Arm Holdings plc American Depositary Shares (ARM) 10-Year Financial Performance & Capital Metrics

ARM • • Industrial / General

TechnologySemiconductorsSemiconductor Design & IPProcessor & Microcontroller IP

AboutArm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physical IP and associated systems IPs, software, tools, and other related services. Its products are used in various markets, such as automotive, computing infrastructure, consumer technologies, and Internet of things. The company operates in the United States, the People's Republic of China, Taiwan, South Korea, and internationally. The company was founded in 1990 and is headquartered in Cambridge, the United Kingdom. Arm Holdings plc operates as a subsidiary of Kronos II LLC.Show more

Revenue $4.01B +23.9%
EBITDA $1.01B +286.9%
Net Income $792M +158.8%
EPS (Diluted) 0.75 +158.6%
Gross Margin 94.86% +2.3%
EBITDA Margin 25.2% +212.2%
Operating Margin 20.64% +574.0%
Net Margin 19.77% +108.8%
ROE 13.05% +99.4%
ROIC 14.25% +505.7%
Debt/Equity 0.05 +22.0%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Healthy 5Y average net margin of 17.3%

✗Weaknesses

✗Weak momentum: RS Rating 15 (bottom 15%)
✗Trading more than 30% below 52-week high
✗Expensive at 16.3x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-

5Y-

3Y14.02%

TTM24.81%

Profit (Net Income) CAGR

10Y-

5Y-

3Y12.99%

TTM29.49%

EPS CAGR

10Y-

5Y-

3Y11.57%

TTM29.37%

ROCE

10Y Avg9.8%

5Y Avg9.8%

3Y Avg8.63%

Latest11.47%

Peer Comparison

Processor & Microcontroller IP

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ARMArm Holdings plc American Depositary Shares	111.52B	105.11	140.15	23.94%	18.81%	11.21%	0.16%	0.05
RMBSRambus Inc.	11.1B	103.07	62.47	20.71%	33.72%	17.76%	1.8%	0.03

Profit & Loss

	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Sales/Revenue+	2.7B	2.68B	3.23B	4.01B
Revenue Growth %	-	-0.01%	0.21%	0.24%
Cost of Goods Sold+	220M	195M	234M	206M
COGS % of Revenue	0.08%	0.07%	0.07%	0.05%
Gross Profit+	2.48B	2.48B	3B	3.8B
Gross Margin %	0.92%	0.93%	0.93%	0.95%
Gross Profit Growth %	-	0%	0.21%	0.27%
Operating Expenses+	1.8B	1.81B	2.9B	2.97B
OpEx % of Revenue	0.67%	0.67%	0.9%	0.74%
Selling, General & Admin	858M	726M	968M	965M
SG&A % of Revenue	0.32%	0.27%	0.3%	0.24%
Research & Development	945M	1.08B	1.93B	2.01B
R&D % of Revenue	0.35%	0.4%	0.6%	0.5%
Other Operating Expenses	0	0	0	0
Operating Income+	680M	678M	99M	827M
Operating Margin %	0.25%	0.25%	0.03%	0.21%
Operating Income Growth %	-	-0%	-0.85%	7.35%
EBITDA+	856.5M	848.2M	261M	1.01B
EBITDA Margin %	0.32%	0.32%	0.08%	0.25%
EBITDA Growth %	-	-0.01%	-0.69%	2.87%
D&A (Non-Cash Add-back)	176.5M	170.2M	162M	182.9M
EBIT	786M	671M	212M	720M
Net Interest Income+	2M	42M	110M	116M
Interest Income	2M	42M	110M	116M
Interest Expense	0	0	0	0
Other Income/Expense	106M	-7M	113M	-107M
Pretax Income+	786M	671M	212M	720M
Pretax Margin %	0.29%	0.25%	0.07%	0.18%
Income Tax+	110M	147M	-94M	-72M
Effective Tax Rate %	0.7%	0.78%	1.44%	1.1%
Net Income+	549M	524M	306M	792M
Net Margin %	0.2%	0.2%	0.09%	0.2%
Net Income Growth %	-	-0.05%	-0.42%	1.59%
Net Income (Continuing)	676M	524M	306M	792M
Discontinued Operations	0	0	0	0
Minority Interest	0	0	0	0
EPS (Diluted)+	0.54	0.51	0.29	0.75
EPS Growth %	-	-0.06%	-0.43%	1.59%
EPS (Basic)	0.54	0.51	0.30	0.75
Diluted Shares Outstanding	1.03B	1.03B	1.04B	1.06B
Basic Shares Outstanding	1.03B	1.03B	1.03B	1.05B
Dividend Payout Ratio	-	-	-	-

Balance Sheet

	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Total Current Assets+	3.09B	3.54B	4.2B	4.83B
Cash & Short-Term Investments	1.64B	2.21B	2.92B	2.83B
Cash Only	1B	1.55B	1.92B	2.08B
Short-Term Investments	631M	661M	1B	740M
Accounts Receivable	1.29B	1.17B	1.13B	1.9B
Days Sales Outstanding	174.2	158.73	127.46	172.89
Inventory	0	0	0	0
Days Inventory Outstanding	-	-	-	-
Other Current Assets	167M	157M	145M	0
Total Non-Current Assets+	3.42B	3.33B	3.73B	4.1B
Property, Plant & Equipment	417M	391M	420M	714M
Fixed Asset Turnover	6.48x	6.85x	7.70x	5.61x
Goodwill	1.64B	1.62B	1.63B	1.62B
Intangible Assets	205M	138M	152M	151M
Long-Term Investments	765M	753.9M	773.4M	962.8M
Other Non-Current Assets	260M	287.1M	477.6M	253.2M
Total Assets+	6.51B	6.87B	7.93B	8.93B
Asset Turnover	0.42x	0.39x	0.41x	0.45x
Asset Growth %	-	0.05%	0.15%	0.13%
Total Current Liabilities+	1.4B	1.36B	1.5B	929M
Accounts Payable	57M	65M	26M	63M
Days Payables Outstanding	94.57	121.67	40.56	111.63
Short-Term Debt	31M	26M	32M	40M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K
Other Current Liabilities	202M	228M	130M	153M
Current Ratio	2.22x	2.60x	2.79x	5.20x
Quick Ratio	2.22x	2.60x	2.79x	5.20x
Cash Conversion Cycle	-	-	-	-
Total Non-Current Liabilities+	1.57B	1.45B	1.13B	1.16B
Long-Term Debt	0	0	0	0
Capital Lease Obligations	230M	193M	194M	316M
Deferred Tax Liabilities	279M	262M	150.5M	42.6M
Other Non-Current Liabilities	266M	190M	65.5M	103.4M
Total Liabilities	2.96B	2.81B	2.63B	2.09B
Total Debt+	261M	219M	226M	356M
Net Debt	-743M	-1.33B	-1.7B	-1.73B
Debt / Equity	0.07x	0.05x	0.04x	0.05x
Debt / EBITDA	0.30x	0.26x	0.87x	0.35x
Net Debt / EBITDA	-0.87x	-1.57x	-6.50x	-1.71x
Interest Coverage	-	-	-	-
Total Equity+	3.55B	4.05B	5.29B	6.84B
Equity Growth %	-	0.14%	0.31%	0.29%
Book Value per Share	3.46	3.95	5.07	6.43
Total Shareholders' Equity	3.55B	4.05B	5.29B	6.84B
Common Stock	2M	2M	2M	2M
Retained Earnings	1.93B	2.46B	2.75B	3.54B
Treasury Stock	0	0	0	0
Accumulated OCI	399M	376M	371M	372M
Minority Interest	0	0	0	0

Cash Flow

	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operations+	458M	739M	1.09B	397M
Operating CF Margin %	0.17%	0.28%	0.34%	0.1%
Operating CF Growth %	-	0.61%	0.47%	-0.64%
Net Income	549M	524M	306M	792M
Depreciation & Amortization	185M	170M	162M	182.9M
Stock-Based Compensation	26M	79M	1.04B	0
Deferred Taxes	-76M	-34M	-273M	-218M
Other Non-Cash Items	-38M	73M	53M	1.11B
Working Capital Changes	-188M	-73M	-195M	-1.47B
Change in Receivables	-219M	125M	-89M	-743M
Change in Inventory	0	0	0	0
Change in Payables	0	0	0	0
Cash from Investing+	-619M	-138M	-516M	-35M
Capital Expenditures	-75M	-93M	-92M	-239M
CapEx % of Revenue	0.03%	0.03%	0.03%	0.06%
Acquisitions	-	-	-	-
Investments	-	-	-	-
Other Investing	0	0	-51M	1M
Cash from Financing+	-32M	-42M	-208M	-202M
Debt Issued (Net)	-	-	-	-
Equity Issued (Net)	-	-	-	-
Dividends Paid	0	0	0	0
Share Repurchases	-	-	-	-
Other Financing	-82M	-42M	-208M	-202M
Net Change in Cash	-	-	-	-
Free Cash Flow+	383M	646M	947M	178M
FCF Margin %	0.14%	0.24%	0.29%	0.04%
FCF Growth %	-	0.69%	0.47%	-0.81%
FCF per Share	0.37	0.63	0.91	0.17
FCF Conversion (FCF/Net Income)	0.83x	1.41x	3.56x	0.50x
Interest Paid	1M	0	0	0
Taxes Paid	141M	159M	188M	0

Key Ratios

Metric	2022	2023	2024	2025
Return on Equity (ROE)	15.47%	13.79%	6.55%	13.05%
Return on Invested Capital (ROIC)	18.18%	18.42%	2.35%	14.25%
Gross Margin	91.86%	92.72%	92.76%	94.86%
Net Margin	20.31%	19.56%	9.46%	19.77%
Debt / Equity	0.07x	0.05x	0.04x	0.05x
FCF Conversion	0.83x	1.41x	3.56x	0.50x
Revenue Growth	-	-0.89%	20.68%	23.94%

Revenue by Segment

	2024	2025
Royalty	1.8B	2.17B
Royalty Growth	-	20.31%
License And Other Revenue	1.43B	1.84B
License And Other Revenue Growth	-	28.51%

Revenue by Geography

	2024	2025
UNITED STATES	1.41B	1.72B
UNITED STATES Growth	-	21.44%
CHINA	697M	749M
CHINA Growth	-	7.46%
TAIWAN	522M	629M
TAIWAN Growth	-	20.50%
Other Countries	293M	589M
Other Countries Growth	-	101.02%
KOREA, REPUBLIC OF	308M	324M
KOREA, REPUBLIC OF Growth	-	5.19%

Frequently Asked Questions

Valuation & Price

Arm Holdings plc American Depositary Shares (ARM) has a price-to-earnings (P/E) ratio of 140.1x. This suggests investors expect higher future growth.

Growth & Financials

Arm Holdings plc American Depositary Shares (ARM) reported $4.41B in revenue for fiscal year 2025. This represents a 63% increase from $2.70B in 2022.

Arm Holdings plc American Depositary Shares (ARM) grew revenue by 23.9% over the past year. This is strong growth.

Yes, Arm Holdings plc American Depositary Shares (ARM) is profitable, generating $830.0M in net income for fiscal year 2025 (19.8% net margin).

Dividend & Returns

Arm Holdings plc American Depositary Shares (ARM) has a return on equity (ROE) of 13.1%. This is reasonable for most industries.

Arm Holdings plc American Depositary Shares (ARM) generated $1.14B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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