Financial Highlights - Total revenue reached $1135 million, a 34% year-over-year increase[11, 24] - Royalty revenue grew to $620 million, up 21% year-over-year, driven by Arm technology adoption and increased usage in data centers[24] - License and other revenue increased significantly to $515 million, a 56% year-over-year increase, due to the timing of high-value license agreements[24] - Non-GAAP operating income was $467 million, resulting in a non-GAAP operating margin of 41%[44] - Trailing twelve months Non-GAAP free cash flow was $1073 million[11] Market and Technology Trends - Arm forecasts its market share with top hyperscalers will approach 50% in 2025[13] - The cumulative number of Arm-based chips shipped since 1990 exceeds 325 billion[12] - Armv9 architecture adoption is driving royalty growth, commanding higher royalties per chip compared to previous architectures[25, 28] - Semiconductor industry revenue is forecasted to grow at a CAGR of 8%[17] Compute Subsystems (CSS) - Arm signed another three CSS licenses in the quarter, for chips used in smartphones, PCs, and AI data centers[14] - CSS substantially increases Arm's royalty revenue per chip[41]

Core Insights - ARM Holdings has seen a stock increase of approximately 28% since January 2025, driven by its competitive chipset designs against AMD and Intel [2] - The company reported Q4 FY'25 revenue of $1.24 billion, marking a 34% year-over-year increase, and is positioning itself as a key player in the AI and data center CPU markets [2][3] Financial Performance - ARM's revenue has grown significantly, with a 41.2% average growth rate over the last three years, compared to 5.3% for the S&P 500 [7] - In the past 12 months, ARM's revenues increased by 23.9%, from $3.2 billion to $4.0 billion, while the S&P 500 saw a growth of 4.4% [7] - The latest quarterly revenue reached $1.2 billion, a 33.7% increase from $928 million a year prior, compared to a 4.5% improvement for the S&P 500 [7] Profitability Metrics - ARM's operating income over the last four quarters totaled $831 million, resulting in an operating margin of 20.7%, which is higher than the S&P 500's 18.3% [8] - The net income for ARM during the same period was $792 million, yielding a net income margin of 19.8%, compared to 11.9% for the S&P 500 [8] Financial Stability - ARM's debt stood at $356 million with a market capitalization of $173 billion, leading to a low debt-to-equity ratio of 0.2%, significantly lower than the S&P 500's 22.8% [9] - The company holds $2.8 billion in cash, which is 31.6% of its total assets of $8.9 billion, compared to the S&P 500's cash-to-assets ratio of 6.7% [9] Market Position and Strategy - Major hyperscalers like Amazon, Microsoft, and Google are increasingly adopting ARM's designs, particularly the Armv9 architecture, for their AI infrastructures due to its energy efficiency [3] - ARM aims to capture 50% of the data center CPU market by the end of 2025, up from 15% in 2024, reflecting its current momentum [3]

Financial Highlights - Total revenue reached $1053 million, a 12% year-over-year increase[11] - Royalty revenue grew to $585 million, up 25% year-over-year, driven by Armv9 architecture adoption and increased data center usage[25] - License and other revenue totaled $468 million, a 1% year-over-year decrease due to timing fluctuations[25] - Non-GAAP operating expenses were $619 million[11] - Trailing 12 months Non-GAAP free cash flow was $597 million[11] Market and Technology Trends - Arm forecasts its market share with top hyperscalers will approach 50% in 2025[13] - Over 70000 customers are using Arm-based chips in data centers[13] - The company has shipped over 325 billion Arm-based chips since 1990[12] - Arm's customers shipped 2x the number of chips in FYE25 than in FYE16[17] Future Outlook - Q2 FYE26 revenue is projected to be between $101 billion and $111 billion[47] - Q2 FYE26 Non-GAAP operating expense is expected to be approximately $655 million[47] - Q2 FYE26 Non-GAAP fully diluted earnings per share are projected to be between $029 and $037[47]

investor.relations@arm.com https://investors.arm.com May 7, 2025 © 2025 Arm 1 Arm Holdings plc Q4 FYE25 Investor Presentation In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP, Arm utilizes, and this presentation includes, certain non-GAAP financial measures that differ from measures calculated in accordance with GAAP. Arm's non-GAAP financial measures include non-GAAP cost of sales, non-GAAP gross profit (loss), non-GAAP gross margin, non-GAAP ...