Gen Digital Inc
GEN
$27.82 -0.93%
Exchange: NASDAQ | Sector: Technology | Industry: Software Infrastructure
Q1 2025
Published: Aug 7, 2024

Earnings Highlights

  • Revenue of $965.00M up 2.3% year-over-year
  • EPS of $0.29 increased by 0% from previous year
  • Gross margin of 80.3%
  • Net income of 181.00M
  • ""we grew cyber safety bookings 4% in constant currency and reached a record direct customer count of 39.3 million, up 1.1 million year-over-year"" - Vincent Pilette, CEO

Gen Digital Inc (GEN) QQ1 2025 Results – Steady Cyber Safety Growth, AI-Driven Cross-Sell Upside, and deleveraging Path in a Dynamic Threat Landscape

Executive Summary

Gen Digital reported a solid start to fiscal 2025, with Q1 revenue of $965 million and cyber safety bookings up 4% in constant currency, underscoring the strength of its consumer cyber safety portfolio. The company added 39.3 million direct customers, a quarterly record, and achieved a retention rate of 78%, reflecting improved customer loyalty as Gen migrates customers to a more integrated Gen Stack and expands cross-sell opportunities across Norton, LifeLock, and Avast-derived offerings. GAAP-like profitability remained robust, with operating income of $416 million and net income of $181 million, while non-GAAP EPS reached $0.53, up 15% in constant currency. Cash flow generation remained durable, with operating cash flow of $264 million and free cash flow of $262 million, supporting a proactive capital-allocation program including $272 million of share repurchases and a regular dividend of $0.125 per share. Management reaffirmed the full-year guidance, targeting $3.89–$3.93 billion in revenue and $2.17–$2.23 per share (non-GAAP) for FY2025, with cyber safety bookings expected to grow 3%–5% in constant currency and EPS growth of 12%–15% in constant currency. The company highlighted strategic bets on Gen Stack simplification, Norton Ultra VPN launch, and AI-enabled communications to lift retention, ARPU, and cross-sell penetration. While FX headwinds persist (notably yen depreciation affecting reported revenue), Gen remains committed to deleveraging toward a sub-3x net leverage target by 2027 and returning excess free cash flow to shareholders. The combination of a scalable, high-margin software portfolio, a growing addressable market, and a disciplined capital-allocation framework supports a constructive intermediate-term outlook, albeit with leverage and currency risks to monitor.

Key Performance Indicators

Revenue

965.00M
QoQ: -0.21% | YoY:2.33%

Gross Profit

775.00M
80.31% margin
QoQ: -0.26% | YoY:1.04%

Operating Income

416.00M
QoQ: 4.00% | YoY:10.64%

Net Income

181.00M
QoQ: 35.07% | YoY:-3.21%

EPS

0.29
QoQ: 38.10% | YoY:0.00%

Revenue Trend

Margin Analysis

Key Insights

  • Revenue: $965.0 million in Q1 FY2025, up 2.3% YoY and -0.21% QoQ (USD basis; constant currency +3% YoY).
  • Bookings: $913.0 million, up 3% QoY and 4% in constant currency.
  • Cyber Safety bookings (excluding legacy lines): +4% YoY in constant currency.
  • Direct revenue: $850.0 million, +3% YoY in constant currency; direct customers: 39.3 million, +1.1 million YoY; sequential gain of 192k.
  • ARPU (monthly): $7.23, up $0.01 sequentially; down $0.01 YoY; offset by $0.04 negative FX headwinds YoY and $0.02 sequentially.

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 1,257.00 0.22 +30.3% View
Q4 2025 1,010.00 0.23 +4.5% View
Q3 2025 986.00 0.26 +3.7% View
Q2 2025 974.00 0.26 +2.7% View
Q1 2025 965.00 0.29 +2.3% View