Arm Holdings Revenue & Financials

Arm Holdings' financial profile is that of a high-margin, capital-light intellectual property business navigating a transition from a mature smartphone-centric royalty base toward higher-value computing markets. In fiscal year 2024 (ending March 31, 2024), the company reported total revenue of $3.23 billion, representing 21% growth over fiscal year 2023's $2.68 billion. Royalty revenue grew 20% to $1.68 billion, while licensing and other revenue grew 18% to $1.55 billion. On a GAAP basis, Arm reported net income of $467 million for fiscal year 2024, though this figure is significantly depressed by substantial stock-based compensation expense related to the September 2023 IPO and ongoing equity compensation programs. On an adjusted (non-GAAP) basis, excluding stock-based compensation and acquisition-related charges, Arm's profitability metrics are considerably stronger — adjusted operating income for fiscal year 2024 was approximately $1.07 billion, reflecting adjusted operating margins in the mid-30% range. For fiscal year 2025 (ending March 31, 2025), Arm reported revenue of $3.96 billion, representing growth of approximately 23% over fiscal year 2024. This acceleration reflected strong momentum in licensing revenue from AI-related chip designs and continued royalty growth as higher-ASP data center chips began contributing more meaningfully to the royalty base. Net income for fiscal year 2025 was approximately $1.47 billion on a GAAP basis. Arm's balance sheet is conservatively structured, with the company holding approximately $2.3 billion in cash and short-term investments as of March 2025 and minimal long-term debt. The company does not pay a dividend, instead reinvesting substantially in research and development. SoftBank's approximately 90% ownership concentration is the most significant capital structure consideration for public market investors, as it limits free float and concentrates governance authority in a single controlling shareholder whose own financial situation and strategic priorities can influence Arm's direction.