Arm Holdings
CorpDigest
Arm Holdings
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$3.96B
Market Cap
$148.0B
Net Income
$1.5B
Employees
6,400
In fiscal year 2024 (ending March 31, 2024), the company generated $3.23 billion in total revenue, a figure that understates its strategic importance by an extraordinary margin. Apple's entire iPhone business, which generated over $200 billion in revenue in its most recent fiscal year, runs on Arm-based chips. The company's September 2023 Nasdaq IPO was a watershed moment, raising approximately $4.87 billion and valuing the company at roughly $54.5 billion on its first day of trading. By mid-2025, Arm's market capitalization had surged past $148 billion as investors awakened to the company's unique position at the intersection of artificial intelligence acceleration, data center transformation, and the next generation of mobile computing. The company went public on the Nasdaq in September 2023 at a valuation of approximately $54.5 billion, and its market capitalization has grown substantially since then, driven by AI chip demand and data center adoption of Arm-based architectures. In fiscal year 2024, Arm reported $3.23 billion in revenue and $467 million in net income under GAAP, with royalty revenue growing 20% year-over-year. In fiscal year 2024, royalty revenue reached $1.68 billion and licensing and other revenue reached $1.55 billion, giving Arm a roughly balanced split between the two streams. In fiscal year 2024, Arm spent approximately $1.0 billion on research and development — entirely directed at designing better processor IP — and generated adjusted EBITDA margins in the high-30% to low-40% range. For a technology company generating $3.23 billion in annual revenue, this capital efficiency is remarkable. SoftBank Group, the Japanese technology conglomerate led by Masayoshi Son, acquired Arm in 2016 for approximately $32 billion in what was then the largest-ever acquisition of a semiconductor company. This ownership structure has been both a strength — providing Arm with patient capital and SoftBank's expansive technology network — and a source of controversy, including the failed $40 billion acquisition attempt by Nvidia that collapsed in early 2022 under regulatory pressure. Arm Holdings is a Semiconductor Intellectual Property company with $3.96B in 2025 revenue and 6K employees worldwide. The irony is, 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. 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. In 2021, Qualcomm acquired Nuvia, a chip design startup founded by former Apple silicon engineers, for approximately $1.4 billion. Arm Ltd. Was incorporated in November 1990 with funding of approximately Â$2.22 million — a tiny sum even by 1990 standards — and a founding team of twelve engineers who left Acorn for the new venture.
Revenue Trend Analysis
YoY Change
+22.6%
4-Year CAGR
+18.2%
Peak Year
2025
Trend
Consistent Growth
Arm Holdings has reported revenue across 5 fiscal years, compounding at +18.2% annually over 4 years. The most recent year saw a 22.6% increase versus the prior year. Revenue peaked in 2025 at $4.0B. Out of 4 reported periods, 3 showed growth and 1 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $4.0B | $1.5B | +22.6% |
| FY2024 | $3.2B | — | +20.6% |
| FY2023 | $2.7B | — | -0.9% |
| FY2022 | $2.7B | — | +33.3% |
| FY2021 | $2.0B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Arm delivers 96% gross margins on licensing and 93% on royalties, generating $3.8 billion in gross profit on $3.96 billion revenue, significantly exceeding Synopsys (78% margin, $5.8B revenue) and Cadence (88% margin, $3.6B revenue) who sell design tools rather than processor IP. However, Arm's operating margin of 25% trails peers because the company spends 40% of revenue ($1.6B annually) on R&D developing new architectures, maintaining compatibility across 10+ processor families, and supporting 1,000+ licensees. Arm's 2023 net income of $1.47 billion (37% margin) reflects the highly profitable IP model once R&D is amortized, and free cash flow of $1.2 billion (30% margin) demonstrates exceptional capital efficiency requiring minimal capex or working capital.
Arm's mobile revenue grew only 3% annually from 2020-2024 ($2.0B to $2.3B) due to smartphone market saturation at 1.2 billion annual units, while automotive revenue grew 35% annually ($300M to $800M) as cars added 10-20 Arm processors per vehicle for ADAS and infotainment. Cloud/infrastructure revenue exploded 60% annually ($200M to $1.0B) as Amazon Graviton, Microsoft Cobalt, and Nvidia Grace demonstrated Arm's data center viability, and Arm's v9 architecture commands 5-8% royalties versus mobile's 1-2%, creating revenue per chip 3-5x higher in cloud applications. Management projects total revenue growing 20% annually 2024-2028 driven by cloud and automotive offsetting mobile saturation, though this requires x86 server share capture that remains unproven at scale.
Arm generated $1.2 billion in free cash flow in fiscal 2024 (March year-end), with SoftBank taking $400 million as dividends while allowing $800 million retention for operations and potential acquisitions. SoftBank's 90% ownership means it receives $360 million annually in cash distributions while retaining $50+ billion in Arm shares providing liquidity through gradual secondary sales. The arrangement creates tension—Arm needs cash to fund R&D competing with RISC-V and x86 ($1.6B annually, 40% of revenue), but SoftBank's $130 billion debt burden creates pressure to extract dividends and sell Arm shares, and SoftBank's history of aggressive monetization (selling Alibaba shares) suggests it may push for higher payouts that constrain Arm's technology investments.
Approximately 65% of Arm's revenue is denominated in US dollars (US and Asian licensees), 20% in British pounds (UK and European customers), and 15% in other currencies, but Arm reports in dollars creating significant FX volatility. Pound sterling weakness in 2023 reduced reported revenue by $150 million (4%) despite constant-currency growth of 24%, and Arm hedges 50-60% of near-term pound and euro exposures through forward contracts costing $30-50 million annually. The UK-based cost structure (4,500 of 6,400 employees in Cambridge) means pound strength creates margin pressure as costs rise faster than dollar-denominated revenue, and a 10% pound appreciation would reduce operating margins approximately 200 basis points absent offsetting price increases.
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CorpDigest. "Arm Holdings Revenue & Financials." CorpDigest, https://corpdigest.com/company/arm/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Arm Holdings reported $4B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/arm/financials" target="_blank" rel="noopener">CorpDigest — Arm Holdings financials</a></div>