Financial Analysis

Business Combinations Acquisition of MoneyLion On December 10, 2024, we entered into a definitive agreement to acquire MoneyLion. We completed the acquisition of MoneyLion on April 17, 2025. MoneyLion extends our identity solutions into offering comprehensive financial wellness through MoneyLions full-featured personal finance platform that includes credit building and financial management services. Under the terms of the definitive agreement, each share of Class A common stock, par value $0.0001 per share, of MoneyLion, that was issued and outstanding as of immediately prior to the effective time of the acquisition was automatically cancelled, extinguished, and converted into the right to receive cash in an amount equal to $82.00, without interest thereon. Additionally, we cancelled all in-the money outstanding stock options, whether vested or unvested, and converted into the right to receive (i) an amount in cash, without interest thereon, equal to the product obtained by multiplying (a) the number of in-the-money outstanding stock option immediately prior to the close by (b) the excess, if any, of MoneyLions closing stock price over the exercise price per share of such in-the-money stock option and (ii) one CVR in respect of each in-the-money stock option immediately prior to the close. Any outstanding stock option with an exercise price greater than or equal to MoneyLions closing stock price per share was forfeited and canceled for no consideration. We paid cash considera …

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Commitments and Contingencies Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, subsidiaries and other parties with respect to certain matters, including, but not limited to, product warranties and losses arising out of our breach of agreements or representations and warranties made by us, including claims alleging that our software infringes on the intellectual property rights of a third party. In addition, our bylaws contain indemnification obligations to our directors, officers, employees, and agents, and we have entered into indemnification agreements with our directors and certain of our officers to give such directors and officers additional contractual assurances regarding the scope of the indemnification set forth in our bylaws and to provide additional procedural protections. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. It is not possible to determine the aggregate maximum potential loss under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements might not be subject to maximum loss clauses. We monitor the conditions that are subject to indemnification to identify if a loss has occurred. Historically, we have …

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Debt The following table summarizes components of our debt: (In millions, except percentages) January 2, 2026 March 28, 2025 Effective Interest Rate Term A Facility due September 12, 2027 $ 2,949 $ 3,519 SOFR + % 6.75% Senior Notes due September 30, 2027 900 900 6.75 % Term B Facility due September 12, 2029 2,349 2,386 SOFR + % 7.125% Senior Notes due September 30, 2030 600 600 7.13 % Incremental Term B Facility due April 16, 2032 746 SOFR + % 6.25% Senior Notes due April 1, 2033 950 950 6.25 % Total principal amount 8,494 8,355 Less: unamortized discount and issuance costs (87) (96) Total debt 8,407 8,259 Less: current portion (240) (291) Total long-term debt $ 8,167 $ 7,968 As of January 2, 2026, the future contractual maturities of debt by fiscal year are as follows: (In millions) Remainder of 2026 $ 60 2027 240 2028 3,649 2029 44 2030 2,237 Thereafter 2,264 Total future maturities of debt $ 8,494 Other debt In December 2021, ROAR 2 SPV Finance LLC, a wholly owned indirect subsidiary of MoneyLion Inc. that was previously consolidated as a variable interest entity (VIE) (the ROAR 2 SPV Borrower), entered into a credit agreement (the ROAR 2 SPV Credit Facility) to finance a portion of MoneyLions notes receivables. Under this arrangement, MoneyLion sold certain originated loans and receivables to the ROAR 2 SPV Borrower, which pledged these receivables and related cash flows, along with required cash collateral, to secure borrowings under the ROAR 2 SPV Credit Facility. The u …

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The following table summarizes the components of our net revenues: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Subscription and service revenue (1) $ 1,236 $ 986 $ 3,705 $ 2,925 Net interest income on notes receivable 4 12 Net revenues $ 1,240 $ 986 $ 3,717 $ 2,925 (1) Subscription and service revenue includes amounts related to our Instacash Advances of $127 million and $338 million, during the three and nine months ended January 2, 2026, respectively. Refer to Note 3 for additional information regarding our Instacash Advances. …

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Stock-Based Compensation MoneyLion equity awards In connection with our acquisition of MoneyLion, all the outstanding RSUs and certain PSUs of the MoneyLion Inc. Amended and Restated Omnibus Incentive Plan (the MoneyLion Plan) were assumed and converted into 4 million unvested RSUs. The assumed and converted awards generally retain the terms and conditions under which they were originally granted. Upon vesting, the assumed and converted RSUs and any additional shares granted will settle into shares of our common stock. The following table sets forth the stock-based compensation expense recognized for our equity incentive plans: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Cost of revenues $ (4) $ 1 $ (1) $ 3 Sales and marketing 21 9 64 27 Research and development 12 9 39 27 General and administrative 23 14 71 40 Restructuring and other costs 1 2 Total stock-based compensation expense $ 53 $ 33 $ 175 $ 97 Income tax benefit for stock-based compensation expense $ (9) $ (4) $ (26) $ (12) As of January 2, 2026, the total unrecognized stock-based compensation expense related to our unvested stock-based awards was $412 million, which will be recognized over an estimated weighted-average amortization period of 2.56 years. …

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Financial Instruments and Fair Value Measurements For financial instruments measured at fair value, fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider assumptions that market participants would use when pricing the asset or liability. The three levels of inputs that may be used to measure fair value are: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in less active markets or model-derived valuations. All significant inputs used in our valuations, such as discounted cash flows, are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. We monitor and review the inputs and results of these valuation models to help ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes. Assets measured and recorded at fair value on a recurring basis The following table summarizes our financial instr …

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Goodwill and Intangible Assets Goodwill Subsequent to the completion of our acquisition of MoneyLion on April 17, 2025, our portfolio now spans two reportable segments, Cyber Safety Platform and Trust-Based Solutions. See Note 17 for additional information on our reportable segments and Note 4 for additional information on our acquisition of MoneyLion. We perform an impairment assessment of goodwill at the reporting unit level at least annually in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. As a result of the change in reportable segments, our reporting units also changed. We used the relative fair value method to allocate goodwill to the associated reporting units. In connection with the preparation of our Condensed Consolidated Financial Statements for the fiscal quarter ended July 4, 2025, we tested goodwill for impairment immediately before and after the change. As a result of these analyses, we determined that goodwill was not impaired before or after the change. To determine the fair value of a reporting unit, we utilized a combination of the income and market approaches, applying equal weighting to both. The income approach is estimated through discounted cash flow analysis, which requires us to use significant estimates and assumptions, including long-term growth rates, discount rates, and other inputs. The market approach estimates the fair value of the reporting unit by uti …

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Income Taxes The following table summarizes our effective tax rate for the periods presented: Three Months Ended Nine Months Ended (In millions, except percentages) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Income (loss) before income taxes $ 309 $ 208 $ 842 $ 742 Income tax expense (benefit) $ 117 $ 49 $ 381 $ 241 Effective tax rate 38 % 24 % 45 % 32 % Our effective tax rate for the three and nine months ended January 2, 2026 and three and nine months ended December 27, 2024, differs from the federal statutory income tax rate primarily due to state taxes, changes in unrecognized tax benefits and related interest and penalties, foreign exchange impacts, increases in valuation allowances, and the U.S. taxation on foreign earnings. On July 4, 2025, the One Big Beautiful Bill Act (the Act) was enacted into law in the United States. The Act includes various provisions that are applicable to us beginning in fiscal year 2026. These provisions include an allowance to accelerate tax deductions of certain capital expenditures, research & experimentation expenditures, and an increase to the annual limitation of tax-deductible interest expenses. The impacts of the Act are included in our operating results for the three and nine months ended January 2, 2026. The Act has not had, and is not expected to have, a material impact on our effective tax rate.

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Leases We lease certain facilities, equipment and data center co-locations under operating leases that expire on various dates through fiscal 2033. Our leases generally have terms that range from 1 year to 9 years for our facilities, 1 year to 4 years for equipment and 1 year to 5 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions and leasehold improvement incentives. The following summarizes our lease costs: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Operating lease costs $ 5 $ 3 $ 14 $ 10 Short-term lease costs 1 1 2 Variable lease costs 1 1 3 3 Total lease costs $ 6 $ 5 $ 18 $ 15 Other information related to our operating leases was as follows: January 2, 2026 March 28, 2025 Weighted-average remaining lease term 4.3 years 4.7 years Weighted-average discount rate 6.09 % 5.71 % See Note 7 for cash flow information related to our operating leases. As of January 2, 2026, the maturities of our lease liabilities by fiscal year are as follows: (In millions) Remainder of 2026 $ 3 2027 23 2028 16 2029 14 2030 12 Thereafter 8 Total lease payments 76 Less: Imputed interest (9) Present value of lease liabilities $ 67 …

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ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. In December 2023, the FASB issued new guidance to update income tax disclosure requirements, requiring disaggregated information about an entitys effective tax rate reconciliation as well as income taxes paid. This is effective for fiscal years beginning after December 15, 2024. We will adopt the standard in our Annual Report on Form 10-K for the fiscal year ended April 3, 2026. The adoption of the standard will modify our disclosures but will not have an impact on our consolidated financial position, results of operations or statement of cash flows. ASU 2024-03, Income Statement - Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures. In November 2024, the FASB issued new guidance requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. This is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. We are currently evaluating the impact of the adoption of this guidance on our Condensed Consolidated Financial Statements and disclosures. ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. In September 2025, the FASB issued new guidance to improve the operabili …

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Restructuring and Other Costs Our restructuring and other costs consist primarily of severance and termination benefits, contract cancellation charges, asset write-offs and impairments and other exit and disposal costs. Severance costs generally include severance payments, outplacement services, health insurance coverage and legal costs. Contract cancellation charges primarily include penalties for early termination of contracts and write-offs of related prepaid assets. Other exit and disposal costs include costs to exit and consolidate facilities in connection with restructuring events. September 2022 Plan In connection with our acquisition of Avast, our Board of Directors approved a restructuring plan (the September 2022 Plan) to realize cost savings and operational synergies, which became effective upon the close of acquisition on September 12, 2022. Actions under this plan included the reduction of our workforce, contract terminations, facilities closures, the sale of underutilized facilities, and stock-based compensation charges for accelerated equity awards to certain terminated employees. As of January 2, 2026, we have incurred cumulative costs of $138 million related to the September 2022 Plan. The majority of actions under the plan were completed by March 28, 2025, and thus the remaining activity and accrual balance are immaterial and we anticipate incurring only immaterial additional expenses during fiscal year 2026 as the plan winds down. April 2025 Plan In connect …

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Revenues Disaggregation of revenues The following table summarizes the components of our net revenues: Three Months Ended Nine Months Ended (In millions) January 2, 2026 December 27, 2024 January 2, 2026 December 27, 2024 Subscription and service revenue (1) $ 1,236 $ 986 $ 3,705 $ 2,925 Net interest income on notes receivable 4 12 Net revenues $ 1,240 $ 986 $ 3,717 $ 2,925 (1) Subscription and service revenue includes amounts related to our Instacash Advances of $127 million and $338 million, during the three and nine months ended January 2, 2026, respectively. Refer to Note 3 for additional information regarding our Instacash Advances. Contract liabilities During the three and nine months ended January 2, 2026, we recognized $740 million and $1,677 million from the contract liabilities balances at October 3, 2025 and March 28, 2025, respectively. During the three and nine months ended December 27, 2024, we recognized $742 million and $1,620 million from the contract liabilities balances as of September 27, 2024 and March 29, 2024, respectively. Remaining performance obligations Remaining performance obligations represent contracted revenue that has not been recognized, which include contract liabilities and, when applicable, amounts that will be billed and recognized as revenue in future periods. As of January 2, 2026, we had $1,250 million of remaining performance obligations, excluding customer deposit liabilities of $656 million, of which we expect to recognize approxima …

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Segment and Geographic Information Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, who manages and reviews financial information presented on an operating segment basis for the purpose of making decisions and assessing financial performance. The CODM assesses operating performance of each segment based on regularly provided segment revenue, segment operating income (loss) and margin, by comparing actual margin results to historical results and previously forecasted financial information. Operating results by segment include costs or expenses directly attributable to each segment, and costs or expenses that are leveraged across our portfolio and therefore allocated between our two segments. Our CODM reviews expenses on a consolidated basis and the expenses associated with our corporate investments. Prior to fiscal year 2026, we operated as one reportable segment, with consolidated net income (loss) serving as the primary measure of segment profit or loss. Subsequent to the completion of our acquisition of MoneyLion on April 17, 2025, our portfolio now spans two reportable segments, Cyber Safety Platform and Trust-Based Solutions, with the primary measure of segment profit or loss being updated to segment operating income (loss). Cyber Safety Platform includes our security, comprehensive suites, and privacy products, which deliver technology solutions and superior threat protection to help people navigate the digital world, securely, privately and with …

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Stockholders' Equity Dividends On February 5, 2026, we announced that our Board of Directors declared a cash dividend of $0.125 per share of common stock to be paid in March 2026. All shares of common stock issued and outstanding and all RSUs and performance-based restricted stock units (PRUs) as of the record date will be entitled to the dividend and dividend equivalent rights, respectively, which will be paid out if and when the underlying shares are released. However, the 4 million unvested RSUs assumed in connection with the acquisition of Avast and the 4 million assumed RSUs under the MoneyLion Plan will not be entitled to dividend equivalent rights (DERs). See Note 15 for further information about these equity awards. Any future dividends and DERs will be subject to the approval of our Board of Directors. Contingent value rights In connection with the acquisition of MoneyLion, we issued 12 million equity-classified CVRs to MoneyLion shareholders and optionholders. The CVRs entitle holders to receive a contingent payment of $23.00 per CVR, payable in shares of Gens common stock, if our average volume-weighted average share price equals or exceeds $37.50 over any 30 consecutive trading days from December 10, 2024 until April 17, 2027. The CVRs were recorded as a component of additional paid-in capital at a fair value of approximately $73 million as of the acquisition date, based on a Monte-Carlo simulation valuation model. As of January 2, 2026, there were 12 million CVRs …

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