Gen Digital Inc. Q1 FY2026 earnings call

• Fiscal year 2026 off to strong start, Q1 bookings and revenue grew over 30% reported and 10% pro forma/adjusted, non-GAAP operating margins 52%, non-GAAP EPS $0.64 up 20% YOY.
• Integrated MoneyLion core infrastructure, on track to complete portfolio/business integration by fall, launch first integrated product under Gen's brands.
• Made progress on platform strategy with Norton integrated into Gen stack, migrating products/customers for seamless experience.
• Cyber threats evolving, Gen committed to staying ahead with AI-driven innovation, Norton Genie evolving into cyber safety assistant, expanded AI-driven scam protection.
• Trust-Based Solutions: LifeLock steady growth, enhancing infrastructure, modernizing customer journey; MoneyLion acquisition progressing well, hosting investor briefing on 9/8.
• Investments in innovation: automated AI-powered renewal engine, AI-enabled platform handling customer issues, Norton Neo AI-native browser.

Cyber Safety Platform represented 2/3 of Q1 revenue, grew 11% reported and 4% normalizing for extra week, operating margin 61%. Trust-Based Solutions represented 1/3 of revenue, grew over 100% reported and 25% normalizing for extra week and MoneyLion baseline, achieved 31% non-GAAP operating margin. MoneyLion Q1 revenue grew 45% pro forma, PFM offering strong with Instacash usage, marketplace had third consecutive quarter of growth above 50%.

• Raising annual revenue guidance to $4.8 billion to $4.9 billion, up $100 million from prior.
• Fiscal 2026 expected full year revenue $4.8B - $4.9B, non-GAAP EPS $2.49 - $2.56.
• Q2 expected non-GAAP revenue $1.18B - $1.21B, non-GAAP EPS $0.60 - $0.62.
• Assumes continued mid-single-digit growth in core business and MoneyLion growth over 30% while funding growth investments.

Q: Roger Boyd asked about MoneyLion's fundamental trends and outperformance.

A: Vincent Pilette said MoneyLion grew 45% in Q1, PFM side strong with customer acquisition and transactional product increase, marketplace growth above 50%, ecosystem feeding and partner retargeting.

Q: Roger Boyd asked about pricing as a monetization lever.

A: Natalie Derse said focus on innovation to deliver value, get additional ARPU through cross-sell and upsell of products.

Q: Rob Coolbrith asked about MoneyLion operations implementation and opportunities.

A: Vincent Pilette said focus on growth, expect 30% growth with 20%+ operating margin, cross-sell into Gen installed base for margin lift.

Q: Rob Coolbrith asked about cross-sell opportunity timeline.

A: Vincent Pilette said started organic development, rapid testing, will talk more on 9/8 investor briefing.

Q: Andrew Nowinski asked about Cyber Safety business growth drivers and segment growth rates.

A: Natalie Derse said Cyber Safety Platform to have sustainable mid-single-digit growth, Trust-Based Solutions to have accelerating double-digit growth with MoneyLion integration.

Q: Daniel Bergstrom asked about MoneyLion business model transition and what surprised about MoneyLion.

A: Vincent Pilette said moving to membership structure for long-term value, MoneyLion's ecosystem unique with B2B2C platform and partner synergy.

Q: Saket Kalia asked about early observations on MoneyLion marketplace cross-sell.

A: Vincent Pilette said combination of Gen's capabilities and MoneyLion's to deliver future of financial delivery with personalized protection and product exposure.