Executive Summary
Gen Digital Inc Contingent Value Rights (GENVR) delivered a robust QQ3 2025 performance characterized by sustained profitability and strong cash generation, underpinned by solid operating execution in a capital-light software infrastructure footprint. Reported revenue of $986 million, gross margin of approximately 80.4%, and EBITDA of $374 million translate into an operating income of $374 million and a net income of $159 million. Year-over-year (YoY) revenue growth stood at 3.68% with a 3.12% YoY rise in gross profit, while operating income rose about 10.98% YoY, reflecting favorable margin discipline and scale effects. QoQ (quarter-over-quarter) comparisons show revenue up 1.23% and gross profit up 1.67%, but a softer sequential operating income trajectory (-6.97% QoQ) as operating expenses remained elevated. Free cash flow reached $318 million for the quarter, supported by $326 million of net cash provided by operating activities and a capital program that included $8 million of capital expenditures, yielding a strong cash position of $883 million at period end. Net debt stands at $7.65 billion on total debt of $8.53 billion, with a robust cash balance underpinning liquidity in a highly acquisitive cap structure (Goodwill $10.17 billion; Intangibles $2.34 billion). The Contingent Value Right (CVR) component remains the key optionality for GENVR investors: a payout of 2300 Gen common shares if Gen Digital’s VWAP meets the $37.50 target over 30 consecutive trading days within 24 months after closing. As management commentary is not captured in the provided transcript data, the forward view centers on continued margin stability, ongoing FCF generation, and CVR upside linked to the equity price trajectory. Investors should monitor the CVR trigger, leverage dynamics, and any forthcoming guidance from Gen Digital for the underlying business and CVR mechanics.
Key Performance Indicators
Key Insights
Revenue: $986.0M (YoY +3.68%; QoQ +1.23%)
Gross Profit: $793.0M (YoY +3.12%; QoQ +1.67%)
Operating Income: $374.0M (YoY +10.98%; QoQ -6.97%)
Net Income: $159.0M (YoY +10.42%; QoQ -1.24%)
EPS (diluted): $0.26 (YoY +18.18%; QoQ 0.00%)
Gross Margin: ~80.43%
EBITDA: $374.0M; EBITDA Margin: ~37.93%
Net Margin: ~16.12%
Interest Expense: $141.0M
Tax Rate: ~23.6%
Cash from Operations: $326.0M; Free Cash Flow: $318.0M
Cash at End of Period: $883.0M; Net Cash Provided by Financing: -$136.0M
Total Debt: $8...
Financial Highlights
Revenue: $986.0M (YoY +3.68%; QoQ +1.23%)
Gross Profit: $793.0M (YoY +3.12%; QoQ +1.67%)
Operating Income: $374.0M (YoY +10.98%; QoQ -6.97%)
Net Income: $159.0M (YoY +10.42%; QoQ -1.24%)
EPS (diluted): $0.26 (YoY +18.18%; QoQ 0.00%)
Gross Margin: ~80.43%
EBITDA: $374.0M; EBITDA Margin: ~37.93%
Net Margin: ~16.12%
Interest Expense: $141.0M
Tax Rate: ~23.6%
Cash from Operations: $326.0M; Free Cash Flow: $318.0M
Cash at End of Period: $883.0M; Net Cash Provided by Financing: -$136.0M
Total Debt: $8,531.0M; Net Debt: $7,648.0M; Long-Term Debt: $7,123.0M; Short-Term Debt: $1,408.0M
Total Assets: $15,363.0M; Total Liabilities: $13,212.0M; Total Equity: $2,151.0M
Goodwill: $10,171.0M; Intangibles: $2,336.0M; Current Ratio: 0.351; Quick Ratio: 0.351
P/E: 26.78; P/S: 17.27; P/FCF: 53.56; P/OCF: 52.25; Debt/EBITDA: ~2.28x (approximate using EBITDA and net debt), Debt/Equity: 3.97
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
No earnings transcript data provided in the supplied materials; unable to extract management quotes or theme-based highlights from the call. Prepared notes below assume standard management discourse around CVR mechanics and core business performance would focus on maintaining profitability, balancing leverage, and monitoring CVR payout criteria.
Forward Guidance
Management guidance for GENVR is not explicitly specified in the supplied data. The forward view for GENVR hinges on two primary drivers: (1) the CVR payout mechanics tied to Gen Digital’s stock VWAP target (37.50) over a 30-day window within 24 months post-closing of the MoneyLion transaction, which provides optional upside but is contingent on equity performance; and (2) continued profitability and cash flow strength in Gen Digital’s core software infrastructure business, suggesting potential for further debt serviceability and optional capital allocation. The company demonstrates solid quarterly profitability (gross margin ~80%, EBITDA ~37.9%) and robust FCF generation (FCF $318M, operating cash flow $326M) that supports deleveraging opportunities over time, albeit within a high-leverage framework (net debt $7.65B; total debt $8.53B). Investors should monitor: (a) Gen Digital’s stock price trajectory toward the CVR threshold, (b) any additional disclosures on CVR valuation or adjustments, (c) ongoing R&D investment versus operating expense discipline, and (d) changes in leverage, impairment risk given the substantial goodwill and intangible assets. If Gen Digital sustains 3–5% revenue growth and solid FCF generation, the business remains attractive on a cash-flow basis, while CVR upside remains a secondary but meaningful optionality for GENVR holders.