Gen Digital Inc (GENVR) Q4 2025 Earnings Report

Gen Digital Inc Contingent Value Rights (GENVR) delivered a solid Q4 2025 performance with revenue of $1.01 billion and a gross margin of approximately 80.3%, supporting an EBITDA of $417 million and an operating income of $417 million. Net income totaled $142 million, translating to earnings per share (EPS) of $0.23. Year-over-year revenue grew 4.5% and QoQ revenue rose 2.4%, underscoring stable demand for Gen’s software infrastructure offerings.

Financial strength is evident in the operating cash flow of $473 million and free cash flow of $470 million, yet the balance sheet reveals meaningful near-term liquidity and leverage challenges: cash and cash equivalents of $1.01 billion, total debt of $8.32 billion, and net debt of $7.31 billion. The current ratio and quick ratio stand at 0.51, signaling tighter short-term liquidity despite robust cash generation. The CVR payout remains contingent on Gen’s stock performance (VWAP threshold over 30 trading days within a 24-month window post-closing); this introduces equity upside optionality tied to execution of the stock price milestones rather than cash flows alone.

From a valuation standpoint, GENVR trades with elevated multiples (P/E ~28.7, P/S ~16.1, P/B ~7.2, EV/FCF ~34.6), reflecting a monetizeable, high-margin software platform but also concern over leverage and CVR-specific uncertainty. Absent explicit management guidance in the provided data, investors should monitor CVR attainment probabilities, debt repayment progress, and any shifts in capital allocation that could affect equity value and liquidity.