Executive Summary
Gen Digital reported QQ3 2025 revenue of $986 million, up 4% year over year (YoY) and 4% in constant currency, marking the 22nd consecutive quarter of growth. The direct business generated $869 million (up 4%), with direct ARPU of $7.27 and a direct retention rate of approximately 77.5%. GAAP net income was $159 million and diluted EPS was $0.26, up 15% YoY. The company reiterated a disciplined investment stance, highlighted strong cash flow generation ($326 million operating cash flow; $318 million free cash flow), and continued to shift capital toward growth initiatives and share repurchases, while signaling a refinancing plan for 2025 debt. Management underscored a multi-quarter growth flywheel driven by cross-sell into Norton 360/LifeLock, expanded privacy and identity solutions, and a broader AI-enabled platform (Gen Stack and Genie) that improves threat detection, personalization, and upsell opportunities. Management also announced the pending MoneyLion acquisition, which expands the total addressable market to over $50 billion and introduces a financial wellness dimension to the Cyber Safety platform, with expected synergies via back-end PFMs, embedded marketplaces, and richer data capabilities for AI. The outlook remains constructive: FY25 revenue guidance raised to $3.915–$3.93 billion (≈4% Cyber Safety growth at midpoint), and non-GAAP net income per share guidance of $2.20–$2.22 for the year. Near-term catalysts include Gen Genie integration into Norton 360, broader international mobile adoption of Norton 360, and ongoing Gen Stack migration.
Key Performance Indicators
Key Insights
Revenue: $986M in Q3’25, +4% YoY; Gross margin: 80.4%; Operating income: $374M, 37.9% margin; Net income: $159M, 16.1% net margin; EPS (diluted): $0.26, +15% YoY; Direct revenue: $869M, +4%; Direct ARPU: $7.27, +$0.01 QoQ, +$0.09 YoY; Direct retention: ~77.5%; Customer base: 40.1M direct customers, +371k sequential; Partner revenue: $105M, +6%; Legacy revenue: $12M; OCF: $326M; FCF: $318M; Ending cash: $883M; Total liquidity: $2.4B; Net debt: $7.648B; Debt/EBITDA (net): 3.3x; Guidance: FY25 re...
Financial Highlights
Revenue: $986M in Q3’25, +4% YoY; Gross margin: 80.4%; Operating income: $374M, 37.9% margin; Net income: $159M, 16.1% net margin; EPS (diluted): $0.26, +15% YoY; Direct revenue: $869M, +4%; Direct ARPU: $7.27, +$0.01 QoQ, +$0.09 YoY; Direct retention: ~77.5%; Customer base: 40.1M direct customers, +371k sequential; Partner revenue: $105M, +6%; Legacy revenue: $12M; OCF: $326M; FCF: $318M; Ending cash: $883M; Total liquidity: $2.4B; Net debt: $7.648B; Debt/EBITDA (net): 3.3x; Guidance: FY25 revenue $3.915–$3.93B; FY25 non-GAAP EPS $2.20–$2.22; Q4 non-GAAP revenue $990–$1,005M; Q4 non-GAAP EPS $0.57–$0.59.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
986.00M |
3.68% |
1.23% |
| Gross Profit |
793.00M |
3.12% |
1.67% |
| Operating Income |
374.00M |
10.98% |
-6.97% |
| Net Income |
159.00M |
10.42% |
-1.24% |
| EPS |
0.26 |
18.18% |
0.00% |
Key Financial Ratios
operatingProfitMargin
37.9%
operatingCashFlowPerShare
$0.53
freeCashFlowPerShare
$0.52
dividendPayoutRatio
48.4%
Management Commentary
Management cited a dynamic threat landscape with 90% of threats starting from scams (vs. 30% in 2020) and highlighted Genie as a scalable AI-based scam-detection tool with 2 million downloads and near 100% efficacy. Key strategic themes included: (1) Gen Stack and NextGen AI-enabled platform enabling unified data, better threat telemetry, and personalized upsell/cross-sell; (2) on-device AI collaboration with Qualcomm to detect deep fakes via NPUs; (3) expansion of Avast Security Identity into 15 new countries and on-demand privacy/identity services; (4) MoneyLion acquisition to broaden financial wellness tools and expand the addressable market to >$50B, with back-end PFMs and embedded marketplaces; (5) a disciplined capital allocation framework pending deal close, including debt paydown, buybacks, and opportunistic M&A; (6) a focus on mobile cross-sell, with more Norton 360 adoption in mobile cohorts and improved in-product messaging (IPM) to drive higher ARPU and retention; (7) a plan to refinance the 2025 debt and return 100% of excess free cash flow to shareholders post-close.
"Q3 was another quarter of solid execution, innovating on the most comprehensive Cyber Safety portfolio for consumers, while delivering profitable growth."
— Vincent Pilette, CEO
"moneyLion acquisition... more than doubled our addressable market to over 50 billion"
— Vincent Pilette, CEO
Forward Guidance
Outlook highlights: 1) FY25 revenue guidance raised to $3.915–$3.93B, implying ~4% Cyber Safety growth at the midpoint and roughly 4% bookings growth in constant currency; 2) Non-GAAP EPS guided to $2.20–$2.22 for FY25, representing 14–15% growth in constant currency; 3) Q4’25 non-GAAP revenue guidance of $990–$1,005M and non-GAAP EPS of $0.57–$0.59; 4) Refinancing of the $1.1B 2025 senior unsecured note in Q4’25; 5) Post-close, a capital allocation stance targeting 100% of excess free cash flow returned to shareholders, with dividend maintained and a balanced mix of debt paydown and buybacks; 6) Ongoing M&A opportunities to accelerate growth, including MoneyLion’s integration into a broader financial wellness strategy. Key factors investors should monitor include: the cadence of MoneyLion integration and cross-sell effectiveness, penetration of Gen Stack across cohorts, the rate of mobile Norton 360 adoption, FX headwinds and their impact on ARPU, and the company’s ability to refinance near-term maturities without restricting growth investments.