GENGen Digital

U.S. federal regulators, state attorneys general or other state enforcement authorities and other governmental agencies have in the past and may in the future take formal or informal actions again in against us, which and could cause reputational and financial harm to our business, financial condition, results of operations and cash flows. These formal and informal actions may involve inquiries, subpoenas, exams, pending investigations, enforcement matters and litigation by state and federal regulators, cease and desist orders, fines, civil penalties, criminal penalties or other disciplinary action or force us to adopt new compliance programs or policies, remove personnel including senior executives, provide remediation or refunds to customers, or undertake other changes to our business operations, such as limits or prohibitions of our ability to offer certain products and services, or suspension or revocation of one or more of our licenses. Any weaknesses in our compliance management system may also subject us to penalties or enforcement action by the CFPB. CFPB or state regulators. We have in the past, and may again in the future, enter into settlements, consent decrees and similar arrangements with the FTC, the CFPB, state attorneys generals and other state regulators, and other sovereign regulators and competition authorities such as the United Kingdom’s Competition and Markets Authority (CMA). In addition, certain products and offers we offer, including loans or advance products facilitated through our platform, could be rendered void or unenforceable in whole or in part, which could adversely affect our business, financial condition, results of operations and cash flows. If we fail to manage our legal and regulatory risk in the jurisdictions in which we operate, our business could suffer, our reputation could be harmed and we would be subject to additional legal and regulatory risks. This could, in turn, increase the size and number of claims and damages asserted against us and/or subject us to regulatory investigations, enforcement actions or other proceedings, or lead to increased regulatory concerns. We may also be required to spend additional time and resources on remedial measures and conducting inquiries, beyond those already initiated and ongoing, which could have an adverse effect on our business. Additionally, the highly regulated environment in which our third-party financial institution partners operate may subject us to regulation, which could have an adverse effect on our business, financial condition, results of operations and cash flows. We rely on bank partners, payment processors and other institutions with licensures we do not have to facilitate offerings.

On July 21, 2023, Jeffrey Frommer, Lyusen Krubich, Daniel Fried and Pat Capra, the former equity owners of MALKA MALKA, a subsidiary of MoneyLion (collectively, the “Seller Members”), brought a civil action in the SDNY Southern District of New York (“SDNY”) against MoneyLion Technologies Inc. alleging, among other things, breaches of the Membership Interest Purchase Agreement (the “MIPA”) governing the acquisition of MALKA (the “MALKA Acquisition”). Among other claims, the Seller Members allege that they are entitled to payment of $ 25 million of Class A Common Stock pursuant to the earnout provisions set forth in the MIPA, based on the Seller Members’ assertion that MALKA achieved certain financial targets for the year ended December 31, 2022 (such payment, the “2022 Earnout Payment”). The Company believes that the Seller Members are not entitled to any portion of the 2022 Earnout Payment under the terms of the MIPA and MALKA. MoneyLion filed counterclaims against the Seller Members, Sellers Members alleging, among other things, fraud, negligent misrepresentation, conversion, breach of fiduciary duties and breach of contract contract. The court issued its decision on September 29, 2025, finding that MoneyLion breached the parties’ agreements and seeking compensatory awarding the Sellers Members damages and other remedies attorneys’ fees and costs, for which we have accrued $ 48 million as a result pre-acquisition contingency in Other long-term obligations in our Consolidated Balance Sheet. On October 28, 2025, MoneyLion filed a notice of wrongdoing by the Seller Members. The Company continues to vigorously pursue its remaining counterclaims and defend against the Seller Members’ claims, which the Company believes are meritless. The bench trial of all remaining claims concluded on May 5, 2025, and a decision is currently pending. At this stage, we are assessing the impact of this case on appeal. See Note 4 for details regarding our allocation of the purchase price to the underlying assets acquired and liabilities assumed in the MoneyLion acquisition, and also allocation for future periods if any material loss or adverse effect is probable or estimable. our acquisition of MoneyLion.

In connection Due to the uncertainty with respect to the timing of future cash flows associated with our unrecognized tax benefits and other long-term taxes as of April 3, 2026, we are unable to make reasonably reliable estimates of the period of cash settlement with the acquisition of Avast, our Board of Directors approved a restructuring plan (the September 2022 Plan) to realize cost savings and operational synergies, which became effective upon the close of the acquisition on September 12, 2022. We have incurred and expect to incur cash expenditures for severance and termination benefits, contract terminations, facilities closures, and the sale of underutilized facilities as well as stock-based compensation charges for accelerated equity awards for certain terminated employees. We expect that we will incur total costs up to $150 million following the completion of the acquisition. These actions are expected to be completed by the end of calendar year 2025. During fiscal 2025, we made $25 respective taxing authorities. Therefore, $1,584 million in cash payments related to long-term income taxes payable has been excluded from the September 2022 Plan. contractual obligations table. See Note 12 13 of the Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K for further cash flow information associated with our restructuring activities. information.

Year Ended April 3, 2026 March 28, 2025 March 29, 2024 March 31, 2023 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── OPERATING ACTIVITIES: Net income (loss) $ 973 $ 643 $ 607 $ 1,334 Adjustments: Amortization and depreciation 493 419 485 329 Impairments and write-offs of current and long-lived assets — 7 (3) 25 Stock-based compensation expense 237 133 138 134 Loss on sale of Instacash Advances 205 — — Deferred income taxes 92 (32) (991) (145) Loss (gain) on extinguishment of debt 9 — — 9 Gain on sale of nonfinancial assets (15) — — Gain on sale of properties — — (9) — Non-cash operating lease expense 18 16 18 23 Impairment on Change in fair value and impairment of non-marketable equity investments 79 30 40 — Foreign currency remeasurement loss (gain) 54 (2) (18) Legal contract dispute cost (Note 1) (1) — 66 — — Other 11 22 2 47 13 40 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net (32) (53) 7 11 Accounts payable (48) 26 (12) (8) Accrued compensation and benefits 8 27 (24) (6) Contract liabilities 74 36 47 16 Income taxes payable (96) (80) 446 (128) Instacash Advances held for sale, net (205) — — Other assets 16 86 861 (702) Other liabilities (364) (114) 432 (137) Net cash provided by (used in) operating activities 1,545 1,221 2,064 757 INVESTING ACTIVITIES: Purchases of property and equipment (22) (15) (20) (6) Purchase of non-marketable equity investments — (4) — — Payments for acquisitions, net of cash acquired (1,032) (84) — (6,547) Payments for originations of notes receivable (283) — — Proceeds from principal repayments of notes receivable 253 — — Proceeds from the maturities and sales of short-term investments 13 — — 4 Proceeds from the sale of properties 21 — 25 Proceeds from sale of nonfinancial assets 40 — — Other (1) 3 (3) 2 Net cash provided by (used in) investing activities (1,011) (100) 2 (6,547) FINANCING ACTIVITIES: Repayments of debt and related equity component (3,620) (1,311) (1,183) (3,047) Proceeds from issuance of debt, net of issuance costs (2) 3,475 941 — 8,954 Net proceeds from sales of common stock under employee stock incentive plans 13 11 12 12 Tax payments related to vesting of stock units (55) (26) (26) (20) Dividends and dividend equivalents paid (312) (313) (323) (314) Repurchases of common stock (634) (272) (441) (904) Net cash provided by (used in) financing activities (1,133) (970) (1,961) 4,681 Effect of exchange rate fluctuations on cash and cash, cash equivalents and restricted cash 4 9 (9) (28) Change in cash and cash, cash equivalents and restricted cash (595) 160 96 (1,137) Beginning cash and cash, cash equivalents and restricted cash 1,006 846 750 1,887 Ending cash and cash, cash equivalents and restricted cash $ 411 $ 1,006 $ 846 $ 750