Gen Digital Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rob Coolbrith - Evercore ISI - Analyst : Congratulations on the strong results. Just wondering, first of all, if you could maybe give us your view of the macro environment and the health of the consumer right now. And if we were to see a more significant downturn, how you'd expect that to play across the two segments of the business. And then also -- ask on the transition -- Sure. Please go ahead.

Question: Rob Coolbrith - Evercore ISI - Analyst : Great. And thank you for all the detail on the LifeLock integration from the experiences you bringing to bear between LifeLock and the secure -- sorry, financial wellness. But just if you could maybe talk a little bit as you go down this cross-sell journey, maybe about the frequency of member interaction with the LifeLock products, particularly around they do identity unlock as they're shopping for financial products. Maybe can you just talk a little bit about the mechanics of the cross-sell and some of the unique opportunities there.

Question: Roger Boyd - UBS AG - Analyst : Great. And congrats also on the strong results. I wanted to touch on partner revenue, which was, again, very strong and I think maybe accelerated organically, but you did note 50% growth in MoneyLion Engine and double-digit growth in employee benefits. Just any thoughts on how we should think about the trajectory of partner revenue over the back half of the year, anything to be mindful of from a seasonality perspective, particularly with MoneyLion Engine and then the employee benefits channel into open enrollment? And I have a follow-up.

Question: Roger Boyd - UBS AG - Analyst : Awesome. That's helpful, Vincent. And then Natalie, just on free cash flow. It looked like it was actually pretty robust after backing out the tax payment. I know you don't guide to it, but any color you can give just on how you think about free cash flow trajectory and -- as that continues to improve? I know you touched upon it in the remarks, but any update on how you think about capital allocation between debt paydown and share repurchase?

Question: Dan Bergstrom - Rbc Capital Markets - Analyst : It's Dan Bergstrom for Matt Hedberg. So you highlighted higher engagement on Norton 360 in your prepared remarks, you also talked to some scans is providing some tailwind there. Beyond that, maybe what are some keys to the momentum in upselling customers into those higher-tier Norton 360 memberships? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 10:00PM, GEN.OQ - Q2 2026 Gen Digital Inc Earnings Call

Question: Dan Bergstrom - Rbc Capital Markets - Analyst : That's great. And then I know paid customers is the new metric, but the old KPI around direct cyber safety customers was in the slides, up $400,000 quarter-over-quarter. Understanding there's some rounding there, but that's impressive, but at the upper end of what we'd expect historically. And again, I know it's a seasonally strong quarter here, but maybe what was some -- what was you had some of the strength on the customer addition number?

Question: Saket Kalia - Barclays Services Corp - Analyst : Congrats on another rate guide. Vincent, may be for you, absolutely. But maybe if you just kind of picking up off that thread. You've talked about sort of the potential for new business models in the MoneyLion. I mean it seems to be doing very well, right, just as it is. But I think that there's such a subscription DNA at Gen and you've kind of talked about that as a possibility. Without preannouncing anything, how do you sort of envision something like that looking, if that makes sense?

Question: Saket Kalia - Barclays Services Corp - Analyst : Yeah. Absolutely. Natalie, maybe for my follow-up for you. I'd love to maybe just touch on the profitability of the MoneyLion business I think in the presentation, it showed about a 20% operating margin. That, of course, is fantastic if it's supporting 50% top line growth. But maybe the question is, how do you think about the margin journey that we could see in MoneyLion? And maybe remind us how that sort of 30-60 dynamic that we talked about at our session a couple of months ago, sort of plays into that journey.

Question: Tomer Zilberman - Bank of America - Analyst : Maybe going along the same track of the MoneyLion, right? You had two solid quarters MoneyLion growth, 45% to 50%. You previously guided it to grow 30%. I think your guidance now calls for an exit rate of 30%. And -- just wanted to get more color why we wouldn't see these elevated growth levels sustain into the back half? And apologies if I missed in your prepared remarks, but can you pair that with commentary around the business model transition you're expecting in the second half? And I have a follow-up afterwards.

Question: Tomer Zilberman - Bank of America - Analyst : Got it. And maybe as a follow-up, if I move towards the core cyber safety business. I know someone addressed earlier that you grew your customer's $400,000 sequentially. But if we look at the growth trends they diverged a little bit from last quarter. Last quarter, if I have it right, revenue and bookings grew 4%. This quarter, revenue was 3%. Bookings was 5%. What drove that slight delta? And do you think that the 400,000 adds this quarter and the better bookings growth can translate into better revenue growth over the next few quarters?

Question: Joseph Gallo - Jefferies LLC - Analyst : As you think through the cross-sell opportunities between the MoneyLion and the Gen Digital basis and vice versa, which ones seem to be gaining

Question: Joseph Gallo - Jefferies LLC - Analyst : Great to hear. There is more to come. And then just -- I know you called out a consistent macro, but Americas has been pretty consistently strong. Is there anything to call out on the other geos? Actually, you're right. We haven't talked too much about the other geo. I was just discussing that with Natalie and my head of corporate FP&A yesterday reviewing the results in Europe. They've been very strong, positively surprised by how broad-based our growth rates have been. US first, then you know for a while, we had Latin America leading the way. Right now, for the last two quarters, we've seen a lot of strength coming out of Europe, and we haven't introduced financial wellness yet in Europe. So that's talk about more to come over the next few quarters and years, we really feel excited about all of the levers we have at our disposal, if I can say, to drive that long-term value for our customers.