ARM HOLDINGS PLC Financials

ARM

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE March

Financial Health Signals

Financial Profile 78/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

100

ARM HOLDINGS PLC has an operating margin of 20.7%, meaning the company retains $21 of operating profit per $100 of revenue. This strong profitability earns a score of 100/100, reflecting efficient cost management and pricing power. This is up from 3.4% the prior year.

Growth

ARM HOLDINGS PLC's revenue surged 23.9% year-over-year to $4.0B, reflecting rapid business expansion. This strong growth earns a score of 97/100.

Leverage

100

ARM HOLDINGS PLC carries a low D/E ratio of 0.31, meaning only $0.31 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

100

With a current ratio of 5.20, ARM HOLDINGS PLC holds $5.20 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.

Cash Flow

ARM HOLDINGS PLC's free cash flow margin of 4.4% results in a low score of 22/100. Capital expenditures of $219.0M absorb a large share of operating cash flow.

Returns

ARM HOLDINGS PLC's ROE of 11.6% shows moderate profitability relative to equity, earning a score of 46/100. This is up from 5.8% the prior year.

Altman Z-Score Safe

39.98

ARM HOLDINGS PLC scores 39.98, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($133.0B) relative to total liabilities ($2.1B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

6/9

ARM HOLDINGS PLC passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Mixed

0.50x

For every $1 of reported earnings, ARM HOLDINGS PLC generates $0.50 in operating cash flow ($397.0M OCF vs $792.0M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

This page shows ARM HOLDINGS PLC (ARM) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 4 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

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Key Financial Metrics

Revenue

$4.0B

YoY+23.9%

ARM HOLDINGS PLC generated $4.0B in revenue in fiscal year 2025. This represents an increase of 23.9% from the prior year.

EBITDA

$1.0B

YoY+271.4%

ARM HOLDINGS PLC's EBITDA was $1.0B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 271.4% from the prior year.

Free Cash Flow

$178.0M

YoY-82.2%

ARM HOLDINGS PLC generated $178.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 82.2% from the prior year.

Net Income

$792.0M

YoY+158.8%

ARM HOLDINGS PLC reported $792.0M in net income in fiscal year 2025. This represents an increase of 158.8% from the prior year.

EPS (Diluted)

$0.75

YoY+158.6%

ARM HOLDINGS PLC earned $0.75 per diluted share (EPS) in fiscal year 2025. This represents an increase of 158.6% from the prior year.

Cash & Debt

$2.1B

YoY+8.4%

ARM HOLDINGS PLC held $2.1B in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

1.06B

YoY+1.6%

ARM HOLDINGS PLC had 1.06B shares outstanding in fiscal year 2025. This represents an increase of 1.6% from the prior year.

Gross Margin

97.0%

YoY+1.7pp

ARM HOLDINGS PLC's gross margin was 97.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.7 percentage points from the prior year.

Operating Margin

20.7%

YoY+17.3pp

ARM HOLDINGS PLC's operating margin was 20.7% in fiscal year 2025, reflecting core business profitability. This is up 17.3 percentage points from the prior year.

Net Margin

19.8%

YoY+10.3pp

ARM HOLDINGS PLC's net profit margin was 19.8% in fiscal year 2025, showing the share of revenue converted to profit. This is up 10.3 percentage points from the prior year.

Return on Equity

11.6%

YoY+5.8pp

ARM HOLDINGS PLC's ROE was 11.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 5.8 percentage points from the prior year.

R&D Spending

$2.1B

YoY+4.6%

ARM HOLDINGS PLC invested $2.1B in research and development in fiscal year 2025. This represents an increase of 4.6% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$219.0M

YoY+138.0%

ARM HOLDINGS PLC invested $219.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 138.0% from the prior year.

ARM Income Statement

Metric	FY25	FY24	FY23	FY22
Revenue	$4.0B+23.9%	$3.2B+20.7%	$2.7B-0.9%	$2.7B
Cost of Revenue	$121.0M-21.4%	$154.0M+45.3%	$106.0M-19.1%	$131.0M
Gross Profit	$3.9B+26.2%	$3.1B+19.7%	$2.6B0.0%	$2.6B
R&D Expenses	$2.1B+4.6%	$2.0B+74.7%	$1.1B+13.9%	$995.0M
SG&A Expenses	$984.0M+0.1%	$983.0M+29.0%	$762.0M-15.1%	$897.0M
Operating Income	$831.0M+648.6%	$111.0M-83.5%	$671.0M+6.0%	$633.0M
Interest Expense	N/A	N/A	N/A	N/A
Income Tax	-$72.0M+23.2%	-$93.8M-163.9%	$146.8M+33.8%	$109.7M
Net Income	$792.0M+158.8%	$306.0M-41.6%	$524.0M-4.6%	$549.0M
EPS (Diluted)	$0.75+158.6%	$0.29-43.1%	$0.51-5.6%	$0.54

Metric	Q3'25	Q2'25	Q1'25	Q3'24	Q2'24	Q1'24	Q3'23	Q2'23
Revenue	$1.2B+9.4%	$1.1B+7.8%	$1.1B+7.1%	$983.0M+16.5%	$844.0M-10.1%	$939.0M+14.0%	$824.0M+2.2%	$806.0M
Cost of Revenue	$30.0M+3.4%	$29.0M-3.3%	$30.0M+7.1%	$28.0M-12.5%	$32.0M-3.0%	$33.0M-8.3%	$36.0M-21.7%	$46.0M
Gross Profit	$1.2B+9.6%	$1.1B+8.1%	$1.0B+7.1%	$955.0M+17.6%	$812.0M-10.4%	$906.0M+15.0%	$788.0M+3.7%	$760.0M
R&D Expenses	$737.0M+6.7%	$691.0M+6.3%	$650.0M+22.0%	$533.0M+5.1%	$507.0M+4.5%	$485.0M+12.3%	$432.0M-31.0%	$626.0M
SG&A Expenses	$284.0M+12.7%	$252.0M-2.7%	$259.0M+4.9%	$247.0M+2.5%	$241.0M+0.8%	$239.0M+10.6%	$216.0M-25.5%	$290.0M
Operating Income	$185.0M+13.5%	$163.0M+43.0%	$114.0M-34.9%	$175.0M+173.4%	$64.0M-64.8%	$182.0M+35.8%	$134.0M+185.9%	-$156.0M
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	$5.0M-92.2%	$64.0M+300.0%	$16.0M0.0%	$16.0M+137.2%	-$43.0M-304.8%	$21.0M-64.4%	$59.0M+755.6%	-$9.0M
Net Income	$223.0M-6.3%	$238.0M+83.1%	$130.0M-48.4%	$252.0M+135.5%	$107.0M-52.0%	$223.0M+156.3%	$87.0M+179.1%	-$110.0M
EPS (Diluted)	$0.21-4.5%	$0.22+83.3%	$0.12-50.0%	$0.24+140.0%	$0.10-52.4%	$0.21+162.5%	$0.08+172.7%	$-0.11

ARM Balance Sheet

Metric	FY25	FY24	FY23	FY22
Total Assets	$8.9B+12.7%	$7.9B+15.5%	$6.9B	N/A
Current Assets	$4.8B+15.1%	$4.2B+18.7%	$3.5B	N/A
Cash & Equivalents	$2.1B+8.4%	$1.9B+23.7%	$1.6B+54.8%	$1.0B
Inventory	N/A	N/A	N/A	N/A
Accounts Receivable	$1.1B+41.7%	$781.0M-21.8%	$999.0M	N/A
Goodwill	$1.6B-0.3%	$1.6B+0.3%	$1.6B	N/A
Total Liabilities	$2.1B-20.5%	$2.6B-6.5%	$2.8B	N/A
Current Liabilities	$929.0M-38.3%	$1.5B+10.4%	$1.4B	N/A
Long-Term Debt	N/A	N/A	N/A	N/A
Total Equity	$6.8B+29.2%	$5.3B+30.7%	$4.1B+14.2%	$3.5B
Retained Earnings	$3.5B+28.8%	$2.8B+12.0%	$2.5B	N/A

Metric	Q3'25	Q2'25	Q1'25	Q3'24	Q2'24	Q1'24	Q3'23	Q2'23
Total Assets	$10.2B+4.8%	$9.7B+3.4%	$9.4B+10.6%	$8.5B+5.1%	$8.1B+2.6%	$7.9B+10.8%	$7.1B+4.5%	$6.8B
Current Assets	$5.7B+6.8%	$5.4B+3.8%	$5.2B+19.4%	$4.3B+6.6%	$4.1B+5.8%	$3.8B+5.8%	$3.6B+5.4%	$3.4B
Cash & Equivalents	$2.8B+11.5%	$2.5B+28.7%	$2.0B-3.9%	$2.0B+35.9%	$1.5B+2.3%	$1.5B-5.5%	$1.6B+10.3%	$1.4B
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$984.0M-12.1%	$1.1B-14.9%	$1.3B+39.9%	$940.0M-6.6%	$1.0B+25.1%	$804.0M+0.6%	$799.0M-7.5%	$864.0M
Goodwill	$1.6B0.0%	$1.6B-0.1%	$1.6B+0.6%	$1.6B-1.5%	$1.6B+1.0%	$1.6B-0.2%	$1.6B+0.8%	$1.6B
Total Liabilities	$2.4B+3.3%	$2.3B-3.6%	$2.4B+15.0%	$2.1B+0.1%	$2.1B-6.5%	$2.2B+5.0%	$2.1B+3.6%	$2.0B
Current Liabilities	$1.1B+10.1%	$960.0M-7.4%	$1.0B+18.6%	$874.0M-2.8%	$899.0M-15.6%	$1.1B+23.0%	$866.0M+8.9%	$795.0M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$7.8B+5.3%	$7.4B+5.7%	$7.0B+9.2%	$6.4B+6.8%	$6.0B+6.2%	$5.7B+13.2%	$5.0B+4.8%	$4.8B
Retained Earnings	$4.1B+5.7%	$3.9B+6.5%	$3.7B+10.2%	$3.3B+8.2%	$3.1B+3.6%	$3.0B+17.7%	$2.5B+3.6%	$2.4B

ARM Cash Flow Statement

Metric	FY25	FY24	FY23	FY22
Operating Cash Flow	$397.0M-63.6%	$1.1B+47.5%	$739.0M+61.4%	$458.0M
Capital Expenditures	$219.0M+138.0%	$92.0M+43.8%	$64.0M+88.2%	$34.0M
Free Cash Flow	$178.0M-82.2%	$998.0M+47.9%	$675.0M+59.2%	$424.0M
Investing Cash Flow	-$35.0M+93.2%	-$516.0M-273.9%	-$138.0M+77.7%	-$619.0M
Financing Cash Flow	-$202.0M+2.9%	-$208.0M-395.2%	-$42.0M-31.3%	-$32.0M
Dividends Paid	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A

Metric	Q3'25	Q2'25	Q1'25	Q3'24	Q2'24	Q1'24	Q3'23	Q2'23
Operating Cash Flow	$365.0M-35.6%	$567.0M+70.8%	$332.0M-21.5%	$423.0M+6950.0%	$6.0M+102.1%	-$290.0M-193.5%	$310.0M+36.6%	$227.0M
Capital Expenditures	$179.0M+29.7%	$138.0M-10.4%	$154.0M+144.4%	$63.0M+18.9%	$53.0M+82.8%	$29.0M+38.1%	$21.0M-38.2%	$34.0M
Free Cash Flow	$186.0M-56.6%	$429.0M+141.0%	$178.0M-50.6%	$360.0M+866.0%	-$47.0M+85.3%	-$319.0M-210.4%	$289.0M+49.7%	$193.0M
Investing Cash Flow	$52.0M-73.5%	$196.0M+152.7%	-$372.0M-344.7%	$152.0M+102.7%	$75.0M+201.4%	-$74.0M+39.8%	-$123.0M-167.4%	-$46.0M
Financing Cash Flow	-$130.0M+31.6%	-$190.0M-54.5%	-$123.0M-373.1%	-$26.0M+50.9%	-$53.0M+44.8%	-$96.0M-100.0%	-$48.0M-100.0%	-$24.0M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

ARM Financial Ratios

Metric	FY25	FY24	FY23	FY22
Gross Margin	97.0%+1.7pp	95.2%-0.8pp	96.0%+0.9pp	95.2%
Operating Margin	20.7%+17.3pp	3.4%-21.6pp	25.1%+1.6pp	23.4%
Net Margin	19.8%+10.3pp	9.5%-10.1pp	19.6%-0.8pp	20.3%
Return on Equity	11.6%+5.8pp	5.8%-7.2pp	12.9%-2.5pp	15.5%
Return on Assets	8.9%+5.0pp	3.9%-3.8pp	7.6%	N/A
Current Ratio	5.20+2.4	2.79+0.2	2.60	N/A
Debt-to-Equity	0.31-0.2	0.50-0.2	0.69	N/A
FCF Margin	4.4%-26.4pp	30.9%+5.7pp	25.2%+9.5pp	15.7%

Metric	Q3'25	Q2'25	Q1'25	Q3'24	Q2'24	Q1'24	Q3'23	Q2'23
Gross Margin	97.6%+0.1pp	97.4%+0.3pp	97.2%0.0pp	97.2%+0.9pp	96.2%-0.3pp	96.5%+0.9pp	95.6%+1.3pp	94.3%
Operating Margin	14.9%+0.5pp	14.4%+3.5pp	10.8%-7.0pp	17.8%+10.2pp	7.6%-11.8pp	19.4%+3.1pp	16.3%+35.6pp	-19.4%
Net Margin	17.9%-3.0pp	21.0%+8.6pp	12.3%-13.3pp	25.6%+13.0pp	12.7%-11.1pp	23.8%+13.2pp	10.6%+24.2pp	-13.7%
Return on Equity	2.9%-0.3pp	3.2%+1.3pp	1.9%-2.1pp	3.9%+2.2pp	1.8%-2.2pp	3.9%+2.2pp	1.7%	N/A
Return on Assets	2.2%-0.3pp	2.5%+1.1pp	1.4%-1.6pp	3.0%+1.7pp	1.3%-1.5pp	2.8%+1.6pp	1.2%+2.8pp	-1.6%
Current Ratio	5.43-0.2	5.59+0.6	4.99+0.0	4.96+0.4	4.52+0.9	3.61-0.6	4.19-0.1	4.33
Debt-to-Equity	0.300.0	0.31-0.0	0.34+0.0	0.32-0.0	0.34-0.0	0.39-0.0	0.420.0	0.43
FCF Margin	15.0%-22.8pp	37.8%+20.9pp	16.9%-19.7pp	36.6%+42.2pp	-5.6%+28.4pp	-34.0%-69.0pp	35.1%+11.1pp	23.9%

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Frequently Asked Questions

What is ARM HOLDINGS PLC's annual revenue?

ARM HOLDINGS PLC (ARM) reported $4.0B in total revenue for fiscal year 2025. This represents a 23.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is ARM HOLDINGS PLC's revenue growing?

ARM HOLDINGS PLC (ARM) revenue grew by 23.9% year-over-year, from $3.2B to $4.0B in fiscal year 2025.

Is ARM HOLDINGS PLC profitable?

Yes, ARM HOLDINGS PLC (ARM) reported a net income of $792.0M in fiscal year 2025, with a net profit margin of 19.8%.

What is ARM HOLDINGS PLC's earnings per share (EPS)?

ARM HOLDINGS PLC (ARM) reported diluted earnings per share of $0.75 for fiscal year 2025. This represents a 158.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

What is ARM HOLDINGS PLC's EBITDA?

ARM HOLDINGS PLC (ARM) had EBITDA of $1.0B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is ARM HOLDINGS PLC's gross margin?

ARM HOLDINGS PLC (ARM) had a gross margin of 97.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is ARM HOLDINGS PLC's operating margin?

ARM HOLDINGS PLC (ARM) had an operating margin of 20.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is ARM HOLDINGS PLC's net profit margin?

ARM HOLDINGS PLC (ARM) had a net profit margin of 19.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is ARM HOLDINGS PLC's return on equity (ROE)?

ARM HOLDINGS PLC (ARM) has a return on equity of 11.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is ARM HOLDINGS PLC's free cash flow?

ARM HOLDINGS PLC (ARM) generated $178.0M in free cash flow during fiscal year 2025. This represents a -82.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is ARM HOLDINGS PLC's operating cash flow?

ARM HOLDINGS PLC (ARM) generated $397.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are ARM HOLDINGS PLC's total assets?

ARM HOLDINGS PLC (ARM) had $8.9B in total assets as of fiscal year 2025, including both current and long-term assets.

What are ARM HOLDINGS PLC's capital expenditures?

ARM HOLDINGS PLC (ARM) invested $219.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does ARM HOLDINGS PLC spend on research and development?

ARM HOLDINGS PLC (ARM) invested $2.1B in research and development during fiscal year 2025.

How many shares does ARM HOLDINGS PLC have outstanding?

ARM HOLDINGS PLC (ARM) had 1.06B shares outstanding as of fiscal year 2025.

What is ARM HOLDINGS PLC's current ratio?

ARM HOLDINGS PLC (ARM) had a current ratio of 5.20 as of fiscal year 2025, which is generally considered healthy.

What is ARM HOLDINGS PLC's debt-to-equity ratio?

ARM HOLDINGS PLC (ARM) had a debt-to-equity ratio of 0.31 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is ARM HOLDINGS PLC's return on assets (ROA)?

ARM HOLDINGS PLC (ARM) had a return on assets of 8.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is ARM HOLDINGS PLC's Altman Z-Score?

ARM HOLDINGS PLC (ARM) has an Altman Z-Score of 39.98, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is ARM HOLDINGS PLC's Piotroski F-Score?

ARM HOLDINGS PLC (ARM) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are ARM HOLDINGS PLC's earnings high quality?

ARM HOLDINGS PLC (ARM) has an earnings quality ratio of 0.50x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is ARM HOLDINGS PLC?

ARM HOLDINGS PLC (ARM) scores 78 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.