Executive Summary
Gen Digital Inc Contingent Value Rights (GENVR) QQ1 2025 delivered a solid top-line performance with a 2.3% year-over-year revenue increase to $965 million, supported by an exceptionally high gross margin of 80.3% and robust operating profitability. Despite a modest quarterly revenue delta (-0.2% QoQ), stronger operating leverage yielded a 10.6% year-over-year increase in operating income to $416 million and an EBITDA of $465 million, translating into an EBITDA margin of approximately 48.2%.
Key Performance Indicators
Key Insights
Revenue: $965.0M, YoY +2.33%, QoQ -0.21%
Gross Profit: $775.0M, Gross Margin ~80.3%
Operating Income: $416.0M, Margin ~43.1%
EBITDA: $465.0M, EBITDA Margin ~48.2%
Net Income: $181.0M, Net Margin ~18.76%
EPS (GAAP): $0.29, Diluted: $0.29
Cash Flow: Operating cash flow $264.0M; Free cash flow $262.0M; Capital expenditure $2.0M
Liquidity: Cash $644.0M; Total debt $8.576B; Net debt $7.932B; Current ratio ~0.30; Quick ratio ~0.30
Shareholder Value: Dividends paid $82.0M; Share repurchases $272.0M; Ne...
Financial Highlights
Revenue: $965.0M, YoY +2.33%, QoQ -0.21%
Gross Profit: $775.0M, Gross Margin ~80.3%
Operating Income: $416.0M, Margin ~43.1%
EBITDA: $465.0M, EBITDA Margin ~48.2%
Net Income: $181.0M, Net Margin ~18.76%
EPS (GAAP): $0.29, Diluted: $0.29
Cash Flow: Operating cash flow $264.0M; Free cash flow $262.0M; Capital expenditure $2.0M
Liquidity: Cash $644.0M; Total debt $8.576B; Net debt $7.932B; Current ratio ~0.30; Quick ratio ~0.30
Shareholder Value: Dividends paid $82.0M; Share repurchases $272.0M; Net cash used in financing activities $466.0M; Cash balance declined from $846.0M to $644.0M QoQ
Balance Sheet: Total assets $15.428B; Total liabilities $13.458B; Total stockholders’ equity $1.970B; Goodwill $10.205B; Intangible assets $2.538B; Total intangible/goodwill ~$12.742B
Valuation: Price-to-sales ~16.1x; Price-to-earnings ~21.4x; Price-to-Book ~7.87x; Dividend yield ~0.53%
Leverage: Debt ratio ~0.56; Debt-to-equity ~4.35x; Long-term debt to capitalization ~0.785; Total debt to capitalization ~0.813; Interest coverage ~2.72x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
965.00M |
2.33% |
-0.21% |
| Gross Profit |
775.00M |
1.04% |
-0.26% |
| Operating Income |
416.00M |
10.64% |
4.00% |
| Net Income |
181.00M |
-3.21% |
35.07% |
| EPS |
0.29 |
0.00% |
38.10% |
Key Financial Ratios
operatingProfitMargin
43.1%
operatingCashFlowPerShare
$0.43
freeCashFlowPerShare
$0.42
dividendPayoutRatio
45.3%
Management Commentary
No earnings transcript was provided in the data set. Consequently, management quotes or qualitative remarks from an earnings call are unavailable for inclusion in this section.
Forward Guidance
No formal management guidance was included in the QQ1 2025 data set. Absent explicit guidance, the forward outlook hinges on Gen Digital’s core software-infrastructure growth trajectory, the trajectory of debt reduction, and the realization (or lack thereof) of the GENVR contingent value payout. Factors likely to influence near-term visibility include: (1) the evolution of Gen Digital’s revenue mix and operating efficiencies, (2) debt repayment cadence and balance sheet optimization, and (3) the likelihood and timing of the VWAP-based CVR payout trigger. If the underlying Gen Digital stock sustains and approaches the payout threshold, the CVR value could provide upside optionality. Investors should monitor any subsequent quarterly commentary on capital allocation, product cycles, and the path to deleveraging.