Gen Digital's Q3 2025: Contradictions in Retention Rates, Membership Strategies, and Currency Impact

These are the key contradictions discussed in Gen Digital's latest 2025 Q3 earnings call, specifically including: Retention Rate Trends, Strategic Focus on Membership Structures, and Synergies between MoneyLion and Norton Membership:



Revenue Growth and Cyber Safety Demand:
- Gen reported Q3 revenue of $986 million, up 4% in USD and constant currency.
- Cyber Safety bookings were up 4% in constant currency, with reported bookings exceeding $1 billion.
- The growth was driven by increasing demand for comprehensive Cyber Safety solutions, with the direct customer base reaching 40.1 million.

Product Innovation and AI Investments:
- The introduction of Norton Genie, which utilizes AI to identify and block scams, has seen 2 million downloads since its launch a year ago.
- The AI engine demonstrated almost 100% efficacy in identifying newer threats, contributing to increased customer engagement and retention.
- The company is expanding Genie's capabilities into its Norton 360 product family, enhancing its offerings and increasing customer retention.

Financial Wellness Strategy:
- Gen acquired MoneyLion to strengthen financial wellness offerings, aiming to double its addressable market to over $50 billion.
- This acquisition will accelerate offerings, including credit and financial management tools, integrating with Gen's existing product offerings.
- The move is aimed at diversifying the customer base and enhancing Gen's financial wellness capabilities to drive growth.

Operational Efficiency and Capital Allocation:
- The company paid down $2 billion worth of debt and deployed $1.6 billion of share repurchases since the start of fiscal year 2023.
- Gen is focusing on maintaining excess free cash flow return to shareholders post-deal closure, balancing debt paydown and share buyback while remaining opportunistic with M&A.
- This disciplined approach in capital allocation is supported by strong cash flow generation and is aligned with long-term strategic objectives.