Good afternoon, everyone. Thank you for standing by. My name is Tamiya, and I will be your conference operator today. Today's call is being recorded, and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. At this time, for opening remarks, I would like to pass the call over to Jason Starr, Head of Investor Relations.

Thank you, Tamiya, 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 irwebsite@investor.gengendigital.com. We encourage investors to monitor this website as we routinely post investor-oriented information such as news and events, financial filings. Today's calls contain 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, 02/05/2026. 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 three 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. A 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…

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 were $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 reflect 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 lifecycle 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…

Thank you. We will now begin the question and answer session. For any reason at all you would like to remove that question, please press star followed by two. Again, to ask a question, please press star 1. The first question comes from Roger Boyd with UBS. You may proceed.

Thanks for taking the questions. Hey, Vincent. Hey, Natalie. I wanted to come back to consumer AI and what we saw with OpenClue, 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 aspects of their digital lives. And just curious how you're thinking about the role Gen can play there in helping consumers. I know you mentioned the agent trust hub and a lifecycle with 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? Thanks.

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 OpenClue in the last two weeks or even last weekend. I would say I see it in a sequential way, suddenly exponential growth. We initially, as you know, were protecting in the initial days of the Internet, the device and protecting against weaknesses in the operating systems. Then later on protecting against the flurry of websites that existed in the early days of uncategorized search tools. All of that created 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 OpenClue, can do your task. As you know, you can send a WhatsApp or an email 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 agent, if they don't know how to do it or cannot do it via email, may go and download other agents or skills if you want and do it that way. And suddenly, 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, is super fun as an early adopter. Security is not the mindset. It's really about how cool it is to be more efficient, to be delegating new tasks to those agents. And, similarly, that at the beginning, the operating systems were not fully secured and Norton created the antivirus. We feel there's a huge gap here to singularly focus on bringing that trust and security and verification inside this environment. As…

Awesome. Thanks, Vincent. I appreciate all the color there. And then just a quick follow-up on the MoneyLion business. Again, very solid growth there, 40%. I just wanted to confirm, 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 turning 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? Thanks.

Yep. A 100%. And we set the mark for a very cautious pace. 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, continuing to be very strong on both legs, the personal consumer offering led within Instacash, but also the membership, savings account, and then with engine that really outgrowing or 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 pockets of acceleration, we, 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 customer already when they come to cyber safety, the number one concern is to protect against the financial damage, to protect their financial health. And now with MoneyLion, as we embedded white label and created into our Norton and our 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. We're redesigning the experience here. We've seen an increase, a double-digit growth in LifeLock customers 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 the time of benefit inscription at the end of the calendar year. And then we also launched it into our own install base to really refine and connect between cyber safety and financial wellness. And we see early adoption of and convergence of the need between a cybersecurity and a financial health position. Those are really good fact patterns. We said it that we'll start sizing revenue synergies and then over long-term growth after this fiscal year. So probably in the May timeframe for the next fiscal year.

Really clear. Thanks again.

Thank you. The next question comes from Meta Marshall with Morgan Stanley. You may proceed.

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

Yeah. Very good. So you referred to a partnership we just announced two 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 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 we, 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 two-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, now have deep access to the differentiated dataset 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 safe 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 relationships with will also then use that engine platform. So feel pretty excited about that. We obviously look to partner with many others in the industry to really provide this unique value proposition, this matchmaker, if you want, between a 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 of just any trends between first-party products and third-party products on the MoneyLion marketplace? Any material shifts in any direction? Thanks.

So the short answer is all of the trends you've seen for the last two, three quarters have continued and continued, 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 gross rate that the engine. And we cite engine is pretty balanced on the first-party and third-party. Obviously, where we strong like, term lending on some of the credit builder, we lead in that subcategory. And in others, where we don't have a cause and offering, it could be a credit card or an insurance. We are, obviously, our old third-party.

Great. Thanks.

Thank you.

The following question comes from Matt Hedberg with RBC. You may proceed.

Hey, guys. Thanks for taking my questions. 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 we think about anniversarying MoneyLion, you talked a lot on this call about cross-sell and AI, you know, additives. Are there any sort of high-level kind of early guardrails or kind of building blocks we should think of whether it's spread out their profitability?

Yeah. In the overall business, I would point you to, you know, 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 twenty-seven 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 other 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'll give us a couple $100 million 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, you know, 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. Thanks for that. And then, you know, Vincent, you know, I wanted to double-click back on MoneyLion synergy. It sounds like you're doing a lot right now. You talked about MoneyOne. And it sounds like synergies may be 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 kind of bridging the gap between kind of the historical MoneyLion cohort and kind of your premium base? You know, it feels like there could be a lot of synergies there, but, you know, could you see only, you know, off-selling synergies but also sort of benefiting your premium base?

Yeah. 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 four key reasons, and the number one is always protecting 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, etcetera. That's why sometimes you may feel it slow, but we want to make sure we follow that customer experience. Obviously, LifeLock customers are a little bit more or further away in that convergence because they already had organically in our portfolio move from basic credit to monitoring your key assets, like your home for a home title, your bank account for anomalies, and we continue to expand that pool. And so that awareness, if you want, is stronger. And now we can bring other additional value. I think I had mentioned to you that one of the first realizations that financial wellness was coming closer and closer, we were monitoring those anomalies and we introduced our AI assistant into the environment. Most of the questions were not too much. Please spot the anomaly. It 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 four-life 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 assistance into the platform.

Got it. Thanks, guys.

Thank you. The next question comes from Saket Kalia with Barclays. You may proceed.

Okay, great. Guys. Thanks for taking my questions here, and great to see the consistency. Hey, Vincent. Yeah. Thank you. Vincent, maybe we'll start with you. You know, 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 kinda build this flywheel.

Yeah. 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 brand. So it's part of your own journey as a special 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 dataset 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 and 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 in the right intelligence if you want to do it, you're going to have improved retention. Today, we have our cohorts by cohorts that continue to improve in retention, of course, MoneyLion doesn't have subscriptions, so we do not 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?

Yeah. We were happy about this quarter. 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 pay down 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 two. Keep in mind, what I mentioned earlier, we will have a couple $100 million more than we even did in fiscal year 2026 because we're through the transition tax. So even though we already, that kind of hits us and has hit us for the last six years in Q2, on an annualized basis, generate enormous amount of free cash flow to deploy, we'll have even more in year to deploy. We'll do it in a balanced fashion. We stay very committed to, yeah. And we stay very committed to, like, we put that under three times net target out there for ourselves. We're really, really close. I mean, even if I look at, you know, in the next quarter or two, 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.

Very helpful. Thanks, guys.

Thank you. One second. Thank you. The next question comes from Robert Coolbrith with Evercore. You may proceed.

Hi. Good afternoon. Congratulations to the team on the strong results and outlook. Just wanted to ask on the investments you're making operationally in the business. Sales and marketing seems to accelerate a bit in the quarter. Was just wondering if that's something that's reflective of inflation in the immediate 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, looks like you're seeing even stronger efficiency and productivity growth there. Can you just wanted to ask if you have anything new you could add on the use of AI within the organization? If that's making strong contribution or just maybe better synergy realization, anything more you might be able to add on that. Thank you so much.

Yeah. Thanks for the questions. We appreciate it. On sales and marketing, let me take that one. We haven't seen for sale 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 demands of the 360 memberships across the board. That's fantastic. We continue to invest in MoneyLion. Both on the first and the third party. Those we see well-balanced growth even higher than we had indicated to you guys, higher than our expectations, higher than 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 time 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 will ride to drive our revenue growth.

Cool. And then maybe I'll take the R&D and then Roger, 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 customer, which are a 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 two big buckets of AI initiatives. One, it would 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. Then the second one is changing our functions to be AI first. And there are three 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's no order of priorities on those. We're making really good progress on redesigning how we approach software development and products from ideations to product launch. We have a set of seeds that we call that, we say we call our jelly corn. And it's basically a squad of three PM, an R&D developer, and a design person. And they have to drive everything from mediation to product. Using only AI tools. And we're running experiment. We're still in the learning phase, but super excited 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 take a bit more time versus the ideation. But I think the world is here to change, and we gotta be at the forefront of it and leverage the full benefit.

Great. Thank you so much for the update.

Yep.

Thank you. Thank you. Our final question comes from Joseph Gallo with Jefferies. You may proceed.

Hey, guys. Thanks for the call. I really appreciate it. Yeah. Earlier in the call you, earlier in the call, you talked about, you know, protecting the user and infinite amount of agents that, you know, represent that user. How should we think about, you know, 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 at the level of discussing an ARPU, an ASP. This is really a fast-evolving I was gonna 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 Open and I connected my email and my calendars, and I don't know what's working. And can you please undo it? I'm worried. And so we see that real-time, real-life. We people adopting it. Right now, there is a gap to fill, which is providing that safety the same way that antivirus only 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 agent 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 Q4 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? Thank you.

I think just from a current consideration standpoint, everything is baked into, you know, either our actuals or, you know, 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 one-time special crazy environment could happen in the world, we do feel that even though it's slow, it's stable.

Great to see. Thank you.

Thank you.

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