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.