Gen Digital Inc.

through new features such as our AI-driven customer renewal model. Overall, cyber safety provides an important, needed value proposition to consumers as we continue to operate this business with discipline, driving stable and profitable growth. Our trust-based solution segment delivered another standout quarter with revenue up over 25% on a pro forma basis, while operating margin came in at our 30% target. Our trusted brand LifeLock remains the leader in identity protection, allowing consumers to support their financial journey with their best credit reputation, consuming financial products at those moments of truth when identity, reputation, and financial well-being intersect. MoneyLion's exceptional results across our first-party personal finance products and our engine marketplace demonstrate our disciplined execution, unrivaled portfolio, and the strong singular demand for our secure financial wellness services. The integration of MoneyLion has been one of our smoothest yet. With cost synergies delivered ahead of plan, we are now unlocking revenue synergies by unifying best-in-class data systems and solutions across our cyber safety and trust-based solutions. We have embraced MoneyLion's experimentation and innovation DNA and are focused on building new features in a category that is still transforming. Incorporating best practices from all of our businesses will ensure cutting-edge product performance, but also multiple opportunities to cross-promote our features to consumers across channels, such as the planned launch of EWA feature in our employee benefit channel. We have begun rolling out early access financial wellness features across selected gen brands, including LifeLock and Norton, marking a key step in expanding our ecosystem. This includes the early launch of Norton Money, a unified platform that combines credit monitoring, identity protection, financial insight, and a curated marketplace. We have also embedded a robust credit card marketplace for LifeLock customers, a natural extension of the credit monitoring features they are increasingly engaging with. Continued excellence in embedding AI-powered financial recommendations and insight is a natural use of our data advantage to help consumers make even better financial decisions. The LifeLock and Norden consumers will no longer need to leave the ecosystem for customized, precise recommendations that can improve their financial lives. These initiatives reflect our broader ambition to build the leading decisioning platform for consumers' secure financial empowerment. GEN now serves hundreds of millions of active and premium customers across our ecosystem, creating a substantial base for future financial product and subscription cross-sell monetization. This strategy drives lifetime value expansion and sets up a strong growth trajectory. This is exactly what we outline in our strategic vision for secure financial wellness to enrich GEN's ecosystem by leveraging our trusted data platform where every decision and transaction feels secure, permitted, and contextual, and embedding financial wellness like digital banking, insights, precision marketplace, payments, into our cyber safety and identity protection entry door. AI is now the connective tissue of everything we do across innovation, products, marketing, and customer experience. In cyber safety, AI powers behavioral-based threat detection and real-time scam identification, protecting users from phishing, deepfakes, and other emerging forms of attacks. In financial wellness, the Moneyline engine leverages AI through Spark, our proprietary underwriting platform that matches customers with the best and most relevant financial products, personalizing and accelerating their decision-making. Our AI-native Northern Neo browser Pioneer personalized browsing by introducing safe and private memory support, transforming each browser instance into a unique personal assistant that users can trust. Within our customer success organization, we improved retention through tailored offers and enhanced user satisfaction and drove sustainable long-term revenue growth. As we unify our customer data securely, we are developing personalized and permissioned AI-powered outcomes redefining the trusted value we bring to consumers. Operationally, AI is already delivering tangible productivity gains. Our customer support automation and agentic framework continues to mature, now handling 55% of text-based chat and 40% of voice-based interactions, driving over 20% cost efficiencies in this function to reallocate towards our platform investment. In R&D, we have applied agentic AI across the entire product development lifecycle, enabling us to shift over time resources for maintenance towards innovation and ultimately boost product velocity. And finally, in marketing, we have built an AI-enabled ecosystem that accelerates creative production and enhance productivity across every team from upper to lower funnel. This shift is creating a more agile, data-informed marketing organization that is operating at the pace of our ambitious innovation. We're very excited about the scale and growth we can deliver through this strategy, through our global data advantage and the consumer trust. With a strong first half result and increased visibility in the second half of the year, we are raising our annual guidance at $95 million at the midpoint of our prior revenue range, representing over 25% growth on a reported basis. This underscores the momentum we see in our business as we transform into a customer-centric platform, leveraging our skilled customer base and using our data modes to drive personalization and trust at the core of our business. In summary, we delivered another very strong quarter and are raising our annual guidance again, demonstrating our strategy is working. We are ahead of plan with Money Lion, and setting our sights on capturing further growth synergies and leading with innovation grounded in trust. We are building the first AI-powered platform with a trust layer that unites security, privacy, identity, and financial wellness solutions into a market advantage that no one else holds at scale. Our ecosystem brings together a portfolio of competitive first-party products in cyber safety and trust-based solutions and an expanding partner network that underpins our engine marketplace to also provide leading third-party products and solutions for our customers. And all of it is supported by a customer-driven platform that delivers personalization and contextualization at key moments of truth. To our investors and partners, I want to thank you for your confidence. To our employees, I want to thank you for your relentless commitment to our customers and to fulfilling our mission of powering digital freedom. Jen is executing with momentum, discipline, and purpose, and our opportunity has never been greater. And now I will turn it over to Natalie to discuss our financial results and financial guidance in more detail.

Thank you, Vincent, and hello, everyone. For today's call, I will walk through our Q2 results and also provide some additional color on our performance metrics. I'll then conclude by providing our outlook for Q3 in fiscal year 2026. I will focus on non-GAAP financials in year-over-year growth rates, unless otherwise stated. I will also include commentary on our pro forma growth, which include money lines results from the prior year for comparative purposes. Now onto our results. Q2 was another strong quarter for Jen, with better than expected results. On a reported basis, Q2 bookings and revenue were over $1.2 billion, up 27% and 25% year-over-year, respectfully. On a pro forma basis, Q2 revenue grew 10% consistent with last quarter and excluding Money Lion, Q2 revenue grew 5% which is consistent quarter over quarter performance and in line with our commitments. In our cyber safety segment, bookings was up 5% and revenue was up over 3% with broad-based growth across channels. With our expanded scam protection features and cyber safety AI assistant helping consumers outpace emerging threats, This has translated into strong sales of our leading Norton 360 comprehensive membership offerings and reflected in our accelerated bookings growth this quarter. More partners are also adopting our highest tier all-in-one cyber safety memberships and promoting our bundled solutions through their channels. As just one example, our employee benefits partners already see the expanded value we provide through Norton 360, and this channel continues to grow double digits with a robust pipeline ahead of the annual enrollment period. More and more consumers understand the need to have full suite with identity protection, and we see it in our results. Additionally, across our go-to-market channels, we are leveraging our data and AI capabilities to drive more effective, targeted campaigns through our in-product messaging platform, upselling more customers to higher tier memberships with additional identity and privacy protection, or cross-selling them additional add-on products that fit their immediate needs based on select moments of exposure. These post-sale levers continue to drive more growth, higher engagement, and in turn, higher retention. Our cyber safety platform remains our foundational bedrock, and the growth playbook we deploy continues to provide an accelerating flywheel rooted in innovation and serving customer needs. In our trust-based solution segment, on a pro forma basis, bookings and revenue grew 26% and 27%, respectively, and more than doubled on a reported basis. In our LifeLock business, growth remained stable with highly retaining customers and strong customer NPS. Additionally, Moneyline's personal financial management solutions are scaling significantly with strong gains in new active users and increasing product consumption. And our engine financial marketplace delivered another strong quarter, the fourth consecutive quarter of growth over 50%. The accelerating adoption of third-party financial products available on engine reinforces our marketplace strategy and our mission to help consumers make better financial decisions through embedded experiences across financial and non-financial platforms and apps. This momentous business is powerful in and of itself And as we innovate across our trust-based solution segment, we believe it provides us with such a unique opportunity to cross-pollinate. Although we're just getting started, we are very excited about the green shoots in our early test results, driving offers and in turn demand with our LifeLock cohorts. And we expect this momentum to continue as we expand the marketplace catalog to include new third-party product categories, such as prime credit cards, that are personalized for our diverse customer base. Overall, our direct channels continue to demonstrate strong fundamentals, growing revenue 17% as reported and 6% pro forma. And partner is scaling considerably, growing revenue 88% as reported and 24% pro forma, demonstrating healthy diversification underpinned by strong innovation across our product portfolio. Turning to customers, we continue to expand our customer base, now reaching over 77 million customers, up approximately 1 million sequentially, with expansion across our segments and net ads across our key channels. As we navigate forward with a more integrated business model, we will take a customer-centric approach, and that requires us to refine how we target personalized offerings to best serve their needs. We will continue to focus on subscribers, which are customers who pay for our products on a recurring monthly or annual basis, such as our vast Norton 360 membership customers, or Moneyline subscriptions, which are refining. In addition to subscribers, we will also focus on product users generating revenue, which are customers whom we monetize through transactions and complementary engagement models, such as our Moneyline personal financial wellness and marketplace customers. And while we are at the early stages of development, we wanted to introduce our expanded approach designed to capture the growing demand in a more focused manner as we continue to innovate and scale. We are no longer just a direct-to-consumer business, and there is no one-size-fits-all approach with such a diverse customer base. More to come on this as we drive further expansion across these vectors. Now turning to profitability. Q2 operating income was $623 million, translating to 51% operating margin, in line with our expectations. Operating margin for cyber safety platform was 61%, and trust-based solutions was 30%, each in line with our plan. Our margins remain robust as we continue to drive growth with a disciplined approach to resource allocation, scaling efficiency with AI, and measured investment in our long-term strategic initiative. Q2 net income was $387 million, and diluted EPS was 62 cents, up 15% year-over-year as reported. This represents our eighth consecutive quarter of achieving or exceeding our 12% to 15% EPS growth target. Interest expense was $139 million in Q2. Our non-GAAP tax rate remained steady at 22%, and our ending share count was $624 million, up $2 million year-over-year. Turning to our balance sheet and cash flow, Q2 ending cash balance was $701 million, representing over $2.2 billion of liquidity when including our $1.5 billion revolver. Year-to-date operating cash flow was $525 million and free cash flow was $512 million, demonstrating the capital efficiency of our business model. As we shared, Q2 is seasonally high our highest use of cash given the concentration of tax payments that are due within the quarter, including $139 million transition tax payment, our last payment related to the 2017 Tax Cuts and Jobs Act. Also worth noting, due to how specific calendar dates fall in this fiscal year, we have both of our semi-annual interest payments in our first half of fiscal 2026 whereas typically we have the first payment in the first half and the second payment in the second half of the fiscal year. Given this higher use of cash in Q2, we did not have any additional capacity for share buyback during the open period. We paid down $160 million of debt and ended the quarter with our net leverage at 3.2 times EBITDA. We paid $77 million to shareholders in the form of a regular quarterly dividend of 12 and a half cents per common share. For Q3 fiscal 2026, the board of directors approved a regular quarterly cash dividend of 12 and a half cents per common share to be paid on December 10th, 2025 for all shareholders of record as of the close of business on November 17th, 2025. Our free cash flow generation remains very strong and we stay committed to a balanced capital allocation as we enter into the second half of our fiscal year. Now let me share our Q3 and fiscal 2026 outlook. We are raising our revenue and EPS guidance again for fiscal 2026 based on our strong results and the momentum we're seeing. Our business remains resilient, bolstered by a highly recurring revenue base, further supported by solid customer retention and substantial free cash flow generation. For fiscal year 2026, we now expect full-year revenue in the range of $4.92 to $4.97 billion, up from our prior expectation of $4.8 to $4.9 billion, and reflects reported revenue growth of 25 to 26 percent year-over-year. We expect non-GAAP EPS to be in the range of $2.51 to $2.56 representing our continued commitment to achieving our 12 to 15% annual EPS growth. For Q3, we expect non-GAAP revenue in the range of $1.22 billion to $1.24 billion. We expect Q3 non-GAAP EPS to be in the range of 62 to 64 cents or 12 to 15% growth year over year. Our Q3 and four-year guidance assumes high single-digit pro forma growth combined with disciplined cost management while funding targeted long-term growth investments in the GEN platform and additional AI capabilities. This guidance range also assumes current FX rates to Q2, although significant fluctuations remain possible given the volatility in currency markets that has taken place over the past few years. In summary, we are well positioned after a strong first half. We're accelerating growth while maintaining the same operating discipline that has long defined our strategy. We are driving healthy growth in both of our segments, and we've made tremendous progress with the integration of Money Lion. Operating margins remain strong, and we're continuing to invest in scalable innovation without compromising returns. Our free cash flow generation is robust, creating capacity for ongoing opportunistic share repurchases and further delivering to drive strong returns for our shareholders. We continue to hit the mile markers we've laid out as we navigate towards our long-term growth objectives. I want to thank the entire team for staying focused and delivering great value to our customers and shareholders. We look forward to sharing more progress in the coming quarters. As always, thank you for your time today, and I will now turn the call back to the operator to take your questions. Operator.

Thank you. We will now begin the Q&A session. If you would like to ask a question, then please press star followed by 1 on your telephone keypad. To withdraw your question, please press star followed by 2. Please also ensure that your phone is unmuted locally. As a reminder, that is star followed by 1 to ask a question. Our first question today comes from Rob Coober, Eberco RSI. Please go ahead.