Gen Digital Inc (GENVR) Q2 2025 Earnings Report

Gen VR QQ2 2025 results reflect a high-margin software infrastructure portfolio delivering solid top-line growth and substantial profitability, underpinned by robust cash flow generation. Revenue for the quarter was $974 million, up 2.7% year over year and 0.9% quarter over quarter, while gross profit reached $780 million for an ~80.1% gross margin. EBITDA and operating income stood at $402 million with an operating margin of 41.3%, highlighting strong operating leverage in the quarter. Net income was $161 million with earnings per share of $0.26, up 8.0% year over year though down ~11% sequentially due to subdued top-line dynamics and non-operating expenses. Free cash flow totaled $156 million, supported by operating cash flow of $158 million and a cash balance of $737 million. The quarter also featured meaningful leverage, with total debt of $8.59 billion and net debt of $7.85 billion, resulting in interest expense of $149 million and a 2.7x interest coverage.

Looking ahead, the GenVR contingent value rights (CVR) introduce a material variable in the investment thesis. The CVR pays 2300 in Gen common stock if Gen’s 30-day volume-weighted average price reaches $37.50 within 24 months following the closing of the MoneyLion transaction. Absent explicit management guidance or visibility on CVR maturity timing and stock price triggers, upside attributes hinge on Gen Digital’s stock performance and the company’s ability to deleverage and sustain cash generation. Investors should weigh the potential CVR payoff against ongoing leverage risk and the secular demand for software infrastructure and cybersecurity offerings.