Net Revenues (USD, millions)

Cost of Revenues (USD, millions)

Gross Profit (USD, millions)

Sales and Marketing (USD, millions)

Research and Development (USD, millions)

General and Administrative (USD, millions)

Amortization of Intangible Assets (USD, millions)

Restructuring and Other Costs (USD, millions)

Total Operating Expenses (USD, millions)

Operating Income (Loss) (USD, millions)

Interest Expense (USD, millions)

Other Income (Expense), Net (USD, millions)

Income (Loss) Before Income Taxes (USD, millions)

Income Tax Expense (Benefit) (USD, millions)

Net Income (Loss) (USD, millions)

Net Income (Loss) per Share - Basic (USD)

Net Income (Loss) per Share - Diluted (USD)

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The significant jump in **cash and cash equivalents** in Q4 2024 was primarily due to robust operating cash flows, including a sizable **$900 million tax refund** received in January. This strong inflow, which was part of a total operating increase of **$1,398 million**, more than offset outflows from financing activities (notably **$600 million** in voluntary debt repayment and **$300 million** in share repurchases) and the modest impact from investing activities (**$(2) million**) and exchange rate fluctuations (**$(8) million**).  **[GEN_3388137_6]** **[20240509LA09914:4]** 

Why did cash and cash equivalents jump so high in Q4 2024?

The spike was driven primarily by a **reclassification of $1,100 million of 5.00% Senior Notes from long-term debt to current liabilities** since these notes are now due within the next 12 months, compounded by **mandatory principal amortization payments on the Term A Facility**.  **[0000849399-24-000040_ex9901q1fy25.htm:2]** **[20240801LA74522:3]** **[0000849399-24-000042_gen-20240628.htm:25]** **[0000849399-24-000042_gen-20240628.htm:8]** 

What drove the spike in the current portion of long-term debt in Q1 2025?

The notable drop in **long-term debt** in Q1 2025 was primarily due to the **reclassification of a significant portion of debt**—amounting to **$1,332 million**—from long-term to the current portion (reflecting obligations due within 12 months, such as the **5.00% Senior Notes due April 15, 2025**) and **debt repayments**, including **voluntary prepayments** and **mandatory principal amortization payments** (with **$88 million** repaid during the quarter).  **[0000849399-24-000040_ex9901q1fy25.htm:2]** **[0000849399-24-000042_gen-20240628.htm:8]** **[0000849399-24-000042_gen-20240628.htm:25]** **[0000849399-24-000042_gen-20240628.htm:3]** 

Why did long-term debt drop notably in Q1 2025?

The decline in total assets by Q3 2025 was primarily driven by several factors, including a **decline in intangible assets** by **$302 million**, a **slight decrease in goodwill** by **$39 million**, a **reduction in other current assets** by **$72 million**, and a **decrease in other long-term assets** by **$40 million**. These decreases were partially offset by an increase in cash and cash equivalents, which rose by **$37 million**, but this was not enough to prevent the overall decline in total assets.  **[0000849399-25-000003_ex9901q3fy25.htm:2]** **[0000849399-25-000006_gen-20241227.htm:1]** 

What factors contributed to the decline in total assets by Q3 2025?

The turnaround in retained earnings by Q3 2025 was primarily driven by a **robust net income of $501 million** during the nine-month period, which significantly improved the company’s earnings position. This strong performance led to a net increase of **$269 million** in retained earnings, even after accounting for **cash dividends of $232 million** and an **other comprehensive loss of $57 million**.  **[0000849399-25-000006_gen-20241227.htm:3]** **[0000849399-25-000006_gen-20241227.htm:29]** 

What led to the turnaround in retained earnings by Q3 2025?

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Operating cash flow in Q4 2024 was significantly boosted primarily by an **$899 million income tax refund** received during the quarter, which directly contributed to the increase in cash flows. Additionally, the **cash collections from revenue attributed to the Avast acquisition** further supported the higher operating cash flow during the period.  **[0000849399-24-000036_gen-20240329.htm:55]** **[0000849399-24-000036_gen-20240329.htm:62]** 

Why was Operating Cash Flow so high in Q4 2024?

The documents don’t explicitly mention free cash flow. However, they do explain that operating cash flows surged in FY 2024—jumping from **$757 million in FY 2023** to **$2,064 million in FY 2024**—primarily due to a **$899 million income tax refund** and higher cash collections following the acquisition of **Avast**.  **[0000849399-24-000036_gen-20240329.htm:55]** **[0000849399-24-000036_gen-20240329.htm:62]**  These factors likely played a significant role in driving any corresponding improvement in free cash flow.

What drove the surge in Free Cash Flow in FY 2024?

The dramatic drop in **Deferred Income Taxes** in Q1 2025 is primarily due to major adjustments in both deferred tax assets and liabilities. Notably, there was a significant shift from a net deferred tax liability in the previous year to net deferred tax assets in the current period, driven mainly by the recognition of **goodwill-related deferred tax assets** and increases in deferred tax assets related to **capitalized research and experimental expenditures** and **interest**.  **[0000849399-24-000036_gen-20240329.htm:105]**  Additionally, the **valuation allowance** against deferred tax assets decreased slightly—from **$97 million** to **$93 million**—indicating improved realizability of certain deferred tax assets.  **[0000849399-24-000036_gen-20240329.htm:105]**  Finally, the deferred income tax benefit recorded for Q1 2025 was **$10 million**, compared to **$60 million** in Q1 2024, reflecting fewer favorable adjustments in the current quarter.  **[20240801LA74522:4]** **[0000849399-24-000040_ex9901q1fy25.htm:3]** 

Why did Deferred Income Taxes drop so dramatically in Q1 2025?

The **Other assets change** in Q4 2024 saw a marked increase of **$906 million**, primarily due to adjustments in operating assets and liabilities, net of acquisitions. However, the documents do not provide further detailed context or a complete breakdown of this jump.  **[0000849399-24-000022_ex9901q4fy24.htm:4]** **[0000849399-24-000036_gen-20240329.htm:85]** 

What explains the sharp jump in Other Assets Change in Q4 2024?

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adc69f508bd71b13efb36f5252d7f9fb878918e60f36eabca12a064e953aa2c3

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Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

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Gen Digital (GEN)

Financials