# Gen Digital (GEN) Forecast Calculator

Interactive five-year financial forecast and DCF for Gen Digital. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/gen-digital/forecast
- Industry: Technology
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 2456000000 | 1288000000 | 773000000 | 31000000 |
| 2022 | 2490000000 | -950000000 | 716000000 | 3887000000 |
| 2023 | 2551000000 | 700000000 | 1046000000 | 554000000 |
| 2024 | 2796000000 | 968000000 | 1145000000 | 836000000 |
| 2025 | 3317000000 | 751000000 | 1535000000 | 1334000000 |

## Frequently asked questions

### What does Gen Digital do?

Gen Digital, formerly NortonLifeLock, is a global leader in consumer cyber safety, offering cybersecurity, online privacy, identity protection, and financial wellness solutions. The company operates a portfolio of well-known brands like Norton, Avast, LifeLock, and MoneyLion, serving nearly 500 million users.

### How does Gen Digital generate revenue?

Gen Digital primarily generates revenue through its subscription-based, asset-light software model, with approximately 88% coming from Direct Revenue and 12% from Partner Revenue. The company utilizes a freemium funnel to acquire users and then cross-sells premium security and identity protection services.

### What is Gen Digital's capital expenditure strategy?

Gen Digital is an asset-light company with minimal capital expenditure, typically 1.0% - 1.5% of revenue. Capex is almost entirely maintenance-related, focusing on IT infrastructure and laptop refreshes, as growth is primarily driven by R&D and M&A.

### Why does Gen Digital have negative net working capital?

Gen Digital exhibits significantly negative net working capital because it collects cash upfront for annual subscriptions but recognizes revenue over 12 months. This creates a substantial Deferred Revenue liability on its balance sheet, which acts as a structural source of cash flow for the company.

### How does Gen Digital approach mergers and acquisitions?

Gen Digital is a transformational acquirer, having been formed by major acquisitions like Avast and recently acquiring MoneyLion to expand into financial wellness. Its M&A strategy focuses on software assets, typically paying 4x-6x EV/Revenue.

### What is the purpose of the Gen Digital financial model?

The Gen Digital financial model provides a comprehensive equity valuation and M&A integration scenario analysis for equity analysts. It enables forecasting subscription revenue growth, evaluating cross-selling synergies from the MoneyLion acquisition, and assessing the company's deleveraging and capital return capacity.