Management indicated a cautious but strong growth trajectory for MoneyLion, with a focus on driving revenue synergies across the portfolio [40][42] Question: Can you elaborate on the Equifax partnership and its impact on MoneyLion product adoption? - The partnership allows for deeper access to differentiated datasets, enhancing alerts and visibility for consumers, and is expected to drive incremental product adoption [50][51] Question: What are the trends in first-party versus third-party products on the MoneyLion marketplace? - Management noted that both first-party and third-party products are growing at similar rates, with a balanced approach to product offerings [54] Question: What are the guardrails for capital deployment going forward? - Management emphasized a balanced approach to capital allocation, focusing on dividends, debt paydown, and opportunistic share buybacks [76]

Financial Data and Key Metrics Changes - Q3 bookings reached $1.3 billion, up 27% year-over-year, and revenue was $1.2 billion, up 26% year-over-year [20] - Non-GAAP EPS increased by 14% year-over-year, reaching $0.64 [26] - Operating income was $629 million, translating to a 51% operating margin [26] Business Line Data and Key Metrics Changes - Cyber safety segment bookings grew 5% year-over-year, with revenue increasing by 3% [20] - MoneyLion experienced nearly 40% revenue growth in Q3, driven by strong demand for personal financial products [23] - The Engine Marketplace processed over 360 million inquiries annually, with significant growth in both first-party and third-party products [16][54] Market Data and Key Metrics Changes - The paid customer base grew to over 78 million, with an increase of 1 million sequentially [25] - Cyber safety direct customers increased by 500,000, reflecting ongoing expansion [25] - The partnership with Equifax is expected to enhance product adoption and provide deeper insights into consumer risk profiles [50] Company Strategy and Development Direction - The company aims to build a trusted AI-powered platform focused on cyber safety and financial wellness [4] - The introduction of the Agent Trust Hub and Norton Neo browser highlights the company's commitment to securing AI interactions [10][12] - The strategy emphasizes the convergence of identity threats and financial risks, positioning the company as a leader in integrated solutions [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the threat landscape is evolving, with AI-driven scams becoming more prevalent [5][6] - The company is raising its revenue and EPS guidance for fiscal 2026, reflecting strong performance and momentum [30] - Management expressed confidence in the long-term growth potential driven by the integration of MoneyLion and ongoing investments in AI capabilities [31] Other Important Information - The company generated $541 million in operating cash flow and $535 million in free cash flow during Q3 [28] - A quarterly cash dividend of $0.125 per common share was approved, to be paid on March 11, 2026 [29] - The company is exploring refinancing options for its term loan maturing in September 2028 [28] Q&A Session Summary Question: How is Gen addressing the trust consumers need in AI? - Management acknowledged the growing need for trust in AI and highlighted the launch of the Agent Trust Hub to validate risks associated with AI agents [33][39] Question: What is the current status of the MoneyLion business transition? - Management confirmed that MoneyLion is progressing cautiously towards subscription models, with strong growth in personal financial offerings [40][42] Question: Can you elaborate on the Equifax partnership and its impact? - The partnership with Equifax is expected to enhance consumer risk visibility and drive incremental product adoption through Engine [48][50] Question: How is the company managing sales and marketing expenses? - Management indicated an increase in sales and marketing investments to capture higher returns, particularly in membership adoption [84][86] Question: What are the future plans for capital deployment? - The company plans to maintain a balanced approach to capital deployment, focusing on dividends, debt paydown, and opportunistic share buybacks [77][79]

Q3 FY26 Earnings February 5, 2026 Forward-Looking Statements This presentation contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of ...

Core Viewpoint - Antivirus software provider Gen Digital has raised its annual revenue forecast for the third consecutive quarter, indicating strong demand for its digital security services [1] Company Summary - Gen Digital is experiencing robust growth in its digital security services, as evidenced by the upward revision of its revenue forecast for three consecutive quarters [1]

Financial Performance - Q3 FY26 revenue reached $1,240 million, representing a 26% increase year-over-year[5] - Operating income for Q3 FY26 was $433 million, up 16% compared to the previous year[5] - Diluted EPS for Q3 FY26 was $0.31, reflecting a 22% increase year-over-year[5] - Year-to-date operating cash flow reached $1,066 million, an increase of 43%[5] - The company reported a net income of $192 million for Q3 FY26, compared to $159 million in the same quarter last year[17] - Net income for the three months ended January 2, 2026, was $192 million, compared to $159 million for the same period in 2024, representing a 20.6% increase[19] - Total net revenues for the three months ended January 2, 2026, were $1,240 million, up from $986 million in the same period last year, reflecting a 25.7% growth[24] - Operating income (Non-GAAP) for the three months ended January 2, 2026, was $629 million, compared to $577 million in the prior year, indicating a 9% increase[20] Guidance and Projections - The company raised its FY26 revenue guidance to a range of $4.955 billion to $4.975 billion, up from the previous guidance of $4.920 billion to $4.970 billion[10] - Q4 FY26 revenue is expected to be between $1.24 billion and $1.26 billion[10] Cash Flow and Dividends - A quarterly cash dividend of $0.125 per common share has been approved, to be paid on March 11, 2026[6] - Free cash flow (Non-GAAP) for the nine months ended January 2, 2026, was $1,047 million, compared to $736 million for the same period in 2024, showing a 42.3% increase[22] - The company reported a net cash provided by operating activities of $1,066 million for the nine months ended January 2, 2026, compared to $748 million for the same period in 2024, a 42.5% increase[22] Bookings and Customer Metrics - Bookings for Q3 FY26 totaled $1,319 million, up 27% from the previous year[5] - Total bookings for the three months ended January 2, 2026, reached $1,319 million, compared to $1,035 million in the same period last year, marking a 27.5% increase[24] - Total paid customers increased to 78 million as of January 2, 2026, up from 67 million a year earlier, representing a 16.4% growth[24] Operating Metrics - Operating margin (Non-GAAP) for the three months ended January 2, 2026, was 50.7%, down from 58.5% in the same period last year[20] - Stock-based compensation expense for the three months ended January 2, 2026, was $52 million, compared to $33 million in the same period last year, reflecting a 57.6% increase[20] Acquisitions and Legal Matters - The company incurred $876 million in payments for acquisitions, net of cash acquired, during the nine months ended January 2, 2026[19] - The company incurred charges of $66 million related to a legal settlement with an e-commerce partner, which were charged off as G&A expense in fiscal 2025[33] Debt and Financial Reporting - The company extinguished its remaining convertible debt on August 15, 2022, and began amortizing debt issuance costs associated with senior credit facilities acquired during the acquisition of Avast in fiscal 2023[34] - The company excludes gains or losses on extinguishment of debt from non-GAAP results as they do not reflect ongoing business performance[35] - The company records unrealized and realized gains or losses on equity investments in privately-held companies but excludes these from ongoing business results[36] - The company uses a non-GAAP tax rate that excludes various discrete impacts to facilitate better evaluation of current operating performance[38] Operational Metrics Definitions - Bookings, defined as customer orders expected to generate future net revenues, are presented as an operational metric reflecting customer demand[40] - Free cash flow is defined as cash flows from operating activities less purchases of property and equipment, and is not a measure of financial condition under GAAP[41] Product Offerings - The Cyber Safety Platform includes security and privacy products that provide technology solutions for safe navigation in the digital world[43] - Trust-Based Solutions encompass identity, reputation, and financial wellness products, contributing to direct revenue through e-commerce and mobile channels[44] - Paid customers are defined as active users with at least one revenue-generating transaction, excluding free trial users, reflecting the dynamic nature of consumer engagement[46]

Core Insights - Gen Digital Inc. reported strong financial results for Q3 FY26, with a revenue of $1,240 million, representing a 26% increase year-over-year [5] - The company raised its FY26 guidance for revenue and EPS, reflecting confidence in its growth strategy and market position [6] Financial Highlights - Q3 FY26 GAAP results showed operating income of $433 million, up 16%, and diluted EPS of $0.31, up 22% [5] - Year-to-date operating cash flow reached $1,066 million, a 43% increase, while free cash flow for the same period was $1,047 million, up 42% [5][17] - Bookings for Q3 FY26 were $1,319 million, a 27% increase compared to the previous year [5] Guidance and Dividends - For Q4 FY26, revenue is expected to be between $1.24 billion and $1.26 billion, with EPS projected in the range of $0.64 to $0.66 [6] - The Board of Directors approved a quarterly cash dividend of $0.125 per common share, to be paid on March 11, 2026 [3] Company Overview - Gen Digital Inc. is a global leader in digital safety and financial wellness, serving nearly 500 million users across more than 150 countries [7] - The company focuses on providing cybersecurity, online privacy, identity protection, and financial wellness solutions [7]

Core Insights - Gen Digital and Equifax have expanded their partnership to enhance consumer financial management and digital security solutions [1] - The collaboration aims to leverage Equifax's differentiated data and Gen's AI-powered platform to provide personalized financial products and recommendations [1] Group 1: Partnership Overview - The partnership will enable Gen to strengthen its identity protection and financial wellness offerings through its brands, including Norton, Avast, LifeLock, and MoneyLion [1] - Equifax will utilize the Engine by Gen platform to offer personalized financial products to myEquifax customers in the U.S. [1] Group 2: Leadership Statements - Vincent Pilette, CEO of Gen, emphasized the importance of providing simple and trusted solutions for consumers to make informed financial decisions [1] - Mark W. Begor, CEO of Equifax, highlighted that more data leads to better decision-making, which can create greater opportunities for consumers [1] Group 3: Company Backgrounds - Gen Digital is focused on empowering digital freedom through its consumer brands, serving nearly 500 million users across over 150 countries [1] - Equifax operates globally, providing data, analytics, and technology solutions to help various organizations make informed decisions, supported by nearly 15,000 employees [1]

Core Insights - Gen has launched the Gen Agent Trust Hub, a security platform aimed at ensuring safer adoption of autonomous AI agents like OpenClaw, which is crucial in the emerging AI Agentic Era [1][2][3] Company Overview - Gen is a global leader in digital security, operating trusted brands such as Norton, Avast, LifeLock, and MoneyLion, and is focused on empowering users with financial and cyber safety [1][7] Security Landscape - Gen Threat Labs has identified over 18,000 instances of OpenClaw exposed to the internet, with nearly 15% of the skills containing malicious instructions, indicating significant security vulnerabilities [3][4] - The shift in the threat landscape suggests that security failures are evolving from isolated incidents to persistent insider threats posed by trusted AI assistants [4] Gen Agent Trust Hub Features - The Gen Agent Trust Hub provides free safety tools for users of AI agents, including: - **Gen AI Skills Scanner**: A diagnostic tool that scans OpenClaw skill URLs for hidden logic, unauthorized data access, and malicious behavior [7] - **AI Skills Marketplace**: A curated repository of agent skills that are rigorously audited for security, offering a trusted alternative to public skill repositories [7] Future Outlook - The launch of OpenClaw marks the beginning of a new era of autonomous agents, with Gen committed to ensuring user safety as these technologies evolve [6]

Core Insights - Avast has launched Avast Deepfake Guard, an AI-powered feature for Windows PCs that detects malicious audio in video content, enhancing its scam protection ecosystem [1][2][4] - The new feature aims to address the growing threat of deepfake scams, which have become more convincing and widespread, particularly on platforms like YouTube, Facebook, and X [3][4] Product Features - Avast Deepfake Guard operates in real-time on devices, providing immediate protection and privacy by detecting deepfake scams directly on the user's device [4] - The feature is included in Avast Premium Security and supports video analysis in English across major platforms, including Facebook, YouTube, and TikTok [4] - For lower-end PCs, Deepfake Guard requires manual installation and is not recommended for automated detection due to potential performance impacts [5][6] Market Context - In Q4 2025, Gen Threat Labs identified 159,378 unique instances of deepfake scams, indicating a significant prevalence of this type of fraud [3] - The integration of deepfake scams into everyday video consumption makes them harder to detect, posing a challenge for users [3]