Gen Digital Inc. has recently released its 10-K report, detailing its financial performance for the fiscal year ended March 29, 2024. The company, formerly known as NortonLifeLock Inc., provides cyber safety solutions for individuals, families, and small businesses, offering security and performance management, identity protection, and online privacy under various brand names such as Norton, Avast, Avira, AVG, and CCleaner. Headquartered in Tempe, Arizona, the company was founded in 1982.
In the fiscal year 2025, Gen Digital reported a 4% increase in net revenues, reaching $3,935 million compared to $3,800 million in fiscal 2024. This growth was primarily driven by a $95 million increase in sales of identity and information protection products and a $53 million increase in sales of consumer security products, partially offset by a $13 million decrease in legacy product offerings. The company also noted a 6% increase in cost of revenues, which amounted to $776 million in fiscal 2025.
Key performance metrics showed that the direct customer count at quarter-end was 40.4 million, with a direct average revenue per user (ARPU) of $7.26, representing a slight increase from the previous fiscal year. The retention rate stood at 78%, indicating a strong level of customer loyalty.
In terms of geographical revenue distribution, the Americas accounted for 66% of the company's revenue, while Europe, Middle East, and Africa (EMEA) contributed 24%, and Asia Pacific and Japan (APJ) made up 10% of the total revenue. These percentages remained consistent with the previous fiscal year.
Gen Digital's operating expenses decreased by 21% in fiscal 2025 compared to fiscal 2024, primarily due to a decrease in legal accruals, amortization of intangible assets, and restructuring costs related to the acquisition of Avast. The company's non-operating income (expense), net, decreased by $82 million, primarily due to a $90 million decrease in interest expense resulting from voluntary prepayments and repricing of its Term A and Term B facilities.
The effective tax rate increased from 36% in fiscal 2024 to 38% in fiscal 2025, primarily due to the absence of an income tax benefit in the second quarter of fiscal 2024 and changes in unrecognized tax benefits and related interest and penalties, as well as U.S. taxation on foreign earnings in fiscal 2025.
Gen Digital's liquidity and capital resources are expected to be sufficient to meet its working capital needs and support ongoing business activities for at least the next 12 months. The company reported cash and cash equivalents of approximately $1,006 million as of March 28, 2025, with an undrawn revolving credit facility of $1,494 million.
The market has reacted to these announcements by moving the company's shares 1.29% to a price of $28.97. For more information, read the company's full 10-K submission here.
