ARM
Updated: 24/09/2026, 09:03:42
Arm Holdings plc is a leading technology firm that conceptualizes, engineers, and licenses core processing unit (CPU) designs and complementary technologies. These foundational innovations are crucial for semiconductor manufacturers and original equipment manufacturers (OEMs) to develop their own products. The company's diverse portfolio encompasses microprocessors, comprehensive system intellectual property (IP) solutions, graphics processing units (GPUs), physical IP alongside its associated system IPs, various software offerings, development tools, and an array of supplementary services. Its technology underpins a wide spectrum of industries, including the automotive sector, advanced computing infrastructure, consumer electronics, and the burgeoning Internet of Things (IoT) landscape. Established in 1990, Arm Holdings plc maintains its corporate headquarters in Cambridge, United Kingdom. With a significant global footprint, Arm conducts operations across the United States, the People's Republic of China, Taiwan, South Korea, and numerous other international regions. Currently, Arm Holdings plc functions as a subsidiary entity of Kronos II LLC.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2026 filing.
Revenue
$4.9B
FY 2026 · Reported
Net income
$0.9B
FY 2026 · Reported
Gross margin
97.5%
FY 2026 · Calculated
Free cash flow
$1.0B
FY 2026 · Calculated
R&D intensity
56.4%
FY 2026 · Calculated
Share repurchases
N/A
FY — · Reported
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
Map layer
Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.
Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.
Corporate entity and reporting structure
Arm Holdings plc, fiscal year ends March 31, reports under U.S. GAAP in USD; business historically conducted through Arm Limited before corporate reorganization
“Our fiscal year ends on March 31 of each year. We prepare our consolidated financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”). We present our consolidated financial statements in U.S. dollars (“USD”).”
Contract performance obligations span IP licenses, software, support and design services
Long-term revenue contracts bundle IP licenses, implicit future product rights, early access, software, support, training and design services
“multiple performance obligations consisting of products and services such as intellectual property licenses, implicit rights to future products, early access rights, software licenses, support, training, professional and design services”
Shift toward more integrated compute products
Company is developing production silicon products including the Arm AGI CPU, compute subsystems (CSS), chiplets, and complete chip solutions
“risks related to our development of production silicon products, such as the Arm AGI CPU, compute subsystems (“CSS”), chiplets, complete chip solutions, and other more integrated compute products;”
China flagged as distinct credit-risk market in receivables
China receivables treated as a separate credit-risk pool; country and political risk considered in reserve percentages
“In developing the estimate for expected credit losses, accounts receivable is segmented into pools of assets depending on market (China versus international) and delinquency status”
Auditor: Deloitte & Touche LLP; unqualified opinions on financials and ICFR
Deloitte & Touche LLP (auditor since 2022) issued unqualified opinions on financial statements and ICFR as of March 31, 2026
“our report dated May 26, 2026, expressed an unqualified opinion on the Company’s internal control over financial reporting.”
Arduino liquidation proceeds and loan repayment
Arm received $50.5M liquidation proceeds from Arduino in FY2026 and $16.9M full repayment of the Arduino loan (with $16.8M CECL reserve reversal) in October 2025.
“In October 2025, the Company received $16.9 million for the full repayment of the loan receivable from Arduino in connection with Arduino’s acquisition by a third party.”
SoftBank acquisition of Ampere — Arm exit proceeds
SoftBank Group's acquisition of Ampere closed November 2025; Arm received $143.4M gross proceeds for its equity interest plus $39.3M settlement of the convertible promissory note in December 2025.
“In December 2025, the Company, as a minority shareholder of Ampere, received $143.4 million in gross proceeds for its equity interest in Ampere and $39.3 million from the settlement of the convertible promissory note with Ampere.”
FY2025 fair value loss on Ampere investment
Arm recognized a $246.4M fair value loss on its Ampere equity method investment in FY2025.
“For the fiscal year ended March 31, 2025, the Company recognized fair value losses with respect to its investment in Ampere of $246.4 million in income (loss) from equity investments, net”
Financial commitments to existing investees
Unprovided financial commitments to existing investees of $25.6M as of March 31, 2026 ($28.1M FY2025).
“The total amount of financial commitments to existing investees of the Company not provided for in the consolidated financial statements was $25.6 million and $28.1 million as of March 31, 2026 and 2025, respectively.”
No U.K. exchange controls
No U.K. exchange controls restricting capital, dividends or payments to non-residents, other than withholding tax; no limits on non-residents holding or voting shares
“There are no governmental laws, decrees, regulations or other legislation in the U.K. that may affect the import or export of capital, including the availability of cash and cash equivalents for use by us, or that may affect the remittance of dividends, interest, or other payments by us to non-resident holders of our ordinary shares or ADSs, other than withholding tax requirements.”
No material contracts outside ordinary course
No material contracts entered into in the two years preceding the Annual Report other than ordinary-course and those described elsewhere in the report
“For the two years immediately preceding the date of this Annual Report, the Company has not entered into any material contracts other than in the ordinary course of business and other than those described in “Item 7. Major Shareholders and Related Party Transactions” or elsewhere in this Annual Report.”
Equity method investment ownership interests
Holdings include Arm IOT Fund LP (Taiwan) 25.8%, DeepTech Labs Fund 1 LP 37.0%, Accelerator Advisory Limited 16.1%, HOPU-ARM Holding Company Limited 10.0%, Acetone Limited 10.0% (fair value option).
“Arm IOT Fund LP (Taiwan)25.8% Accelerator Advisory Limited(1) 16.1% HOPU-ARM Holding Company Limited(2) 10.0% DeepTech Labs Fund 1 LP37.0%”
Israel subsidiary (Arm Technology Israel Ltd.) distinct equity-award treatment
Arm Israel 2019 AEP awards were excepted from the IPO reclassification of RSUs from cash (liability) to share (equity) settlement
“except for those 2019 AEP awards granted to employees of Arm Technology Israel Ltd., the Company’s Israeli subsidiary (“Arm Israel”)”
Kigen preference shares investment
Kigen (UK) Limited preference shares carrying value $16.4M; Arm invested an additional $1.4M cash in FY2026.
“During the fiscal year ended March 31, 2026, the Company invested another $1.4 million in cash in exchange for preference shares of Kigen.”
Customer IP indemnification obligations
Arm agrees in some cases to indemnify customers against third-party IP infringement claims related to its products
“under our customer agreements, we agree in some cases to indemnify our customers if a third party files a claim in court or another venue asserting that our products infringe such third party’s IP rights.”
Controlling shareholder SoftBank Group
SoftBank Group Corp. is Arm's controlling shareholder; interests may conflict with other shareholders
“risks associated with the interests of SoftBank Group Corp., our controlling shareholder (“SoftBank Group”), conflicting with the interests of other holders of our ordinary shares, nominal value £0.001 per share”
Ecosystem dependency on EDA tools and development software
Arm depends on availability of development tools, systems software, EDA tools and operating systems compatible with its architecture
“risks related to the availability of development tools, systems software, electronic design automation (“EDA”) tools and operating systems compatible with our architecture;”
Reliance on third parties to commercialize chips
Arm relies on third parties to market and sell chips and end products incorporating its products and to add value to licensed products
“our reliance on third parties to market and sell chips and end products incorporating our products, as well as add value to our licensed products;”
Macro/geopolitical and cybersecurity risks
Arm discloses exposure to global economic conditions, war/hostility, pandemics, cyberattacks, and data protection/security/privacy requirements
“effects of global general economic conditions, political factors, war or hostility, pandemics and other events outside of our control”
IP protection and litigation cost risk
Arm flags costs of protecting IP rights, particularly as a result of litigation
“our ability to protect our proprietary products and our brand, and the costs of protecting such intellectual property (“IP”) rights, particularly as a result of litigation;”
Customer manufacturing/design compatibility dependency
Arm's products depend on compatibility with the manufacturing and design processes of its customers
“our dependence on the compatibility of our products with the manufacturing and design processes of our customers;”
Pricing and business model change risk
Arm identifies risks related to changes in its pricing or business terms or business model
“risks related to changes in our pricing or our business terms or business model;”
Royalty verification uncertainty
Arm faces risk in verifying royalty amounts owed under its licensing agreements
“our ability to verify royalty amounts owed to us under our licensing agreements;”
Related-party credit exposures fully reserved
A $3.2M four-year loan to related party Cerfe Labs, Inc. remains fully reserved under the current expected credit loss reserve.
“the Company had a four-year loan of $3.2 million issued to Cerfe Labs, Inc, a related party, that was fully reserved for under the current expected credit loss reserve”
Connectivity, device and data management platform market risk
Risk associated with the slow development of the market for Arm's connectivity, device and data management platform
“risks associated with the slow development of the market for our connectivity, device and data management platform;”
Arm is currently involved in pending litigation with Qualcomm (and Nuvia); outcomes uncertain and may impose defense/settlement costs and divert management resources.
“We are currently involved in pending litigation, including, but not limited to, litigation proceedings with Qualcomm and Nuvia.”
Revenue recognition for long-term IP license contracts with multiple performance obligations is a critical audit matter and a core revenue mechanism.
“material long-term revenue contracts with customers, including related parties, that involve multiple performance obligations consisting of products and services such as intellectual property licenses”
A limited number of customers account for a significant portion of Arm's revenue, creating concentration risk.
“our dependence on a limited number of customers for a significant portion of our revenue;”
SoftBank Group, Arm's controlling shareholder, acquired all outstanding equity of Ampere, in which Arm held equity and a convertible note, generating $182.7M total proceeds for Arm.
“On March 19, 2025, SoftBank Group Corp. (“SoftBank Group”) announced that it entered into an agreement to acquire all of the outstanding equity interests of Ampere. The transaction closed in November 2025.”
Nuvia is a named counterparty in Arm's pending litigation proceedings.
“litigation proceedings with Qualcomm and Nuvia”
SoftBank Group is Arm's controlling shareholder; its interests may conflict with those of other shareholders, affecting governance.
“risks associated with the interests of SoftBank Group Corp., our controlling shareholder (“SoftBank Group”), conflicting with the interests of other holders of our ordinary shares”
Arm's architecture depends on the availability of compatible EDA tools, development tools, systems software and operating systems.
“risks related to the availability of development tools, systems software, electronic design automation (“EDA”) tools and operating systems compatible with our architecture;”
Arm's customer agreements include IP infringement indemnities, creating contingent legal/financial exposure tied to its customer base.
“under our customer agreements, we agree in some cases to indemnify our customers if a third party files a claim in court or another venue asserting that our products infringe such third party’s IP rights.”
Receivables from China are a distinct credit-loss pool with reserve percentages reflecting country and political risk, indicating a material China receivables exposure.
“accounts receivable is segmented into pools of assets depending on market (China versus international) and delinquency status”
Arm's liability-classified Phantom Shares are remeasured based on SoftBank Group's share price (ultimate parent), linking compensation expense to the parent's stock.
“based on the share price of the Company’s ultimate parent, SoftBank Group Corp. (“SoftBank Group”).”
Arm's equity method investment in Ampere ($143.4M carrying value at FY2025) and $33.8M convertible note were fully exited via SoftBank's acquisition.
“As of March 31, 2026, the Company’s equity method investment in Ampere was no longer outstanding as a result of SoftBank Group’s acquisition of all of the outstanding equity interests of Ampere.”
Material long-term revenue contracts include related parties, and related-party transaction price allocations were specifically tested in the audit.
“The Company routinely enters into material long-term revenue contracts with customers, including related parties”
Arduino, a former related-party customer/investee, was acquired by a third party, yielding $50.5M liquidation proceeds and $16.9M loan repayment to Arm.
“The Company no longer has significant influence in Arduino in connection with its acquisition by a third party. Therefore, Arduino is no longer considered a related party. During the fiscal year ended March 31, 2026, the Company received $50.5 million in liquidation proceeds from Arduino.”
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