Gen Digital Inc. Reports 4% Revenue Growth to $986 Million in Latest Quarter

Gen Digital Inc. reported a net revenue of $986 million for the three months ended December 27, 2024, marking a 4% increase from $948 million in the same period last year. For the nine months, revenues rose to $2.925 billion, up from $2.836 billion, reflecting a 3% growth. The company’s operating income for the quarter was $374 million, compared to $332 million a year earlier, while net income increased to $159 million from $142 million. The diluted earnings per share rose to $0.26, up from $0.22 in the prior year.

The financial performance was bolstered by higher sales in both consumer security and identity protection products, which contributed to a $38 million increase in quarterly revenues. The company also noted a decrease in amortization of intangible assets, which positively impacted operating income. However, this was partially offset by increased revenue share costs and an impairment expense on non-marketable equity investments. For the nine-month period, the increase in operating income was significantly attributed to reduced legal costs and lower restructuring expenses related to the acquisition of Avast.

In terms of strategic developments, Gen Digital announced a definitive agreement to acquire MoneyLion Inc. for approximately $1 billion, which is expected to enhance its identity solutions and financial wellness offerings. The acquisition is anticipated to close in the first half of fiscal year 2026, pending shareholder and regulatory approvals. Additionally, the company has been actively managing its operational costs, with a restructuring plan initiated following the Avast acquisition, which has incurred costs of $128 million to date.

Operationally, Gen Digital reported a direct customer count of 40.1 million, up from 38.9 million year-over-year, and a retention rate of 78%. The average revenue per user (ARPU) also saw a slight increase to $7.27 from $7.18. The company’s cash and cash equivalents stood at $883 million as of December 27, 2024, reflecting a $37 million increase from the previous quarter. The company has also been proactive in managing its debt, with total long-term debt decreasing to $7.08 billion from $8.43 billion.

Looking ahead, Gen Digital remains focused on leveraging its strong cash position and operational efficiencies to navigate potential macroeconomic challenges, including inflation and foreign currency fluctuations. The company anticipates continued growth in its core cyber safety portfolio and aims to enhance its market position through strategic acquisitions and product innovations.