Gen Digital Q4 FY25 slides: Record revenue and profit as MoneyLion acquisition closes

Introduction & Market Context

Gen Digital Inc. (NASDAQ:GEN) presented its Q4 FY25 earnings results on May 6, 2025, highlighting record revenue and profit growth alongside the strategic acquisition of MoneyLion. The company reported solid performance across its cyber safety portfolio while positioning itself for expansion into financial wellness solutions.

The presentation emphasized Gen’s evolution into two distinct business segments: the Cyber Safety Platform (Norton and Avast) and Trust-Based Solutions (LifeLock and MoneyLion), reflecting the company’s strategy to address growing consumer needs for both digital security and financial management.

As shown in the following slide highlighting Gen’s leadership position, the company now serves approximately 500 million users across 150+ countries, with 85 million+ customers generating nearly $4.75 billion in annual revenue:

Quarterly Performance Highlights

Gen Digital reported Q4 FY25 revenue of $1.01 billion, representing a 5% increase year-over-year in both USD and constant currency. This marks the company’s sixth consecutive quarter of double-digit EPS growth, with Q4 non-GAAP EPS reaching $0.59, up 12% in USD and 13% in constant currency compared to the same period last year.

The following chart details the company’s Q4 financial performance across key metrics:

The company’s operating margin remained strong at 58.4%, reflecting what management described as "strong core margins and disciplined growth investments." Free cash flow for the quarter reached $470 million, contributing to a full-year free cash flow of $1.2 billion.

Gen’s customer metrics also showed improvement, with direct customer count increasing by 1.3 million year-over-year to over 40 million, while total customers exceeded 65 million. Direct monthly ARPU (Average Revenue Per User) increased to $7.27 from $7.22 in the prior year, and direct retention improved to 78% from 77%.

The following slide provides a comprehensive view of Gen’s performance metrics:

Strategic Initiatives

A central focus of Gen’s presentation was the recently completed acquisition of MoneyLion, a digital financial services platform. The transaction, which closed in late April 2025, represents a significant strategic expansion into financial wellness solutions and effectively doubles Gen’s addressable market to over $50 billion.

The acquisition details and strategic benefits are outlined in the following slide:

The transaction involved a cash payment of approximately $1 billion, with an estimated purchase price of 9-11x NTM EBITDA before synergies. Gen expects the acquisition to be accretive to non-GAAP EPS while reinforcing the company’s long-term financial model.

MoneyLion brings a substantial customer base of 20 million users and a growing financial profile with $546 million in revenue (29% year-over-year growth) and a 17% adjusted EBITDA margin, as shown in this slide:

In addition to the MoneyLion acquisition, Gen highlighted its innovation in cyber security with the introduction of Norton Genie, an AI-powered scam protection feature integrated into Norton360. The company noted that scams have seen double-digit growth year-over-year, with 3.4 billion scam emails sent daily and the average American receiving 25 scams per week.

The following slide details the Norton Genie features and market context:

Detailed Financial Analysis

For the full fiscal year 2025, Gen reported revenue of $3.935 billion, up 4% year-over-year in USD and 5% in constant currency. Non-GAAP EPS for the year reached $2.22, representing a 14% increase in USD and 15% in constant currency.

The company’s balance sheet showed liquidity of $2.5 billion, comprising $1 billion in cash and a $1.5 billion undrawn revolver. Net leverage stood at 3.2x, down 0.3x year-over-year, with management reaffirming their commitment to reduce leverage to less than 3x by FY27.

The following slide provides a comprehensive overview of Gen’s financial performance for both Q4 and the full fiscal year 2025:

Gen’s business model continues to demonstrate strong fundamentals, with the company blocking nearly 20,000 attacks every minute in FY25. Management noted that over 80% of these attacks originated from scams and social engineering, highlighting the growing importance of their scam protection offerings.

The company’s core cyber safety metrics for FY25 are summarized in the following slide:

Forward-Looking Statements

Looking ahead to fiscal year 2026, Gen provided guidance for revenue between $4.70 billion and $4.80 billion, representing 6-8% year-over-year growth on a pro-forma basis. Non-GAAP EPS is projected to be between $2.46 and $2.54, indicating 12-15% growth in constant currency.

For Q1 FY26, the company expects revenue between $1.18 billion and $1.21 billion (5-7% year-over-year growth pro-forma) and EPS between $0.59 and $0.61 (12-15% year-over-year growth in constant currency).

The guidance includes key assumptions such as high single-digit pro-forma growth, an extra week in Q1 FY26 (offset by MoneyLion pre-acquisition stub revenue), and an overall operating margin of approximately 52-53% driven by segment mix.

The company’s detailed guidance is presented in the following slide:

Gen’s evolution into two distinct business segments—Cyber Safety Platform and Trust-Based Solutions—reflects its strategic focus on addressing both digital security and financial wellness needs. The company emphasized that this dual approach will enable it to better serve customers across the full lifecycle of their digital and financial lives.

As Gen Digital integrates MoneyLion and continues to innovate in cyber safety, management remains confident in the company’s ability to deliver sustained growth and shareholder value through its expanded portfolio of security, privacy, identity, and financial wellness solutions.

Full presentation:

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