Gen Digital delivered a solid QQ2 2025 quarter characterized by resilient top-line performance, robust bookings growth, and meaningful progress on monetization and product expansion. Q2 bookings reached $964 million, up 5% on a constant-currency basis, while revenue rose 3% to $974 million, underscoring a durable mid-single-digit growth trajectory in cyber-safety bookings and direct monetization. The company continues to execute its AI-driven strategy, with Genie anti-scam solutions downloaded over 1.6 million times and on a path to broader integration across Norton 360 and LifeLock offerings, signaling meaningful product differentiation and potential uplift in ARPU and mix. Management raised the full-year guidance, indicating confidence in continued mid-single-digit revenue growth and 12-15% non-GAAP EPS growth in constant currency, supported by strong cash generation and disciplined capital allocation.
Key profitability and cash-flow metrics remained solid in the quarter. Q2 operating income was reported at a high level with a 58.2% operating margin, GAAP net income of $336 million and GAAP diluted EPS of $0.54. Operating cash flow was $158 million and free cash flow was $156 million, with ending cash of $737 million and total liquidity above $2.2 billion. The company continued to invest in growth initiatives (marketing, R&D, and AI-enabled capabilities) while maintaining lean G&A (~2% of revenue) and returning cash to shareholders via dividends and buybacks. Gen also highlighted a healthy retention profile (direct retention at 78%, up one point YoY) and a record 39.7 million direct customers, supported by strong cross-sell dynamics across Norton, LifeLock, and Avast brands. Overall, Gen remains well-positioned to extend its consumer cyber-safety leadership through AI-enabled product innovations, international expansion, and expanded partner channels, while managing leverage and maintaining liquidity.
The outlook remains constructive: Q3 non-GAAP revenue expected at $980–$990 million with non-GAAP EPS of $0.54–$0.56, and FY2025 non-GAAP EPS guidance raised to $2.18–$2.23 (up 12–15% YoY in constant currency). Investors should monitor AI-driven monetization from Genie, LifeLock adoption, macro-driven identity theft demand, and the progress of international/mobile expansion as key catalysts and risk factors.