Gen Digital Aktie

Good afternoon, everyone. Thank you for standing by. My name is Ellen, and I will be your conference operator today. Today's call is being recorded. [Operator Instructions]

At this time, for opening remarks, I would like to pass the call over to Ben Lu, Head of Investor Relations.

Thank you, and good afternoon, everyone. Welcome to Gen's Fourth Quarter Fiscal Year 2026 Earnings Call. Joining me here today are Vincent Pilette, CEO; Natalie Derse, CFO. As a reminder, there will be a replay of this call posted on the IR website, along with our slides and press release.

During this call, all references to the financial metrics are non-GAAP and all growth rates are year-over-year unless otherwise noted. A reconciliation of non-GAAP to GAAP measure is included in our press release and earnings presentation, both of which are available on our IR website at investor.gendigital.com.

Today's call contains statements regarding our business and financial performance, including the impact on our business and industry that may be considered forward-looking statements, and such statements involve risks and uncertainties that may cause actual results to differ materially from our current expectations. Those statements are based on current beliefs, assumptions and expectations as of today's date, May 7, 2026. We undertake no obligation to update these statements as a result of new information or future events. For more information, please refer to the cautionary statement in our press release and the risk sections and our filings with the SEC, and in particular, our most recent reports on Form 10-K and Form 10-Q.

And now I will turn the call over to Vincent.

Thank you, Ben, and welcome to the Gen team. Today, I will cover fiscal year '26 results, how we are building for the Agentic AI era and our fiscal year '27 outlook. Natalie, will then talk you through the financials.

Fiscal year '26 was a defining year for Gen, our strongest result in a decade. Cyber safety and financial wellness are reinforcing each other, and that conversion is driving growth. We accelerated pro forma growth, plus 10% bookings plus 9% revenue and plus 15% EPS. Revenue crossed $5 billion for the first time and non-GAAP EPS reached $2.56, marking 10 consecutive quarters within our 12% to 15% growth commitment. We exited a 3x net leverage a year ahead of plan.

6 years ago, Gen was born as a $2 billion pure play consumer cybersecurity company. Today, we spend security, privacy, identity, reputation, financial protection and empowerment unified by a shared data platform and intelligence layer. We have more than doubled revenue, nearly tripled EPS and returned $6 billion to shareholders. Fiscal year '26 marks a structural acceleration from mid-single digits to double-digit revenue growth with mid-teens EPS growth. This is a step change in trajectory despite market concerns about AI disintermediation.

Our North Star remains helping people live fearlessly in a digital world. We secure devices and data, protect identities, safeguard financial health and champion privacy, while enabling people to unlock access, build reputation, make smarter decisions and use AI with confidence. That is our portfolio going beyond protection and into empowerment.

We operate in 2 complementary segments, a $3.3 billion cyber safety franchise, steadily growing mid-single digits with hundreds of millions of users and a high-growth trust-based solutions segment nearing $1.7 billion, growing 20% plus in key categories.

Connecting it all is 1 platform built on data, insight and Agentic AI. It enables safe and confident use of AI across both segments and gives us a unified view of each customer so we can personalize offerings, match the right features from across the portfolio to individual needs and deepen relationships over time. Let me now walk through each segment.

Cyber Safety is our foundation, stronger than at any point in our recent history. AI expands both the threat landscape and our opportunity. Every malicious agent, deep fake or scam ultimately targets 1 thing, money. That makes cybersecurity and financial protection inseparatable.

Attack cycles have compressed from months to minutes. Threats are more personalized, convincing and financially driven, drain accounts, stolen credentials, fraudulent transactions. Our platform integrates cyber safety and financial protection as one defense.

At scale, we block hundreds of millions of threats detect deep fakes and stop scams before impact. Our telemetry across devices, identities and financial signals powers a flywheel, more data improves detection, better detection builds trust, and trust drives growth.

Genie, our AI scan detection engine is now embedded across Norton 360, Avast and partners like ChatGPT. We continue leading in emerging areas like video-based deep fake detection, expanding coverage across major chip platforms while delivering top-tier performance in independent tests and global recognition from leading reviewers. Independent labs put security technology through the most rigorous test in the industry and earning 28 awards across our brands is a clear signal that Gen is setting the standard for consumer cyber safety.

As the platform scales, so does customer value. With our Gen stock integration, AI-driven recommendation and personalized messaging are improving engagement and outcomes. We exited fiscal '26 with record cross-sell performance in Norton and nearly doubled our Norton 360 NPS year-over-year at the same time. We are also seeing distribution advantages. Norton appears in 34% of tracked nonbranch ChatGPT prompt ahead of our nearest competitors with LLM driven traffic up 62% year-over-year as we constantly optimize value proposition and content.

This drives consistent financial performance. Cyber safety revenue grew mid-single digits in Q4 and for the year. Overall customer count reached 79 million for Gen with cyber safety subscribers growing sequentially for 10 consecutive quarters across channel and cohorts, ARPU and retention both improved, increasing lifetime value.

This momentum reflects the strength of our comprehensive cybersafety memberships integrating security, privacy, identity reputation and increasingly financial monitoring and wellness into a single trusted relationship. Membership adoption approaches 60% across Norton, Avast and Avira confirming that the future of cyber safety lies in all-in-one solutions and ultimately in a seamless secure trust layer.

To extend financial monitoring into our customer base, financial scan built on MoneyLion's fund money is now embedded in Norton 360 and Norton Money, providing visibility into financial health. Over time, connected accounts convert a protection relationship into a financial decisioning relationship, compounding lifetime value across the platform. And so cyber safety is really evolving into a proactive personalized safety company across devices, browsers and increasingly AI agents.

Turning to trust-based solutions. LifeLock protects identity and assets, MoneyLion helps customers manage and grow them delivering on our conversion strategy. We are deepening the customer relationship from protection to financial decision-making. 1/3 of our paid base now engages with financial wellness with connected financial accounts hitting all-time highs each quarter, 170 million in Q4, up 36% year-over-year. Each account unlocks monetization through engine personalized offers, credit cross-sell and richer data that improves our AI matching layer. Customers with connected accounts show higher ARPUs, try engagement and better retention.

LifeLock's mobile first AI-powered app is now rated 4.9 stars with strong engagement gains. We refreshed the lineup with differentiated features, including scam assistant and insurance centered on a simple idea, protection for the life you are building while creating a bridge to secure financial wellness. LifeLock's reimagined experience is live with approximately 3 million customers. NPS reached 73, up 4 points year-over-year with retention touching 90%. LifeLock Mobile revenue grew almost 50% and linked financial monitoring accounts rose nearly 25%. These operational results show that the redesigned experience is driving a deeper engagement and a higher lifetime value.

MoneyLion completed its first full fiscal year under Gen exceeding expectations with over 40% revenue growth. Its personal financial management portfolio delivered a record Q4 led by InstaCash and credit builder. We've also enhanced the membership with scam protection and identity services and early synergy between cyber safety and financial wellness that makes the trust core to the value proposition. Membership represents about 5% of our PFM utilization today with significant room to grow as we scale towards secure financial wellness and higher lifetime value.

Engine by Gen, our marketplace is the third category under trust-based solutions. Engine delivered record revenue, signing over 30 new partnerships in Q4 alone. It now processes nearly 400 million annual inquiries and has more than tripled revenue in 3 years.

Three developments this quarter illustrates Engines momentum. First, as announced in February, Equifax is embedding engine into myequifax.com, delivering personalized financial recommendations to consumers actively checking their credit.

Second, Engine is now the multi-category financial offer provider within Microsoft CoPilot Discovery feeds and MSN AI, live with credit cards and deposit and expanding to mortgages, loans and insurances. This positions us early in building the financial distribution layer inside large language models.

And third, we added a fully embedded insurance marketplace technology and expanded engine into a high-value vertical through the Trellis acquisition.

As integration deepens, engine technology becomes the AI layer powering personalized recommendations across Gen touch points. We have extended to cyber safety, giving all distribution partners access to solutions across all categories using Engine. And every Engine interaction feeds back into our data platform, sharpening the matching layer.

AI is a strategic lever for Gen. It is already transforming how we live as agents can now book flights, execute trades and move money. But the trust infrastructure is essentially nonexistent.

Summarizing content is 1 thing, wiring money on your behalf is quite another. Closing that gap between what AI can do and what consumers trust it to do for is exactly what we are building here at Gen. And while we built the trust layer for the AI economy, we are also launching AI native products and safe agents, leveraging Agent Trust hub technology. That is the mission of our newly created AI foundry team.

Norton Neo, our AI native secure browser is a good example. It is gaining traction and enables users to interact with AI agents in a trusted environment. Norton Neo is purpose built for a world where AI agents, browse, transact and act on your behalf. We have enhanced our security and privacy features and added an agentic VPN to the browser trust layer. We also announced a partnership with xAI whose models will power new AI native products we are co-architecting including a digital concierge for Norton subscribers launching this summer. And today, we joined OpenAI's trusted access for cyber and will start leveraging the advanced defense capabilities of the latest GPT 5.5. In fact, we are working with all Frontier model providers, including OpenAI, Antropic AI, Microsoft and Google to advance our mission of protecting and delivering the trust layer to hundreds of millions of consumers.

Since launching the agent Trust Hub, we've expanded through partners like Versal, strengthened privacy by masking agents IP addresses similar to a VPN and integrated agent protection directly into millions of Norton 360 users. Powered by Sage, our open source agent security engine, this integration into Norton 360 adds 3 layers of protection, detecting prompt injection, monitoring agent connections and scanning third-party agent skills before they load. These are early capabilities in a fast-moving space. We are the first to market with multilayer agent security for consumers, and this is part of a unified road map built on 1 conviction. Trust is a critical barrier to AI adoption, especially around personal data and identity and Gen is uniquely positioned to provide that trust layer at scale.

The consumer AI agent market is early. Agentic revenue in fiscal year '27 will be modest, but growing. Gen already has the critical assets required to win trusted brands, innovation and technical expertise, rich data, broad distribution and our unique consumer and financial insights. These assets combined are very difficult to replicate, thus creating a durable advantage as the category scales.

Finally, AI is also transforming how we operate. We have embedded it across engineering, marketing and support, streamlining workflows, reducing coordination layers and reinvesting capacity into products and sales.

Products can now move from ideation to launch with a very small squad and that's our Norton revamp launch in March. This efficiency is reflected in our economics. Profit per employee among the highest at or scale is up double digits. This leaner operating model lets us develop and test quickly, enter new categories faster and compound returns over time.

Cyber Safety, trust-based solutions and AI are converging into 1 platform. Each interaction increases the value and insight we deliver. One year after closing MoneyLion, we can link financial data to about 1/3 of our paying base, creating the foundation for synergies. We are now focused on turning those connections into insights driving engagement and improving recommendations meeting customers' needs.

With this momentum growing, we see over $100 million in incremental annual revenue from embedded financial wellness partner expansion and engine growth beginning in the second half of fiscal year '27 and scaling into '28 and '29.

What's emerging here is 1 connected trust relationship across protection, privacy, identity and financial decision-making, all powered by 1 unified platform. Safety, empowerment, leaving fearless in a digital world, that is our promise to our customers. For 10 consecutive quarters now, we have delivered on our Investor Day commitments. So for fiscal year '27, we are raising our outlook to 8% to 10% revenue growth and mid-teens EPS growth, driven by the progress I've just outlined, including revenue synergies and AI-led efficiencies. This is a clear trajectory shift as our prior midterm targets were for mid-single-digit revenue growth and 12% to 15% earnings growth.

Gen sits at the intersection of trust, security AI and financial wellness. We are positioned to define how consumers live safely and confidently in the AI era, while delivering durable growth and strong returns.

And so with that, let me turn it over to Natalie, who will walk you through very exciting results.

Thank you, Vincent, and hello, everyone. For today's call, I will walk through our full year fiscal 2026 results followed by our Q4 results, then share our outlook for Q1 and fiscal year 2027. I will focus on non-GAAP financials and year-over-year growth rates, unless otherwise stated. I will also reference pro forma growth, which includes MoneyLion's results from the prior year for comparative purposes and excludes the extra week that occurred in the first quarter of fiscal year 2026.

Now on to our results. Fiscal year 2026 was an outstanding year for Gen. Total bookings reached a record $5.1 billion, up 28% as reported and up 10% pro forma. Total revenue exceeded our guidance, reaching a record $5 billion, up 27% as reported and up 9% pro forma. Full year operating income was $2.5 billion, representing an operating margin of 51%. Full year EPS was $2.56, up 15% year-over-year and at the high end of our guidance. We generated $1.5 billion in free cash flow, representing over 30% of revenue and up 26% year-over-year. We lowered our share count by 15 million shares, and we have achieved 3x net leverage a year ahead of schedule. We have exceeded expectations on all vectors, and we are in a position of strength with great momentum heading into fiscal year 2027.

Fiscal year 2026 was our seventh consecutive year of growth and reflects consistent execution in our core cyber safety business, where we delivered on our mid-single-digit growth commitments laid out at our 2023 Investor Day, while also establishing trust-based solutions as a scaled double-digit growth engine with an expanded portfolio, including secure financial wellness.

In our Cyber Safety segment, bookings grew 5% and revenues grew 3% pro forma, while trust-based solutions delivered bookings growth of 24% and revenue growth of 23% pro forma. Segment margins were 61% for cyber safety and 30% for trust-based solutions, both in line with our targets. We delivered additional profit dollars while expanding our product portfolio, with additional investment in innovation, notable increase in marketing funds and disciplined investments in AI-related initiatives to support long-term growth, all while operating with a disciplined approach we are consistently recognized for as by running G&A at less than 3% of revenue.

Our robust revenue growth combined with continued operating discipline and strong capital allocation drove full year EPS of $2.56, up 15% year-over-year, which is the third consecutive year of double-digit growth. This underscores the strength and durability of our model and our cash generation, providing increased flexibility to return capital, delever the balance sheet and invest for strategic execution.

Now turning to our Q4 results. We delivered another exceptional quarter, exceeding the high end of our guidance, driven by record bookings and revenue, mid-teens EPS growth and robust free cash flow. On a reported basis, Q4 bookings was $1.36 billion, up 27% year-over-year and up 10% on a pro forma basis. Revenue was $1.28 billion, up 27% year-over-year and up 9% pro forma.

In our Cyber Safety segment, bookings grew 5% and revenue growth accelerated to 4%, driven by continued demand for our all-in-one subscriptions and the industry-leading retention rates of our highly loyal customer base.

As AI-driven threats intensify, our portfolio is becoming increasingly relevant to our targeted audiences. Demand for our Norton 360 memberships is supported by rising scam and fraud activity and the risks consumers are facing in their digital lives. As customers choose to upgrade to more comprehensive protection or higher-tier memberships that include scam detection, identity protection, restoration and insurance serve their needs and now have surpassed $0.5 billion in annualized bookings.

We continue to expand customer lifetime value through AI-driven cross-sell campaigns delivering increasingly personalized messaging at key moments of truth with enhanced customer segmentation powered by the Gen platform. As a result, we drove Norton cross-sell bookings this quarter with penetration now exceeding 26% of the base. Our cohort level ARPU exiting fiscal year '26 is now 7% to 10% higher than it was 2 years ago. Our go-to-market playbook is clearly working and is now further enhanced with the richness of the data and AI capabilities from our Gen platform.

Looking ahead, we plan to further scale our AI cross-sell and upsell playbook across additional customer cohorts in fiscal year '27 as our platform capabilities continue to advance. As we drive growth across cyber safety, we're operating this segment at a 61% margin rate, focusing on driving efficiencies through AI initiatives while continuing to invest in growth and marketing opportunities.

In our Trust-based Solutions segment, bookings and revenue more than doubled as reported with the additional -- with the addition of financial wellness to our portfolio. and grew 21% and 20%, respectively, on a pro forma basis.

LifeLock remains a core pillar of our identity business, and we have meaningfully strengthened the proposition this year.

Our reimagined lineup is simpler, more competitive and more clearly aligned to customer needs with a 3-tier portfolio that adds stronger credit and financial monitoring, differentiated scan protection, and clear price-to-value trade-offs. We have also rolled out a more modernized product experience across customers, while LifeLock NPS has reached a record high. Early performance gives us confidence that the strategy is working, with monetization up, upgrades are stronger and retention rates are improving across cohorts. With further upside in conversion and retention as the lineup reaches all channels, which we expect will drive sustainable, accelerated growth.

In MoneyLion, consumer demand for our personal financial management products remain strong, and we saw record origination volumes in Q4. PFM transactions per customer increased in the quarter and demonstrates the durability and stickiness of our financial wellness portfolio with over 2/3 of first-party MoneyLion revenue coming from repeat customers.

The Engine marketplace had another standout quarter, adding new partners across financial services and digital publishing while continuing to demonstrate the value of our scaled audience to premium distribution partners.

Additionally, we're expanding the depth of Engine with Gen's insurance category, adding more leading providers bringing a data richness that will enable better programmatic matching between consumers and leading insurance carriers. This simplifies decision-making and build greater trust and choice across the Engine marketplace while further expanding the value we bring to our customer base.

Combined, overall MoneyLion achieved nearly 40% growth in Q4 and is rapidly approaching $1 billion in annual revenue across these 2 categories.

Moving to direct revenue, which grew 19% as reported and 7% pro forma, reflecting the continued strength of our highly recurring subscription business, our scaling first-party portfolio and ongoing innovation efforts. As mentioned above, our unit economics remain sound with more customers, expanded ARPU, and strong retention when normalizing for mix. Our partner business grew 78% as reported and 20% pro forma surpassing our Investor Day target and also approaching $1 billion run rate through a combined acquisition growth in new partners and scaling with our existing partners. This remains our fastest-growing channel and a durable growth driver as we execute on our strategy. We continue to drive broad-based growth in our paid customer base now totaling 79 million customers, up from 78 million last quarter and 68 million a year ago.

Growth remains broad-based across segments and channels with consistent growth in subscribers and product users generating revenue, supported by diversified acquisition channels, and sustainable healthy returns as we deploy our customer-centric growth flywheel.

Turning to profitability. Q4 operating income was $641 million, up 9% year-over-year and representing a 50% operating margin in line with our expectations. Our focus is growing profit dollars while maintaining stable margins in each segment. We will continue to invest in our strategic AI initiatives and our long-term strategic growth initiatives while remaining steadfast in driving further efficiencies in our business.

Q4 net income was $408 million and diluted EPS was $0.67, above our guidance and up 14% year-over-year. This represents our tenth consecutive quarter of achieving or exceeding our 12% to 15% EPS growth target, reflecting our consistent execution and capital allocation.

During the quarter, we reduced our weighted average ending share count to 609 million, down 15 million year-over-year. Interest expense was $122 million in Q4, and our non-GAAP tax rate remained steady at 22%.

Turning to our balance sheet and cash flow. Q4 ending cash balance was $411 million, representing nearly $2 billion of liquidity when including our $1.5 billion revolver. We successfully refinanced our Term Loan A at lower rates of SOFR plus 1.375% and extended maturities of our TLA and revolver to 2031. Please refer to Slide 21 for our latest capital structure.

We generated $452 million in operating cash flow and $449 million in free cash flow, and we deployed nearly $500 million of capital for shareholders in a very disciplined, balanced manner, including $200 million towards share repurchases of 9 million shares and $200 million of debt repayment. As I mentioned earlier, we exited the quarter with net leverage of 3x EBITDA, achieving our target a year ahead of schedule.

For Q1 fiscal 2027, the Board of Directors approved a regular quarterly cash dividend of $0.125 per common share to be paid on June 10, 2026, for all shareholders of record as of the close of business on May 11 -- excuse me, May 18, 2026.

As we've consistently emphasized, our business generates substantial and durable free cash flow, providing us significant flexibility to simultaneously invest in growth, strengthen our balance sheet and return meaningful capital to shareholders. Over the past 3 years, we have deployed nearly $6 billion in capital to these priorities, representing 122% of our cumulative free cash flow in a highly disciplined and balanced manner. Approximately 40% was deployed towards debt paydown and delevering, 40% towards shareholder returns through opportunistic share repurchases and our quarterly dividend, and the remaining 20% towards targeted tuck-in acquisitions that expand our capabilities and further accelerate growth.

As our business continues to scale and free cash flow grows, so does our strategic flexibility and capacity for further capital deployment. We are entering fiscal 2027 with a stronger balance sheet, increased financial capacity and multiple levers to drive shareholder value creation. Importantly, we have $2.1 billion remaining under our share repurchase authorization and we will continue to drive a balanced approach.

Now let me share our Q1 and fiscal 2027 outlook and some of the assumptions that underpin it. We expect full year revenue in the range of $5.325 billion to $5.425 billion, translating to 8% to 10% pro forma growth. We expect non-GAAP EPS to be in the range of $2.85 to $2.95, which reflects mid-teens pro forma growth of 13% to 17% with 15% at the midpoint. This guidance captures the momentum we have and represents our plan to accelerate growth through our transformed business.

Building on our commitment to drive mid-single digits in our Cyber Safety segment, combining a high-growth financial wellness business and continued diversification through an expanded portfolio, we have constructed a high confidence growth path. We will acquire more customers, continue to expand our product portfolio. We will scale cross-sell and upsell as customers' needs change. We will continue to optimize our subscription business model, bringing synergistic gains to market throughout fiscal year 2027. With the incremental net margin dollars from this accelerated growth and continued disciplined capital deployment to share buyback and debt paydown, we will accelerate EPS growth to mid-teens. This is our commitment to our shareholders.

For Q1, we expect revenue in the range of $1.3 billion to $1.325 billion, representing 8% to 10% pro forma growth. We expect Q1 non-GAAP EPS to be in the range of $0.68 to $0.70, representing mid-teens pro forma growth of 13% to 17%. This guidance assumes current FX rates through significant fluctuations remaining possible due to current volatility in financial markets. We will continue to monitor our operating environment and stay focused on what we can control.

In summary, fiscal year 2026 was an exceptional year for Gen. We have accelerated our business growth with the same operating discipline you've come to expect from us over the years. Our high operating margin and outstanding free cash flow generation enabled disciplined investments in our innovation to further scale our business.

I want to thank the entire Gen team for staying focused and delivering great value to our customers and shareholders. We are proud of our performance, and we're excited to achieve even more in fiscal year 2027. As always, thank you for your time today, and I will now turn the call back to the operator to take your questions. Operator?

[Operator Instructions] Our first question comes from Meta Marshall with Morgan Stanley.

Great. And congrats on the quarter. You noted the paid base had a 1/3 -- or 1/3 of the paid base was engaging with the financial wellness portfolio. Just Kind of curious how you see that evolving? Or what you think that, that target could kind of get to?

And then just on the -- as a second question on the trusted access program or just kind of work with some of the other frontier models, is there any kind of gross margin impact that we should be kind of embedding as a part of working with those?

Okay. Excellent. Let me take those 2 an excellent question. So on the first one, it's really about the thesis that, if you are in cyber safety, 1 of your key needs is to protect against financial damage. And we see that as the overall threat landscape, if you want, is evolving from consumer becoming like 80% scams, it's all targeted at getting new money. Even if it's targeting your identity, it's ultimately it's your money. And now that we include financial protection and empowerment into our overall portfolio, we're connecting all of that together. We're offering our customers the ability to source scan for the financial environment and able to plug those accounts that they have, savings account, credit accounts, other financial tools to be able to be first monitored. And we monitor unexpected deviations, anomalies, et cetera. And then the next way is to provide recommendations, which is really building the trust. And only then, we intend to then monetize. We know that path. We've seen it. It started early on organically in our portfolio with LifeLock when we bought MoneyLion, they definitely understood that, that core cyber safety was providing the trust and the connection points. And we've seen that acceleration. It started when we bought MoneyLion. We had about overall something like 75 million connected accounts and then it range and is now 107 million and continue to increase. We do see -- to get a lot more cyber safety becoming the full foundations. We offered LifeLock into now a membership inside the MoneyLion. And so you're going to see this cross-pollination. We'll continue to report on that metric, which we believe is the first leading indicator of the future synergies. So you'll see us continue to develop that. I do expect to be a very, very large proportion of the installed base to accept this first step of financial monitoring and protection.

On the second question of the AI model, it's a great time. As you know, we launched our agent Trust Hub Technologies last quarter. It was about consumers, are customers, starting to use agents and wanted to be protected. We open our technologies to developers and others and making sure that, that could be embedded into their overall work. We then moved agent protection, that technology into our Norton 360. So if you are using your PC, have Norton 360, and agent are being used, you can also have protection and control. That need will only increase. We then moved into working with the and say, how can we also develop positive use case, the empowerment side, helping book your flight confidently, helping move your money confidently and securely and making sure that could be all automated in a good way. That's why we call it core architecting. They work on the model, obviously, optimize it for minimum usage, and we work on that trust security privacy layer. It does not have an impact on CapEx. We're not developing those models, if you want. They own the model. We own the product or a trust layer to the customer. And when we increase more value, our intention is to monetize that through membership. And so it's very similar business model than our normal cyber safety. Obviously, on a per usage basis, we're going to have a cost that will then be revenue for those LLMs. So we'll not have the same profit margin than cyber safety business, but does not have a CapEx investment for us.

Our next question comes from Robert Coolbrith with Evercore.

It sounds like the results in mobile remain very impressive. A couple of questions further to that. Just across the paid member base maybe across cybersecurity and trust-based solutions, to what extent are your members interacting via mobile touch point today. I don't know if you could maybe talk a little bit about the penetration with the mobile apps across the product base. I just wanted to ask if there remains a substantial opportunity to expand that footprint? And following on that, is there opportunities to sort of expand the touch points, expand cross-sell, deepen those relationships just via the mobile touch point?

And then secondarily...

Go ahead. Sorry, go ahead.

I was just going to ask about the direct billing or the web shop opportunity. Yes, it looks like you're still transacting at least in my experience, via the App Store billing rails, but just wanted to ask about direct billing or web shops.

Excellent. I'll delegate the billing question to Natalie. Actually, I was going to give you a short and long answer on this very, very important strategic question. And the short answer is boy, we still have a lot of opportunities to move where the consumers are. As you know, in our core cyber safety and now moving to the more long strategic answer, our core cybersecurity was essentially device-based and PC-based and laptop based and then moved slowly but surely into mobile, as you know. Initially, we move more with point products, VPN and a few others. And then we integrated with Norton 360 and it became the membership on mobile. That was the fastest-growing segment. We still see that from there, in mobile for core security improving the engagement, moving to the higher value tier plans is still remaining to be.

And then I move to the second part of the portfolio when we bought MoneyLion, we knew the foundation was about protection and protection against fraud they were providing the empowerment side, hey, when I protect your financials, I can also help you make better decisions, manage it and then growing it.

And then you reverse back say the closest adjacency, was LifeLock. I'm protecting your identity, but you can unlock access. You can improve your reputation. You can get access to better financial products. That engagement, that is a core metric for the empowerment side of our portfolio continues to be developed.

I mentioned that as we launched the new LifeLock app, which is a great design, it's all around centering not only just being protected on new identity, but able to be able to manage to control and use it. We've seen the engagement growing, and that's what I mentioned, the new LifeLock mobile revenue is growing 50%, still needs to continue to penetrate into the full engagement. So if MoneyLion is fully mobile already, as you work back down to the core protection, we still very much PC devices and the need to continue to shift. So that the whole opportunity.

From being on mobile where the consumer is, we're also going to create the engagement. It is no different than moving also where traffic was, maybe just on search, moving into LLMs, moving into where consumers are into searching and we're doing exactly the same effort to meet the consumer where they are at the moment of the needs.

And with that, Natalie, I don't know if you want to share a little bit more on the payment for...

Yes. It's honestly a really special time with our targeted audiences and existing customers because it's been so much change. There's definitely change that you're referring to in terms of enabling the ability to then go more direct bill and on our own payment rules, which we love. Our BSR, our billing success rate on our own payment rails is extraordinarily high. I would argue best in class. And so now having that additional opportunity and ability to do that, we are very much looking forward to and moving very fast on.

But the other changes that I would call your attention to and are really driving some of our growth and our results are we've moved very quickly from, I would say, even a year ago, maybe 18 months ago with just a stand-alone Norton offering. Now we're able to sell and offer mostly because of our own internal tech functionality, we're able to offer customers the more choice in the membership offerings, and we really see a pickup there. And now on top of that, we've now enabled the cross-sell functionality that you referred to. And so just every single time that we're able to engage with these customers, either new or existing our product portfolio and offering just continues to expand. Their choice gets -- their areas of choice expand. And honestly, their choice of what they want to take advantage of, how they want to pay us and the frequency of their memberships is all real flexible. And so therefore, we're able to get very, very personalized and really meet the consumer where their demands are.

Congratulations on the great results.

Thank you.

Our next question comes from Joseph Gallo with Jefferies.

Congrats on the really strong results. Your bookings grew an incredibly impressive double digits year-over-year organically in fiscal '26. How should we think about the trajectory in '27, especially just given the bullishness and financial wellness and AI?

Yes. From a guidance perspective, whether you look at Q1 or you look at the full year building on the momentum that we've seen and that we have honestly thought for all year in fiscal '26, we expect that momentum to continue.

Let's break it down a little bit. So let's start with the core cyber safety business. We talked to you guys a couple of years ago about driving that business to a consistent mid-single-digit rate of growth. We're there, and we plan to continue to be there. So we expect mid-single-digit rate of growth in our core cyber safety segment to continue. It's going to be driven from the things we've been consistently talking about acquiring new customers in a very healthy way, all shapes and sizes across the globe at the low, medium and high value levels and then taking those customers through a prideful customer journey and making sure that they are aware of the -- all of the product offerings that we've got at moment, especially in the moments of truth that they find themselves in. And that cross-sell upsell lever comes alive relatively early in your customer journey, and we see that through growing ARPU and stable to increased retention rate depending on the cohort we're looking at. And so those calisthenics, so to speak, of the KPIs driving the core cyber safety business are increasing and we continue to drive those.

And then blend that with all of the great things that we're doing in the Trust-based Solutions segment, we now have a reimagined LifeLock offering starting at the acquisition channels and then cascading through a stronger retention and customer journey playbook, making sure that those LifeLock customers have the best-in-class protection, have choice, not only from a product offering perspective. But again, the frequency at which they would like to be billed and really the flexibility of how they want to be billed is going to drive additional growth, higher rates of retention and higher NPS. And then, of course, we've got the financial wellness business, which is enormously healthy. MoneyLion on all dimensions is growing faster than the industry in a very, very, very healthy way.

And then in addition to that, as we look to fiscal year '27 and we continue that momentum throughout the year, we've got the opportunities to really drive and deliver on the synergistic benefits that you've heard from Vincent along the way.

And so we're just enormously excited. We have a very high confidence growth path. We've got the 8% to 10% in Q1 to continue the momentum we see in Q4. And then as we scale throughout the year and see those new growth initiatives come to fruition, we're really, really excited about it.

That's tremendously helpful. And then just maybe to double click on that last point, so MoneyLion. You have fantastic growth, 44% for the year. Is there a framework or guardrails for how we should think about growth in that business? Or any seasonality considerations we should have? And then you mentioned growing much faster than the market. I'm just curious what the market growth is from your perspective?

Yes. I think we had said expect approximately 30% growth. I think if you look across the different avenues or the different areas of competition, I would say that, that would be where we kind of peg it. And then in terms of the MoneyLion growth, we look -- I look at it specifically on 2 sides. We've got the first party, so the personal financial management tooling that we've got. It's an enormously strong business, very, very healthy. We saw a pickup in transactions per customer. As we navigate through closing the first fiscal year with MoneyLion, we've all been -- had the opportunity to learn that business and get very, very close to those customers. Those customers are incredibly loyal and very, very sticky. We love repeat customers. And therefore, we're highly confident in the health of the PFM business. And then on the Engine side, it's just massively exciting. We've got an enormously powerful Engine. We have a ton of data the functionality and the inventory that we bring together through that Engine functionality in a marketplace format on both the supply and the demand side just continues to expand, continues to become more competitive, and we see the growth in exchange for that.

Your next question comes from Hal Goetsch with B. Riley Securities.

This is a terrific result and outlook. Actually, the growth rate is -- pro forma going forward is a little faster than I would have thought. And maybe you could give a couple of points on why the range is in that 8% to 10% range? Is it just a sort of a weighted average of the 2 segments when it's growing mid-single and the other 1 is growing, trust is growing 20?

And then the second question would be our capital allocation goals. How you might break down your free cash flow uses this year?

Excellent. Good question. I'll take the first one. Yes, as we said, right, we're raising our model from a mid-single-digit growth rate to 8% to 10% next year, high single-digit growth. So it's structurally -- we feel really good about -- actually all of our businesses, you've observed that even in cyber safety, we've regained that momentum of mid-single-digit growth rate has been now for many, many, many quarters that we're adding customers quarter-over-quarter and deliver on that number.

Then you have MoneyLion, MoneyLion that continues to do well, better than its market, approaching also a platform and a membership view in the long-term strategy, and I think that will continue to drive the long-term growth aspect. And then inside that engine, which is really considering there's kind of a matching layers between what the customer needs and the offer they could consume. It continues to improve, it's scaling up inside Gen, and that leads you to the synergies we see which is this cross-pollination between being protected and being able to do something with your protected data, and we only see that accelerating, we'll report ongoingly with you guys, how we're going to progress along that line. But we see tremendous opportunity. So knock on wood that we'll continue on that very good guidance and maybe next year delivered another double-digit growth rate.

Yes. And then on capital allocation, I think it's helpful for the reflection, I would think with the numbers I shared in the prepared remarks, really reflects a balanced approach, which we've said very, very consistently, and we have been deploying it that way. Now that we're at approximately 3x net on the leverage perspective, it really allows us to a bit more flexibility as we navigate into fiscal year '27. Of course, we continue with that type of top line and mid-teens EPS growth that you should infer that we're going to continuously drive a ton of free cash flow. How that will be deployed is not going to be significantly different than what we've seen in the last year or 2. It's going to be a balanced approach across the opportunistic share repurchase. We will continue to delever the balance sheet and then, of course, opportunistic or tuck-in M&A opportunities to further diversify and grow our business. We also have the ability to use the dry powder to invest in our own innovation, which we will do in a very disciplined fashion.

2027 is going to be very, very exciting with the range on the top line, both bookings and revenue and us raising the expectation on EPS growth to mid-teens. You can trust that we're going to have a disciplined approach to the allocation and make the right trade-offs in the right moments.

Your next question comes from Saket Kalia with Barclays.

Great to see the better growth. Congrats.

Thank you.

Vincent, maybe I could just build off that last line of question a little bit on MoneyLion, just clearly a great contributor to growth and growing much faster than overall banking services. How do you sort of think about that overall market growing? And clearly, it seems like MoneyLion is taking share. How do you feel about the ability for that to continue?

Yes. Let me tell you about the growth driver in MoneyLion, but first and foremost, our principle. While I'll talk about growth driver, we have the best entry point for a specific consumer needs. If you want to be protected against the threat landscape, you are in Norton. If you want to use a premium, you're in Avast, but you have the best applications in the marketplace. If you want your identity or your reputation being monitored, being managed, you're going to LifeLock. And without question mark, we are the player in that market. What was MoneyLion is going to be the same. We have the best entry point to be able to manage your cash flow and improve your credit score. Full stop. We'll continue to see improve that door, and you'll see continued gaining share across the entire consumer base.

Underlying, though, to accelerate that growth, we have 3 growth levers. The first 1 is we offer financial protection. The trust element that is missing in so many of those smaller financial tech layers. The second 1 is we have a platform approach. Like we did in cyber safety, a great entry door, you and then you all in one, it will be the same in financials. And you're going to continue to expand. And with that being able to grow that ARPU inside the consumer. And the third 1 is all about the Engine. We are first and foremost a secure trust vehicle for consumer to make the best financial decision. And with that, engine will offer you the best offer in the marketplace where the first party products or third-party products to address those needs. So I don't know if there is any comparable, we obviously buy entry dose have competitors, but we're very focused on our mission of both protection and empowerment in an all-in-one membership.

Got it. Very helpful. Natalie, maybe for you, can you just give us a little bit of color on sort of how you're thinking about operating margins in the guide. I mean now that we're going to be lapping the MoneyLion acquisition, you've got some new member initiatives taking shape. Curious if you could just paint any broad brushes on how to think about margins for next year?

Yes. Thanks for the question, Saket. We're operating the entire Gen business at approximately 50%. you know these segments are CS at 61, TBS at 30. And from an overall construct perspective, we don't see or expect significant change. The way I look at it is at an 8% to 10%, whether you're talking about bookings or you're talking about revenue, this is the time to drive more, expand further, invest more, not constrict. And so that's what you're going to see us do. That's what our growth plan is constructed around its investments, it's innovation, it's driving healthier and healthier marketing, and it's going to drive accelerated top line across the different growth vectors.

Now we do have a mix component to the business, which we're very aware of, and we openly dialogue with you guys about, and that mix component has, of course, a growth component to it. But we believe that we can still operate those 2 segments in the margin architecture that I just shared. We will drive efficiencies where we can. And honestly, the TBS segment offering us enormous amounts and more and more touch points connected accounts is going to be what really, really fuels that synergistic flywheel that is going to, again, create opportunities across both segments, not just TBS. And so that's what we're going to be driving for. And then, of course, continuously count on us, we already run our back office functions G&A at less than 3% of revenue and will continue to drive more and more efficiencies and have a disciplined approach to how we run the company.

All in all, point you back to 13% to 17% EPS growth, whether you're looking at Q1 or the full year, taking us at a 15% growth midpoint on EPS, which we're enormously excited about.

Well done.

Thank you, Saket. .

Our final question comes from Richard Poland with Wells Fargo.

I think just to follow up on the margin side. I know you pointed to just kind of the mix shift towards membership and revenue synergies as potential drivers on the trust-based solutions side of things. Does that structurally change? Or is that just more, hey, we're going to continue to invest in this business in the immediate term for growth, and we still think we can move that number higher over time?

From an investment perspective, look, we've got a lot of areas to invest in innovation and developing new products as well as absolutely, we're focusing on the synergistic opportunities across all of the segments. Structurally, I don't believe in the immediate future that you'll see significant change in margin architecture in either segment and therefore, in the total Gen business. But...

Yes, I can add a little bit, Richard. I don't see that as an or, it is an and. We will continue to invest to grow and continue to gain share and be the best in each 1 of our entry doors. And as you know, different entry does grow at a different level. We're super disciplined in managing our marketing investment expect us to always be that. At the same time, and it's not a trade-off. We need to continue to cross-pollinate those needs and offer financial protection to do so did not come from a financial protection entry door or offer new empowerment services to those who came from protection. And that is an ongoing effort you will see us ramping and driving not only for next year but probably forever.

Great. That's very helpful. And I guess just to hit on the revenue synergy side between MoneyLion, Cyber Safety, LifeLock, I know you gave some good disclosures this quarter in terms of just kind of helping us understand how that is progressing. Are there any, I guess, metrics that you plan to more regularly disclose to help investors continue to track those revenue synergy progress as yet?

Yes. No, absolutely. We'll continue to develop how the different value propositions are coming together and offering that full financial protections and empowerment side of the equation. Today, we are doing the first one, which we call it almost like operational awareness customers that are coming in to be able to have that financial protection on the connected financial accounts. As we drive progress and start monetizing and doing things, we will add more disclosures and then as they become useful more metric, I don't want to talk about specifically. But the short answer is absolutely, we'll report progress on driving the full value of the portfolio value of the portfolio.

With that, I will turn the call back to Vincent Pilette, CEO, for closing remarks.

Thank you. I did want to add a few comments here at the end and maybe first, addressing investors and employees who work here 6 years ago when Rick Hill and I decided to sell the Symantec enterprise business to Broadcom supported obviously by the Board and returning $11 billion in special dividends. Today, we are just bigger than Symantec at the time, but growing 4x faster at 3x more profit. And so I did want to thank you for your loyalty and your support in believing in our vision of building that, protecting and empowering portfolio for consumers. Thank you.

This concludes today's call. Thank you for attending. You may now disconnect.

I will read some very boring disclosures, and then we will get into more exciting conversation. For more important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley sales representative.

I'm Meta Marshall. I cover cybersecurity here at Morgan Stanley. We're delighted to have Gen Digital here with us today. Vincent Pilette, CEO; Natalie Derse, CFO.

So great to have you guys back at the conference after a year. Before we get started, it's been almost a year since you announced the MoneyLion acquisition, it brings kind of meaningful transformation to the business. What was it about this kind of trust-based business that was attractive and complementary towards kind of that consumer security business you traditionally had?

Maybe I'll take that one. It has been a long journey for the last few years where we really have broadened our Cyber Safety platform from about 20 million users to now over 200 million active users, 500 million endpoints. And we continue to evolve the value we provide it to consumers for a membership fee, you come, you come to the Cyber Safety platform, you come from many different entry doors. Some come from a security perspective and they want to protect their device, their data, their network. Some comes from an identity perspective and they want to protect credit score, understand what's about their personal data that's sitting out there in the web, making sure that there is no identity theft. Other came from a desire of privacy, control of data, understanding how do I use my data more.

As the needs evolved, our consumers were asking more and more about, hey, what is it in the financial world that I need to protect it from. And one of the top 4 needs was about that financial health, if you want, protecting their financial health or improving their financial health. So we started to connect in our LifeLock app in our overall app, the ability to connect your bank accounts, your credit cards, other things, which we were monitoring, tracking and then restoring if there is any issues around anomalies, scams and others.

We then introduced Norton Genie, which is an AI assistant -- initially doing AI anti-scam but I moved quickly into the assistant as our user we're using with the agent saying, "Hey, is this a scam", it evolved into what else should I be protected from? And what do you see in the noise? When we were isolated subscription transactions or other transactions, hey, on other things, they were asking, what do I do with that? How can I unsubscribe here? What can I do in consolidate my credit card. And we felt we were not really equipped to do that. And so kind of limited in our view. That's where we started to really double down on financial health. As the next need when you have your basic digital environment protecting, helping you both manage and grow your financials.

We started organically, got many of our customers connecting their bank accounts and then quickly we're out of capabilities. That's when we acquired MoneyLion, which is a fully developed platform around this financial journey, if you want, from the initial needs of, hey, I need to understand my cash flow and need to bridge for cash needs all the way to an investment opportunity.

And so we felt the technology were really built around an embedded view that can be white label and say that's the best way for us to go and acquire.

Since we've acquired a year ago, we've been growing MoneyLion at 40% to 50% rate. We've been very focused on protecting the momentum they have in the financial wellness market, while we were driving the connection points with the rest of our users, 200 million of active users, 0 CAC, that can then be adopting the financial wellness view, and that's what we've been focusing on.

In the last quarter reported, we've mentioned that our installed base have increased the connections of the bank account, which is the first step towards financial wellness from Cyber Safety at about a 15% rate. And we continue to go and drive that metric as we embedded the full view.

Got it. I mean, we regularly get questions just kind of on that core security market. And just how are you seeing that kind of core security market evolve with AI adoption or just maybe more concerns about kind of your own kind of consumer security?

Yes. So the AI topic is a fascinating one. And I think every investor asking me is AI going to eat software companies. And we're not really defining ourselves as a software company, even though we are a software company. And we see really ourselves addressing a pain point from a consumer standpoint. You want to have that at a high level peace of mind when you use your digital world. And maybe you guys are techies and have easy peace of mind controlling it. But many of our customers, they just don't want to be techies. They want someone that's going to be the digital companion, the digital concierge that's going to take that complexity, that fear away from them. That's our mission.

And we see AI as a fantastic tailwind for us. On one side, as the Agentic world becomes more and more prevalent and consumers started touching it, the angst of what it does for you or what you don't know it does for you is actually increasing. And the need for simplicity and peace of mind is actually increasing.

Over the last 2 months, we've seen in our installed base, the number of consumers or machines on which AI tools or OpenClaw platform was downloaded increasing, which surprised us because we didn't think our customers are the early adopters of these new things. Immediately triggered in us that they actually don't know what it does. They're playing with it. Some are stopping because actually, if you try OpenClaw after 20 minutes, you get like a headache. But if you are able to move further, some of our customers calling me and say, "How do I install? How do I know it doesn't do that? How do I do my machine?" That's when we came up quickly and say, well, there is a play here that we didn't even think about. We had moved from device to user. We need to move from user to agents, which as a TAM is exponential.

And how do we use then our capability, consumer-facing software capabilities to make this Agentic world safe, reliant and easy to use for consumers is actually a fantastic opportunity for us. It's one that's moving fast. We are readjusting the company to be all in on that opportunity, and we're going there.

The second tailwind for us on AI is it actually will change the way software is developed. That investor are not wrong. Today, I can come with a prototype in 72 hours when in the past, it was taking 3 months, 6 months, 9 months, a lot of testing. And that can change on the fly based on real-time feedback from consumers. What an opportunity for us.

Now you're worried that my engineers will be without a job. And inside the company, we said, wow, as we equip our engineers with all of those AI tools, now have, rather than having 1,000 engineers developing software, I have 1,000 engineers thinking about the upstream problem statement and can churn a super fast pace, quality software that will be then used by consumers and adjusted in real time. And now suddenly, you see, oh, my moat is changing. What is my moat. It's the understanding of the customer problem. The agility to be able to define that requirement upstream, be first, be agile, adjust it and real-time go and address that need. And I think that, for me, is a super, super opportunity.

So we're rewiring Gen as an AI-first company, which is not easy. I'm not starting with one person building it AI first. I'm starting with 5,000 people and 2 years of legacy to change it on its head, and we are real time now thinking about how do we collapse functions, how do we enable a product manager that in the past had to go to the engineering to develop to the Q&A to go and test it, to the legal to check legal, to marketing to build the marketing. As a stand-alone man or equipped with AI tools to go and put that prototype in the hand of the users in 72 hours.

And so those two things creating a super need and it's enabling us, we see AI as a fantastic opportunity.

Okay. All right. Well, we're definitely going to dive more into that because that sounded good.

So maybe circling back to kind of MoneyLion for a second. You've talked about kind of the first-party and third-party solutions. Just how do we think of kind of that marketplace developing on the MoneyLion side?

The MoneyLion business is incredibly healthy and very, very diverse. There's -- I would say, two main segments of that business, the PFM business, which would be the early wage access, and that's growing 40% in the past quarter, even faster earlier in the year. And then we've got the engine in the marketplace side of the business, which really brings to life the Gen -- the strength of the Gen brands and really brings together the supply and demand for the increasing expansion of the financial tooling, whether it's credit cards, whether it's mortgages, whether it's tax services, et cetera. And they're both growing approximately 40% as of our last reported quarter.

And so just how do we think of kind of what clearly has been a really great success so far. What drives that kind of continued growth going forward as you kind of expand out the portfolio set there?

Yes. On the PFM side, definitely, it's the economy. In terms of the demand is there. We have -- we see great healthy acquisition through PFM, but we also see retention and the recurring customers that come from the PFM side of the business, which is 60% of the MoneyLion business today is really, really robust, and we just see that -- I guess, that continuous business momentum there.

And then on the marketplace side, I think it's endless in terms of the diversification. That engine that the MoneyLion team has built is just based on really sharp technology and very, very robust. It powers not only our on asset or our in-house app. It's also white labeled with many of the brands that you would think about when you think about financial tooling and instruments. And now with the strength of the brand, bringing the supply and demand together in a very easy marketplace is just really, really powerful.

Okay. One of the things you guys kind of talked about early on was introducing the subscription-based model that you guys have had on the consumer security side into the MoneyLion business, which has traditionally been more transaction-based. Can you just walk through kind of what approach you're taking to this and just what that feedback has been so far?

Yes. So I can take that one. Before I answer the membership question, I want to add on the marketplace because I don't know if everybody fully understand the power of that business model. And many times when I talk about marketplace to invest in the marketplace, I don't really fully understand why you have a marketplace. For us, it's a fantastic expansion of the possibility to addressing needs from the consumers. We're already protecting from a customer perspective, your devices, your data, your financial lives. Now I know, for example, in an Agentic world, I could know automatically, but I know that you have an insurance coming for renewal, you may have forgotten because insurance is you buy it and you forget about it.

The agent can not only alert you of this coming for renewal. But You can go to the marketplace and search the better rate and say, "Hey, I propose a better rate". If you don't trust fully your platform, you want to be alerted and have the opportunity to [ try switch ] insurance. Or it can be fully automated. And every year when your car insurance come for renewal, you can have your agent search, it has access to marketplace and it can go and renew that for you.

So it's an enabler, if you want to. I'll never be an insurer. So I don't know what insurance exist. The marketplace suddenly becomes the opportunity for me to provide to my customers this full end-to-end experience without having to develop the product myself.

And now suddenly, you can think about many other products that are related to that financial health that I'm not going to provide. And so for us, the growth of engine, we're also about building different pillars of partners coming in and say, you fit at the right time in my customer journeys financial journey, I'm going to be able to offer this.

And we've seen Equifax change from a discussion on buy data and credit from you that I then use into my alert and overall modeling, to let's partner together. With the marketplace and you provide the data, we can really develop and expand the set of opportunities we can offer to our consumers.

And as I mentioned, in this new world, the moat is what is about the ability to really understand new consumers and be at the right time in a personalized way in their journey. That is critical. And a bank, a mortgage company will not spend the time to try to get to understand every customer. It's difficult if it's just related to a onetime transactional review.

So I brought that up because I think it's very important to understand that. I mean it's super powerful. It moves from a product or a membership sold to a customer to a full ecosystem, providing an end-to-end value to the customer.

Back to the membership now I'm going to relate it. Of course, we don't want to be just purely transactional -- transactional fees. But we know some customers will always like that will want that. And so we will move towards membership at the pace the customer will adopt but it is our mission. Why is it? Because we want to move into that full Agentic world, where you pay a membership, you forget about it, you set your agents, you forget about them, and you have the trust that, that will deliver that value for you in this world.

So MoneyLion was all about transactions, which I say, okay, they had developed the system to be with the ability to move to membership. So we have the technology and the capability. Cyber Safety is 95% membership. And now we want to extend that membership into financial wellness.

And it's really about testing and creating the right value for the consumers. Finding those payments and say, you know what, at this point in time, it is more benefit for me to pay a membership $20 a month and be able to use the agent we just developed to be able to use the unsubscribed in an automatic way. And then benefit from those criteria that if I wasn't a transactional model, I would have to each time select. Now would pay as you go, which is also a model you could have. But the ease, the peace of mind if you want to bring. That is why the membership is so critical.

We won't force a back-end force or go suddenly say, by next quarter, we'll be 50%. We will continue to develop our membership to more and more provide that value to the consumer then they will adopt at their own pace.

Okay. Not only one of the interesting conversations that we had on the last earnings call was just about kind of your guys' positioning in a K-shaped economy. And I thought it was a particularly interesting conversation about how you kind of see yourselves benefiting from both trajectories of that. Just wanted to kind of get a sense of maybe rehashing that conversation a little bit.

Yes. I mean, from a K-shaped economy, we have solutions, and we have protection. We have services for all ends of that. And so really, when you think about the people that are really struggling as inflation continues to scale as things just cost more on a daily basis, people are really struggling. There are stats out there that would tell you 70% of Americans are living paycheck to paycheck.

And so then we're right then and there, helping them put food on their table, so to speak, with the PFM solutions that we've got. They're incredibly easy to use. It is honestly just you set up an account with us. We validate your -- the sources of wages coming from your employer. You're on direct deposit, and then we're able to allow you to scale with us. And as you continuously repay or reimburse those funds, you're able to get more and more funds are more frequent. And so that's a really, really a helpful set and a healthy alternative for folks that don't necessarily either qualify for those credit cards or qualify for the actual short-term or long-term loans that they need to be able to live their life and feed their family.

And then on the other side, I would say, swing the pendulum really, really far and you think about people that are on our broadest LifeLock identity protection and 360 Suite probably have a lot of assets to protect, probably have a lot of money that -- people that typically have assets to protect want those assets to grow and that money to grow. And so that's where the marketplace and engine comes really into play in terms of -- there are some interesting stats, how many people pull credit card -- new credit cards every single year, even over $100,000 of annual income. They're pretty alarm -- in a good way, alarming stat for us in terms of the demand is out there. And so now we take it upon ourselves to really make sure that we've got the most dynamic supply out there to really to feed that demand and to fill that demand.

And the engine is just incredibly powerful and the marketplace is incredibly powerful. And economically for our business, it's powerful. Of course, as we do any kind of marketplace model on the supply side, demand side, there's affiliate or referral fees on both sides of that, that we can benefit from. But imagine when we take a LifeLock customer and we put them into that engine, first of all, the supply goes through the roof because who doesn't want that type of 800-plus credit score with a lot of assets to protect just a lot of financial health there. So on the supply side, we get increase there. We'd love to bring a buyer that way. But then from our company economics, it's 0 CAC. And because we've already got that user or that customer in our ecosystem.

I think you were kind of pointing out like you thought that it was kind of giving you the share advantage in the marketplace with you kind of outgrowing your peers.

Yes, absolutely. And I would say just from an overall financial wellness and I would zoom maybe even further out and say Trust-Based Solutions, we love how competitive advantage we are. There's not a lot of customers that you -- or competitors out there that you can point to that have our entire solution set. And so we're really trying to take that and use that to our advantage and really cut through from a customer demand perspective.

Okay. The cross-sell opportunity between Cyber Safety and the Trust-Based Solutions is kind of the key area of focus you guys have talked about. Can you guys just talk a little bit more about the strategies that you're taking? And what are the -- like what innings are we in from the monetization standpoint?

Yes. And monetization is a big word. I would start with adoption. The most important for us is for Cyber Safety customers to understand that a full protection of their risk include the financials. Now they know it because one of the top 4 needs is protecting against financials. And so the adoption, the #1 metric is about Cyber Safety customers that get monitoring, alerts on deviations and other incremental services on that protection of financials.

And we've seen growing that at double digit. We have over 100 million bank account connected from Cyber Safety side. That doesn't move yet to, of course, monetization.

The second step is about making the engagement on the financial wellness side, call it not just the protection, but the manage and grow, I manage your financials, important.

So we are working on three initiatives. The first one is to put the marketplace in a creative way into the LifeLock applications. LifeLock becoming more and more of your protector, if you want, of every asset you have. And trying to move that application into a more engaging company -- engaging application, sorry. That then really having that discussion on the journey. So we have that embedded now into LifeLock.

We're coming up with a new redesigned app that also provides content, educational content on that full aspect.

The second initiative is about launching Norton Money into our employee benefit solutions. The EB channels. That is the channel that, at this point in time, is the most hungry to always consume the entire set of the portfolio. In which, of course, one element they really interested into the early wage access, that can be connected to payroll. So I won't call it risk-free, but very low risk. And having the employer promoted that into the environment.

We have the product. We started to launch it into the broker environment that then moved to our customers subscription in the fall during the onboarding period.

And then the third one is the Norton Money really providing the first incremental step in Norton, which is different than LifeLock around your credit score and your capability to track and have visibility on your financial features, which we have only launched into our installed base as a free tool of free feature adoption with installed base or they pay a subscription, but free one to kind of familiarize with the financial ones.

Monetization will follow as people start to really understand that between Cyber Safety, having a peace of mind in digital world and using new money digitally, if you want, will become more seamless.

Yes. Okay. Perfect. The cyber margins obviously remain very robust at over 60%. Trust-Based Solutions remains kind of solid at 30%. Can you just give some additional details around kind of the margin trajectory of the business and reinvesting for kind of all of these initiatives that you guys have laid out.

Yes. We've had just a real strong thread in our DNA to just run our company very efficiently and really focused on how can we do more with less, just as an always on. And that really, really helps. It just sets the expectation and we've got the alignment at [ ELT ] so that it doesn't really make it a specific phase of our company or a specific exercise.

And so the team knows that we're going to ask them to do give us double-digit efficiencies in our over $1 billion marketing spend, and we're going to really leverage the tools and technology, whether it's AI, whether it's just a modernization of how we allocate marketing and look at those ROIs. We're going to do -- we're going to continuously focus on that.

And so then it allows in both segments, both the Cyber Safety grown 61 -- margin rate of 61% in the last quarter. We're really proud of that, but we believe the team can run even more efficiently and create the capacity for investment. That's what we want. We want to never operate status quo, always focus and earn those efficiencies, and so then we can deploy that back into fueling sustainable growth. That's the Cyber Safety, even 2.5 years ago when we did our AID, that's what it was all about.

And then in Trust-Based Solutions, even at 30%, look, there's a mix factor there. When you think about where Gen is and overall versus Trust-Based Solutions. But I'll tell you, when you get into that sector, we're industry-leading margins, and we're very proud of that.

We've already moved the MoneyLion side up from 15% to over 20%, and we'll continuously earn even more efficiencies in that business as we continue to operate together, but we have every intention to deploy that right back into the innovation, the ideation and really bringing some of these test use cases to full scale so that we can really win in Trust-Based Solutions.

Got it. You guys are obviously very cash generative. Just how should we think to your approach with M&A. MoneyLion has obviously been a great success. Software valuations as we kind of started with are slightly more depressed. Just how are you thinking about M&A as kind of an overall part of the strategy?

Maybe I'll take it first. You didn't want to quote the number, but the ROIC on MoneyLion acquisition is through the roof. And frankly, we could say this because we were a great operator, it was a great asset, but timing is everything as you guys know. We are not focusing on that. I'm not going to try to time things. It's great that software valuation is depressed. It's not great for me, to be honest. It was great for my investors. But from an opportunity, maybe it's great, maybe it's not.

We start M&A way upstream around innovation and customer need. I'll come back on the same topic. Our moat is the trust from the customers the understanding of our consumers, with consumer and consumer only focus on that and the agility to go and continue to develop and evolve our portfolio to address that need, broadly defined around protection and empowerment of that digital world. Starts there always.

It always starts with organic and consumer research and organic testing. Now AI has even shortened that -- or increased the ability or shortened time frame to go and do a lot of that testing. Financial wellness started with financial wellness features into LifeLock. And we saw some adoptions and different behavior than we expected. It was like, oh, there's something bigger than we can play here. And that's where we did.

Are we constantly looking at once we have that consumer and we have invested a bit organically? How long it would take for us to develop the best product? Or is there something in the market that exists and that could maybe be easily brought in and accelerate the growth. Of course, we are.

And when we do that, we look at many parameters. And as you know, may sound good on its face. Valuation may be great. Technology is not great. Culture is not great. Maybe it's not the time that they want to buy it. I'm wondering if today, I get a proposal to have Gen bought at $21, I'm going to turn it down for sure. And so he actually valuation may actually may not be a helper in M&A. And then we're going to look and we're going to look at balancing it, "Hey, shared my M&A today used as cash to do buyback" and what's that return. And I want to make sure when we do investment on cash, we have the highest return proposed.

And so that makes the M&A topic if you want something that's always ongoing and never really a focus, if you want. In today's environment, with the cash we generate, it's great. We have plenty of growth to deliver. We're very focused, as Natalie has told you many, many times around delevering below [ 3x ] by FY '27, and we are here today.

We will continue to do that. But when we do that, we balance it with also the opportunity to buy back at $21, which is super accretive. The organic investment is built into our P&L. And if we see from time to time, some tuck-in opportunities, say, hey, this is a better return, will go and do that.

I would just build on that it's definitely diverse and it's disciplined. And Vincent makes my job really easy. Of course, when you think about capital allocation, when we generate over $2 billion of free cash -- unlevered free cash flow, we've got a lot to deploy. But as it pertains to M&A, it's massively disciplined.

I mean although he's using with innovation, diversification and it's not even game-changing. It's creating the game in many capacities. He does it with a disciplined approach, and we're very, very clear and aligned on the criteria of when we're going to do a deal, we're massively disciplined about it. And I think if you look at history, every one of our acquisitions has made enormous economic and financial sense.

Okay. So we've talked a lot about the portfolio. We've talked a lot about kind of optimizing that. Just -- and we've talked about cross-sell. But just in terms of kind of additional go-to-market strategies, can you just walk us through kind of the partnership channel and who you're primarily working with and that process of getting towards this $500 million target in annual partner revenue.

Yes, we've already achieved it. So thankfully. So if you don't mind, I'll just use a second to go back to our last Analyst Day, we said we wanted to build our business non-money line, nonfinancial wellness to a sustainable mid-single digit, and we've done it ever since we said it. And it's through the levers of growth, we said 5 points -- 5 levers for 5 points of growth. .

Cross-sell has been huge for us. It's been a revenue driver. It's been a retention driver. Upsell has been a broadening out in terms of as we learn and grow through these stand-alone products.

Now how do we optimize and blend them with the membership to drive into what you heard earlier from Vincent, just an enormous engagement and expansion opportunities when you've got them in a membership.

Partner has been a diversification channel for us as well as an acquisition channel for us. It's only circa 10% of our business, pre-MoneyLion. And -- but very, very diverse. It allows us to go global quickly. It allows us to go through partnership that allows us to go through affiliation.

Two of them that we love because of the customers that we're able to engage with through these channels are employee benefits we already touched on. It's our highest ARPU solution that we're able to go into those channels and really expand our reach and really get highly retaining, highly engaged customers through. We love it. It's been growing double digits and we'll continue to do so.

And then telco. Telco has been a way for us to get into global expansion, especially lower-penetrated countries that have high hurdles of entry. And so we've really been able to figure out first with the telco in Canada, and then now have really expanded into Latin American countries, some of the other Eastern countries. And it's really been one that has low acquisition cost in terms of entering the market. But then we're able to expand through our membership offerings and really understand the local solutions that really resonates with the customers.

Okay. I mean, Vincent, I think you mentioned Equifax kind of in one of your answers earlier, but just kind of we talked about just further on go-to-market. Some of these expanded partnerships, you have one with Equifax, just are there other opportunities we should be kind of thinking of?

Yes, and we're constantly working on trying to expand the pie, as you imagine. This is where engine is another one, right, that really brings another benefit. It goes to partner and say, "Hey, I can not only bring all of those customers but I have really a modular offering and you can bring into it from the marketplace to those customers". That opens up a lot of doors. And so you should continue to look for more ways of distributions from partnering with AI companies to partnering with telcos and financials that go and touch directly to customers.

And we've taken an approach where we want to make sure it fits into the overall ecosystem. Does it enrich the product? Does it enrich our [ anti-scam ], for example, is the customer being able to either see the brand or not or being retargeted for the value that we provide. And so the game and the discussion with those partners has really changed from in the past, I buy your security solution, I embedded into mind and I resell it to my customer to how can we be part of that ecosystem. So just stay tuned as that continues to evolve.

And then maybe just last question. You gave kind of a great way of all of the ways that you're transforming the business. Like what do you think are the best ways that we should be kind of monitoring the progress on some of these initiatives?

The multiple is a little bit like our customers. We still have our investors that came from many, many different doors. Some come from, hey, I know you from being the security subscribers and having a very stable cash flow through a membership, the deviation is like it's like 2% and no more. And I would say, for those investors, that business is healthy and you can continue to look at the continued increase in customers we have, and we're publishing that number, and we'll give you that core business, how is it doing anything is doing well.

Then we have some investors that come to say, hey, that's pretty cool, you come from a fintech angle or you provide financial wellness and they really see, okay, what's the advantage when you compare to other of those fintech companies where you bring trust, you bring scale, you bring multiple things, how are you doing? Well, we're growing at about 40% to 50%, and we're delivering best-in-class margin of that market above 20%. And so those are two set of investors, and you can continue to monitor, we monitor those.

And then we have those who are a little bit more in between and don't fit one of the category and say, how does it fit together? And is there something special coming here? And there, the monitoring is really, as I mentioned, really understanding how the Trust-Based Solution is adopted by the Cyber Safety and that converge. And that's critical because if that is successful, and we continue to report on progress, you're going to see certainly the opportunity to expand that TAM in an accelerated way. That's pretty significant, which is very different than those security-oriented investors or the fintech-oriented investors. It would be kind of an Internet platform where moat is this protection and empowerment, the brand, the data, the ecosystem, not specifically one specific features of our product. It's more difficult to comprehend, as you know. And it is what it is. We're going to go.

And then I still have the investors that are really interested by AI. They come to me more to get some intelligence, not really to look at our business yet. So I cannot say we are yet really approach from that perspective. I do feel, though, we have a critical role to play in how the economy is becoming Agentic.

And that we're not the sexy player today, it's fine by me. That gives us plenty of time to really try to capture that opportunity.

All right. Perfect. Well, Vincent and Natalie, thanks so much for being here today.

Thank you.

Thank you.

Good afternoon, everyone. Thank you for standing by. My name is Tamia, and I will be your conference operator today. Today's call is being recorded [Operator Instructions] At this time, for opening remarks, I would like to pass the call over to Jason Starr, Head of Investor Relations.

Thank you, Tamia, and good afternoon, everyone. Welcome to Gen's Third Quarter Fiscal Year 2026 Earnings Call. Joining me today are Vincent Pilette, CEO; and Natalie Derse, CFO.

As a reminder, there will be a reminder of this call posted on the Investor Relations website along with our slides and press release. I'd like to remind everyone that during this call, all references to the financial measures are non-GAAP, and all growth rates are year-over-year unless otherwise stated. A reconciliation of non-GAAP to GAAP measures is included in our press release and earnings presentation. both of which are available on our IR website at investor.gendigital.com. We encourage investors to monitor this website as we routinely post investor-oriented information such as news and events and financial filings.

Today's call contains statements regarding our business, financial performance and operations, including the impact on our business and industry that may be considered forward-looking statements, and such statements involve risks and uncertainties that may cause actual results to differ materially from our current expectations. Those statements are based on our current beliefs, assumptions and expectations as of today's date, February 5, 2026. We undertake no obligation to update these statements as a result of new information or future events. For more information, please refer to the cautionary statements in our press release and the risk factors in our filings with the SEC, and in particular, our most recent reports on Form 10-K and Form 10-Q.

And now I'll turn the call over to Vincent.

Thanks, Jason, and thanks, everyone, for joining us. We continue to make steady progress toward our long-term vision building a trusted AI-powered platform that keeps people safe online and helps them manage their financial lives. Our results show the strategy is working. We delivered another quarter of double-digit bookings growth, grew our paid customer base to more than 78 million and increased non-GAAP EPS 14% year-over-year.

What matters most is what these results represent, growing trust. Millions of people choose Gen to stay safe online, protect their identity and manage their financial lives. Everything we build is designed to earn that trust every day. Today, I'll focus on 3 things: how AI is reshaping the threat landscape, how cyber safety and financial wellness needs are converging, and how our unified AI-driven platform underpins durable long-term growth. And after that, Natalie will review our financials.

So let's start with the threat landscape. The most dangerous attacks today no longer look like traditional hacking. They are embedded into everyday digital experiences: shopping, social feeds, search or payments. Consumers are not being breached through technical exploits. They're being redirected from trusted behaviors into outcomes that look legitimate and feel safe. Sponsored ad, a realistic video endorsement, a QR code at checkout, a device pairing prompt, any one of these can trigger a scam that compromises both digital identity and financial health.

We see this shift clearly in our data. Across Gen, we block tens of millions of scam attempts every quarter, most tied to financial fraud. Last quarter alone, we blocked more than 45 million fake online shop attacks, up over 60% year-over-year. These scams mirror exactly how people shop today and scammers are following consumers in those same channels. As a result, fake ads now represent more than 40% of all consumer cyber threats that are visually indistinguishable from legitimate brands, and the fraud often is not revealed until credentials are stolen and payments are made.

Speed is the second major shift. AI has compressed the life cycle of attacks from months to days, sometimes hours. It has lowered the cost and effort required to launch personalized scams at scale. The implications are clear: more attacks, faster execution and higher success rates.

And Gen is built for this reality. Because of our scale and the depth of our telemetry, Gen has a unique view into how threats emerge, spread and intersect with real consumer behavior. We analyze real-time signals across security, identity, devices, platforms and financial activities. This lets us go beyond blocking threats to understanding risk as it evolves and adapting protection dynamically.

Cyber safety today is no longer about blocking malware or bad website after the fact. It is about understanding behavior, intent, context in the moment across identity devices, platforms and money. And Gen's platform is built for exactly that. This approach is resonating. Cyber safety bookings grew 5% year-over-year with double-digit growth in our most comprehensive Norton 360 with LifeLock offerings. Customers are choosing broader protection because of the risks they face are broader.

Looking ahead, AI agents represent the next major shift and the next major consumer risk. Millions of people already use AI agents to browse, shop, manage accounts and make decisions on their behalf, and adoption is accelerating. These systems act like humans online but at far greater speed and scale, creating new vulnerabilities. AI agents can be received the same way people can through fake ads, impersonation sites or misleading messages, but the speed and impact are amplified. We're already seeing agents click on fraudulent ads and the credentials into impersonation sites and authorized transaction based on manipulated information.

Take Openflow as an example. It runs locally and performs tasks on your behalf, like managing e-mails and automating daily activities. To work, these agents access your files, your messages and credentials. And if something goes wrong, the consequences can be severe. A single malicious e-mail could prompt an AI agent to scan a device, extract sensitive data and send them out without exploiting any traditional software bug.

The AI is doing exactly what it was designed to do, just without enough safeguards. Autonomous agents redefine what consumer cyber safety means. Protection is no longer just about protecting users. It's about protecting the autonomous systems people rely on. Security cannot be optional, but the providers of these innovations are not focused on making it foundational. That is a gap Gen is uniquely positioned to fill.

Earlier this week, Gen Threat Labs introduced a beta version of the world's first agent, Trust Hub. It allows users both humans and AI bots to scan skills for risk before execution, control what agents access and verify safety before it's used. It also includes a curated marketplace of skills maintained by Gen security researchers, effectively the world's first trusted app store for agent skills.

Also in December, we launched Norton Neo, the world's first safe AI browser. Adoption has been strong in our installed base, reinforcing demand for AI experiences that are secured by design.

AI agents will go through hype cycles, of course, but the trend is permanent. As AI have becomes embedded in daily life, people need a trusted partner to protect them. The AI economy cannot scale without safety and confidence, and that's where Gen comes in.

Our competitive advantage is based on AI combined with and powered by the unmatched breadth of signals that we bring together across security, identity and financial risks. At our skills, those signals allow us to retrain our defenses continuously, detect scams earlier, adapt faster and stop attacks in real time. That allows us to deploy enhanced anti-scam protection across our portfolio, including on-device deepfake detection that can stop an attack during a video playback. These are practical defenses designed to protect consumers against real-world threats.

We also recognize that identity threats and financial risks are no longer separate. They are deeply interconnected. That is where Gen delivers true peace of mind, and our customers recognize this shift, trusting us more every day. Across our portfolio, we're approaching 100 million active financial accounts monitored and over 500 million protected endpoints.

Each month, customers take millions of financial actions, allowing us to strengthen protection, personalization and recommendations. Within LifeLock, we continue to expand beyond traditional identity protection. Financial accounts monitored grew double digits year-over-year to nearly 50 million. We are redesigning the LifeLock experience to deliver clear and expanded alerts, personalized insights and more actionable recommendations reinforcing its position as the most trusted financial protection partner.

MoneyLion also continues to perform strongly, with nearly 40% revenue growth in Q3. More importantly, it is evolving into an always-on financial hub. Beyond short-term liquidity solutions, we're helping consumers manage cash flow, build confidence and protect financial progress they're working hard to achieve. Later this year, we will launch Money One, a new subscription, combining the best of MoneyLion with scam and identity protection currently in close beta and moving towards early access.

This quarter, we introduced a new feature like Found Money, our savings optimization assistant. Early engagement has been strong. 60% of user engaging with Found Money interacted with an offer and 30% linked at least 1 additional account, strengthening the data foundation that powers personalized guidance.

Leveraging the strength of Gen, we also embedded scam security and risk detection directly into MoneyLion's transaction insights. And as adoption grows, this reinforces the flywheel between engagement, insight and value. And as a result, we delivered record highs in Instacash usage, RoarMoney deposits and card activity, prove that trust, safety and growth scale together.

Our marketplace, Engine, continues to scale under the Gen brand. This quarter, Engine processed a record number of inquiries as we expanded into new credit cards and mortgage categories and integrated Engine more deeply into our consumer brands, helping insights turn into action more often. Yesterday, we announced an expanded partnership with Equifax using Equifax' differentiated data to enable enhanced alerts and insights for our customers across our entire portfolio. It also enables Equifax to offer more personalized financial offer on myequifax.com powered by Engine.

Stepping back. Our platform strategy is a real differentiator. Across Norton, Avast, LifeLock and MoneyLion, we operate leading consumer brands that generate high-value signals on behavior, risk and intent that are amplified by our marketplace. Engine alone now processed over 360 million inquiries annually with expanding financial product verticals and improving conversion.

What sets Gen apart is how we connect these inputs to create value for our customers and the business. Unifying AI and our data-driven platform to bring together security telemetry, identity events, financial behavior and marketplace interactions is at the core of our strategy. This shared foundation allows us to move beyond static protection and deliver personalized contextual guidance when it matters the most. After building our modular cyber safety tech stack, we're now focused on expanding our unified data platform and automation trust layer, turning vast amounts of data into actionable intelligence that helps consumers make better digital and financial decisions.

In an AI-driven world, where outputs can be biased or manipulated, Gen's ability to anchor guidance in verified identity and trusted data is a durable competitive advantage. And our strategy is simple: turn proprietary signals into trusted recommendation and scale them across our products and partners.

We are already seeing early benefits. Our AI life cycle agent is orchestrating customer life cycle communication, engagement and personalization across the portfolio. Our real-time data platform powers customer-facing features like protection score, giving consumers a clear actionable view of their protection. And shared LLM frameworks are accelerating innovation across products with new agent capabilities deployed in MoneyLion and Norton Money app.

So in closing, success for Gen is defined by trust, earning it, scaling it and delivering it in the moments that matter the most, helping people make safer, smarter digital financial decisions. Cyber safety remains foundational, and it's not just a category. It's a promise. And as awareness of Gen portfolio grows, we are increasingly recognized not only as a cybersecurity leader but is a trusted partner across consumers' digital and financial lives. We are executing well in a rapidly changing environment. Our platform is scaling. Our strategy is working, and we are focused on long-term value creation by earning our customers' trust every single day.

And with that, I'll turn it over to Natalie.

Thank you, Vincent, and hello, everyone. For today's call, I will walk through our Q3 results and also provide some additional color on our performance metrics. I'll then conclude by providing an outlook for Q4 and fiscal year 2026. I will focus on non-GAAP financials and year-over-year growth rates, unless otherwise stated. I will also include commentary on our pro forma growth, which includes MoneyLion's results from the prior year for comparative purposes.

Now on to our results. Q3 was another strong quarter for Gen, with results coming in at the high end of our guidance, driven by record revenue and bookings, double-digit EPS growth and exceptional free cash flow generation. On a reported basis, Q3 bookings was $1.3 billion, up 27% year-over-year and up 10% on a pro forma basis, with revenue of $1.2 billion, up 26% year-over-year and up 8% on a pro forma basis.

In our Cyber Safety segment, bookings grew 5% and revenue grew 3%. Our strong bookings reflects ongoing demand for our cyber safety subscriptions and is a leading indicator for future revenue. Operating margins remained strong at 61%, as we drive increased leverage in this segment. Growth continues to be supported by secular tailwinds from rising scam activity, driving strong adoption of our Norton 360 memberships across both desktop and mobile. Our higher tier memberships continue to grow double digits, where customers choose the most comprehensive security, privacy and identity protection and our newest capability Genie Pro Scam Protection.

Through our expanded features, we are strengthening our product relevancy and driving increased membership conversion now nearing 45%. We will continue to strengthen life cycle messaging and upsell pathways, improving the customer lifetime value across all cohorts.

In our customer success organization, our product recommender continues to scale with select customer cohorts. This is an internally developed AI model that analyzes customer product ownership, feature usage and behavioral signals to deliver more relevant and timely offers. This approach allows us to better match customers with the services that they are most likely to need, improving conversion rates and increasing product penetration across our installed base.

Early results are encouraging, particularly across our privacy add-on products, with Norton cross-sell penetration now exceeding 26%, which reflects our continued progress towards the targets we set out at our last Analyst Day. Based on this performance, we plan to expand this capability to additional cohorts in Q4 and continue to drive more commercial benefits from our Gen platform.

In our Trust-Based Solutions segment, on a pro forma basis, bookings and revenue grew 23% and 22%, respectively, and more than doubled on a reported basis. Operating margins remained stable at 30%, in line with expectations, as we make targeted investments in MoneyLion and other AI-related initiatives. Performance this quarter was led by nearly 40% revenue growth in MoneyLion, well balanced across strong customer demand for personal financial products like Instacash and further scaling of our Engine marketplace, which enriches the Gen platform through tens of millions of inquiries taking place every quarter.

Double clicking a bit more, Instacash delivered record originations during the quarter, supported by targeted marketing investments to capture elevated demand during the holiday season. At the same time, Engine continued to gain traction as we added new partners across leading financial brands and top online publishers.

The strength of the Gen brand and our scaled audience is increasingly elevating Engine as a premium marketplace partner. Growing adoption of third-party financial products on Engine reinforces our mission to help consumers make better financial decisions through embedded experiences across both financial and nonfinancial platforms. And we continue to deliver a steady growth in our Identity offerings. We remain our -- which remain our highest value customer cohort with the highest retention.

We are also advancing our secure financial wellness strategy with the initial rollout of a LifeLock-branded marketplace that now includes offers from leading credit card issuers and high-yield savings accounts. While still early, initial test results are encouraging, particularly in driving offer engagement with our LifeLock cohorts.

And across the segments, our direct channels continue to reflect the strength of our first-party portfolio and innovation efforts with revenue growing 18% as reported and 6% pro forma. Our partner business continues to scale impressively, growing revenue 88% as reported and 23% pro forma, supported by diversified growth across the portfolio, led by Engine marketplace, retail channels, particularly in Japan, and employee benefits, which delivered another strong double-digit quarter of growth driven by continued new logo acquisition during open enrollment season.

We continue to drive broad-based growth in our paid customer base, now totaling over 78 million customers and up 1 million sequentially. Cyber Safety direct customers were up 0.5 million as we continue to expand across the regions and channels, consistent with prior quarters. And we are acquiring new customers through MoneyLion and Engine marketplace as we add new verticals, all with sustainable, healthy returns.

Now turning to profitability. Q3 operating income was $629 million, translating to a 51% operating margin, in line with our expectation. Our margins remain robust across our segments as we scale and diversify. We remain committed to operating in a disciplined fashion as our results demonstrate, scrutinizing our cost envelope proactively. We have and will continue to invest in our strategic AI opportunities. We will invest in our long-term strategic growth initiatives while remaining steadfast in driving efficiencies.

Q3 net income was $394 million, and diluted EPS was $0.64, up 14% year-over-year as reported and at the high end of our guidance. This represents our ninth consecutive quarter of achieving or exceeding our 12% to 15% EPS growth target, reflecting consistent execution and capital allocation. During the quarter, we reduced our weighted average ending share count to 618 million, down 5 million shares year-over-year. Interest expense was $131 million in Q3, and our non-GAAP tax rate remained steady at 22%.

Turning to our balance sheet and cash flow. Q3 ending cash balance was $619 million, representing over $2.1 billion of liquidity, including our $1.5 billion revolver. During the quarter, we generated $541 million in operating cash flow and $535 million in free cash flow. This robust free cash flow enabled us to deploy nearly $700 million of capital for shareholders, including $300 million towards share repurchases, which is 11 million shares as well as $300 million of debt repayment and $77 million of regular quarterly dividend.

We exited the quarter with net leverage at 3.1x EBITDA, which puts us ahead of schedule for our goal to drive net leverage below 3x in fiscal year 2027 while maintaining flexibility to continue investing in growth and additional capital returns. Please note, we are currently exploring refinancing options for our TLA, our Term Loan A, which matures in September of fiscal 2028. Early market discussions have been encouraging, and we expect to complete this before it becomes current.

For Q4 fiscal 2026, the Board of Directors approved a regular quarterly cash dividend of $0.125 per common share to be paid on March 11, 2026, for all shareholders of record as of the close of business on February 16, 2026. These strong quarterly results underscore our commitment to driving profitable growth with disciplined execution, generating strong free cash flow and returning capital to shareholders that have become hallmarks for Gen.

Now let me share our Q4 and fiscal year 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 are raising our annual guidance and now expect full year revenue in the range of $4.955 billion to $4.975 billion, up from our prior expectation of $4.92 billion to $4.97 billion. We expect non-GAAP EPS to be in the range of $2.54 to $2.56, representing our continued commitment to achieving a 12% to 15% annual EPS growth. This implies an expected Q4 non-GAAP revenue in the range of $1.24 billion to $1.26 billion and EPS in the range of $0.64 to $0.66.

Our Q4 and full year guidance assumes high single-digit pro forma growth and disciplined cost management while funding targeted longer-term growth initiatives and investments in the Gen platform and additional AI capabilities. This guidance range also assumes current FX rates for Q3.

We're now well into our final quarter of a very strong fiscal year. We've successfully integrated MoneyLion and continue to accelerate our growth profile while maintaining the same operating discipline that has long defined our strategy. With many opportunities ahead, we are driving healthy growth across both our operating segments and focused on unlocking top line synergies through our secure financial wellness strategy.

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 growth investments, ongoing opportunistic share repurchases and further delivering -- delevering 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 to our shareholders.

As always, thank you for your time today, and I will now turn the call back to the operator to take your questions. Operator?

[Operator Instructions] The first question comes from Roger Boyd with UBS.

I wanted to come back to consumer AI and what we saw with OpenClaw, Moltbot. I know you touched upon this a little bit, but I think we're becoming more aware of how much trust individuals are going to need to place in the hands of AI that's going to touch all accesses of their digital lives. And I'm just curious how you're thinking about the role Gen can play there in helping consumers. I know you mentioned the agent Trust Hub, AI web cycle, the Neo browser. But do you feel like this could be a material kind of tailwind to demand for cyber safety moving forward? And are you seeing any sort of uptick in pipeline around that so far?

Very good question, and I confirm, Roger, that the trend is happening. The revolution of AI is happening, and everybody saw it with the virality of OpenClaw in the last 2 weeks or even last weekend. I would say I see it in a sequential way suddenly exponential growth. We initially -- as you know, we're protecting in the initial days of the Internet the device and protecting against weakness in the operating systems and then later on protecting against the flurry of website that existed in the early days of uncategorized search tools. All of that create opportunity, as you know, and that's the root of Avast and Norton brands.

If you take today this revolution of AI, it is happening in front of us. We're agents in the case of OpenClaw and do your task. As you know, you can send a WhatsApp text to your machine at home and ask them to go and book a restaurant or do other activities, and they will do it. And the agency, if they don't know how to do it or cannot do it via e-mail, may go and download other agents or skills if you want and do it that way. And so then you have an explosion of players around you that are going to try to complete the task you've asked them.

Today, like any new innovations, a super fund is an early adopter. Security is not the mindset. It's really about how cool it is to be more efficient to be delegating your tasks to those agents. And similarly that, at the beginning, the operating system were not fully secured and Norton created the antivirus, we feel there's a huge gap here to singly focus on bringing that trust and security and verification inside this environment.

As you mentioned, we launched the agent Trust Hub at Gen from our lab. It actually comes from the fact that, over the last 2 weeks, we saw many of our Norton users starting to use some agents, cascading those activities to other agents and so exposed to risk. There's over 18,000 skills that have exposure to the Internet that can be pulled by your agents. Some of them could be malicious. Some of them could leak some of your information like password or other things if you give them access to your machine. And people don't always know what they will do.

This Trust Hub will enable to really validate whether an agent or skills will have a set of risks and decide whether it's an acceptable risk or not. And actually, very uniquely, we built it for bots and agents. So website normally designed for humans and you can if you want to program it yourself. But it's also for the agent to go and look at it. You see what's verified or risky, and then where the marketplace is to see which other skills can be used.

Similarly that when the Internet and the different websites were not fully categorized and search organized, we can play that role of helping what is safe and secure to give confidence for you or your agents to go and delegate those tasks. So now it's not only anymore about protecting a machine, then we were moving to protecting a user with multiple surface exposure. Now it's about protecting a user plus an infinite amount of agents that can represent that users. And so we definitely see this as a renewed need for our mission to play right in that center and that revolution.

Awesome. I appreciate all the color there. And just a quick follow-up on the MoneyLion business. Again, very solid growth there, 40%. I just want to confirm, where are you kind of in that shift over to kind of more subscriptions in that business? I think you noted that some of those are trending towards early access. But it seems like still very early days. But how at all is that impacting the growth in that business and then your outlook for trust-based services for the rest of the year?

Yes. 100%, and we said the mark for a very, how could I say, cautious pace, it doesn't mean a slow pace, but a cautious pace to make sure that we follow the consumer needs where they are, and we do not compromise the customer experience. MoneyLion itself in the financial wellness sector is growing ahead of market, continue to be very strong on both leg, the personal consumer offering led within Instacash but also membership savings account. And then with Engine, that's really outgrowing the rest. And today, the ratio is roughly 60% on the consumer side or the personal financial side and then 40% on the Engine side.

We continue to see steady growth. You mentioned 40%. We do have a good business responsible management where we set the long-term business growth at around 30% as we scale for a margin that is above 20%. And then when we see pocket of acceleration, we'll, of course, capture them as we saw this quarter.

As we continue to scale this business, the biggest opportunity for us is really to drive the revenue synergies across the portfolio. As we see our customers, already when they come to cyber safety, their #1 concern is to protect against a financial damage, to protect their financial health. And now with MoneyLion, as we embedded white label and created into our Norton and Avast, LifeLock applications, we enable the consumers to not only be protected but improve that position. We have a few activities put in. We started -- created Engine version into LifeLock, where we're redesigning the experience here. We've seen an increase -- a double-digit growth in LifeLock customer connecting their bank account into the LifeLock app to be able to detect anomalies and give advice on that. And that will continue as we said.

We launched last quarter Norton Money both in the employee benefit channel, which will only, as you know, show up materially at time of benefit inscription at the end of the calendar year. And then we also launched it into our own installed base to really refine and connect between cyber safety and financial wellness. And we see early adoption of -- and convergence of the need between the cybersecurity and the financial health position.

Those are really good fact patterns. We said that we'll start sizing revenue synergies and then overall long-term growth after this fiscal year, so probably in the May time frame for the next fiscal year.

The next question comes from Meta Marshall with Morgan Stanley.

Great. Maybe I just wanted to spend a second on -- if you could kind of go more into the Equifax partnership and just how that can help drive incremental MoneyLion product adoption, if there's any kind of economics of the partnership that we should be mindful of.

Yes, very good. So you referred to our partnership we just announced 2 days ago with Equifax. Up to now and before we penetrated financial wellness, our relationship with the credit bureaus was essentially a vendor to customer relationship. We were consuming some of their data, some of their information to embed that into our proprietary algorithm and modules to give alerts to our customers, help them restore and serve them that peace of mind that their financial profile in the digital world was fully protected.

With MoneyLion, especially the Engine now, we're able to match financial institution offers with consumer traffic. And then, as you know, we already embedded in that some of the LifeLock benefits, some of the identity protection, and we have very strong momentum. That enabled us to have a very strong strategic discussion with Equifax, a 2-way discussion, and their strategy is essentially positioned on the financial institution, the SMB, the enterprise side if you want. And as we are very strongly and uniquely focused on the consumer side, coming together, if you want, we can bring more value to the customer.

So on one way, we now have deep access to their differentiated data set, not just credit monitoring but the credit block and some utilities and really expand the alerts and visibility for the consumers on their risk profile out there. And then they're going to use Engine on myequifax.com to bring all of their traffic a more personalized, both safety and financial solutions offering, which will increase, over time, obviously, monetization.

And then that strategic partnership will also enable to enrich the offers on the Engine as the financial partners that Equifax has relationship with will also then use that Engine platform. So feel pretty excited about that. We obviously look with -- to partner with many others in the industry to really provide this unique value proposition, this matchmaker, if you want, between financial solutions, safety at the core and then consumer with their needs.

Got it. And maybe just as a follow-up. I know you touched on it but kind of expanding on that last answer. Just any trends between first-party products and third-party products on the MoneyLion marketplace? Any material shifts in any direction?

So the short answer is all of the trends you've seen for the last 2, 3 quarters [ for Money ] have continued and continued. And that's what we embedded in our guidance, and January was no different either. We have grown, as I mentioned, our first-party product, which essentially was not from the Engine only but some of -- from the engine at the somewhat same growth rate at the Engine. And we cite Engine is pretty balanced on the first party and third party.

Obviously, where we're strong, like short-term lending and some of the credit builder, we lead in that subcategory. And in others where we don't have, of course, an offering, it could be a credit card or an insurance, we are obviously all third party.

The following question comes from Matt Hedberg with RBC.

Congrats on the results, really, really impressive. Natalie, you didn't talk about fiscal '27 and obviously, you're not guiding to it yet. But when we think about anniversarying MoneyLion, you talked a lot on this call about cross-sell and AI, additives. Are there any sort of high-level kind of early guardrails or kind of building blocks that we should think [ in reference to ] profitability?

Yes. In the overall business, I would point you to, outside of MoneyLion, we had said we wanted to drive a sustainable mid-single-digit rate of growth over the long term, and we have now done that for several quarters in a row. And so as we go into fiscal year '27 in that same type of period of long-term Analyst Day targets, I would point you to that.

Now parts of our business are growing faster than others, especially as you see the MoneyLion results and some of the areas of partner. But all of that's embedded in the guide. All of that is embedded in the mile markers that we put out there.

Specific guardrails as it pertains to fiscal year '27, I would point you back to that overarching growth and profitability architecture. Don't forget that we had the extra week in this fiscal year, so you definitely want to keep that in mind. Don't forget that the special tax is now behind us, and so that will give us a couple of hundred million dollars of additional capital allocation to go after and to deploy in a productive fashion. And then other than that, it's going to be balancing, making sure that we're investing for the long term while capturing the current demand and continuously driving a very efficient business.

That's great. That's super helpful. And then, Vincent, I wanted to double click back on MoneyLion synergies. It sounds like you're doing a lot right now. You talked about Money One, and it sounds like synergies maybe later in the year -- fiscal year here. I guess, when we start to think a little bit more broadly about some of these synergies, how do you think about bridging the gap between kind of the historical MoneyLion cohort and kind of your premium base? It feels like there could be a lot of synergies there. But could you see not only cross-selling synergies but also sort of benefiting your premium base?

Yes. Actually, we see synergies across the entire cohort as we see the convergence between cyber safety and financial wellness needs from a customer perspective. I mentioned the customer come to our portfolio for about 4 key reasons, and the #1 is always protect me against financial damage. That space, of course, has to run its course. And part of it is us educating, but of course, they have to realize our offering and experiences, et cetera. That's why sometimes you may feel it's slow, but we want to make sure we follow that customer experience.

Obviously, LifeLock customers, a little bit more -- or further away in that convergence because they already had organically in our portfolio moved from basic credit monitoring to monitoring your key assets like your home for home title, your bank account for anomalies, and we continue to expand that pool. And so that awareness, if you want, is strong. And now we can bring other additional value.

I think I had mentioned to you that one of the first realization that financial wellness was coming closer and closer is as we were monitoring those anomalies and we introduced our AI assistant into the environment, most of the question was not too much please spot the anomaly, was what can I do with it. Can I consolidate this? Can I save money here? And we didn't have at the time the value to deliver it.

Today with MoneyLion, which, of course, we're creating for a LifeLock customer journey experience, we'll be able to address all of that. So it's expanding that view. We're not approaching it as a cross-sell the same way that maybe a traditional cross-sell has been, and so it's much more customer-driven from a customer adoption using our assistants into the platform.

The next question comes from Saket Kalia with Barclays.

Okay. Great. And great to see the consistency. Vincent, maybe we'll start with you. There's clearly a lot of success on driving the top of the funnel, right, with various offerings, right? And of course, MoneyLion is the newest one. I'm curious how the addition of all these businesses and the growing membership mix is contributing to retention. I know that's not maybe the perfect metric to look at right now, but I'm just curious how you think about that just as you kind of build this flywheel.

Yes, absolutely. So before I talk about retention, I would say the customer experience is the most important. That's why very early on in our strategy, we took a modular white label approach in our stack. The second view is it's good to have your modular white label, so you can curate the user interface and experience to your brands. So it's part of your own journey as a special LifeLock customer or a Norton customer or an Avast customer, which is different in adoption of innovations and other things.

And then you really drive that. Now our second step is to drive that with intelligence. And so unifying our data set across all of our applications to drive intelligence and leverage those intelligence pools, of those LLMs across the different apps is adding more value, personalized, contextualized, finding that right moment of your needs, and that also is a big impact, a big driver in this multi-application or multi-brand portfolio.

And then to answer your question, if you do really well in customer experience and you find the right moment and the right intelligence, if you want to do it, you're going to have improved retention. Today, we have our cohort by cohort that continue to improve in retention. Of course, MoneyLion doesn't have subscriptions, so we do know about MoneyLion yet in terms of material retention pool. As we'll grow subscription, we'll be able to tell you more at that time. And overall, Gen retention has been stable.

Got it. Got it. Very helpful. Natalie, for my follow-up, maybe for you. It was great to see the strong capital return, I think, in $300 million in the quarter in both delevering and in buybacks. I was just wondering if there are any guardrails that you would have us think about for kind of how you'll deploy kind of going forward beyond Q3.

Yes, we were happy about this quarter. It's -- we generate such a substantial amount of free cash flow, and we really challenge ourselves to deploy that in a balanced fashion as fast and as efficiently as we can. And I think Q3 was reflective of that.

And Q3 is going to continue in terms of as we look into Q4 and we look into the fiscal year. The tenants are the same. We'll continue the dividend. We'll have a balanced approach across accelerated debt paydown and opportunistic share buyback. We have lots of room left in our buyback program. And as we look to the future, it's going to be a balance across the 2.

Keep in mind what I mentioned earlier. We will have a couple of hundred million more than we even did in fiscal year 2026 because we're through the transition tax that kind of hits us and has hit us for the last 6 years in Q2. So even though we already, on an annualized basis, generate enormous amount of free cash flow to deploy, we'll have even more next year to deploy. We'll do it in a balanced fashion.

We stay very committed to -- yes. And we stay very committed to -- like we put that under 3x net target out there for ourselves. We're really, really close. I mean, even if I look at -- in the next quarter or 2, we're going to organically be there through mandatory debt pay down and a little bit of accelerated debt. And so we'll continue the balanced approach. It's working for us.

The next question comes from Rob Coolbrith with Evercore.

Congratulations to the team on the strong results and outlook. Just wanted to ask on some of the investments you're making operationally in the business. Sales and marketing seem to be accelerated a bit in the quarter. I was just wondering if that's something that's reflective of inflation in the media cost environment or if that's in response to anything you're seeing in the business, maybe faster payback periods, stronger LTVs maybe on the Norton 360 mix shift, which sounds quite positive.

And then on R&D, it looks like you're seeing even stronger efficiency and productivity growth there. Just wanted to ask, anything new you could add on the use of AI within the organization, if that makes a strong contribution, just maybe better synergy realization. Anything more you might be able to add on that?

Yes. Thanks for the questions. We appreciate it. On sales and marketing, let me take that one. We have increased our sales and marketing. We continue to deploy in the market where we see the highest and the most efficient return. There's a few. We're definitely investing in capturing more on an acquisition front the bigger higher ROAS on the membership adoption, so the 360 memberships, to your point. We see that really taking off in the mobile, the customers that are being acquired through the App Store. That's driven by a lot of the new functionality that our team has built and expanded into the mobile channels. But it doesn't stop there. We're seeing the demand for the 360 memberships across the board. That's fantastic.

We continue to invest in MoneyLion, both on the first and the third party. We see well-balanced growth, even higher than we had indicated to you guys, higher than our expectations, higher than the average industry growth. So we saw both first party and third party growing at approximately 40% in the quarter and so continuously investing in healthy returns to shore that up.

And then just generally across the board, we're very, very diversified across the channels. We really just operate in a disciplined fashion to create the capacity to invest more and more in sales and marketing because we want those healthy returns. We want to make sure that we're acquiring the right cohorts at the right high so that we continue to sustainably grow at that mid-single-digit rate of growth.

And so yes, for Q3, I'm proud of the team. And then every quarter, we just get smarter and smarter through the analytic and the tools that we're using on those returns on that CLV over CAC, and that continues to be a horse that we'll ride to drive our revenue growth.

Cool. And then maybe I'll take the R&D. And then, Roger (sic) [ Rob ], as you analyze it, also keep in mind that the MoneyLion business and you have the public data from prior acquisition versus a core security business have different profiles. Obviously, the MoneyLion is more -- a little bit more in cost of goods sold, a little bit more in S&M, a little bit less in R&D. And I would say our security business is exactly the reverse. So you do have a little bit of a mix impact.

On R&D, though, we're doing pretty cool things. I mentioned, I think a few times, that we have 2 big buckets of AI initiatives. One, we call them AI-native portfolio, and it's really about rebuilding many of our new applications or features with, first, an AI lens as opposed to introducing AI feature into it, redesigning it from an AI native view.

And then the second one is changing our functions to be AI first. And there are 3 buckets that are making really progress. One is in our support area. The second one is in our marketing area, and the third is in R&D. And there is no order of priorities on those.

We're making really good progress on redesigning how we approach software development and product from ideation to product launch. We have a set of seeds, I would call that we say -- we call [ Gen acorn ], and it's basically a squad of 3, a PM, an R&D developer and a design person, and they have to drive everything from ideation to product using only AI tools. And we're running experiment. We're still in the learning phase, but super exciting by how the capacity, if you want, to test, learn and put to market new products at the speed of -- never equaled before.

That will continue to lower your cost of overall R&D. We're trying to bring that approach into our more infrastructure, so into the licensing system, into the billing system, which takes a little bit more time versus the ideation. But I think the world is here to change, and we've got to be at the forefront of it and leverage the full benefit of it.

Our final question comes from Joseph Gallo with Jefferies.

I really appreciate it. Earlier in the call, you talked about protecting the user and the incident amount of agents that represent that user. How should we think about the ASP uplift or monetization opportunity there? Just can you share a little bit more details on that opportunity?

Yes. We are absolutely not yet the level of discussing an ARPU, an ASP. This is really a fast evolving -- I was going to say evolution. I should say, revolution happening. Even people who are not technically savvy, like some of my dear Board members, are calling and say, "Oh my God, I use OpenClaw and now I've connected my e-mail and my calendars, and I don't know what's working. Can we please undo it? I'm worried." And so we see that real time, real life with people adopting it.

Right now, there is a gap to fill, which is providing that safety the same way that antivirus suddenly provided safety into the operating system at the beginning of its life that was not focusing on security, more on all the features. We believe there's a similar need here into the AI economy, and we were going to move super-fast on that. There is no doubt in our mind that as we continue to expand that and able to protect not only the users but now the exponential amount of agents they may use, they would be willing to pay for that pain point because we see it real life that it is a pain point and a worry for those who are using it.

That's really helpful. Maybe just as a follow-up, I mean, you guys have done a tremendous job of beating the expectations you've laid out. As we think about 4Q guidance, is there anything we should consider in terms of macro or as we're getting used to MoneyLion, just anything to call out in terms of seasonality there?

I think just from a current consideration standpoint, everything is baked into either our actuals or we're just -- we're responding to what we know of right now. I don't really look at macro factors and try and fold in or weave in anything specific with the unknown. And I would include FX in that. So the currencies that we assume are what we already know and what's already in the Q3 actuals. Anything else that you...

Well, if I can add, obviously, you've seen the consumer sentiment being at a multiyear low. But I would say the last months, maybe the last few months have been stable at that level. And obviously, the need we address, whether it's security or, frankly, financial health to be able to survive in that are all super relevant in that environment. So notwithstanding a onetime special, crazy environment that could happen in the world, we do feel that even though it's low, it's stable.

Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect your line.

Well, hey, good morning, everyone. Welcome to day 1 of the Barclays Tech Conference. My name is Saket Kalia. I cover software here. And I'm honored to have with us the team from Gen Digital. Of course, we have Vincent Pilette, Chief Executive Officer; as well as Natalie Derse, Chief Financial Officer. And also, we've got Jason Starr in IR somewhere back there. I thought he was here. He was just here, Jason Starr.

He's there.

So just to frame today, we've got about 30 minutes together. Let's take the first 20 or 25 minutes to go through some fireside chat. There's Jason. Hey, man. We've got about -- let's take the first 20 or 25 minutes to kind of go through some fireside chat with Vincent and Natalie, which I know is going to be fun. And then we'd love to make this interactive. So if you've got any questions, just pop up your hand, we'll get a mic over to you to make sure we get it out. So with that, Vincent, Natalie, thank you so much for being with here today.

Thank you.

Thanks for the invitation, and good morning. Thanks for paying attention to Gen.

It wouldn't be a Barclays Tech Conference without you.

Thank you.

So I mean, no. So maybe a good starting point for those in the room that might be less familiar with Gen Digital because it's changed so much over the years. Vincent, can you just give us a brief overview of the business and your brands that some of us may not have heard of. Natalie, related for you, maybe you can just give us an overview of some of the main financial highlights that you were most proud of coming out of last quarter. There's a lot to be proud of, right? So I'm sure that will be a fun thing but maybe Vincent, you can start us off.

Yes, absolutely. So again, thanks for coming. I used to say that Gen is probably the least known tech company on S&P 500. Yet, we are the leader in cyber safety dedicated to the individuals or consumers. So we're helping people be safe online and be protected from a very dynamic threat landscape that's evolving at rapid pace, especially now with the use of AI and data to personalize that threat. We have about 77 million paid customers, 200 million active users on our cyber safety platform, 500 million endpoints. And we acquired those customers through products that are sold to 4 key brands: Norton, Avast, LifeLock as the cyber safety brand and now the MoneyLion as a financial wellness brand.

As we acquired that leadership position in cyber safety for consumers, we decided to move to the next part of our strategy, which really is tackling the next pain point for our customers. And most of our customers are coming to cyber safety because they want to protect their financial position, their financial wellness or want to improve it. And the second part of that strategy is about that. It's about fixing their financial wellness, helping them both manage and grow their financial position. We recognize that about 2/3 of people in the U.S. live paycheck to paycheck, that about half of the financial products sold in the marketplace to consumers is actually done outside of the primary bank of that consumer.

And when they shop, they shop in trusted platform at moment of their journey, financial [ journey ], where they have the need. And it's that trust and that moment of truth that they look for as they shop for financial product. And so we felt that tackling that new category that I would call embedded financial wellness, we call it secure financial wellness is really mixing that security, that trust with the next pain point for you, which is managing the financial wellness. We acquired MoneyLion about 6 -- sorry, 2 quarters ago, about 6 months to really accelerate our transformation and bringing it all together. And then Natalie will tell you everything we're proud about and we've delivered over the last 6 months.

Yes.

Funny side. Sorry, I have to interrupt you for a second. I think MoneyLion was announced near to the day today. Very good, so it's been year.

Yes. Exactly. Exactly.

I'm so sorry to interrupt, Natalie, please.

No problem. So Q2 was a really strong quarter for us. And I would say the summary is it was really strong growth in a very, very profitable manner with strong free cash flow. And the details around that in the quarter, we grew 25%, 27%, whether you're talking about bookings or revenue. We delivered from a profitability perspective, very strong margins. And it's our eighth consecutive quarter of double-digit EPS growth alongside very strong KPI performance, whether it's the customers, whether it's the core calisthenic metrics that we've got in the core business. And we did that all through closing now the second quarter with MoneyLion in the family.

MoneyLion growing almost 50% in the first half, the first 2 quarters that we have had them in the family, so to speak. And the core business just continues to be consistently growing in line with what we set as our expectation a couple of years ago at our last Analyst Day. We've now had 4 consecutive quarters of 4% to 5% growth in the core business, MoneyLion aside. So we're really, really proud of that. And the EPS growing faster than revenue, in line with our expectation is just a sign and the commitment that we are committed to returning free cash flow -- all the free cash flow back to shareholders.

Yes, absolutely. Great EPS compounding story for sure. Vincent, maybe on MoneyLion. Again, about a year since we announced the deal. If I remember correctly, about 2/3 of that business was consumer-related, right, where customers were buying personal financial management tools or PFM tools, while about 1/3 of it was kind of enterprise marketplace. And the key there with that latter point was this matching engine for financial products on that engine. So maybe for you, Vincent, can we just dig one level deeper into each of those segments? And most importantly, why was that a strategic fit with Gen's consumer cyber safety business?

All right. Let me start by -- and then do a little bit of working back to how we got into financial wellness. We moved historically from a device security-based environment where the threat landscape was mainly malware attacking device to really being user-centric, protecting your digital footprint from all various sorts of attacks that exist out there, and that's an evolving framework. We moved from being protecting your digital form to protecting your digital identity, protecting your entire digital footprint. As we were doing that, more and more customers started to say it's not just, okay, to just protect my passwords, my identity in the web. It's also can you protect my financials. And so we introduced in LifeLock have the opportunity to plug your bank account and for us to monitor all of the transaction, unusual transaction, or potential financial fraud, merged with our anti-scam and all of the scamming threats that exist out there.

As more and more of our customers were moving into that direction, they were asking more and more financial insights. Hey, what can I do? What are the memberships that I could eliminate? How do I rationalize my credit cards? What do I do? Different things. And as we move into that insight, we're feeling like we are limiting our capacity. And so we said we're going to move to extend to the next product features or product set, which was a personal financial management app or set of features that naturally you can move into. So that's the first anchor coming from a very strong consumer-centric product set, extending that into what is a set of PFM tools. And that range from managing just visibility, managing cash flow, managing savings all the way to managing investments. And then we still had the comments about the insight. I mentioned that half of the financial products are consumed outside of the primary bank into trusted platforms.

And so we're also looking at bringing some of those offers and opportunities to the consumers inside the experience. So as we were building that, naturally, our first organic set towards adding the feature in LifeLock, then coming up with Norton Money, we're looking what is the best architecture out there. That's when we met MoneyLion team. First for a partnership. They're the first team in financial technology or in financial wellness that started about 12, 15 years ago with a platform ID in mind. Now everybody today says, I come from a specific feature, it could be a very great savings anchor or different things, and then they'll expand into platform. MoneyLion started with a full set of features. Even though they may have concentrated on a customer segment that is earlier in their financial journey and needs cash flow management, they really had a set of features.

And then they had bought a small asset that they developed called Engine, which is an embedded marketplace. So it's technology driven. It's not just traffic web marketing, it's technology-oriented, but you can embed it into many different experiences to then bring a catalog to consumers that are shopping for different options to improve their financial wellness position. So we like that a lot. The partnership discussions led into an acquisition because we felt bringing the 2 assets together was the best for us. And since then, we've had the opportunity to bring all of our consumers, prime consumers.

I mentioned over 70 million paid customers, 200 million free users to improve the richness of that catalog with more and more financial institutions coming in and looking at that opportunity to go and serve more consumers. So since then, since we acquired them, we've had very strong organic growth in that category. The marketplace itself, the Engine has been growing over 50% now for 3 quarters in a row. And we see tremendous opportunity in that not only to embed it into our own applications and user experience in Norton or in LifeLock or in Avast, but also to offer to third party like a CNBC or a Forbes to embed it into their own offering with their own brand to match their consumers with other financial products enriched and then we have the full visibility on the entire committee.

That gives us tremendous visibility from a data perspective on consumer behaviors, what they want and through AI and machine learning environment, really matching the consumer needs at the moment of truth through LifeLock and other applications. You know we have an asset. We know you're protecting your home, you have an insurance on that, you need to renew it. We can also bring the marketplace and offer you the best rate. And so since then, the marketplace has outgrown a little bit, our PFM tool both have grown. So it's a ratio more of 60-40 versus 1/3, 2/3, but they stay in that position. Our next big thing, of course, is to bring that financial wellness to all of our 77 million paid customers and then expanding that to our 200 million active free users, which we've barely scratched the surface on.

That was super helpful. And I think I see the strategy behind sort of marrying cyber safety with financial wellness. Maybe just for those investors that aren't as familiar with the space in which MoneyLion competes in, maybe the follow-up question for you, Vincent, is why was this the leading asset in the space, right? And presumably, there were other options. The Engine seems very differentiated, right? But maybe on the PFM side, why was this the leading asset when certainly speaking for myself, I probably use, I think, my bank app. I imagine a lot of people are similar. Why was this the best asset as you thought about the space?

Yes. So I first want to start with your initial comment, which is scaling, it's interesting, people may not fully understand. When we bought MoneyLion, people were surprised how does cyber safety fit with financial wellness. And for those who were following our company for a long time, I want to bring you back to 2018. The Norton division that was still very much device-centric from a security perspective at the time, bought LifeLock, which was initially credit monitoring. And every investor said like, "Oh, I don't understand this purchase. What is this about?" And as you remember.

I remember, yes.

We got plenty of pushback that did not fully understood. 2019, we merged the 2 assets and came up with the cyber safety platform, which was, hey, I'm going to protect your digital footprint, you as users forget your devices. You have your devices protected, but there's a lot more to it. And then we're going to evolve credit monitoring as one of the dimension of your identity, and we're going to provide you both identity and privacy services and solutions in that membership. When we launched Norton 360, which was the full spectrum of our portfolio, within a few months or a couple of quarters, we got like a 60% adoption rate and very strong. And then, of course, competition followed. And today, if you look at assets that are focused on consumer cyber safety, nobody is thinking just device. They're all thinking about the broad view in cyber safety, including identity, including credit monitoring. I think even Microsoft including their credit monitoring in the application, which I don't think it really fits there.

And because they understand that's how consumers look at it today. I predict that within the next 5 years, financial wellness will be symbiotic with cyber safety. It will be about protecting your digital footprint and giving you as a consumer, the ability to use that privacy, that protection to get to services or solutions that require you to use that PI environment to get a better service or a better value. And so while today, to some investors and maybe even to some of our customers, they don't totally understand yet how it fits together as we continue to merge the platform, as we continue to communicate the value, you're going to see a very fast adoption rate. And I can tell you, within the next couple of years, maybe 5 years, everybody that's looking at cyber safety will have some element of financial wellness into their offering. Now why was MoneyLion a great asset? I think we like a lot of things.

But the #1 thing we like is that they were a tech company that really, as I mentioned, developed that platform view. And as you know, at Gen, we have a white label modular architecture strategy that we rewrote when we acquired Avast to be able to serve all of the customers and the brand being mainly around the user experience and the user journey, not around the tech stack. That's solely standardized and then we have the data platform supporting it. And MoneyLion had a similar approach, if you want, not the best from a technology perspective. We love the marketplace. Many of the fintech assets are more on the PFM side with single product view than extending to a platform, but don't have a marketplace. That is a richness for us. And so a tech company that has a platform idea with the marketplace felt was the right view. And then just you know we got it to a very good price, too.

Yes, absolutely. It's a great reminder that LifeLock was a very forward-thinking acquisition. I can certainly tag to that.

At the time.

Yes, for sure. Natalie, I want to stay on MoneyLion with you as well because I think what we said on the last quarter is that this would be exiting this year at 30% growth, which I think was another raise in the guidance for that business. I think one question that I get to be completely honest is, Saket, I don't know anything about MoneyLion's market with PFM or Engine. Is this 30% growth sustainable? And so maybe the question for you, Natalie, is how do you think about market growth, maybe MoneyLion's ability to take share and ultimately, what that normalized growth rate is? Does that make sense?

Yes. So before we acquired them, MoneyLion was growing on average 30%. And when we look at, albeit MoneyLion is a beautiful unicorn business for all the reasons that Vincent just walked you through. But in summary, it would be they not only have great first-party products, but they have the marketplace, they have the Engine. They have a fantastic app experience. Their customer experience and engagement is really, really high and very, very fresh. And so we believe that they are going to outpace the market, but there's many, many ways that they can do that.

And so yes, the last couple of quarters, we've been in the 45% to 50% mark. That didn't come for free. They had launches. They had programs. They had -- they really drove that growth. But as we look at the overall market and we look at how fast competition is coming in and the competitive landscape as well as we integrate the business and really come up with those use cases of where we can really leverage the 77 million paid customers on the Gen side, how that's all coming together. That's where the 30% exit rate is coming from. Is there opportunity to go faster, stronger? Absolutely. But in terms of where the market is, it's around 30%.

Well, that's really impressive.

And I think, Saket, if I can add, I don't think investors have fully understood how to move with financial wellness, MoneyLion, both PFM and the marketplace has opened up the door for opportunities. We moved from originally 10 years ago, that's very product-centric. I have an antivirus, I downloaded on the machine. Since then, of course, it moved to a membership. I have a very strong platform on protecting all of your digital platform. We're extending that now to protect and empower you in the digital life. And not only we get the best PFM for financial wellness, which is the MoneyLion features, but we get this marketplace. That marketplace today is offering consumers the best visibility of everything they can do from a financial wellness perspective, best credit card, best loan, best insurance, et cetera. And it's really targeted inside the app through an AI-powered, call it, a matching view, so match.com inside our marketplace and taking your data that you already want to protect, you want to protect your home, you have this, you have a mortgage.

We can say it's time to renew your insurance and you have the best insurance. And it's all of that as an experience, including the card and exit inside the app without getting out. That is a fantastic experience. We are extending that marketplace to nonfinancial products. And so suddenly, I'll give you a small example, like a lot of our customers inside LifeLock that have a certain number of assets are asking about, hey, what about will and trust? What do I do with that asset? Yes. And so in the past, we were thinking about we don't have the expertise. How do we go and develop that? Do we want to do an acquisition? How do we want to approach it?

Today, the marketplace offer us the opportunity to have the consumer in the app to go and consume the next need, the logical need in this digital journey without having us to go and build it first and sell it to a third party. Based on that consumption, we have even more data to understand the need and can pick and choose where we invest and what we develop as first-party product versus leave as third-party product. And now it's a full ecosystem with the underlying data across our brand, across our app that enables to give you personalized, contextualized digital experience based on your needs, you're going to have different features into the app and the Engine creates this full ecosystem of first-party and third-party offering. That is entirely changing the game the way we think about innovation and what we can do versus just selling one product to a customer.

So that's a great segue into one of the follow-ups Natalie that I had for you just on the engine piece. When we were together at NASDAQ a couple of months ago, we were kind of talking about sort of this 30, 60, 90 framework, right, for that business. Can you just walk through an example of each and why it's important now that Gen has so many more customers under the umbrella?

Yes, sure. The easiest one is the first-party product, and it's just a very high-margin business. It's -- we are going direct to the customers either in the app or the Engine. but it's just a normal sale, so to speak. That's the easiest one. And then the other one would be the Engine where we bring -- it's almost like the marketplace where you bring the buyers and sellers together. So we've got inventory there. We have to pay a rev share to the seller and then we obviously have the buyer transaction. And you just share the margin in terms of that transaction.

And then the other one would be -- the 90% would be when you think about the 77 million paid customers, they're in our ecosystem already. There is no CAC, right? So there is -- all you've got is just mostly the revenue. And so you're going to have very, very little cost of goods sold on that transaction, and that's where that 90% comes from. And that's where all of the synergistic opportunity that we're talking about in terms of bringing the existing highly valued, highly tenured customers in the Gen portfolio over to the MoneyLion side and vice versa, that's where that 90% ecosystem comes from.

Yes, absolutely. So basically, you've got this kind of captive customer base that through the engine, you can kind of cross-sell them financial products as they mature in their sort of own financial journey, if that makes sense, right?

Absolutely. And then on the other side, someone like probably 3 of us sitting on the stage, right, in terms of you want to make more money on your money, right? And so now we're also going to be in that ecosystem and in that marketplace with high-quality inventory. We believe that the MoneyLion inventory in that third-party marketplace is already high valued. And imagine now with the brand recognition that we've got with LifeLock and Norton and the conversations that we can have, now you're in the JPMorgan Chase, you're in the Chase Sapphire, that type of inventory increase in quality more targeted to a highly valued LifeLock customer is going to appear in the marketplace as well.

Understood. Understood.

There was a simple flywheel of, as you know, in the past, ARPU retention times the number of customers equal your revenue becomes suddenly a multidimensional set of flywheels. And we still are playing with all those dimensions to really follow the customer in their journeys, but the number of opportunities is exploding. With that, of course, you have different margin profiles, but we really manage the business on the total growth of total profit dollars or EPS dollars. And then we manage each business segment or each flywheel within its own ecosystem.

Absolutely. There's -- we spent so much time on MoneyLion. I want to zoom out a little bit and try to put all this together. And Natalie, when we think about this from the revenue side, definitely when it comes to the profitability and EPS side. But I think what we said in the last call was that total revenue grew 10% year-over-year this quarter pro forma for MoneyLion. So assuming MoneyLion were part of the business last year. We can all take estimates for how to think about growth next year, right? But what are some of the puts and takes that we should think about as we think about revenue growth in fiscal '27 when you lap MoneyLion, we've got some timing stuff with like an extra week. Maybe some of those puts and takes. I understand you can't guide yet, but what are some of the puts and takes that we should be thinking about?

Sure, let's start with where we are now. We've delivered the first half really, really strong, $200 million of additional revenue, a couple of beaten raises. So we're in a great position as we enter into the second half. We believe that we will continue to drive and achieve the revenue synergistic opportunities that Vincent has laid out here. The core business, like I said, has been now 4 quarters in a row at a 4% to 5% growth. We expect that to continue as we really have the majority of the team still focused on driving the core fundamentals of our Norton and LifeLock and Avast businesses. The metrics are strong and trending in the right direction.

And let's not forget that we just continuously drive a high amount of free cash flow, EPS growing double digit now for 8 consecutive quarters, and we stay committed to that guide point that we laid out even 2 years ago, we said 12% to 15% growth in EPS over the long term. And now we've done that for 8 quarters in a row that will continue. And then just from a capital allocation perspective, we have a lot of free cash flow generation, whether you talk about levered or unlevered. And so now that we are fully through the MoneyLion close and integration and as we enter into the second half, we've got a lot of opportunistic share buyback opportunity as well as accelerated debt paydown opportunity, and we're going to do a balanced approach for that.

Yes, absolutely. I want to move to margins here in a second. But any questions here from the audience before I move there?

And maybe if I can add on.

Sure, Vincent.

When I became CEO, they told me to get out of the guidance and let Natalie speak. And she did a fabulous job. We never missed a quarter since we've been together. But the way I'm visualizing our overall environment and supported by the view is we have different entry doors to our portfolio. You can come from a need for security. You can come for a need for privacy. You can come for a need for identity management or you can come from financial wellness. Each one of our doors are growing and are outgrowing their respective market, whether it's MoneyLion, the highest growth, identity and privacy or security, all are growing in the current category, all of our competitors and we're going to grow. They have different growth profile, but all customers are good. And then our role, as we continue to use the personalized -- or we continue to personalize the environment for them to contextualize our offering is to move more and more customers to that full membership.

A security customers will quickly come into security and privacy. We barely scratch the surface to move to financial wellness. Somebody comes on financial wellness is already begging for an anti-scam to SKUs that we have from our overall portfolio or SKUs around credit monitoring, which we had into LifeLock. And so quickly, we're going to come into those bundles of those memberships. That surface of cross revenue synergies expanding is at the early journey in an overall journey we see. And that, for me, is the biggest opportunity we have. Now I don't know about next year guidance, but every day, in each category, we beat the market, and then we try to bring more value to our customers. That's how we're thinking about our portfolio.

Yes, absolutely. Now I want to touch on margins a little bit. I think we're at about 51% operating margins currently, which digested even a little bit of the MoneyLion dilution, which makes sense given the faster growth that, that business brings. Vincent, you touched on revenue synergies and maybe there's a membership opportunity there. By the way, I'm a very happy member of LifeLock and Norton for what it's worth.

Thank you for that.

Yes, absolutely. But from -- where are we sort of on the journey around expense synergies around MoneyLion, understanding that wasn't really the main purpose of the acquisition, but where are we on that journey?

I'm good. It's been a long time since you asked me about cost synergies, which in MoneyLion, we have a very strong record. We acquire assets. We immediately integrate it into our overall architecture strategy and then all operations are integrated. We move Avast to a very, very strong margin very first. I think we generated over $300 million of cost synergies every one of the assets. We are a serial acquirer, but we've only done 5 acquisitions, many of small size in 5 years. So it's not like we're doing all the time. But we have a good strong operating cadence. So MoneyLion got integrated immediately. We put into the business, functionalized the back end and then enabled that financial wellness entry door to operate and be in its own market. When we bought it, operating margin was at around 14%, 15%. In the last 2 quarters, it went between 20% and 22%, and we'll continue to improve that.

So from a cost synergy, if you want, that is a done deal. At this point in time, it's about really driving the mix. And as Natalie mentioned, cross-selling, coming to membership because today, MoneyLion is mainly transaction fee-based revenue or lead-gen revenue, moving to membership. If you come to us to monitor your credit, you also have a kit that needs to be building up their credit, which is a feature for MoneyLion and you want to have a full credit journey. So we'll have a membership credit journey view. You may want to have a fully embedded view between a LifeLock and a financial wellness that will be another offering. And so we're testing at this point in time all of that, which will continue to improve both the reliability, reliance, predictability of our overall revenue model and as you know, improve the margin as we continue to create that...

Yes, absolutely. Natalie, I want to go back to a mechanical question of it. I just want to make sure we touch on it. Remind me, this fiscal year, we had like an extra week. It was something weird, right, with an extra week. Can you remind us what -- how much revenue that added just as we think about what adjustments we need to be thinking about for next year around forecasting revenue?

Yes. I think it happens every 7 years is what I believe, and it was about $85 million. And so that won't obviously repeat. So yes, please definitely take that into account as you look at next year. But the exciting part of next year, and we can't wait to talk to you about it, just we're really working through all of the great stuff, all the great ideas, all the green shoots as we get into the back half. And then we really look to next year, kicking it off in May when we do earnings. We'll have the privilege to give you the full year guidance for next year, and then we'll be in a much better position to really, really give you meat on the bone, so to speak, as it pertains to how we're going to drive all of the revenue synergies and the growth expansion that Vincent has out laid here.

Boy, excited about giving guidance for next year. I can't think of a better way to end. Vincent and Natalie, thank you so much for the time. A lot of exciting things to talk about here.

Thank you very much.

Good afternoon, everyone. Thank you for standing by. My name is Lauren, and I will be your conference operator today. Today's call is being recorded. [Operator Instructions]

At this time, for opening remarks, I would like to pass the call over to Jason Starr, Head of Investor Relations. Please go ahead.

Thank you, Lauren, and good afternoon, everyone. Welcome to Gen's Second Quarter Fiscal Year 2026 Earnings Call. Joining me today are Vincent Pilette, CEO; and Natalie Derse, CFO. As a reminder, there will be a replay of this call posted on the Investor Relations website, along with our slides and press release.

I'd like to remind everyone that during this call, all references to the financial metrics are non-GAAP, and all growth rates are year-over-year unless otherwise stated. A reconciliation of non-GAAP to GAAP measures is included in our press release and earnings presentation, both of which are available on our IR website at investor.gendigital.com. We encourage investors to monitor this website as we routinely post investor-oriented information such as news and events and financial filings.

Today's call contains statements regarding our business, financial performance and operations, including the impact of our business -- on our business and industry that may be considered forward-looking statements, and such statements involve risks and uncertainties and that may cause actual results to differ materially from our current expectations. Those statements are based on current beliefs, assumptions and expectations as of today's date, November 6, 2025. We undertake no obligation to update these statements as a result of new information or future events.

For more information, please refer to the cautionary statement in our press release and the risk factors in our filings with the SEC, and in particular, our most recent reports on Form 10-K and Form 10-Q.

And now I'll turn the call over to Vincent.

Thanks, Jason. Hello, everyone, and thank you for joining us today to discuss Gen's results for the second quarter of fiscal year 2026. This was another quarter of outstanding execution, exceeding our expectations as we capitalize on our global user base and compounding data advantage. We delivered record revenue and earnings, continued to drive strong customer and bookings growth and are making clear progress with our portfolio transformation. This performance demonstrates the strength and resilience of our business, underpinned by a high-margin subscription model now expanding into faster-growing adjacencies in secure financial awareness. It also reflects our strategic position as the most trusted partner in protecting digital lives, bringing confidence in a complex and increasingly AI-driven world.

Before diving into the numbers, it is important to recognize the environment in which we operate. Consumers today face a rapidly evolving threat landscape. They face a new generation of cyber threats like AI-powered pishing, deepfakes, inner circle in presentation and identity tests driven by large-scale data breaches. These threats are increasingly personalized, sophisticated and harder to detect.

The financial impact is real and rising. Cyber crimes against consumers are projected to exceed $15 billion annually in the U.S. alone, growing at double-digit rates. Meanwhile, Financial wellness is a very real and prevalent consumers' need. 2/3 of Americans live paycheck to paycheck, often stitching together their financial lives across multiple digital platforms beyond traditional banks. In this environment, risk and financial wellness are deeply interconnected. When people live with little financial buffer, an incident of identity test, a fortune charge or even a scam can quickly upend their finances. The stake go beyond security and protection, they are also about trust and well-being.

People aren't just searching for another financial product, they're seeking for a trusted and reliable partner, one that can secure their identity, protect their data, safeguard their privacy and empower their financial well-being through trusted decisioning along their journey. And that is exactly the role Gen is built to play, and we are uniquely positioned to be the global consumer cyber safety and fintech leader now and in the future agented that is emerging around us.

Let me review some of the highlights of the current quarter. We generated just over $1.2 billion in revenue, up 25% year-over-year. Our consumer FinTech business, MoneyLion, delivered another exceptional quarter, growing 50%. And when including MoneyLion's results in the prior year, Gen grew revenue 10%, matching our strong Q1 performance. We continue to operate with financial discipline maintaining a non-GAAP operating margin above 50% and driving a non-GAAP EPS result of $0.62, up 15% year-over-year even as we continue to make disciplined growth investments throughout our technology stack in AI, data and platform architecture.

These disciplined investments will continue to fortify our global leadership and over time, further compound allowing us to offer even more offers, services and value to our customers to help them lead secure and safe financial and digital lives.

Similar to Q1, our performance was broad-based. We generated growth across our Norton, Avast, LifeLock and MoneyLion brands. Our bookings for the Cyber Safety segment grew 5% year-over-year coupled with a robust operating margin of 61% and healthy and stable customer retention. During the quarter, we expanded our scam and deepfake protection powered by Norton Genie Pro and Gardin to help users combat the rapid rise in AI-based camps.

Early adoption is strong and accelerating. We support in over 40 languages and more countries coming on later this year. We are driving rapid development with our cyber safety assistant, delivering actionable insights to Norton 360 users. As more innovation is integrated into our cyber safety suite, we are seeing higher engagement, which we believe is helping drive strong Norton 360 and Avast One membership growth.

Our refreshed privacy portfolio is also gaining momentum. Following the Norton VPN improvements, which we released earlier this year and several positive reviews in leading tech publications that have boosted market awareness, using privacy have accelerated to double-digit growth. We also -- on small business solution, combining security and financial protection features for entrepreneurs and teams. These efforts align with Gen's strategic direction to penetrate new customer cohorts combining technology leadership and improved user experience.

Independent testing continues to validate our leadership as Norton and Avast to remain the top 2 brands in consumer protection and will continue to drive additional innovation in the portfolio 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 Solutions 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 lifelog remains the leader in identity protection, allowing consumers to support their financial journey with the best credit reputation, consuming financial products at those moments of truth when identity, reputation and financial well-being intersect.

MoneyLion exceptional results across our first-party personal finance products, and our engine marketplace demonstrate our disciplined execution unrivaled portfolio and the strong signal 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 Money Line'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 Northern Money, a unified platform that combines credit monitoring, identity protection, financial insight and a created marketplace. We have also embedded a robust credit card marketplace for LifeLock customers a natural extension of the credit monitoring features that 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 Norton 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 outlined 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 and

AI is now the connective tissue of everything we do across innovation, products, marketing and customer experience. In cyber safety, AI powers behavioral-based that detection and real-time scam identification, protecting users from phishing, deepfakes and other emerging forms of attacks.

In financial wellness, the MoneyLion 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 Norton Neobrowser personalized browsing by introducing safe and private memory support, transforming each browser instance into a unique personal assistant that user 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 large cycle 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 results 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 mode to do our 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 MoneyLion and setting our sights on capturing further growth synergies and leading with innovation and 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 deliver 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. Gen 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 and fiscal year 2026. I will focus on non-GAAP financials and year-over-year growth rates, unless otherwise stated. I will also include commentary on our pro forma growth, which include MoneyLion's results from the prior year for comparative purposes.

Now on to our results. Q2 was another strong quarter for Gen 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, respectively. On a pro forma basis, Q2 revenue grew 10%, consistent with last quarter. And excluding MoneyLion, 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 scan 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 to 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 Solutions 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, MoneyLion 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 nonfinancial platforms and apps. This momentous business is powerful in and of itself. And as we innovate across our trust-based Solutions 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 partners 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 adds 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 MoneyLion 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 MoneyLion 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 initiatives.

Q2 net income was $387 million, and diluted EPS was $0.62, 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 remains 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 semiannual 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 or share buyback during the open period. We paid down $160 million of debt and ended the quarter with our net leverage at 3.2x EBITDA. We paid $77 million to shareholders in the form of a regular quarterly dividend of $0.125 per common share. For Q3 fiscal 2026, the Board of Directors approved a regular quarterly cash dividend of $0.125 per common share to be paid on December 10, 2025, for all shareholders of record as of the close of business on November 17, 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 billion to $4.97 billion, up from our prior expectation of $4.8 billion to $4.9 billion. And reflects reported revenue growth of 25% to 26% year-over-year. We expect non-GAAP EPS to be in the range of $2.51 to $2.56 and 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 $0.62 to $0.64 or 12% to 15% growth year-over-year.

Our Q3 and full 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 and 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 MoneyLion.

Operating margins remained 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 delevering 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?

[Operator Instructions] Our first question today comes from Rob Coolbrith from Evercore ISI.

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 2 segments of the business. And then also -- ask on the transition -- Sure. Please go ahead.

Okay. you ask a question of that. Sorry, but that to jump. But -- thanks for the congratulations. This is Vincent. Thanks for the congratulation. We definitely had an outstanding quarter, and I would add another one. So let's talk about the macro environment. We have two segments, right, security and privacy and then trust-based solution really anchored around the secure financial wellness. I'll start with the security and privacy. Obviously, you've seen in our Q2 threat report that we just published last week continued increase in complexity of the threat landscape, targeting consumers in various forms increased use of AI just last quarter, blocked 140,000 website, all designed by AI but with a very high level of credibility and precision. So all of that, if you want, will continue. We believe the consumers for a very small membership fee, I would say, can protect against thousands of dollars lost through cyber criminals. When you look back at historical during downturns or upturns, we have not seen too much correlation to our subscription or security revenue streams.

On the Secured Financial wellness, we now have millions of our customers connecting their bank account, for monitoring, alerts. We do offer, as you know, first-party financial products from liquidity offering to credit building, to high-yield savings accounts. We've seen a very strong growth again this quarter under personal financial management offerings here under 50%, but very strong. We have not seen a change in patterns in consumption over the last few months, and we do not see it here as we speak so far.

Generally speaking, when interest rates continue to trend down, normally, there's actually renewed activities and refinancing and other activities that support that demand. On the second aspect of our secure financial wellness, it's our marketplace. Here, we've really seen the benefit of coming together with Gen, millions of consumer board onto the marketplace. We're just at Money 2020 conference and a lot of very strong interest from financial partners to join the engine marketplace by Gen. And I think we'll continue to have that opportunity to offer for consumer, whether the economy goes up or down, I think the need for the best financial decisions will remain and be strong.

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.

Absolutely. So obviously, revenue synergies is a long process, MoneyLion fully integrated from a back-end integrated from an R&D perspective. We're finalizing the integration of the data to offer an enriched experience. And now we're really unlocking the revenue synergies. There are 2 immediate components we're focusing on. One is not in money with EWA features going into employee benefits, but also on money as a PFM tool for our Norton installed base. That's one. And the second one is the embedded, I would call it, core marketplaces, focusing at the needs of the consumer. LifeLock is the first immediate case. Since we brought the money line on, we've really enriched the marketplace with credit card catalogs or offerings, if you want for prime customers, and we're embedding that into LifeLock. And as you know, LifeLock, it's not only monitoring your credit, it's really monitoring and managing your financial moments of touch, you check your credit, you check your financials, when you're going to go for a purchase and/or if you want to improve your credit level in order to do approaches that you intend to do today.

And so at that point in time, if you want in an embedded experience, we now have that marketplace and made into the LifeLock applications. It's actually a very positive results, although on a small base. And we have a long transformation to drive, as we've already discussed in prior quarter and making progress on it is really moving an application that was essentially passively giving you peace of mind to a more engaged applications in which you come and validate and try to improve your journey, and we see good progress overall in that trend as we bring new tools such as the credit builder tool or now this credit marketplace.

Our next question comes from Roger Boyd from UBS.

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.

Yes. I'll take that one. It's nothing less financial and more structural. So 2 years ago, when we did the Analyst Day, we said, "Hey, we have a big opportunity in our partner organizations." At the time, it was 90% direct, 10% partner. As we're expanding the portfolio. We said it in the long run, we think it will be more of an 80-20 and you're going to see partner growing faster than direct. And it makes sense because many of our services are embedded into partner views and then we had the view -- this long-term view of bringing this marketplace adding more value to our consumer.

And what you see now 2 years later, 8 quarters later, since we laid out that strategy, it's finally taking routes. Quarter in, quarter out, you may have a little bit bigger gap or a smaller gap. But I think you'll continue to see partner revenue outgrow the direct revenue, as we continue to contemplate bringing to our consumers adjacent values that we may not even manufacture ourselves because we neither bank or we may not be a legal firm, but that all fits together around supporting that financial wellness overall.

And -- no, I would not predict specific seasonality quarter-in and quarter-out that you see every year. Now obviously, you can always the growth rate change quarter-in quarter-out, but similar trends will continue moving forward.

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?

Yes. Thanks, Roger. Our free cash flow generation will continue to stay strong. It's -- yes, seasonally high in Q2. And then, of course, we have that timing element that hurt a little bit more in Q2 than norm as well. Yes, as we accelerate rates of growth as we integrate and we continue to scale we're going to continue to operate in a disciplined fashion. We've laid out our margin expectations for each of the segments over the long term. And we'll continue to deploy our capital in a disciplined and balanced way across accelerated debt paydown but also share repurchases. And then we just haven't -- with the timing of the MoneyLion deal over the last, I would say, 3 to 4 quarters and when we were able to get out in the open period, we just didn't have the opportunity to do much share repurchase. But as we look to the back half, we'll get back to being much, much more balanced across accelerated debt pay down and share repurchase.

Our next question comes from Dan Bergstrom from RBC.

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?

Very good, Dan. Thanks for joining. So to remind people, Norton 360 is our all-in-one suite set of plants, if you want, from the Norton brand. We have the same on Avast One from the Avast View. And our goal has been to move more and more people to membership, you pay a fee with that, you'll get our new features and the piece of mind in this environment where cyber threat is pretty dynamic. And then depending on the plan, all the way to all in one, including the LifeLock identity protection, then you fully protected. We still have the majority of our customers on the Norton 360 lower and mid-level tier, not including the identity. We have, at the beginning of the year, moved Norton Genie, our anti-scam into that known 360 platform and have evolved Norton Genie from a pure AI-driven anti-scam to becoming really the AI cyber safety assistant. And we've now just launched into 40 new countries in 40 languages, that feature. That feature is at the core of getting our applications to our platform more engaging where you can ask your questions and can automatically also become ultimately become your agent connecting different privacy and security features at the moment it's needed. We have seen some traction on the upper level of the plan, -- no with Norton 360 with Norton Genie Pro, which is an upgraded feature that provides not only the security side, the AI assistant but also the insurance, the voice block, the tax block and so a much more enriched experience full private and full protection. And we've seen traction with that. And then we're now just launching Northern money, which will be the alternative to go and move to a higher plan with credit monitoring financial insights and create marketplace as an alternative path to the upper plant. So as I mentioned in my remarks, continue to see very good progress towards, a, the membership; and b, the engagement with the platform.

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?

Yes. I would say now it has been many, many, many quarters. I don't remember how many maybe 7 or 8 that we've been in the range of, I would call it like 250 to 400. So you're right, it's in the upper of the range, but we basically see it on the high side of the range in line to our expectations as we've been driving increased engagement, more channel to acquire customers and improvement on the retention. And I think it's more progress across all of the dimensions that reviewed. Now as you know, our customer base is evolving. We see it in two categories. One is a subscriber generated revenue, as Natalie mentioned, and the other one is a product usage generated revenue. We see a very strong increase across all dimensions, and our goal will be to continue to increase the subscription. We did provide the whole metric just for people to understand and assess the health of our core Gen the way we looked at it before we split into 2 segments, which I think will be useful for investors.

Our next question comes from Saket Kalia from Barclays.

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?

Yes, totally. So just to put in context, maybe some investors don't have the full history that we've had since You know us very well and covers for a long time. When we acquired MoneyLion, most of the revenue, if not all of the revenue was driven by what we call product usage revenue, our product usage derived revenue, which is essentially transaction-based. And many customers like that. They use the product for free. And when they transact a very small portion of the transaction gets booked as a fee, and that's how they make the money.

You know what they say, Saket, don't break what's working. So we're trying to make sure we manage very carefully because it's really working for the money line installed base and is working for the MoneyLion customer and the team knows how to bring innovation into that environment. We will maintain that. in addition, and that's why it's complementary. We say that when you come to a little bit more premium customers, they like to have a subscription, they pay and then they have access to many different features Ala Cardo or as much as they want, and we're building those subscription views, which may include, not only the ability to use the PFM tool or to consume some liquidity product or to do credit builder for their kids or having access to actually the investment features on the platform. And we know that's more prone to our type of customer base. And so features are there, and it's a question of balance on how we're going to drive from a marketing perspective and where we're going to have membership versus transaction-based revenue.

And over time, you're going to see that progression. As you know, just to complete my answer, we always said that a shift, a full shift from transaction to subscription will lead to a shorter gap in the -- or a gap in the short term and the longer value over time. And we hopeful to be able to manage that transition towards more subscription without too much impact on our overall knowing that it's all about driving long-term customer value here for maximizing that

Yes. 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.

Yes. Thanks, Saket. Good to hear from you. Yes, MoneyLion margin, that's where we started, approximately 20%. Keep in mind, as we blend MoneyLion with trust-based solutions and even just integrated with Gen overall we have achieved the cost synergies that we have laid out for ourselves as we integrate them as an acquisition, just high level, especially the back office and some of the other -- the fixed costs that we could strip out of the business. So that's done. We also have revenue synergies that we're going after. You heard them peppered through the messaging today and our slide where and our day that we did around MoneyLion back in September, there's so many revenue synergies to go after. It requires investment to drive that growth. And so we'll continue to stay committed to that. So that points to the current margin rate today driving that 50% growth rate.

And then as we look forward, of course, yes, the mix is definitely there and is an opportunity for us to balance. But keep in mind, we want all parts of the 30, 60, 90. They provide us different layers and levels and types of value and access to different customers.

So if you think about the 30% margin on the marketplace that's going to fuel customer acquisition and really give us just a ton of access to different sites, lots of data that we can do deep data analysis and customization personalization.

And then the first-party products at 60% and then all the way up to the retargeting of the 90%, it's a very, very healthy model. It's a flywheel effect. But the quarter-in quarter-out, what percentage of the business is going to come from different segments is going to be mixed. And as we move forward, we're going to find that right balance for the business all with the appetite of healthy, sustainable accelerating rates of growth as we integrate across trust-based solutions with all of the different services that we're innovating on.

Our next question comes from Tomer Zilberman from Bank of America.

Maybe going along the same track of the MoneyLion, right? You had 2 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.

Absolutely, yes. So I'll take that 1 first. So MoneyLion, when we acquired and closed the deal April of this year, it's not too long ago. It feels like a long time goes only 6 months ago. They were growing at 25% to 30% at about 15% operating margin. Since the beginning of this year and as we integrated and started to work on various different aspects, including marketing and leveraging our customer base, et cetera. We've seen that elevated performance level, as you mentioned, 45% the quarter before and 50% this quarter. While we improved the operating margin over 5 points, now over 20%. We are not forecasting moving forward 50%. We do believe there may be a little bit of a boost of coming together and we feel it's more prudent to base maybe linking back to Saket's question at around a 30% growth rate, 20% margin redefine another new rule and call you the rule of 50, that's what it would be and managing the business along those lines.

As we see room and acceleration, we'll definitely capture it in the marketplace. So be assured of that. And there are different ways of capturing it, including moving more transactional customer, maybe customer we can identify as not having a strong recurring pattern and moving them to a membership having a chance to offer different values in a bundle membership structure, which is really most of what we are planning to do over time, while we maintain that Rule of 50 growing at 30% to 20% margin.

And then along the line, every quarter, we learn more, we'll understand better the trends and that's where we'll be. What it is not implied into our current exit 30% growth rate is any significant macro level effect because, as I mentioned, in a prior answer, we do not see a change today of patterns or behaviors from the millions of customers that are plugging into our platform.

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?

Yes. Tomer, it's Natalie. So keep in mind, revenue is going to reflect the trailing 12-month bookings. So if you go back and look at the bookings as reported, that's where you would see the 3%. Also keep in mind, we're only rounded at the whole numbers. When you get into the decimals, it's sub 2 points. So it's really not that different between bookings rate of growth and revenue like you see 2 points on the surface.

And yes, as we look forward, it's not just the customer acquisition, it's the balance across the segments, it's the innovation, it's the scale, it's AI coming through. It's more personalization. It's more customization through IPM, Cross-sell, upsell are still alive and well partner mixing in, there's just so many factors even in when you look at both on a pro forma basis but even excluding MoneyLion, the core business has so much opportunity. And we are just driving all of the growth levers that we possibly can with all of the innovation that's coming to market.

So I would say, as you look forward, we're focused and just look at the full year guide pointing to on a pro forma basis, it's a high single-digit rate of growth, and that's what I would -- that's what I would point you back to.

Our next question comes from Meta Marshall from Morgan Stanley.

Great. Maybe as a first question, you noted the AI impact kind of bringing 20% efficiency on the customer support. Just wanted to get a sense of other ways in what you guys are utilizing AI and what you're finding traction within the business? And then just as a follow-up question, just any OB OBA impact on tax rate that we should be expecting?

Okay. Let me take the one on the use of AI. So all of our AI initiatives are split into 2 buckets. One is to use our, call it, data platform to build AI native features of product from Norton Genie to Spark to others, Norton Browser that you see there. I leave that on the side because that's not your question, but it's our main effort in trying to bring a truly AI-native portfolio, even all the way of thinking in our lab of not only how we protect against AI-generated scams or threat, but how will security look like in the world of agent to agent interaction where you as a consumer may ask your automated agent to do financial wellness transaction on your behalf and then interact in the world of agent, how does privacy and security work in that environment. So super, super important topic. .

And then we have the second bucket, which we call transforming Gen into an AI-first company, which is really changing our not immediately jumping into AI platform of tools, but changing our workflows to then being able to automate and where it's needed using AI to generate things. Obviously, in support and services, we further along the tools and the processes in the market are more mature, which today have roughly half -- a little bit less than half of all of our contacts fully contained into an AI environment, whether it's 1 or multiple bought. And that has generated significantly which we have reused to really build our data approach or data platform to our business.

I mentioned marketing. Marketing is probably the second 2 R&D, I'll talk about it in a minute, function that we're transforming. Marketing, really, we combine everything from upper funnel or branding all the way down to performance marketing under one leader combined organizations, and we've realigned around value creations around their brands, and they are using the tools, AI first to really develop the framework to our vision later on will be to enable our product leaders to do everything from ideation to first level performance materials assisted by AI bots without human intervention.

That's not the case today, but within the marketing function, they started to get really good traction on developing materials and even creatives all through AI. And that has enabled also to redirect the savings towards more performance marketing to then accelerate the growth -- and then the last piece is around R&D. We've been at it for a little bit longer, which is starting with more automation. We're running some pallets. I'll give you the name, we call it inside an the Jenny corn and to see if we have from ideation to product development everything managed by 1 person assisted by bot. We have some level of success, but we are running a lot of those experiences and bring them back into our development environment to improve the way we develop products.

There, the savings have really redirected since we had a large portfolio with years of experience but also skewed to maintain. We're trying to lower our maintenance costs to redirect into more innovation and most importantly, higher velocity in a different prototype and testing. I would say I see really great potential. They're slower to materialize and capture, but we are on a great path. That's how we are becoming an AI-first company.

And then I think you had a follow-up question on the one beautiful tax bill? .

Yes. Just any impact of tax rate that we should be thinking of?

So our tax rate is long-term focused. And so the 22% that you see in our non-GAAP results and -- is assumed in the guide as well. So the beautiful build just helps with cash flows in terms of cash taxes in the short term. In the long term, it's -- there's no material change. So we don't really influence that or we don't include that change in the long-term tax rate expectations.

Our final question today comes from Joseph Gallo from Jefferies.

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 the most traction early on? And then are there any more go-to-market effort left to implement, to accelerate?

Yes, very good. So we are at the early stage. So I definitely would say, yes, we have a lot of room to accelerate the current results you see here is on the merit of the core business on the own each one of them and then maybe a core platform of data and operations. But we haven't really delivered yet the value of bringing everything together. The most natural one and more immediate one is really the amendment, if you want, of financial insight and financial options into the LifeLock app. That's where originally, maybe we had discussed that in September, we had the initial ask for financial ones well necessary insights and advice were coming from. That's how we started that project organically and then led to the acquisition of MoneyLion. We now embedding that and I think it's going to take traction. We're very careful. We're very created, if I can say. We're not doing blasting marketing. We know that our customer in LifeLock will benefit from that insight and those new options, but we're following the demand. We're not trying to do a forceful marketing campaign or inside app that could be very annoying. So preserving the piece of money is key and will drive at that space.

The second one, obviously, is bringing Norton Money -- sorry, money into Norton as an alternative to identity into Norton or in full combine, of course. And the most immediate one is money line features into our employee benefit channel that represent probably the best channel on the entire portfolio and having traction on all dimensions. We are about to launch that. Of course, in employee benefit channel, you're going to have to have the time to onboard the new employers, then go for the onboarding a view and then only you'll see the results. So the result will be delayed, but the traction in the early discussions are extremely positive. So it's only the beginning of the journey, I would say, on the revenue synergy side.

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. U.S. first, then you know for a while, we had Latin America leading the way. Right now, for the last 2 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.

thank you. That is the end of the Q&A session, and this concludes today's call. Thank you for joining, everyone. You may now disconnect your lines.

All right. Ready to start. Excellent. Well, already greeting all of you, I wanted to thank you for taking the time this morning and come and review -- still hear the retail music -- and wanted to -- that sounds good. Yes. Let me go over the music. My voice is carrying enough, right? So definitely happy to see you all in person. I've met many, many faces, always happy to see you.

Our last Investor Day was in 2023. So it's great to see you. Today is a briefing, slightly different. Actually, Saket was the first one to say, "Hey, can you explain to us a little bit more about your expanding strategy into financial wellness." What does that mean? And then he says, and to be honest with you, I don't know anything about MoneyLion, so if you can also show me what the product does. That would be fantastic, Saket. So we definitely heard you. And since then, a lot of our cyber safety investors have asked us the same thing. I'm also happy to see a few new faces. I'm hoping we're going to also attract investors that are interested into what's happening in the world of finance, technology finds and our financial products are being distributed now in this new era.

Before we start, I decided to do the normal disclosure, as you know. I mentioned today is all about financial wellness and MoneyLion. What is MoneyLion about? This is not an Analyst Day. We're not going to make an update to our guidance. But as we talk, as we present, we may always have forward-looking statements about our expectations, about our forecast, about our plans and mature enough to know that things may change. Actual results might be different. And of course, we undertake no obligations to update our forward-looking statements. So with that out of the way, let me start with a video that we started 3 years ago

[Presentation]

Excellent. This video is from the acquisition of Avast and it's more relevant today than it was ever before. Our vision has always been very focused not only on protecting consumers but also on empowering them to live safely and confidently in the digital world. And from there, we developed this two-pronged strategy that we actually first shared at Analyst Day in 2021. On the first side, it was really about transforming a point product security portfolio into a full cyber safety platform to protect as many people as possible in this digital world. And then from there, as we're gaining more and more trust from our customers, we wanted to add scale, trust and trust-based solutions for them to do something and get results and value from the data and the services that we are protecting. And that's what we are here to talk about today.

With the acquisition of MoneyLion, we have now fully begun this second chapter. Powering digital freedom has always been a very broad and very big concept. Some of you have called it a marketing tact. It's not. It's actually a very concrete for us. It's about building products, innovative products that help people grow, manage and secure the digital and financial lives, grow by giving them the tools, innovative tools to improve their well-being, manage by helping them manage the complexity of that digital world, the complexity now of the financial ecosystem and helping them take control of that overall environment and secure by protecting identities, protecting their data, protecting their money from the daily risk of living in this digital world.

So in other words, digital freedom has never been just about safety. It is about enabling confidence, enabling trust so that people can live, work and thrive online in the digital world without the fear and friction that comes with it. Today, you'll hear from several of our key leaders. Rick Correia has been with us now through the MoneyLion acquisition. He has a prior life in banking. And since 2016, he joined MoneyLion as CFO and CEO to really help deep drive MoneyLion forward. He's managing MoneyLion business for us inside Gen, and we're super happy to have him, his leadership and his expertise on our leadership team.

You will then hear from Tim Hong, who is Tim over there. So Tim is really leading our financial product, financial technology, white label that can be embedded into our different assets and maybe in other people's assets as well. He served as MoneyLion's CPO. He has a passion for technology and consumer, especially in the financial management space. And then you'll hear from Travis. Many of you know Travis. Travis was the CEO of Avira for a few years when we acquired Avira, he became my business partner as Gen Chief Commercial Officer; been driving the growth over the last few years. And now he has raised his hands to build up our trust-based solution, the segment that will encompass identity, reputation and financial wellness.

And so with that, and no further ado, Rick, I'll pass it to you.

Good morning, everyone. So not to be outdone by Vincent, I thought I'd bring my own video as well.

[Presentation]

All right. MoneyLion has been on an incredible journey, and I'm proud to say that we have been pioneers. We've been innovators. We've helped transform the industry. It's been a series of firsts. We were the first to build the super app, the consumer finance super app, the most comprehensive content, product and marketplace solution ever built. We were the first to bring content through a streaming feed into a consumer app. While many were talking about financial literacy, we were putting our capital to work. To be able -- it's more capital at work right there. we were putting it to work to be able to help people access our 100,000 hours of financial content that we have, plus we have over 25,000 articles in our library. We've launched content creators, and we've created user-generated content. We were the #1 downloaded finance app in the App Store, and we are the #1 fintech in TikTok.

We were also the first to bring financial marketplace technology inside of a consumer app to the masses underscoring our consumer-centric intent. We're the first to bundle all of our products into a transparent membership pricing structure. We are the first digital finance ecosystem. What that means is we bring leading technologies like our SDKs, our APIs, check out our next best offers and all of our content to the entire financial industry. And the results, they're remarkable. MoneyLion is the most unique and comprehensive financial services firm in the industry. And the closest competitor isn't even close. MoneyLion operates one of the industry's largest marketplaces, which means that we drive 350 million total increase from the top of our funnel. That's been driving our 24 million total customers and 8 million of them are active.

In addition to that, we have tens of millions of users that were then life cycling to becoming those active customers. We have over 40 million products have been consumed on our platform, 12 million in the last 12 months alone. We will see as we have nearly two products per user. Our revenue is about -- run rate revenue of $750 million, and we have an 80% recurring revenue profile. And importantly, we've been consistently growing at over 30%. Yes, our customers love us. So with all this success, why did MoneyLion decide to join Gen Digital, one of the leading cyber safety and identity protection firms. To answer that, we have to go back to MoneyLion's vision.

Our vision is to be the #1 destination to help consumers make their best financial decisions. To realize this vision, yes, as you can see, product is important, think of platform is important, having content, AI-driven advice is important, but so is scale and so is trust. And with Gen's 500 million users globally and having the leading trust-based solutions, Gen accelerates our ability to realize this vision. Today, customers are seeing this proliferation of financial products and offers and tools. But with all the threats that are facing customers, the real barrier for them moving online, taking their lives and moving into the digital world is trust. And so what they're looking for is a financial wellness platform where they feel secure as they're thinking about financial decisions, making those financial decisions and then transacting. So the next generation of finance, it's secure financial wellness. With the combination of Gen and MoneyLion, the industry's only secure financial wellness platform emerges, where we delivered the most comprehensive financial services with AI-driven advice with unbiased content, with best-in-class products and importantly, all underpinned with trust.

So let's double-click on what trust means for the MoneyLion customer. MoneyLion is integrating the leading identity solutions and asset protection solutions that are available today. We're integrating into our platform, taking what was already the most full-featured platform and then adding this layer of trust. So in managing and growing their finances in the digital world, MoneyLion customers are going to be able to mitigate the risks of financial frauds and scams. And if they run into a breach, they're going to have someone that can help them fix the problem. We're going to have restoration services and insurance coverage for losses.

Now in addition to empowering people to take full advantage of the emerging digital transformation that's happening, trust is great business. Trust helps people trust helps us increase our conversions. It helps us increase ARPU. It helps us increase our products per user. It lowers CAC and really importantly, it extends out and increases the lifetime value of a customer. So let's take a look at the state of consumer finance today. The dilemma that the consumers are facing is it's a combination of chaos and curiosity. And so as I mentioned, customers are facing an ever more confusing and complex environment where they have to research what they want to do independently. And then when they figure out what they want to do, they have to go and transact on a disconnected array of financial products.

Okay. That's just a fancy way of saying there's way too much stuff. And so customers are juggling credit cards. They're juggling auto loans, retirement accounts, 401(k)s, their savings accounts and a dozen apps. And they're asking like what does my portfolio of products look like? What's going to personalize in terms of basket of financial products that I should have? And then, of course, once you've kind of figured that out, life throws you a curve ball, some good and some not. You make it a job change. You might need a car repair. You might have a tax refund. You might have to help a family member. And so these shocks are becoming more and more constant for people, and they're wondering where can I turn to get that trust and guidance? And in the rapidly evolving digital world. More and more threats are emerging and they're accelerating at the pace of technology from investment scams to phishing to social media scams and they're turning to different providers to say, who can I trust. And that, for us, is the opportunity. The more complex and the more confusing the environment gets the greater the need for exactly what MoneyLion can deliver, which is a path towards a safer and trusted digital life.

In summary, people are looking for authentic and personalized holistic advice versus point solutions and transactional solutions that are out there in the marketplace. And you need AI to solve this multivariable problem where we have been a pioneer. They're looking for optionality. They want to help -- something to help them manage life's small and large income and expense shocks and to help them with the #1 anxiety that faces people today, which is, how do I deal with an expense shock and an unexpected bill. And they're looking for protection, protection to reduce the current and emerging threats that are stopping people from moving their financial life into the digital world.

So if these are the customers, what do our customers look like? The problems are vast, and the use cases are infinite, which means we serve the 99% of customers that are looking for personalized answers to burning questions like I just got a tax refund $5,000, how should I think about investing in that for the short and long term? I just graduated, I'm looking to build my credit. Should I do it with a credit card, should I have a credit card at all? I just got expense shocked with a $3,500 truck repair bill, and it couldn't have come at a worst time. They're asking questions like what do I do when my financial account gets taken over? These are the customer problems that MoneyLion has been addressing for over a decade. And now with Gen, we get to accelerate our trajectory into being the de facto leader in consumer finance.

Let's take a deeper look at our unrivaled secure financial wellness platform from a customer's perspective. First, we put a customer needs at the heart of our solution. We then take the data advantage that we have to be able to give a customer personalized solutions. First, across MoneyLion's first-party products, we help them being onboard into our PFM with budgeting, banking, investing, cash management and more. And then, we take a customer's personalized position in life to help them choose products from our marketplace. So we authentically help them choose personal loans, insurance, mortgages HELOCs and, of course, more.

Having our core first-party products sit alongside our marketplace means that our customers get the best-in-class first-party products and third-party products. It's very similar to the way in which an Amazon Basics sits within the Amazon marketplace. The same way the Kirkland brands sit within the Costco marketplace. And what makes this even more unique is that this is now all underpinned with the foundation of trust. And so we can now help our customers manage and grow their finances online. With over 500 million users globally and the leading trust solutions, joining Gen is a game changer for MoneyLion.

Now you know what MoneyLion loves about Gen. What did Gen love about MoneyLion? Well, one, the breadth and depth of our team and our leading technology solution. Let's dig in. One question we get all the time is you talk about having so many products and features and offers and content, is it all real. Well, I'll do an overview, and then I'll hand it over to our Head of Financial Wellness Technology, Tim Hong, who will do a deeper dive. And at the end, you will see it's more than real. It's unbelievable. What we do is, we think about our platform in 3 buckets. The first is our PFM. The second is our proprietary products and then, of course, the marketplace.

So let's start with the PFM. In order to create a highly engaging customer experience, we've created a combination of content, community and insights in the PFM. Our content feed is the equivalent of a TikTok or an Instagram feed, where we're serving up personalized budget ideas, different content, AI-driven insights, our products and our offers, things across our entire platform. We also have AI search. So it's a single context window into the entire platform. And what it does is it gives personalized offers and insights to an individual based on data that is not typically available in generic LLMs. We also have community services. We have our user-generated content, news and commenting so that our users get to share their stories, success stories, challenges, and hacks to help the entire community. And of course, leveraging our vast data sets, we have our AI-driven personalized insights, giving product recommendations.

These content, community and insights, think about them as the connective tissue. That's what we use to move our customers from that engaging experience into the core product and marketplace offers. So looking at our product suite, you can see that we cover the full spectrum of banking, cash management, borrowing, saving and investing. Tim is going to do a deep dive, as I said, on our product platform. But as a teaser, our product platform gives us the ability to meet the needs of the mass market. We can point our technology at any demographic by engaging -- creating engaging features with specific products and, of course, our marketplace. So now you can see, while we are the most comprehensive and full-feature product platform in the industry, and I've only scratched the surface on talking about our embedded finance technology.

When we say we want to be the #1 destination to help customers make their best financial decisions. That means we have to engage and be where the customers are thinking about those types of decisions. And we do that with our marketplace. The same technology that powers the MoneyLion branded consumer app in marketplace powers the embedded marketplace for our partners. All of our technology, R&D and research and AI investments, we combine all of those to help our B2B partners.

We have two clear sides of the marketplace. On the left, we have our channel partners. So these partners, we have over 650 of them and they are driving 350 million high intent customer inquiries a year. On the right, we have our financial product sellers, again, over 600 product sellers. These are our product partners covering over 30 different verticals. And importantly, they're looking to acquire customers from a channel that's unique and unavailable outside of our marketplace. And then in the middle is our leading marketplace. We branded it Engine. On the surface, it's a matching algorithm, but its real value is the technology that underpins it. I'll give you a couple of examples. Again, Tim, as you can hear is the pro. He will go deeper on this. But we have things like martech technology. And so we're able to have yield optimization and analytics that give real-time feedback to our partners. We do that through an enterprise client portal that we call control center.

We have programmatic compliance. You can imagine that for all of our partners, the complexity of the regulatory environment that they operate in, it's paramount for us to have all of that compliance technology ready built within the platform. To give you an example, when Capital One wants to persist a dynamic pricing model across the Internet, to take advantage of the one-to-many benefits of a marketplace, our engine solution is the clear winner within the industry.

Another feature that we have is that we bring market-leading technologies like Checkout. So when we think about the current state of consumer finance, it's a little bit like a flea market. You get routed everywhere, every time you're looking for a financial product. What Checkout does is it allows us to improve the consumer experience by allowing them once they've selected the product that they need to be able to check out within the MoneyLion app. And that reduces the handoffs and the feeling of the flea market.

Now what's increasingly powerful about the marketplace is that the more buyers we get, the more sellers that we get and vice versa. It's a simple construct. But as we all know, in finance, liquidity begets liquidity. So what do our partners look like? Our marketplace, it's a mass market platform. And the logos you see here is just an example of some of the supply and demand partners that we have. But importantly, they cover the full spectrum of demographics, including income, age, family, homeowners versus renters, geographies and importantly, intent. On the left-hand side, you'll see that we partner with mass media sites with financial publishers and financial services providers. On the right, you'll see we cover all the verticals from personal loans through to credit cards, insurance and financial wellness.

What's really important is to connect the dots and see that this is an important synergy between MoneyLion and Gen. With Gen's 500 million users globally, the user base that we now have can increase the top of funnel, all the way through to the broader demographics that we are looking to start penetrating. We're going to continue expanding our catalogs as we'll touch upon in a minute. What's important is that this platform when we start to dig into our funnel has tremendous conversion revenue and profit opportunities. Let's take a look at the funnel. So we've really transformed the form factor of how consumers interact with their financial lives.

We've done that by bringing content and media that resonates a more traditional social media and marketplace platforms, and we've brought all that into financial services. And the result is this next-generation ecosystem. And this is where we are able to drive those 350 million top-of-funnel inquiries annually with a very low CAC. This creates a structural cost advantage relative to those partners who are solely relying on traditional paid digital media channels. This is, of course, supported by our strategic brand sponsorships, financial content creators and of course, our organic traffic. As we shared last quarter, we have over 24 million total MoneyLion customers and about 1/3 of them are active at any moment in time.

And as I mentioned, we then have tens of millions of users that we're able to life cycle to becoming active users, and they consume over 12 million products on the platform over the last 12 months. You can imagine, of course, that this opportunity is massive in front of us from a top of funnel perspective as we think about the hundreds of millions of users that Gen brings into the equation. As we continue to do product enhancements, optimizations to continue to drive our revenue and profitability expansion.

So we've talked a lot about our unique business model. We've talked about how we convert our customers, let's dig into the economics, and I'm going to start by saying, I absolutely love this slide. And I love it because it gives you an economic lens into our powerful flywheel. Each number represents a distinct acquisition channel and the corresponding contribution margin. This framework drives our revenue and our profitability scale. So let's start with the 30% affiliate channel, the top. Recall the 2-sided marketplace that I had up with all the logos. When CNBC as a customer that comes into the platform, and they get matched with a SoFi product or Capital One product, those product partners, Capital One and SoFi pay us, on average, we will retain about 30% of the fee that they will pay us and then we will give the rest to our channel partner based on a revenue share agreement that we have with them. And hence, the 30% contribution margin. So those are decent economics, but that's just the tip of the spear.

Let's take a look at the 60% margin channel. So when a customer comes in and they take MoneyLion's first-party products, so our bank offering, our cash management offerings, investing, et cetera, we have over a 60% contribution margin. And so that's why it's really strategically important for MoneyLion to continue to build best-in-class products as we continue to bring customers into those first-party products. What's also very important is when a MoneyLion customer, meaning someone who is in MoneyLion's first-party products, then transacts into the marketplace, we earn a 90% contribution margin because there is no revenue share. MoneyLion is supplying the customer. Importantly, the $350 million inquiries that I keep talking about, that creates a significant pool of marketplace users for us to be able to retarget also generating a 90% contribution margin.

Now that bottom right bucket, it's the fastest-growing part of our business today. Therefore, our direct-to-consumer brand investments, combined with life cycling customers within our overall consumer marketplace is a strategically important initiative for us because it allows us to increase revenue take market share. And as you can see on the right, this allows us to be able to expand our overall margin profile. And we've seen this business equation playing out successfully and quantitatively every single quarter for the last several years. So we've been talking about our powerful business model. We've been talking about our customers and how we serve them and even the economics. But are our customers sticky? What this chart will show you is the answer to that is a resounding yes. Our customers get leading first-party products, and then we help them choose their marketplace products or they start with a marketplace offer and then we cross-sell them into our first-party products, either way we are driving and expanding our lifetime value. So what this chart shows you is that we generate an overwhelming amount of our revenue from repeat customers. In fact, over 80% of our revenue comes from our historical cohorts.

Another critical reason for us to continue investing in best-in-class first-party products, increasing our top of funnel and increasing our products per partner, which is all accelerated with Gen. So I've been waxing on for a little bit now. But what's crazy is after everything we've said, we're just getting started. We have many growth factors that allows MoneyLion to continue driving growth over the long term. Initiatives like expansion into new market verticals, deepening those verticals pointing the entire machinery at new demographics, all while amplifying the business using AI, where we have been pioneers for 10 years. We are building a long-term durable engine for high-quality growth. That makes this a pivotal moment, not just for MoneyLion, but for consumer finance because Gen is raising the bar. With the emergence of secure financial wellness, we're not only deepening trust and broadening our reach, we're actually as a combined firm, unlocking new ways to serve, engage and empower our customers. I'm going to pause there, and I'm going to hand it over to Tim Hong, who is our Head of Financial Wellness Technology, and he's been one of my partners for over 10 years. Thank you.

Hi, everyone. I'm excited to be here today to talk about our financial wellness technology platform, which, of course, powers MoneyLion's app and business that you just saw from Rick, but also for those hundreds of partners but also now Gen. So our technology has been a 10-plus year investment built on a modern scalable stack. For us, data and personalization are at its core. This first-party data includes credit data, such as credit scores and credit reports, financial data like bank transaction data, but also things like behaviors. This data enables advice transactions and that 2-sided marketplace that Rick went over.

For us, this is the foundation for building personalized experiences that are valuable to the consumer. And this foundation is proven and really built for the AI age. Every year, our models output billions of predictions. These are things like data enrichments, rankings, recommendations, all to create the kind of user experiences that consumers expect in this day and age.

And now, of course, we're unlocking new capabilities with generative AI. And so as Rick mentioned, scale matters in financial services, our unique business model that not only operates owned and operated brands, but also enables and empowers partners to reach their consumers really gives us a differentiated distribution and data advantage. And so everything you'll see here today is a MoneyLion example. We wanted, of course, to show you some of the app and the experiences there. But I want you to keep in mind that everything here is a platform. It's something that can be embedded exactly where the consumer makes those decisions. And in that sense, our technology is built for any segment, whether it's a mass affluent segment, the underbanked or even in particular channels like employee benefits. And so it's really built to succeed with any segment, including that 500 million Gen users.

So let's start with financial products. We'll give you a peek into how we've built and designed these powerful capabilities. So our highly differentiated financial products are built on advanced payment and money movement capabilities. So this is throughout the entire customer journey that has benefits for both the consumer as well as our capabilities. What this means, though, is that we have products for in times of excess and in times of need. Every customer journey is unique and oftentimes challenging. Even in times of excess, it could be difficult to figure out where to say what to do with this money you've saved. In times of excess -- excuse me, in times of need, it's particularly challenging and stressful and so products around credit building and cash management help those customers as well.

So let's start with our depository products. So first up is the MoneyLion debit card and checking account. It's a full featured FDIC-insured bank account with more ATMs than Chase, Wells Fargo and Bank of America combined, has no monthly fees and a cash-back program our customers love. With it, customers can receive their paychecks up to 2 days early. So I get paid on a Wednesday, and a Friday, instead of a Friday. That's nice as well as being able to use that card wherever Mastercard is accepted and more. This puts us at the center of our customers' financial lives. In a lot of ways, the paycheck is the heartbeat of financial lives, and our checking account enables our customers to manage their bills, transfer money, earn rewards and more.

We also offer managed investment accounts. These are capabilities to build wealth and save for the future. Here, MoneyLion serves as the registered investment adviser recommending customized portfolios based on the consumers' risk profile and preferences. So here, I'm showing you our managed investment account where consumers can view their balances, add and withdraw money. Take a look at their portfolio that we've customized for them across those diverse low-cost ETFs. Of course, someone can set up roundups, where with just a few taps I can choose that with every purchase, I can round up that transaction and make a micro investment in our managed investment account.

So these kind of capabilities where someone can very quickly and easily set up recurring automated deposits really empower the consumer to get started. So just like that, someone started rounding up their transactions into their investment account. So just think about it. Over 60% of Americans don't invest beyond the retirement accounts, MoneyLion is democratizing access to these kind of tools.

We also offer active investing where customers can trade individual stocks and ETFs, with the same ease of use, automated tools like roundups, as well as the tight integration with the rest of our portfolio. Here, in our active investment account, customers again can see their balance, their holdings, but also participate in a vibrant community where they're quizzed and can learn more about what's happening in the markets today. And in just a few seconds, take a look at an individual stock like Tesla, see how it's performed over the last year and then other mechanisms to engage such as, let's say, if I invested a week ago, how might have my investment have done or even a year ago. And of course, because it's integrated into our payment and money movement capabilities in just a few taps, I can select to buy a fractional share of $5, $25, $100 or more. And with one swipe be able to become an owner for the first time. So these kind of capabilities are incredibly powerful for those who are just entering the investment landscape, but also, frankly, for many, many others that are looking to up their game in terms of their investment capabilities. All of these depository products, banking manage investing, active investing are holistically presented and customers are giving advice about those products in real time.

So let's talk about our products for in times of need. These are cash management solutions as well as credit products. So first up is Instacash. This is our industry-leading earned wage access product. So all you imagine if you were just hit by an unexpected bill on a Tuesday, but you don't have enough funds and you're not paid until Friday. What do you do? Unfortunately, for over 50% of Americans, this is a situation that's filled with stress and oftentimes hefty fees with Instacash, it's problem solved. So in just a few seconds, a customer can request their Instacash balance, whether it's $100, $200, $300 or more, and they can receive funds next business day with no fees or instantly with a small expedited fee. And just like that, those funds have been deposited into the account of they're choosing, but especially our checking accounts.

And so, just like that, the customer can then pay for that product, repay us, excuse me, at their next paycheck. And Instacash is a 0% APR product. So there's no additional fees. So this is a simple product for our users, give them access to those kind of problem-solving tools to be able to manage their cash more effectively. But it incorporates over 10-plus years of AI machine learning models as well as payment intelligence that we've baked into our ecosystem. So this includes algorithms to instantly qualify customers for Instacash. It includes algorithms to predict and identify paychecks. We ensure that we don't overextend users, and we also reward users with high -- good users with higher limits.

Our payments intelligence also correctly and intelligently routes payments across ACH, debit card, RTP and internal rails to ensure that payments get sent to the user quickly, cost effectively and reliably. So the result is transformative. An overwhelming number of users indicate that they're better able to take care of their family and themselves with Instacash. This puts them in control for the first time. It also helps them avoid costly $35 overdraft fees charged by the big banks, late fees on bills as well as more expensive forms of credit. So all of these come together to create an NPS score, a leading NPS score of 64.

The other often common problem that we're solving for our customers is credit building. Now if you have a -- whether you have a credit score in the 500s, 600s, 700s or more, good credit scores unlock the American dream. They enable you to achieve financial goals like buying a house, a car and making sure that you don't pay too much in interest. And so MoneyLion provides step-by-step programs to build credit. This includes access to secured credit builder loans. These are reported to all three bureaus. And for probably the only place in the industry, being able to earn rewards for financial wellness. So just imagine, have you ever been rewarded for financial wellness, certainly not by your banks.

As Rick mentioned, we have a holistic library of financial wellness content, and we deliver that to our customers here to enable them to take those steps on their journey to better credit. The result is this holistic approach that includes financial products, insights, content and more is that our customers raise their credit score by 25 points or more within 60 days. So altogether, our financial products unlock incredible engagement and achievement of financial goals across the entire life cycle of the customer. Rick mentioned how we retain our customers. And that's because we have this holistic portfolio that spans every need within the consumer's mindset. This comprehensive approach is also something we're thinking about how can we bring to Gen brands like LifeLock, Norton and Avast.

All right. So let's talk about our second pillar, embedded marketplaces. As we mentioned, this allows customers to take action on their needs, especially when we may not offer financial products in that area. These are fundamentally data-enabled experiences. What do we mean by that? So financial products are extraordinarily unique in e-commerce and that the consumer picks the product, but the product has to pick the consumer as well through underwriting or other rules.

So what that means is that too often, this feels like the flea market that Rick mentioned or the DMV where you're being passed from desk to desk. So just try shopping for a mortgage online as an example. As soon as you submit your application, you'll receive dozens of phone calls and brokers contacting you. It's not the digital-first personalized experience built for convenience and control. And so we operate in 30-plus verticals, including credit cards, personal loans and high-yield savings. Those are incredibly powerful for our consumers to meet any financial goal.

So within the MoneyLion app, this is one example around our savings calculator where our marketplaces and our intelligence are seamlessly integrated with the app experience. So someone can take a look at their savings calculator, an interactive way to see how much they would have earned. And of course, when someone clicks to go in, these are connected to our marketplaces, where there's real-time APY rates provided directly by the financial product providers. And so these financial product providers compete for our consumers' business. This also extends to personal loans, where our rich data sets allow us to do even more powerful matching. So someone can select how much -- what kind of loan they would like answer a few questions that help us match their needs more effectively with the financial product.

And because we already have that user's personal information, we're able to securely opt them in to seeing their personalized offers. So just like that, a customer is able to compare loans from different companies, and these are preapproved offers that they can then choose and check out with. These use the same APIs that we offer our partners. So just like Amazon, uses the APIs of AWS, hundreds of our partners use our APIs embeds and SDKs to be able to deliver the experience they want to the market that they're targeting. And so they also use our matching and monetization engines. These are critical aspects for how we can use our scale to create differentiation.

So brands like SoFi, Experian, Chime, CNBC and more, all utilize our technology to be able to match with their customers. So one example, for instance, and this long tail of partners is a home improvement contractor marketplace. This is a marketplace where consumers can put in their home improvement project and see which contractors and get bids from those contractors. Now that contractor marketplace has also integrated our personal loans marketplace. So we can meet the customer at time of need, at time of intent and in time of decision with the products they need.

So this is an example of the kind of integration where we're meeting the customer where they're making that decision. It's an incredibly powerful business model because, again, we're driving that 350 million increase every year through our marketplace using this technique. And so that scale really gives us the differentiation. The scale of our data improves our monetization engines. That improvement drives more partners to our marketplace and we get more scale and the flywheel of scale keeps going on. Already hundreds of partners in the last few years have joined our platform so that they can achieve their business goals as well. And now I'm incredibly excited, too, about being able to power AI experiences.

Now typically, an LLM is effectively scraping the Internet for products, offers and the specifics. But with our APIs, of course, they can get directly connected to those APRs, those APYs those financial products and be able to provide action for those customers -- those consumers as well. I'll have a little bit more on this later in the slides. And so one of the reasons why our partners choose us is because we have the most delightful marketplace user experience in the industry. So just imagine, if you're in the market for a flight, let's say, to Hawaii, and you went to expedia.com search for your flight when you chose the flight instead of having a seamless checkout experience you instead went to delta.com. You can imagine what would happen to conversion rates, consumer NPS, things like that. Unfortunately, a lot of financial marketplaces work in just that fashion.

So we've built a fully integrated checkout experience, integrating all of the steps of the financial product journey from search to application, to decisioning and then finally, taking out the product. So this is a single unified experience. It lets us improve conversion rates, but also guide the user throughout their journey. So if Checkout is the front end, the magic really is in the back end, how we support this with our infrastructure. And we do so with Spark, our proprietary hosted underwriting platform. This is connected with our massive volume, and it provides unparalleled matching capabilities as it's connected with the most advanced data sets. So dozens of lenders and issuers have already uploaded their underwriting models to our marketplace.

So when a customer applies for a product on our platform, we augment and enrich that data with first and third-party data sources. We apply it to those underwriting models, and we're able to deliver instant decisions around qualification directly to the consumer. For the consumer, this is an incredibly privacy-centric approach. Their information stays on our infrastructure and isn't sent out all over the Internet. It also gives them more confidence that they're going to be approved for the products they want and less of that feeling they're at the DMV going from desk to desk.

For partners, it means that their conversion rates are higher. Their data costs are lower, and they can target their exact right customer, all with the bank level compliance that their teams require. So already, these technologies are already in market and delivering results. So here's just one example, working with a top credit card issuers where a customer has received an offer, in this case, a prequalified offer for a credit card. And when they choose that offer, instead of going out to a separate website within our properties, they can select the card, add an authorized user, add other options, their PII is securely transmitted. And just like that, they're approved for that credit card. And through a technology called push provisioning, they can actually instantly put that card into their digital wallet, starting their journey, being able to use that card instantly as well. So if you compare this to the status quo today, go from website to website. You have to do all of your own research, you have to convert on a different platform. And that breakage over and over and over again is not the kind of user experience that consumers expect.

For us, our marketplaces match supply and demand with data, AI and these amazing user experiences. So I'll finish up with advice and AI, arguably the most important pillar of our financial wellness technologies. As you'll hear soon from Travis, Gen's trust-based solutions, including financial wellness are all about providing personalized results, personalized advice and solutions to consumers. Built on the data that's been entrusted to us. And so customers look to us to both protect and monitor but now actually manage and grow their data. This is driving engagement insights and matching, again, with this user permission approach. We include verified identity data. We have credit data like credit score, trade lines, repayment history.

As I mentioned, bank data is incredibly rich. Financial transaction data, as we like to say, we know how many tacos are in Texas. And so that kind of data, combined with behavioral data, such as financial goals, the kinds of topics users are interested in because of their engagement and content. And then finally, of course, their financial shopping behavior on our marketplaces, gives us this incredibly rich data set to be able to drive relevancy and engagement to become a daily destination.

One way we do this is through our feed and content technologies. I think you got a little bit of a peak of that in Rick's video, this incredibly rich and proprietary set of content that's been verified. And so unfortunately, for better or for worse, over the last 10 years, consumers have looked to alternative sources for their financial advice. It's no longer a financial adviser. It's no longer their friends and family. It's social media. It's the kinds of content that are snackable, engaging, entertaining, but here, Gen, they're also verified.

Here, I'm showing you our feed. Every feed is different because every user is different. Not only that, every day is different for a user to hear someone can see insights about their top data points, get a recommended offer, as I showed before, be able to take a look and learn more about markets or individual stocks, but also take a look at verified content. This is Brandon Copeland, who also teaches a course at UPenn talking about how to build credit. You'll learn about the -- how to buy a house, but also things like quizzes to help engage and test our audience here from the sources like Norton. So all of this content is engaging users every day to create this daily destination where someone is learning and getting inspired every single time they come to the feed. That then enables us to conduct them the financial products that meet their goals.

We're even gamifying experience, encouraging daily visits to make sure that someone can keep their streaks up and be able to come back over and over. So all of these are tailored to your goals and financial profile. And what we've seen is an incredible response. Over 2 billion pieces of financial wellness content have been consumed by our users on our platform. So clearly, the demand for this kind of approach is there.

And so lastly, let me just talk a little bit about AI, of course. As Rick mentioned, we've been in AI for over 10-plus years. AI is embedded throughout our stack to be able to deliver these experiences to the consumer. We have dozens of proprietary models, tech stack, LASIC, ASTRA and more that are really engaging folks at every stage and making those kind of predictions. So we're using algorithms to figure out what's the difference between a paycheck and just a normal deposit. We're using algorithms and models to determine risk underwriting. We're using them to predict the next best offer. We're even using them to dictate how marketplace offers are shown so that the most relevant ones are shown first.

And as I mentioned, over billions of model outputs that are validated and being done every year to enrich this customer experience and achieve those outcomes. Of course, we're extending those capabilities to generative AI so that we can lead and secure financial wellness. This privacy-centric and secure infrastructure approach is really about bringing approachable personalized insights to the consumer so that our consumer can understand their financial and credit data even better.

So someone can ask how much did I spend on groceries last month and because they already have a connected bank account with transactions, we're able to determine very easily and simply what they're intending and what kind of answer we can provide. Someone can ask, how do I reduce my credit card debt. And because we have information about their credit profile and their debt, again, able to deliver those answers easily and simply to that consumer. We're also including our verified financial content and tips within this and then also connecting it to our financial product marketplace so they can take action. So customers can ask how do I improve credit and hundreds, if not thousands of other questions that come up every single day in this very dynamic set of lives that our consumers lead.

As mentioned, this really enables our consumers to talk to their money. For the first time, with generative AI folks can have a financial adviser in their pocket. And as mentioned, Gen users already look to us every day to track and monitor their data, and now this expands the tools at their disposal to be able to engage. Behind the scenes, of course, the techniques are incredibly powerful. We use agenetic architectures to enable our systems to dynamically reason through a query and provide seamless answers. These techniques like task planning to coordinate tools, one tool might look up a credit score.

Another tool might look up verified financial content and another might even answer a customer service question. And so whether you're looking at a credit score or otherwise, we're also seamlessly integrating these answers into a response and then adding verified citations, so customers know where it's coming from. So all of this is done in seconds, if not milliseconds.

So Gen brings together, and I'll end on this slide, Gen brings together all of the components of secure financial wellness in this new age. It includes first-party data that helps us understand and personalize the experience for the customer. Marketplace APIs that enable customers to take action, payment APIs that help consumers reach their financial goals. And of course, that verified financial content that MoneyLion has a deep history in so that we have trusted forms of advice. All of these are enabling customers for the first time to create a new category we call financial wellness.

Trust is the key to this. We have decades of equity in earning that trust. And so that's the Gen financial wellness tech platform, content that inspires, insights that are personalized, choice and access through financial marketplaces and empowerment through financial products. As I mentioned at the top, all of these examples are MoneyLion examples. But fundamentally, this is a platform built for scale, already in use by hundreds of partners now unlocking even more with Gen and its 500 million users.

So with that, I'll pass it to Travis to talk about financial wellness and trust that Gen more broadly. Thank you.

Thank you, and hello. I always get so excited when I hear Tim and Rick talk about the business. It's a fantastic business. But I would like to help you maybe a little bit understand it from the Gen cyber safety side. How -- why the connection is there, how the customers will benefit from this increase in value that we can offer them. And so when we were doing our research and realized that MoneyLion was a way to accelerate, we were talking to lots of customers. We were interviewing and discussing what do we mean to them, what do they use us for, how do they use it? And what are their journeys.

Now I'm going to give you one example. Her name is Lisa, just exemplary for one of our Norton members. She's been using our products to help her feel confident online, right, protecting her devices, the files, her data, making sure her digital exhaust is less exposed. And she's in the position to think about what she can do on the Internet and look and she wants a car. And because she's a LifeLock customer features that we add in the Norton membership, we have access to her credit score, we look at her financial transactions. Today, we monitor them to make sure that they're accurate. And we let her know if anomalies in her financial accounts have occurred or something that an unintended expense hit her account that she can fix.

But looking at her credit score and she's got to the card journey, first she does is unlock her credit file because she knows she needs to lease or finance a car. So in order to be able to be approved, she unlocks her credit file through our application. Post to the car dealership talks about the car she wants, negotiates a price. The dealership offers her financial terms. She takes those terms and walks away. And this is an area where we could have helped her even more. What we didn't do was explain to her what's the advantage of leasing versus taking a loan, what is the advantage of having a plethora of choices that are out there in the Internet to select from to give her better interest rates, better terms and conditions. And I'll talk a little bit more about some of these examples, but we could have done a lot more. And actually, it is part of our promise. We want to empower her to be the best she can as Vincent pointed out in his presentation in the beginning. It's our obligation to do more since she's already interacting with us along that journey and along that decision path. But I'll explain it a bit more in detail.

So within trust-based solutions, we deal with who she is, the reputation she has and the empowering of her to make better decisions in her life. And right now, we speak about financial lives, managing her identity, making sure that her credentials are accurate, her credit score is accurate. Her reputation on the financial market is properly set up so that when she wants to take that decision of the car, we are there for her and we made sure that, that information is accurate that she gets the best she can get out. Growing her finances. Now we have the ability to not only help her make sure information is correct, but actually help her select the right product and service, as well as transact that service on the platform, reducing her digital exhaust. Because as Tim pointed out, we can actually make the decisioning and the underwriting within the platform and closing those loans for her. So now we've reduced her exposure on top. I'll talk about those things in a bit more detail.

But it all starts because the traditional journey that she was accustomed to was a lot about the recommendations of people. It's the salesperson at the car dealership that says you have these options. This is the one that you should take. She takes it. It was about that eye contact, that relationship. But we know that the digital world has changed all that. I mean it's changed already for many categories and financials, as Rick pointed out with the flea market examples is actually even more complicated than those other markets.

Lots of products, lots of different journeys, lots of different solutions to solve her needs. Well, we have an opportunity that actually in the Internet, we have more verification in signals that can make that transaction a trusted transaction. We can do ratings, reviews, look at the companies, get background information about the entities that she wants to work with and interact with, something that wasn't actually possible before at a depth that wasn't possible before. And with the marketplace platform and a decisioning platform, we can actually distill what's perfect for her, what fits her profile, what fits her capabilities and what fits the terms and conditions of the things that she's looking to achieve. So bringing all that in the digital world is just actually enhancing the capability for what she was already relying upon us on.

We've been doing this for 4 decades. We've been protecting people as they start to explore the digital world. First, their devices when they connect to the Internet, their e-mail, the web pages that they visit, the scams that they're confronted with, whether it's now on WhatsApp or SMS, we are there along the way. so that, that connectivity is safe and trusted in secure. By entering with LifeLock, we went to that next level of protecting who she is on the Internet. Her credit score, her credentials, making sure her accounts can't be taken over, if they're leaked, getting her prepared and even more importantly, helping her fix if something bad has happened to our credentials.

With ReputationDefender, we went into the next level of not only who she is, but how she's perceived. What are the attributes that we'll take in to be -- taken into consideration as she goes down in that digital journey. And with MoneyLion, we bring the power of decision-making, the power of the ability to better understand what is right for her to go into, what transactions are right for her to take. Let's talk a little bit about identity. Identity covers a vast amount of information.

And just simply when you enroll in LifeLock, we are starting to help protect you that first moment, whether it is your social security number, your e-mail, your account credentials whether it's your driver's license, your passport, all relevant -- very relevant personal identifiable information that could be abused if gotten into the wrong hands that we help you monitor and protect, but even more than that. As you build your financial wealth by a house, we're able to go and make sure things like home title protection and other services and registration services are properly documented and verified. We also do it for your family.

As we know, and as Rick pointed out, as people enter the financial world, they start off at a different credit level, a different financial stage than when they're later mature in life. We bring tools to make sure that, that financial journey is protected through LifeLock regardless if you're a child coming into the world or a senior adult making sure you're protecting all that, what you've had, safeguarding all those assets that you've built. We monitor constantly. We alert if something happens, but we also have an extremely good restoration service, a white glove service that every member can access where we will help navigate in the moment that something went wrong or that you were fraudulently abused in one way or another. That white glove service is backed up by insurance. Very often in those situations, there is financial loss. And within our packages, we cover those financial losses to make sure that you are put back in the position of being holme. Very important aspects of what we do within LifeLock.

On reputation, what most people start to realize is your reputation how you are perceived is becoming important in every aspect of your digital life, whether it's applying for a job, I mean, it's unbelievable that 57% of people in the HR department or companies have rejected candidates purely because of the social profiles that they found online from those candidates. That's a huge number of people looking who you are and how you're perceiving, whether it's securing a loan, it's becoming more and more a factor to look at beyond just your pure financials, other aspects of that digital life, employee verification, social profiles, risk aversity. It can come in just as strong as your actual hard facts of your bank account and your credit score getting elected.

What's important is, at the end of the day, you want to do a few things. One, that first impression you want to make positive, which means when somebody searches your name, or asks an AI chat about you that, that information is accurate and accurately represents who you think you are and who you want to be. So we want to promote the good and we want to remove the inaccurate outdated information, false information so that who you are and how you are perceived ia as accurate as possible because it comes as such a vital component of so many decisions that are occurring in life.

And then, of course, we want to build resistance, resilience, the resilience to keep monitoring that to keep actively looking because the Internet is fast, things change, you're posting, you're acting, you're reacting and you want to make sure that at any given time, you're aware of what's happening so that you can adjust and take action to correct. Super important as we go down this digital journey. And I didn't touch on financials, but actually, those two products have already gone very far into the financial services section in financial solutions.

So on the credit score, we've been providing insights how you can improve it. We've been providing information about what has impacted it so that you can take corrective adjustments. We've been looking at the transactions of the user, explaining to them when a transaction is abnormal to their normal day life when something might have happened, it could be fraudulent or it could just be an unintended transaction that the user initiated. So that they're put back in the power. And this journey has continued. Your credit score is a form of reputation, and it will be used. The transactions that we're monitoring are used to make decisions in the future. Why couldn't we just help? And that's when we came to MoneyLion and said there's an opportunity here to go that next step and really empower the user on that decision journey that they're going through.

And it's interesting when you look at the 2 worlds, and both Rick and Tim alluded to it. On the one side, we have tens of millions of users trusting us every day to go on to the connected world, especially in the U.S. I'm going to use the U.S. as an example because I think it's really important to understand these millions of users of Gen in the U.S. are taking 2 million car loans every year, like I just gave you the example of Lisa. Over 7 million credit cards every year, they are applying for new ones. They are opening more than 1 million personal loans a year. These users have trusted us to make sure that what they're doing online is accurate. Those volumes, we have a responsibility to make sure that our users are actually picking the right product and right service.

So on the one side, we have a customer base that is expecting us to do it, we flip on the other side, now we have the mechanisms to make sure it's done well and to the best of their advantage to make sure that not only the service providers get the right profile and information, but that the users are put in a position of power to be able to make the right decision what fits their lives the best. And as they build their wealth, they have more to protect. And so we see the circle come right back again because then when they go into asset investment in other areas, we're there to make sure that those things that they've worked so hard to achieve are safeguarded and the journey continues.

So on the one side, we have the 0 CAC. We have a lot of existing customers with a lot of transactions where we're already today in the middle of that we're now introducing the financial wellness features, too. And then the other side, helping them on their financial journey increases the responsibility that we have to protect them with more solutions and more services. So you might say there's companies out there that do it but there's a lot to make secure financial elements that has to come together. On the one side, it is that core protection, right? Is that trust, which was mentioned quite a few times, we've been there for decades, providing that. We have the foundation to say we make sure you are protected from the bad and that you're empowered to do the good. We've been doing it for years.

Authenticity, we come from a membership world. We come from what's doing best for the users. We have the ability to understand those users, make sure their information is valid and verified and we're recognized for doing that as best-in-class across the entire country and across the entire world. Personalization. Tim talked about AI. We've also, since years, been using machine learning and AI technologies to fight against the bad to recognize what has happened, and now we're just amplifying it even more to make sure that the whole ecosystem is extremely personalized into the -- tailored to the needs of the user at the moment when they have to do something or want to do something. And of course, contextualizing it. We're able to follow that journey of the user, whether they're starting out in their financial careers, and in their professional lives or when they're at the stage of thinking about future planning, retirement and how do I make sure that I have the stability that I need at that moment in life as well.

And the open ecosystem because while we have great first-party products and services, and we will continue to be the best in class in every product and service we run. It's really important that we have a network of ancillary services that when the users need spreads beyond what we can serve them that we can give them the trusted guidance, the trusted relationship to those products and services that better fit their need. Those combined put us in a position to compete in a market, which is very fragmented. All of these pieces have to come together in order to be able to provide a true authentic service to the users to make sure that they are going down their journey and doing what's best for them in their financial world, but also in their digital world. We empower them.

And most importantly, we keep it in a controlled environment because through marketplace and through engine, we are actually limiting the exposure of those decisions. They're not going to the flea market and spreading out their credentials everywhere. We're keeping it within the system and making sure that, that transaction stays in that private environment. So as a summation, this journey, the financial journey and our cyber safety journey that we've been covering for users for decades is just merely an extension of where we were already going. It is bringing another set of values, additional to somewhere where we're already interacting and a key part of their journey. Now we are able to pick them up in the beginning of the career, helping them apply for that job, getting accepted by a school, bringing them into a place when they start building assets to help them protect those assets and build security and give them insights on what they should do next to the point where we're protecting the wealth when they build it safeguarding the values that they've worked so hard to earn.

Doing this now with AI technologies and the capability to communicate, as Tim referred to, in snackable content along the way, we bring not only the confidence to transact but we actually bring the information that they feel empowered that the transactions that they're making are right.

And so with that, I wrap up why it fits within the Gen population. I'm going to hand it over to Vincent to talk a little bit about the greater Gen strategy and how we evolve.

Understand more about our products and why we put identity reputation management and financial wellness together into one division or one segment inside our company. I was discussing with Andy from Wells Fargo as we entered into the room, Andy was covering Symantec and dropped when we sold the business to Broadcom 5 years ago, and now he's back covering the stock. And we're talking about how big of a transformation we've been driving over the last 5 years. We clearly set to become the global leader in cyber safety, specifically for consumers. And now with 500 million endpoints on our platform, 75 million paid customers, billions of attacks protected per day, that's no contest.

We have a very strong R&D AI data team that constantly stay ahead of this evolving threat landscape and our evolving consumer needs, our customer needs. And then with that, our brands have really become an essential part of a consumer digital life. 5 years ago, we were mainly a point product organization. And we set out to become a cyber safety platform backed by users, trusted brands and then moving from protection to empowering them. And today, in this next chapter, of course, our cyber safety remains our core foundation, but our purpose is becoming a lot bigger is really bringing together that cyber safety, that reputation management with financial wellness and extended that to many other trusted solutions.

Now enabled with a much richer set of data with an AI business model as team and Travis have shared, we're able to provide kind of a unified architecture to our customers that allows us to provide personalized, contextual verified experience to our customers in order to have the best recommendation possible. And that's the powerful convergence. We're bringing cyber safety and trusted solutions and defining what we mean by protecting and empowering people in the digital age. That integrated portfolio architecture is not just a collection of products, really it's an evolution from protecting all the way to empowering people to really live and work and now thrive online in this digital world.

And when we say we've transformed with a vision, with a strategy, we really are delivering it with operational excellence, our operational discipline, our focus, of course, importantly, delivering tangible results. We scaled our company in a balanced way, balancing growth and profitability, as you know, over the last 5 years, we've nearly doubled our revenue with a CAGR over 10% and delivering even better profitability with EPS CAGR of over 20%. And that's for me is a hallmark of both diversification and execution.

We expanded from 20 million paid customers back 5 years ago and the now to over 75 million paid customer worldwide. We've built that integrated unified architecture that now allows us to deploy new services, new value to our customers in a seamless manner. And with that data set, the rich data enabled and permitted by the customers with AI as a mode, we've now created a more defensible edge by powering that personalization, that trust at the scale. We also, as you know, have executed strategic acquisitions, integrating them into our ecosystem, and we've done that by maintaining our operational efficiency, consistently delivering our operating margin above 50%. So when we say we have a strategy, we have a vision and we're transforming our portfolio, really, it's not just strategy. It's demonstrated in those numbers that you see here in the way we operate and how we deliver at scale.

As we bring together cyber safety and financial wellness, we really have an enormous and gigantic opportunity ahead of us. In 2023, when we share about our TAM, consumer cyber safety, we had about $22 billion of opportunity at a steady growth rate of mid-single digit. But with the rise of that digital finance with the evolution of our consumer needs, the landscape is shifting for us. Consumers are increasingly looking for that trusted digital platform that will not just protect the identity or manage that data, but also will manage their money, monitor their credit, help them grow the overall financial profile and make better decision online.

So by adding now secure financial wellness, we more than doubled our overall addressable market overall now $50 billion growing at a higher rate. I know that this is just as Travis mentioned, U.S. focus for today, but cyber safety, our global footprint is fully global in over 150 countries. And so as we expand internationally, we expect to bring the full features, stack features to those consumers. It also does not include what I would call an AI multiplier as AI will constantly enable us to innovate more, automate more and bring services to customers that in the past were not accessible like financial planning, back down to them in a very automated manner. So it's not just a bigger market. It's a much more dynamic market. It's a faster growing market, and we feel we're uniquely positioned to go and capture it. And why are we uniquely positioned because we've built a very strong portfolio of capabilities over the last 5 years.

We definitely have an innovative-driven portfolio focused on AI with over 500 million of end points on our platform, we now get unmatched insight into the customer profiles. And by being really focusing on the customer, the consumer journey, we're able to create that trusted experience to boost retention, lifetime value and loyalty. So this consumer-first approach really makes us the leader in cyber safety and now extending that into that financial wellness.

Our brands Norton, Avast, LifeLock and now MoneyLion are definitely household names, two of them global, giving us a edge in winning that experience in winning that consumer confidence. We've also built a very strong distribution. We already had a very strong direct-to-consumer approach with the acquisition of Avast, we've brought it on the freemium to premium business model. We have a very strong B2B2C organization. And now with Engine, we're adding also another 2-sided way to distribute our products. And then of course, as you know, we execute with discipline. I think I will take that as our trademark.

One of our key growth is really our AI-powered platform that we've been building. It allows us to really deliver high personalized experiences at scale. We have insight over 500 million end point, as I said, billions of signals are processed daily, and AI understand our threat patterns, consumer behavior and we just added now financial needs in real time. So this means that we now can offer the best recommendation to the customer at the right moment. And so whether it's protecting the identity, securing their data or choosing the right financial product at the right moment.

So in short, for us, AI started by automating the protection, then providing the best cyber safety. Now it's really empowering our consumer to make confidently trusted decisions. And it's not just a future opportunity. We're already full in with this AI-driven business model. We have AI capabilities that we've embedded along the customer journey for higher trust experience from that behavioral segmentation I've talked about in the past that predicts better churn to AI-powered scam assistant Genie that we're now expanding into all of our assets or sentiment AI in our reputation, overall, that helps you manage your reputation and strengthen it. And now we had AI-driven product recommendation but with the addition of MoneyLion and the Engine and Spark capabilities, we feel that really we're able to offer even better recommendation at the best moment for the customer.

So as we bring our capabilities together, we bring the strategy together, bring the assets we've built together into those two segments we really have narrowed our focus on key growth bets for the next chapter that we've just entered. Obviously, cyber safety remains our foundation. We'll continue to innovate to stay ahead of this evolving threat landscape on a global basis. trusted solutions already, empower consumer around the identity reputation and financial wellness In those two segments, each one of our category we offer #1 or #2 product features into the marketplace. And that's nothing new for us. You'll see us continue to innovate and adding features and adding capabilities in those two.

Now of course, looking ahead, we want to invest into a dynamic network of partners to extend the reach to the customers and bring now third-party product. We had always offered our best-in-class first-party product. But with this dynamic partnered network and the marketplace concept, we're able to increase the value to the customers. And at the same time, our AI platform continues to be enriched and will offer even better personalized guidance decision-making for better decision. And finally, we'll continue to invest in moving internationally. You know that it's been a growth factor for us on the cyber safety side as we continue to integrate the full stack of features from cyber safety to trusted based solutions we'll expand that into targeted countries as we go.

Now to conclude, we move from point product to a cyber safety platform now to an ecosystem. An ecosystem powered by this AI platform, a strong first-party portfolio of products and a growing partner that can supplement with new products and added value for the customers. And so our strategic priorities will create this growth cycle where we have more users, which provide smarter insights, better product stronger trust, higher scale, and that's the Gen ecosystem. So we're not just protecting consumers. We're now empowering them with confidence, choice and controls in their digital life, and that's what will unlock the next chapter of Gen growth. So not to be of done by Rick in his video. I've reshot the video I started the presentation with.

[Presentation]

Thank you. I will invite now my fellow here to join on stage. Plus Natalie, our CFO. Most of you, of course, know Natalie, and we'll go into questions. Saket. You're the first one to raise your hand. We're going to give you the mic. Yes, here yes. Okay. Perfect.

Saket Kalia from Barclays. Thanks a ton for hosting this session, really helpful, really educational, particularly from the whole group here. So Vincent, maybe this is a question for you. So when MoneyLion was public, about 1/3 of it, I think, was coming from enterprise, right? You guys correct me there if I'm wrong. And I'm going to use that as sort of a proxy for the network, right? The value there is clear. Whereas a 30, 60, 90 that great triangle that was awesome. Maybe the question, Vincent, for you is how do you think about the future of the other 2/3 of the business, right? There was a growing subscription component there really changed around the Norton business, right, with subscription, maybe that's part of it. But how does that mix of the business between that 2/3 and 1/3 change over time?

Yes. And I'm going to bring about the first, but let me talk about first the marketplace. It was about 1/3 in MoneyLion, but there we're roughly around 40%. So it's faster growing. We've delivered 3 quarters in a row not at 50% growth rate in that Engine. I think it's a fantastic capability not only to bring financial wellness, advice and decision-making into the gen asset, but as you've heard from Tim, bringing that into other people to go and reach out to the customers, especially in the days where SEO is a little bit like question, what happened with AI. This is the perfect reach engine to go and provide the product you need. We definitely would continue to invest in that, expand maybe even beyond wellness and really use the engine as the marketplace for us to provide best decisions in various trusted solutions.

Now when it comes to the other part of the portfolio of MoneyLion, it is the best-in-class first-party financial management app that offers a richer set of features from basic credits, buildup in cash management, all the way to investing capabilities. The business was essentially transaction-based in terms of its revenue view. And as you know at Gen, we've built a lot of membership. We move from point products to membership structure, and we'll continue to develop new membership and develop the business model into a membership view there. We've had strong growth rate in that area, too, but at this point in time, engine is growing faster.

Great. Rob Coolbrith from Evercore. Can you just -- this is primarily for Tim, but anyone else wants a way in as well. Can you just sort of take us through the decision framework that takes place in terms of 1P versus 3P offers again, through that lens of 30, 60, 90. Just what sort of drives the framework? And then given management's prior comments around Q2, but making some changes within PFM, I assume that plays out as a higher share of customer acquisition directed to 3P offers. But maybe you could just sort of tell us how that plays out. Do you change the decision framework at all to change the end result?

Well, I think as Rick mentioned, we have this really highly differentiated set of first-party products, right? And the first place our marketplace went was those adjacent products that really help our customers throughout the -- potentially around first-party products we don't offer. And so that's really the genesis of the marketplace, being able to identify those needs where we can have a robust sort of comparison and marketplace for areas where we don't have those first-party products, right? And I think that's our philosophy to make sure we keep that customer kind of throughout their journey.

If I can add there. Definitely, the marketplace will offer visibility of the consumer needs on a much broader spectrum. We know there are some products who will never get into. We're not going to become a mortgage company or a lending company. And so there, we will offer it. It will be a third-party product. We know the consumer needs. The other product we could consider LifeLock customers have kept asking us about wheel riding or estate planning. We don't have that. We may offer that first as a third-party product and later on beside that, it can become in-house. And so we're going to have that constant view around what we can offer. When we bring a first-party product, we want to have the conviction, we can be #1 in that market category, and we're going to focus on that.

Andy Nowinski, Wells Fargo. Great job today. This is really helpful. So I wanted to ask a question on the cross-sell opportunity. The 30% margin that you talked about getting when a channel partner brings a customer to Gen. I think is interesting, but a lot of investors are certainly more interested in that cross-sell, where -- and what you're seeing there because I think the cross-sell opportunity represents a significantly higher margin than 30%. So just wondering if you could maybe talk about what you're seeing from that perspective.

I just want to talk about within the marketplace, and I'll talk about the synergies with Gen.

Yes. So the 30% channel is incredibly important talked about because we're able to bring in those 350 million inquiries. And then, of course, these are transactions that are not all just being memorialize at that point in time. A customer may not be ready to take that mortgage. They may not be ready to take that $10,000 personal loan or the insurance. And so what we are doing is we are retargeting those 350 million inquiries at a point in time. And using the data view that we have, mosaic that we have with that customer, to be able to cross-sell them into either the initial intent product that they had or other products that we can offer them. And so what we've been seeing is tremendous success around that, particularly when a customer has a first-party product with us. We have an extremely high take rate for them taking the third-party products. So when I say that the fastest-growing part of our business is the 90% margin. It's being driven by those two drivers. First party customers being able to be surrounded by the right third-party products. and then coming in through that 30% channel and us retargeting them at a later time in life cycling them.

The way I look at it, and this we have acquisition doors into our portfolio, a customer can come with a security mindset or a need to protect an identity. Or in this case, at the 30% margin as you call that channel, a need for a financial product. And we'll play the long game. We'll really have the right entry doors for our portfolio. And you know we have many. This is a new one that we added. And once a customer is being touched by us, we'll make sure we offer the best value, starting to move from transactional to subscription starting to add more value. You know that on the Norton side, we've increased cross-sell from 0 5 years ago to now 25% penetration. We'll play the long game, and we're going to drive that. We have 500 million users here that have not been exposed to our marketplace. And the most natural immediate place would be the marketplace into the LifeLock applications to really meet Lisa's needs that Travis mentioned.

Awesome. Roger Boyd, UBS. Really helpful. I wanted to go back to the competitive matrix side you showed earlier. I thought that was really helpful and showing kind of the conversion markets with traditional financial institutions, emerging fintech cyber safety platforms like yourselves. Maybe for Richard, Tim, how do you think about the appetite for MoneyLion customers for some of these additional cyber safety products. And I know before the acquisition, you had offers through the marketplace around fraud detection and monitoring. How do you think about kind of that cross-sell

element?

Yes, I can start, and then Tim, if you want to add anything. So what is really powerful about what we are doing now together is that we are creating this new secure financial wellness segment. And so in fact, these things haven't been brought together. The thing that people are protecting when they're thinking about financial transactions, they're protecting their finances. And so inherently, to be able to bring an added level of security and trust is going to drive more conversion. We see that today. If you're within our MoneyLion consumer app, the highest conversion we get is when someone feels safe that they can take a third-party product because we've integrated and personalized that offer within app. And so now to be able to do that across the entire platform gives us even more encouragement around really defining a completely different secure customer experience. So they actually can start to benefit from all of the different advancements that have been within fintech, but actually haven't been taken advantage of by the average consumer.

I'll just add to that. What we've seen in our user base is tremendous demand for these services. When we look at some of the content feed, as an example, those quizzes where we're engaging folks and how to learn more about protecting themselves those quizzes engage at higher levels than anything else that we have. And so I think that's the part of the thesis is that putting those 2 things together is what customers want.

I can add a couple of things I wanted to add is, many of you have asked us what is moving to membership means. And when we see customers buying mortgage and having different needs, we have a lot of product can offer. What about the home title log that is in our Norton 360. What about credit monitoring or restoration agent that Travis mentioned, all of that will be part of that over time, incremental value we will bring to all of our customers.

Tomer Zilberman, Bank of America. Maybe 2 questions for you. As you think about first-party versus third-party products, how important is it to be competitive on rates like APR, APY, is it something that you can be a little bit more favorable for yourselves because you have the integrated marketplace? Or is it something that you see as very competitive?

Yes. I'll kick it off. So when it comes to being competitive, this is the benefit of authentically having both first-party and third-party products. So where we're the winning solution from an APR or an APY perspective, if we're the winning solution and the customer benefits. If not, we're able to offer the customer a full array of third-party products. And as Tim kind of went through extensively, by being able to kind of host underwriting models by being able to kind of host unique data sets and put those together to give the customer the best APR solution out there is unlike any other solution in the marketplace. And so we benefit from being on both sides of the first-party and third-party products, unlike many competitors, that they're only going to keep promoting their first-party products or they're going to put whatever marketplace offer that they have available to you at the time.

Is there any deeper insights to using first-party things that you can leverage the AI more than third party?

I think I love this question because when we talk about first party, I think it's really important to think about the PFM and what we're doing with the customer. When I talked about those insights and things that we have, customers are linking their accounts to us. And so the first thing that we're able to do is to help them think through with the types of products that they should be considering. So yes, we absolutely have a significant benefit by having a PFM relationship with a customer, where we're getting a considerable amount of data to be able to help them choose the right first-party or third-party products.

Got it. If I can sneak in one more, Jason. You talked about your products that are in times of excess, the products that are in times of need. Do you see different growth profiles on each? Or is it more broad-based? And the reason I'm asking is, I think you talked about a 30% average growth rate the last quarter, you're kind of in excess of 40% for MoneyLion. So the question is, is there a better growth on the in times of need products?

I would say if I could just add. So one of the customer insights that we have is that customers lead incredibly dynamic financial lives. So being there both in times of need and excess. It's the same customer going through that journey. As Rick mentioned, sometimes there's financial shocks, both positive and negative and being able to be there throughout that entire journey is what drives that LTV. So it's hard to decouple those 2 things because it's the same user going through that, and we want to maintain that relationship.

Yes. I would say that really hasn't -- if you think about the platform, we've gone through multiple cycles, delivering to a breadth of different customer profiles. And so during a rising rate environment, we saw a significant demand for yield type of accounts we saw less demand for personal loans. As the macro environment shifted back, we're starting to see that kind of increase. We also have people's rates resetting. So you're seeing a lot of demand on personal loans, HELOCs, mortgages, insurance. And so we tend to kind of benefit from being a platform. And so whether it's in times of excess or times of need, we've consistently been delivering over 30% growth.

I Just ask another one. I was impressed by the strength of the marketing technology that MoneyLion has in terms of some of the attempts to engage a younger demographic and use tick talk. And I'm just curious, Vincent, how do you think about the ability to augment what is already, I think, a pretty strong marketing program? Is that something you think about in terms of engaging younger demographics?

Short answer is, yes, and I'll pass it to Travis, who has been our Chief Commercial Officer and will tell you how he's going to leverage all of that.

Well, I mean, Tim mentioned it, the snackable content, it's really important for every category that we're in, not just the financial products. Being able to explain these complex things that happen on the threat landscape in a way and the communication that the people are used to it's a vital part of what our future will be. You will see much more of that type of capability going across the entire portfolio, making it comprehensible what the people are facing really in the threat landscape that we have today. It's great step actually. The feed is fantastic.

Harold Goetsch from B. Riley. My question is on the integration of MoneyLion and the full platform. MoneyLion barely grew its advertising and marketing spend over a 4-year period but grew very, very fast. I ask this question, Gen Digital is a much bigger company, much bigger voice in the market. What are you -- what does your voice in the market scale is bringing to MoneyLion to kind of grow it even maybe at a better pace or add more users?

Think it as really 2 things. First of all, it brings an installed base of 500 million users that have been many of them asking for more insight into what to do with their data. And I think here, we're going to be able to enhance. We also bring an overall trust element, if you want, into the discussions, while MoneyLion has been a fantastic grower, as you know, in fintech, a lot of those assets are lacking the component of trust. And we bring here that legitimate trust based on real value delivered financial for tracking cybersafety agent. And I think that's going to help us create this new category, secure financial wellness, which hopefully will stand apart.

Andy, again. I thought the overview of all the MoneyLion solutions was certainly -- was really helpful. It certainly have a lot more products and offerings that I was aware of. I was wondering if you could give any sort of color around like where does the typical customer start when they come to MoneyLion, what do they typically spend with Moneylion when they start the journey with you?

Yes. So let's break it into our MoneyLion when we use that term, it's a lot. And so when you look at the consumer marketplace, what we see is a lot of conversion within personal loans, with insurance and savings accounts. And then on the first-party product side, what we see is a lot of conversion through first linking within the PFM and then being able to have the consumer get one of our cash management solutions and then invariably banking and then with a high attachment rate third-party products. So that life cycle expands from high conversion on some type of cash management, PFM through the kind of core payments and banking and then a lot of success with the full adjacent product suite in the marketplace.

Saket, again. The 500 million users is something that keeps on coming up, and it's a very -- it's a big number, very compelling. But I'm trying to think if we've ever talked about this. Have we ever talked about the difference in demographics of the users between Gen and MoneyLion? And if so, can you just talk about what are some of the -- is there any overlap? Is it completely complementary? I'm just curious if you could talk about how the demographics differ between the two?

Sure. It's a really great question. At the end of the day, you cannot completely profile a user in the MoneyLion ecosystem separately from the Gen ecosystem, whereby they do tend to be audiences that are expanding. MoneyLion does have a bit of a younger cohort versus our cohorts. And so the opportunity is because they are just as vulnerable for cyber threats, to bring cyber technologies and knowledge into that customer base, while at the same time, bringing in those capabilities into our customer base who are actually transacting financially extremely frequent because they have assets. They have the capabilities. So they're.

Actually augmenting each other. They're growing.

Jeff Mueler from Baird. Can you maybe broaden out that concept? And I guess what I'm wondering is, it's essentially like who are you competing with from each of the sides. So what characteristics are you maybe over indexed to? Like where are you in terms of prime versus subprime or how do you compete against like a -- how do you have a unique audience to sell some of the financial products companies relative to like an Experian or an Intuit or -- yes, if you could just maybe like talk about like beyond age, what you over-index to or under-index to or where you'd be unique for a consumer, if you're trying to cross-sell them from like the cyber solutions or the LifeLock side into MoneyLion?

So if we talk about audiences, you have to remember, part of MoneyLion was Engine was the marketplace, which had a completely broader set of audience users than the MoneyLion first-party apps. So we already had a very rich portfolio, and we're adding to it in all directions, both categories as well as partners. And so I wouldn't say that there was over-indexing in one or the other. Of course, bringing in the rich ecosystem of our user base actually expands that entire 350 million leads that Rick was talking about that are coming into that ecosystem to the users that we first address, which is the U.S. user base.

Zach on [indiscernible]. I wanted to ask on the Instacash product. So over the last 6 months, we've seen the market for EWA type products, get more competitive, Cash app and Chime have more than doubled their advanced volume year-over-year. So first, how large of a market opportunity do you think earned wage access is? And do you view it as a winner take all market, Is there room for several providers? Second, how do you think about the go-to-market approach? Because right now, it's primarily direct to consumer, but with all of the partners that you have there's also the B2B2C, where daily plays along with others. So just comments around both of those would be appreciated.

Rick, do you want to start? And...

Yes, sure. So we have a front row seat to this, right? Because we operate both a first-party earned wage access product as well as an earned wage access is part of one of our verticals within the marketplace. And so it certainly isn't a winner take all. Each one of the different participants within that market space have different nuances and different strategic benefits to a customer. And so what consistently, we are all helping customers with is really avoiding a lot of the overdraft fees that are out in the marketplace and also being a solution for someone to help with kind of cash management issues that they have. And so it's a significant, obviously, TAM when you kind of think about those 2 fee types.

And so from a -- how do we think about the kind of competitiveness across the marketplace. There are moments where MoneyLion is kind of actively the converting and acquiring within our marketplace, but equally, all of the other providers participate as well. And what's really interesting in terms of our solution is, it obviously lends itself extremely well to other types of offerings and partnerships, which I'll pass it over to Travis to comment on.

As you know, we have a thriving landscape of partners around the world in different categories, whether it's in the employee benefits channel, our telcos and ISPs but also even some of our banking relationships. And of course, we're always looking at which product matches what partner for their customer segments. And in the best cases, they take the entire marketplace and they handle all the products that they don't do. But of course, we look specifically per partner for their customer base, what product is best applicable.

On the channel network. Just wondering if you could discuss maybe how your publisher partners manage that inventory? Have you effectively outcompeted competitors or marketplace competitors? Or is there additional surface area that you could win from those partners? That's one. And then just secondly, the health of the partner network. I guess a lot of us think about questions about are some of those partners are going to face traffic headwinds over time from Gen AI. That's been a consistent question of worry. So those two questions, please.

Yes. Why don't I start? So in terms of the health of the network, it is exceptionally healthy. It's really important to remember that unlike other marketplace models, we're a technology platform. So we have deep integration with our product partners as well as with the channel partners. So when we say we power the financial ecosystem, it means that many of our partners that sit on the product side are also using us to help monetize their customers. And those deep integrations make it incredibly sticky. And so what we also see is because we're such a powerful platform, we even have other comparison sites that kind of sit to monetize their customers using our network. So it's extremely unique from that perspective versus us just being a purely direct-to-consumer kind of performance marketing play.

And what was interesting, you probably saw it in the chart, you saw logos on both sides of the equation. So people on the one side offering distribution to their customer base, we're also the ones providing product into the marketplace. And that's what the ecosystem of MoneyLion has done really well, and you can imagine how much you can spread that in both equations across all different content types and channels in ways of distribution.

Yes, I'll just add one last thing. As you saw, we have a pretty diversified set of channel partners, right? Some of them perhaps have headwinds from Gen AI but many of them have tailwinds from Gen AI and so what we see is that diversified approach, especially meeting our user where they're making the decision is the strategy that really wins.

Hendi Susanto from Gabelli Funds. I wanted to ask a question about international expansion. So MoneyLion seems attractive. My question is which set of countries will be the low-hanging fruit for MoneyLion?

Yes. So we're not going to give you the country today, but we believe this, first of all, a lot more opportunities to gain in the U.S. building up on our current stock and really adding our value to the overall view. That's already a lot of growth potential. Outside of that, as we improve our model, we're going to move steadily. You know some of our countries that were in Japan, U.K., France, Germany are leading countries for us, Canada from a cyber safety perspective and where it makes sense, we're going to go and deploy there.

Okay. Very good. Well, I do want to thank you for your interest for coming here in the room for those who are in the room. And hopefully, that was really helpful for you to understand our Gen expansion strategy into that new segment trust-based solution. Thank you.

Good afternoon, everyone, and thank you for standing by. My name is Jamie, and I will be your conference operator today. Today's call is being recorded. [Operator Instructions].

At this time, for opening remarks, I would like to pass the call over to Jason Star, Head of Investor Relations. Please proceed.

Thank you, and good afternoon, everyone. Welcome to Gen's First Quarter Fiscal Year 2026 Earnings Call. Joining me today are Vincent Pilette, CEO; and Natalie Derse, CFO. As a reminder, there will be a replay of this call posted on the Investor Relations website, along with our slides and press release.

I'd like to remind everyone that during this call, all references to the financial metrics are non-GAAP, and all growth rates are year-over-year unless otherwise stated. A reconciliation of non-GAAP to GAAP measures is included in our press release and earnings presentation, both of which are available on our IR website at investor.gendigital.com. We encourage investors to monitor this website as we routinely post investor-oriented information such as news and events and financial filings.

Today's call contains statements regarding our business, financial performance and operations, including the impact on our business and industry that may be considered forward-looking statements, and such statements involve risks and uncertainties that may cause actual results to differ materially from our current equations. Those statements are based on current beliefs, assumptions and expectations as of today's date, August 7, 2025. We undertake no obligation to update these statements as a result of new information or future events.

For more information, please refer to the cautionary statement in our press release and the risk factors in our filings with the SEC and in particular, our most recent reports on Form 10-K and Form 10-Q.

And now I'll turn the call over to Vincent.

Good afternoon, and thank you for joining us today. Fiscal year 2026 is off to a strong start. We delivered outstanding first quarter results ahead of expectations, including the first quarter of MoneyLion operating within Gen. We are entering an exciting new era of Gen supported by product innovation and fueled by increasing consumer demand for protection, trust and financial empowerment. So let's start with the numbers.

In Q1, bookings and revenue grew over 30% year-over-year on a reported basis and 10% on a pro forma or adjusted basis. Our non-GAAP operating margins remain robust at 52% and non-GAAP EPS exceeded the high end of our guidance, coming in at $0.64, up 20% year-over-year. As we mentioned on our Q4 call, this quarter also included an extra fiscal week, which contributed approximately 9 points to reported top line growth.

Excluding MoneyLion's contribution and the benefit of the extra fiscal week, Gen revenue increased 5% year-over-year with continued growth in our direct and indirect customer base now totaling over 76 million paid customers, including 8 million financially active customers from MoneyLion. We are ahead of our plans for the integration of MoneyLion, we have fully integrated the core infrastructure, including workforce alignment and key operating systems. The MoneyLion portfolio and business integration is now underway and on track for completion by the fall when we expect to launch our first integrated product under Gen's brands.

We've also made significant progress on our platform strategy, enabled by our new Gen stack. Norton is now fully integrated into the stack with our main security products running on a unified architecture. We will continue migrating all products and customers on to the platform in the coming quarters, creating a seamless user experience while also unifying our data set to further unlock more customer insights and AI-driven personalized recommendations.

As we shared last quarter, we're now operating in 2 business segments. Cyber safety platform, which includes our security and privacy solutions as well as our comprehensive cyber safety suite and trust-based solutions comprised of our identity, reputation and financial wellness offerings.

So let's review the performance. The cyber safety platform represented 2/3 of Q1 revenue and grew 11% on a reported basis and 4% when normalizing for the extra week. Growth was broad-based across our global markets with accelerated growth in our comprehensive membership offerings, including our revamped VPN suite launched last year and our flagship Norton 360 memberships now with enhanced scan protection. The scale and standardization of our platform resulted in an operating margin of 61% in this segment above our 60% plus target which provides the capacity for increased innovation.

A few critical trends continue to stand out in the evolving cyber threat landscape. First, attackers are rapidly integrating artificial intelligence into their toolkit making threats such as AI assisted ransomware more adaptive and harder to detect.

Second, consumer data remains a central target with breaches continuing to rise and personal identifiers like social security numbers increasingly exposed.

And third, the crime is accelerating across the board from sophisticated scans, which in person legitimate services to localized social engineering tactics that play on people's trust and motion. These shifts underscore a broader pattern. Cyber threats are becoming more personalized, more targeted and more financially motivated. And at Gen, we remain committed to staying ahead of these threats through proactive research, rapid response and unwavering air-driven innovation and comprehensive protection for our users.

Norton Genie is now evolving from an AI-powered scan tool into a comprehensive cyber safety assistant, a strategic shift that reflects growing customer demand for broader digital protection. What began as an AI tool, which proprietary adolescent to various scan, is now handling a wide range of cyber safety inquiries from product-specific questions to best practices. This expanded utility has driven strong engagement and validated our AI-first approach, building this momentum, we've expanded our AI-driven scan protection to avert membership globally, further improving its efficacy and we are now preparing to launch it within our financial wellness offering to enhance anti-fraud capabilities.

Additionally, AI generated deep take audio and manipulated visions are becoming nearly indistinguishable from reality. Cameras continue to use this technology to their advantage. That's why Norton has introduced early access to Norton Deepfake detection in our Northern 360 mobile apps. When customers upload suspicious video link, not automatically scans the subtle signs of facial or audio manipulation to provide real-time alerts and guidance. This important new feature is another example of how we are seeing one step of evolving threats to keep our customers safe.

We also recently introduced real-time in-device Deepfake scam detection for Norton users on Windows AI PCs powered by Snapdragon X to our partnership with Qualcomm and support for Intel and AMD is coming later this year. This AI-driven innovations in our cyber safety platform reflect our commitment to staying ahead of the dynamic threat landscape and provide the most comprehensive protection for consumers.

Our second segment, trust-based solution, represented 1/3 of revenue this quarter and grew over 100% on a reported basis and 25% when normalized for the extra week and MoneyLion decline -- continues to deliver steady growth across all markets and channels. Customers have always told us they love and value what LifeLock brings to them. and we are committed to deliver even more value by enhancing the experience and driving more engagement.

Behind the scenes, we are enhancing the LifeLock infrastructure by implementing a modern modular architecture that enables faster seamless integration of data and alerts from services partners. This plug-and-play framework improves real-time responsiveness and actively meet evolving customer needs.

We are successfully leveraging newer features like our personal data exposure scan tool to help consumers identify if their personal data is exposed from the constant stream of data breaches which very often leads to customers selecting higher membership plans for full comprehensive coverage. We also extended our financial monitoring features to all LifeLock customers, and we are modernizing the customer journey towards full protection and empowerment with onboarding and education videos focused on financial features and how to get the most out of LifeLock memberships. By consistently delivering meaningful value to our customers, we have earned a 4.8 trust pilot rating and a record Net Promoter Score of 71, reflecting the stronger trust and loyalty we have built.

We closed MoneyLion in April, and it is off to a strong start. Q1 revenue grew 45% pro forma, driven by momentum in both personal financial management offering and in engine, our AI-powered financial marketplace. This marketplace continues to resonate very well with partners and consumers, delivering its third consecutive quarter of growth above 50%. MoneyLion recently introduced a transformative checkout feature, which provides customers with a unified product shopping experience within the MoneyLion marketplace. Customers can now search across hundreds of financial products from our third-party partners without ever leaving the MoneyLion app and the reception from both customers and partners has been quite strong. We are accelerating traction in this marketplace by leveraging Gen's partnership sales force to deepen our presence in key financial product verticals or credit cards, mortgages and insurance leveraging our experience and the value of our huge customer installed base.

With AI technology and seamless integration, our marketplace helps customers find and financial product partners deliver the right product and offers at the right time, ultimately increasing the value for everyone in this ecosystem. A recent example of these partner synergies is our deepened relationships with the credit bureaus, and this is just the beginning. MoneyLion personal financial management offerings previously reported as consumer business and in MoneyLion also delivered an exceptional quarter, mainly driven by strong usage of Instacash, which provides customers with early access to day paychecks on which access or EWA is an important tool for many consumers in today's economy as approximately 60% of Americans live paycheck to paycheck. Instacash helps those early in the financial wellness journey gained earlier access to their hard-earned wages to help make ends meet. When necessary and also helping them build credit history over time.

As we continue to invest in our direct-to-consumer channel, we'll begin to transition the focus of the PFM business towards a subscription model, targeting consumers interested not only in building credit, but in comprehensively managing and growing their savings. Over time, this will drive higher engagement and long-term value creation. We're very excited by the progress we have made with our MoneyLion acquisition and the strong market demand we are seeing. As we announced last month, we will be hosting an investor briefing on September 8 in New York City to provide investors with a deeper look at Gen's strategic direction in financial wellness and MoneyLion's product portfolio and go-to-market strategies.

And wrapping up my commentary for this segment, trust-based Solutions achieved a 31% non-GAAP operating margin supported by the rapid integration of MoneyLion and powered by a high mix of first-party products in our marketplace. We are thrilled to grow MoneyLion top line 45%, while also delivering its first ever reported quarter of non-GAAP operating margin well in excess of 20%.

Congratulations to the entire team for staying focused and delivering great value to our customers and our shareholders. While we relentlessly focus on execution and accelerating growth, we continue making important investments in our future. Every quarter, I emphasize that innovation is core to our mission and the key driver across our business, and that has never been more true than today.

Customers experience it through our products and the tremendous value we deliver. Across our teams, who are increasingly leveraging AI to drive further innovation, operational skills and efficiency. Last quarter, we launched a fully automated AI-powered renewal engine that is progressively replacing manual and automated processes. A move that reduces costs, improve the customer experience and increase the customer retention with more personalized interactions.

We've also transitioned many of our product support and services interactions to our custom AI-enabled platform, which is now capable of handling over 40% of customer issues autonomously. This frees our supreme service teams to focus on more complex cases leading to faster case resolution, a better customer experience and ultimately, happier customers. These initiatives also resulted in our highest net satisfaction score in over 7 years.

And our newly established AI innovation lab recently introduced its first product, Norton Neo, an AI native browser designed to deliver secure, personalized digital experiences. This early access product sets the foundation for a new category of AI-native consumer applications. Vision is clear to become an IFRS company not only to unlock further productivity gains, but more importantly, to build differentiated AI-native products that drive long-term customer value and sustainable growth.

Looking ahead, Gen is now operating at greater scale across 2 synergistic segments with a diversified brand portfolio, a unified go-to-market model and an IFRS strategy. This structure enables faster customer-centric innovation on the resilient scalable platform deepening our competitive modes and enhancing our agility. It positions us to lead in a market where consumers increasingly demand trust, control and personal protection and recommendations for better digital and financial life. And as a result, we're raising our annual revenue guidance by $100 million to range between $4.8 billion to $4.9 billion.

In summary, Q1 was an excellent start to fiscal year 2016. We are out of plan, operating with focus and well positioned to deliver long-term and sustainable growth. We are protecting more people than ever from scans, identity tests and financial risk, and we are concurrently building the trust platform that will power the next decade of trusted digital and financial lives. We have a bright future and our most exciting chapters in Gen journey have just begun.

And with that, I would like to hand it over to Natalie to walk you through the financials in more detail.

Thank you, Vincent, and hello, everyone. For today's call, I will walk through our Q1 results and also provide some additional color about our new performance metrics. I'll then conclude by providing our outlook for Q2 and fiscal year 2026. I will focus on non-GAAP financials and year-over-year growth rates unless otherwise stated. I will also include commentary on our pro forma growth. which adjusts for the operational results of our MoneyLion acquisition and exclude extra week that occurred this quarter due to our fiscal calendar.

Now on to our results. Q1 was an exceptional quarter for Gen with better-than-expected results. On a reported basis, Q1 bookings was $1.2 billion, up 32% year-over-year. Q1 revenue was $1.26 billion, up 30% year-over-year. I want to further break down our reported revenue growth given some of the moving parts this quarter.

First, the extra fiscal week in Q1 2026 contributed 9 points of growth. Then MoneyLion grew 45% year-over-year and contributed 16 points of overall growth. Our collective Gen operating performance drove double-digit year-over-year growth in our total business, and 5% year-over-year, excluding MoneyLion on a pro forma basis with less than 1 point of impact from favorable currency.

I'd also like to provide additional color on our direct and partner revenues. Note that MoneyLion's personal financial management solutions are now included in our direct revenue and their B2B 2C financial marketplace is reflected on our partner revenue. We have also embedded our previously reported legacy revenues primarily into partner as it now represents less than 1% of our revenue.

Our direct channels continue to demonstrate strong fundamentals, growing 25% as reported and 6% pro forma. Growth is broad-based and steady across channels, geographies and our product portfolio. Cross-selling to our new customers as well as strong retention rates of prior cross-sells continue to drive meaningful healthy revenue growth. We are also driving stronger momentum in upselling customers into higher tiers of Norton 360 memberships both online and in our mobile experience with healthy retention rates across the brands. And we expect to continue scaling with our personal financial management solutions. We have a very robust and highly engaged customer base, and we will invest further into personalization and dynamic offers tailored to each customer's life cycle stage, further enhancing conversion and value creation.

Our partner channels are scaling considerably, growing 68% as reported and up 38% pro forma. Growth excluding MoneyLion, is driven by continued strength in our employee benefits channel and our international strategic partnerships. Both of which are driving adoption of our comprehensive cyber safety memberships and recently upgraded identity products at an expanded scale.

Our focus is on 3 key levers: demand generation through key marketing channels, pipeline expansion and executing on a product road map that extends our suite proposition into future -- wellness. In Employee Benefits, last quarter's strong benefit cycle carried forward into this fiscal year, and we are already laying the groundwork for the next open enrollment season to accelerate further. Internationally, we continue to scale with strategic partners, leveraging the breadth of our expanded portfolio. In the quarter, we secured a major distribution deal in Japan to offer Norton ID adviser a product we recently enhanced with ID Vault, scam verification specialists and dedicated privacy advisers.

As we build out the most comprehensive product portfolio, we're leveraging our omnichannel strength, improving attach rates in key channels and driving reduction partners, and our results reflect momentum. And now with the acquisition of MoneyLion, our partner channels will expand further with our B2B2C financial marketplace. We are excited by the potential of MoneyLion's broad personal finance analog, and the tremendous opportunity to further expand the verticals on the marketplace.

Even more compelling is the opportunity to unlock a new monetization and by progressively introducing these offerings into Gen's scaled customer base. This fuels the partner growth flywheel enhancing our ecosystem and strengthening our ability to deliver value at scale.

Turning to customers. As of the end of Q1 fiscal 2026 and speaking to how we've historically reported, our direct paid customers have scaled to $40.6 million, up $250,000 quarter-over-quarter, making it our eighth consecutive quarter of positive net adds. Growth continues to be supported by acquisition and international markets and increased mobile adoption and leveraging the breadth of our product portfolio, combined with world-class customer service to minimize customer churn.

It's worth noting that in addition to our direct channels, we have been investing in our partner channels over the last few years and now have almost 28 million paid customers engaged, bringing our collective paid customers to $68 million.

With regards to MoneyLion, historically reported was a total customer count metric, which has scaled to almost $24 million through Q1, up 39% year-over-year reflecting the growing demand and value of both first -- solutions and through the embedded financial marketplace. MoneyLion customers are highly engaged with [ 1 million ] of their 24 million lifetime customers generating revenue through the consumption of first-party and/or third-party products over the last 12 months and adding 400,000 more sequentially.

Going forward, we will be providing a more complete view of Gen's customer base. Specifically, all of our paid customers in our direct-to-consumer and partner channels as well as active customers in our financial wellness solutions will be included in our customer metric. Therefore, through fiscal Q1 2026, Gen's paid customer count was over $76 million with the combined customer base of approximately $650,000 quarter-over-quarter. This new consolidated metric that reflects the breadth of our evolved business model and expanded go-to-market strategy following the acquisition of MoneyLion.

We have also updated our financial reporting to reflect our 2 distinct operating segments: cyber safety platform and trust-based solutions, each with unique growth trajectories, margin profiles and scale potential. Going forward, we will provide segment revenue and segment operating margins on a quarterly basis. We are also making the pertinent changes to our KPI footprint to provide a more holistic view of our total company performance consisting of total bookings, total paid customers and the performance of our direct business and partner channels.

Today, over 80% of our direct revenue comes from existing customers through cyber safety subscriptions, cross-sell products and MoneyLion's personal financial management solutions. This high level of subscription and repeatable transaction revenue underscores the strict and loyalty of our customer base and in turn, the predictability of our revenue streams. The addition of a fast-growing B2B2C marketplace into our broader partner ecosystem means monetization now extend beyond cross-sells and upsells of our first-party products. We plan to capture incremental value through partner offerings layered into our ecosystem. For that reason, direct ARPU no longer reflects the full scope of monetization across both owned and embedded partner services. Overall bookings growth offers a more comprehensive view of our progress in engaging monetizing and scaling customers throughout their life cycle. The segment margin reporting, our KPIs along with EPS performance, we'll demonstrate our commitment to our proven and disciplined go-to-market strategy and long-term value creation as we scale the business. To help bridge these changes to the reporting framework, we've provided supplemental slides in the appendix of our earnings presentation that outlined Gen's legacy KPIs for Q1 alongside trended financials by segment.

Turning to profitability. Q1 operating income was $650 million, translating to a 52% operating margin, in line with our expectations. As Vincent noted, operating margin for cyber safety platform was 61% and trust-based solutions was 31%, each in line with expectations. Our margins remain high as we continue to drive operating leverage through increased efficiency, a disciplined approach to resource allocation and measured investments and our new segment reporting will provide even more visibility to how we operate.

Q1 net income was $398 million, and diluted EPS was $0.64, up 20% year-over-year as reported. Interest expense was $149 million in Q1. Our non-GAAP tax rate remained steady at 22%, and our ending share count was $624 million, down $3 million year-over-year, reflecting the impact of share repurchases.

Turning to our balance sheet and cash flow. Q1 ending cash balance was $828 million, representing over $2.3 billion of liquidity when including our $1.5 billion revolver. Q1 operating cash flow was $409 million and free cash flow was $405 million, up 55% year-over-year. As an annual reminder, our Q1 ending cash balance is always higher to support the concentration of tax payments that are due in early Q2.

On to capital allocation, we continue to have a balanced approach. During Q1, we repurchased nearly 5 million shares as part of our ongoing share repurchase program. We also paid down $180 million in debt, including a voluntary paydown of $75 million for our TLA. As expected, we ended the quarter with our net average at 3.4x EBITDA, up slightly due to the $900 million cash payment for MoneyLion. We remain committed to driving net leverage to less than 3x EBITDA by the end of fiscal 2027 through our balanced capital allocation strategy and accelerating growth. For more details about our capital structure, please refer to the appendix slide in our earnings presentation.

We paid $82 million to shareholders in the form of our regular quarterly dividend of $0.125 per common share. For Q2 fiscal 2026, the Board of Directors approved a regular quarterly cash dividend of $0.125 per common share to be paid on September 10, 2025 for all shareholders of record as of the close of business on August 18, 2025.

Now let me share our Q2 and fiscal 2026 outlook and some of the assumptions that underpin it. We are raising our revenue and EPS guidance for fiscal 2026 based on our strong results. While there is still general macroeconomic uncertainty, our business remains resilient, bolstered by a highly recurring revenue base strong customer retention and a global diversification of our core business and growing proof points of opportunities with financial wellness. Both reinforce the expanding demand for consumers diverse safety and financial loans offerings that empower people to thrive in a dynamic digital world and protect what matters most.

For fiscal year 2026, we now expect full year revenue in the range of $4.8 billion to $4.9 billion, up $100 million from our prior expectation of $4.7 billion to $4.8 billion. and reflects reported revenue growth of 22% to 25% year-over-year. We expect non-GAAP EPS to be in the range of $2.49 to $2.56 and representing our continued commitment of 12% to 15% annual growth. Our guidance assumes continued mid-single-digit growth in the core business and MoneyLion growth of over 30% while funding targeted longer-term growth investments in the Gen platform and AI capabilities.

For Q2, we expect non-GAAP revenue in the range of $1.18 billion to $1.21 billion, we expect Q2 non-GAAP EPS to be in the range of $0.60 to $0.62. This guidance range assumes current FX rates to Q1 although significant fluctuations remain possible given the volatility in currency markets that has taken place over the past few years.

In summary, our strong Q1 results put us on a path to exceed our fiscal 2026 plan. We're accelerating growth while maintaining the same discipline that has long defined our operating strategy. We've made tremendous progress with the integration of MoneyLion, our margins remain exceptional, 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 delevering to drive strong returns to our shareholders. 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?

[Operator Instructions]. Our first question comes from Roger Boyd with the company, UBS.

Awesome. First, I just want to thank you guys for the depth of disclosure, both on the call and the slide deck on that, very helpful. So much appreciated. I wanted to start with MoneyLion. It looked like pretty strong growth even on a pro forma basis. That business seems like it's accelerating quite nicely. I know there was some conservatism there around the model. But can you just talk about the fundamental trends you're seeing on that side of the business? Anything to expand in terms of outperformance there?

Roger, this is Vincent. I'll take that one. As you recall, from MoneyLion disclosed numbers back to 2024, they were on a growth rate of about 25% to 30%. The first quarter of this year was not disclosed. They grew around 35% to 40% and then 45% in this quarter here that we just reported inside Gen. So we've seen an acceleration. We actually have seen an acceleration across the 2 categories they have. So on the PFM side, the consumer side, they continue to do both acquire new customers, increase the number of transactional products per customer. So we've seen a very strong performance on that side. Still in the early financial journey of the customers around the Instacash product than credit building, our whole growth opportunity here is to move through the whole customer journey as we plan to evolve and we see tremendous opportunities.

And then the second category is the engine, the marketplace that now has posted its third quarter of growth above 50%. The growth is almost balanced between PSM and engine. We feel really, really good. And that's feeding the ecosystem, if you want, where we see also the retargeting of customers for their second and their third product. As they moved into Gen, we're able to add the credibility of our current installed base and the experience of our enterprise sales force to go and target new partners and to enrich also the partner ecosystem. So we feel really good about the opportunity on almost all fronts of that MoneyLion offering.

Very helpful. Maybe as a quick follow-up. I just wanted to ask a question about pricing. As you continue to add more functionality across the product suite, and I know you talked about extending financial monitoring to all LifeLock members, adding scam prevention features to the broader customer base. Just how do you think about pricing as a lever? I think from a list price perspective, it hasn't been any substantial changes. Just how do you think about that as a lever to monetization?

Yes, absolutely different

Hi, Roger, thanks for the question. Sorry about that. Yes, for pricing, we've got a strategy that basically -- we want to stay committed to really focusing on in delivering products to market that are going to expand and enhance the protection that we can give our customers. And we believe those are industry leaders. We have a robust product portfolio. And as we launch those products, either stand-alone or as part of the membership, that's how we bring additional value to market. And that's where we would, in exchange, get more price or more ARPU from the customers. And that's why you saw a couple of years ago at our Analyst Day, we said, okay, one of the building blocks here. You didn't see a lot of site-wide pricing, we aren't really subject to a lot of the increase in cost of goods across the globe. We're very, very much focused on innovation, create that value and get in exchange for that value and that protection that we provide our customers additional ARPU. That's why in our revenue growth trajectory, you hear us talk about cross-sell. So as we launch those stand-alone products and we educate our customers, our customers demand pay us back to that.

Same thing with the membership offering. So as we launch our stand-alone products, and we choose whether they continue to stay stand-alone or get embedded in one of the membership offerings, again, that's where you're going to see ARPU increases as we move customers up that value chain of the CSP subscription membership offerings. That's how we really look at price. It's really a -- it's an exchange of we deliver value. We deliver innovation. We deliver protection and in exchange for that, we get a different we upsell or cross-sell our customers to increase that.

Next question comes from Rob Kolbert with the company Evercore.

A follow-up on MoneyLion. It sounds like they were already accelerating nicely in the March quarter. But I think last quarter, you talked about applying some Gen's operating discipline and approaches to MoneyLion operations. So just curious, anything you've already implemented, whether you're beginning to see results there. Anything that you -- any other sort of incremental or further opportunities to refine MoneyLion's operations across the board really, but any other particular opportunities. So I just wanted to ask about that.

Yes, of course. So we plan to, of course, focus on the growth. We see so much opportunity here to capture in the market, both on the PFM side, and then on the engine side to really do an overall ecosystem in terms of a differentiated feature that nobody has. When you look at the level of growth that we've indicated in our guidance, around 30%, we said we would manage the business at about 20% operating margin already in excess of 20% today, which give us great room to continue the innovation, continue to scale the business.

As we integrated inside Gen, we had most of the gain from the operational side, the system integration, the processes, the procedures, but we still have the whole cross-sell into the Gen installed base, which, as you know, will come at a 0 CAC and we'll give another lift if you want, into the margin. And then as we continue to grow our engine and ecosystem, the ability to retarget the customers over time and grow the value per customer, the number of product per customers. then the margin also scales up with that. So again, priority #1 is growth, continue to innovate, to gain market share, get more customers on the platform and then number two, continue to improve the margin as we scale up the business.

Great. On the cross-sell opportunity, anything you could tell us about the time line or any outputs of any early testing you may have done.

Yes, absolutely. We started actually organically already developing and making sure we introduce financial wellness features in our LifeLock app first and then we plan to expand. I mentioned in my script at the beginning of this call that we plan to launch the first rebranded product, if you want, in the fall. We are in rapid testing, we don't have anything built in our model yet because we want to be conservative from that perspective and keep all flexibility to really design the product that the customer really wants and love. But you'll see already more progress. We'll talk about it on September when we're together in New York. And then through the second half and next year, you'll see those things unfolding.

Next question comes from Andrew Nowinski with company Wells Fargo.

Congrats on a strong start to the fiscal year. I'd like to start with a question on the cyber safety business. So I think, organically, it was up about 5%, excluding the extra week in MoneyLion, which is unchanged relative to what we saw in the seasonally strong quarter in Q4. And I know last quarter, I think you guys talked about how employee benefits was one of the key drivers, and I think, Natalie, maybe you mentioned that momentum has continued this fiscal year, but I'm wondering if you could provide any more color on really what drove that strength in Q1 because it -- maintaining that same growth rate was pretty impressive.

Yes. Thanks, Andy. I appreciate the question. Just -- if you let me just a couple of years ago, when we did Investor Day, we said we were going to build to a sustainable mid-single-digit rate of growth and that's what the plan has been and what it continues to be in the core business. And so whether you're looking at the security side of the entity side now cyber platform versus trust-based services, the core fundamentals of the business continue to be cross-sell. It's upsell. It is driving partner diversification and accelerating rate of growth and really building on top of our very strong retention rates.

And so all of those levers we continue to drive operationally in that business. And that's what has really brought us to executing a mid-single-digit rate of growth for that area of our business. Now blend that with the trust-based services segment now as we fold in and integrate with MoneyLion, that's where you're seeing that additional growth come through in a double-digit fashion.

But if we go back to you just fundamentals of cyber safety platform. We are really focused on making sure that we deliver great protection. We stay very innovative in that segment, and we're delivering robust services, either on an -- basis to cross-sell or enhance value in membership adoption. And that continues to scale, especially as we -- every single day, week and month, continue to refine our effectiveness on how we talk to our customers and how we service customers. It's definitely working and very consistent.

And then on the trust-based services side, look, the livestock business continues to be very, very strong. You take a strong growth business and then you fold in and you've been MoneyLion double-digit rate of growth and you -- and from a trust-based services perspective, they're at a double-digit capacity.

That's great. That makes sense. And maybe just a follow-up as it relates to your guidance. I certainly appreciate all the color you gave around how to think about and in MoneyLion, but I guess, with your new reporting segments on cyber safety and trust-based solutions, if that's the way you're going to be reporting going forward. I was wondering if you could just give any color on how to think about the growth rates of those 2 segments going forward?

Yes. On the cyber safety platform side, I would say that's where you're going to see, again, that consistent deposit in the bank, so to speak, against our Analyst Day 2 years ago. So I would expect that we'll continue to build a sustainable and profitable mid-single-digit rate of growth there. And then from a financial wellness perspective, which is really going to be nested in driving a trust-based solutions vertical. That's where you're going to see the -- an accelerating rate of growth into dual-digit territory over the coming quarters as we really learn and scale and integrate with MoneyLion and some of the other financial wellness additives in that segment. And so that collectively, that's what's really driving the increased revenue guidance.

Next question comes from Dan Bergstrom with the company RBC.

It's Dan Bergstorm on for Matt Hedberg. You mentioned the MoneyLion business model transition in the second half of the year in the prepared remarks. Obviously, guidance implies a high level of confidence around that transition. Could you maybe provide some more details about what it could look like or what it could entail?

Yes, absolutely. So I'll take that one. So MoneyLion today, super pleased, obviously, by the performance, right, both on the KPI and the engine side. The revenue is essentially still transactional revenue, but about 80% of that revenue is recurring revenue or renewal revenue with the same customers. And I think it's only a natural thing now with Gen's experience in membership to develop, implement and sell a membership structure to continue to bring the customers through a long-term financial journey or financial wellness journey, where we're going to increase the engagement and then increase the retention rate over time, growing the ARPU and so you'll see in second half, we're going to continue to develop that and promote and sell membership side of the business. That may have a little bit of a trade-off between short-term quarterly bookings versus long-term value, but we're moving the equation of the customer around long-term value over the CAC equation.

That's great. And to stick on MoneyLion, I thought Slide 13 highlighting the ecosystem was impressive. Maybe now that you've had the asset on board here for 4 months, anything that may be pleasantly surprised you or that you were able to better appreciate versus your prior thoughts?

A lot of things. And when we looked at first organically developing financial wellness for customers. I think I mentioned to you and to all of our investor community that it really started grassroot with our own LifeLock customers asking for more financial wellness, either education or features. And as we did that, we started to look at potential partnership with financial fintech companies. And when we met the MoneyLion team. We thought they had something unique that we didn't see in any other company. And that was this engine, this marketplace, this ecosystem, building a white label that can be embedded into other people, consumer Internet platform, if you want, bringing more customers into this financial journey financial indications and then mapping the consumers with the partners that can offer those products that meet the customers at the moment of truth, as we call it, inside Gen. And we thought that was unique. It was very valuable for the $65 million paid customers we brought in from Gen, including the 150 million active-free users we have, but of course, continuously developing that other people in the internet platform that want to expose their customers to that financial journey.

We definitely saw a very strong reaction, positive reaction from the partners when we position not only our experience in a B2B2C environment but bring all of those prime customers to the equation. So I think I'm super, super bullish on the engine will deliver for us and will create this Gen ecosystem, offering our customers best first-party product that we want to offer, but also when we don't have them, exposing our customers to meet their needs into third-party product. And that will also give us visibility on what we want to innovate and when do we want to build next for our customers. So from that perspective, I think it's super, super encouraging and could change the game for what Gen is or was yesterday and could become tomorrow.

Our final question comes from Saket Kalia with the company Barclays. Saket, please proceed.

Thanks for squeezing me in here and a nice start to the year. Maybe I'll just keep it to one question here. Vincent, maybe for you. Around the lines, just of the prior question, understanding that it's still early, some of the trends that you've seen in the MoneyLion marketplace for customers that want to buy Norton for LifeLock subscriptions or vice versa right again, there's clearly a long-term sort of play here, but what have been some of the early observations with that cross-sell motion.

Yes. Let me talk about. And so what you're talking about Saket, is about taking the MoneyLion customers or according to the financial wellness customers and exposing them to a cyber safety protection. And I think it goes back to what will be the future of banking. And I think it will be a trustable platform that is consumer empowered that gives the financial advice of the financial product at the right customer journey moment, what we call moment of truth in a personalized way. That will be the future of how banking is delivered to the consumers.

And if you take all of those components, obviously, MoneyLion already had the ability to personalize had the ability to bring the best product first party or third party, but they were lacking maybe the brand recognition and the trust. The -- that is based on security and protection and credit alerts and monitoring. And I think we're going to bring all of that to that equation. I stop short of selling cross-sell, et cetera, the value could be spread across the categories. But I think when you take the Gen capabilities that I've mentioned, plus the MoneyLion capability, you can see how well positioned we are to deliver the future of financial delivery, if you want, or addressing the financial wellness of the customers through their financial journey. And so we were super excited about the combination of the portfolio.

That concludes today's conference call. You may now disconnect your lines.