Gen Digital Reports 4% Revenue Growth

By Bobby Samwell • Friday, May 16 15:20 • Permanent Link

Gen Digital's latest 10-K report for the fiscal year ended March 29, 2024, provides a detailed insight into the company's financial performance and operations. Here are the key figures and metrics from the report:

Net Revenues: In fiscal year 2025, Gen Digital reported net revenues of $3,935 million, marking a 4% increase compared to fiscal year 2024. This growth was 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.
Operating Income: The company's operating income for fiscal year 2025 was $1,616 million, representing 41% of net revenues, a decrease from 29% in fiscal year 2024.
Key Performance Metrics: Gen Digital closely monitors several key operating metrics. The direct customer count at quarter-end was 40.4 million, with a direct average revenue per user (ARPU) of $7.26. The retention rate was reported at 78%.
Revenue by Geographic Region: The revenue distribution by geographical region remained consistent, with the Americas contributing 66%, EMEA contributing 24%, and APJ contributing 10% to the total revenue in both fiscal years 2025 and 2024.
Cost of Revenues: The cost of revenues for fiscal year 2025 was $776 million, reflecting a 6% increase compared to fiscal year 2024, primarily due to a $42 million increase in marketing affiliate expenses.
Operating Expenses: Gen Digital's operating expenses decreased by 21% in fiscal year 2025 compared to fiscal year 2024. This was primarily driven by a decrease in legal accruals, amortization of intangible assets, and restructuring costs related to the acquisition of Avast.
Non-Operating Income (Expense): The non-operating income (expense), net, decreased by $82 million in fiscal year 2025 compared to fiscal year 2024, primarily due to a $90 million decrease in interest expense resulting from voluntary prepayments and repricing of the company's Term A and Term B facilities.
Provision for Income Taxes: Gen Digital reported an effective tax rate of 38% for fiscal year 2025, representing an increase from a 36% effective tax rate in fiscal year 2024.
Cash Flows: The company's net cash provided by operating activities decreased by $843 million in fiscal year 2025, primarily due to the absence of an income tax refund related to the filing of fiscal 2023 tax return received during the fourth quarter of fiscal 2024.
Debt: As of March 28, 2025, Gen Digital's total outstanding principal amount of indebtedness stood at $8,355 million, consisting of Term Loans and Senior Notes.

Gen Digital's 10-K report also provides detailed information on liquidity, capital resources, cash requirements, stock repurchases, and material cash requirements. The report indicates that the company's existing cash and cash equivalents, along with cash generated from operations and available credit facilities, are expected to be sufficient to meet its working capital needs and support ongoing business activities.

Today the company's shares have moved -0.67% to a price of $28.775. For the full picture, make sure to review Gen Digital's 10-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.