Good afternoon, everyone, and thank you for standing by. My name is Jayla, 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 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 expectations. 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…

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 excludes the 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 B2B2C 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…

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

First, I just want to thank you guys for the depth of disclosure, both on the call and the slide deck. 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 on 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 two categories they have. So on the PFM side, the consumer side, they continue to do both acquire new customers and increase the number of transactional product 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 then 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 PFM 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, there hasn't been any substantial changes. Just how do you think about that as a lever to monetization?

Yes, absolutely. Our strategy is different...

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 innovating, 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 leading. 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, what are 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 for 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 protection.

Next question comes from Rob Coolbrith 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 had 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 8, 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 the 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 and 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 into 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 or the identity 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 the 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 standalone basis to cross-sell or enhance value in the 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 LifeLock business continues to be very, very strong. You take a strong growth business and then you fold in and weave in 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 question as it relates to your guidance. I certainly appreciate all the color you gave around how to think about Gen and 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 two segments going forward?

Yes. On the Cyber Safety Platform side, I would say that's where you're going to see, again, that consistent deposits into 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 elevated -- an accelerating rate of growth into double-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 Daniel Bergstrom with the company RBC.

It's Dan Bergstrom 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 PFM side and the engine side. The revenue is essentially still transactional revenue, but about 80% of that revenue is a recurring revenue or renewal revenue with the same customers. 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 the second half, we're going to continue to develop that and promote and sell the 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?

Absolutely. 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 for 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 what 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 what Gen could become tomorrow.

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

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 or 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 call it the financial wellness customers and exposing them to a cyber safety protection. And I think it goes back to what will be this 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 trust 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 stopped 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're super, super excited about the combination of the portfolio.

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