Arm Holdings plc — ARM Holdings

Technology · Cambridge, UK · NASDAQ

ARM

Growth | Core/Tactical NASDAQ Research Depth · Standard

Company Description

Arm Holdings (ARM) designs chip architectures — CPU IP licensed to 95%+ of smartphones. Re-listed on Nasdaq via 2023 IPO from SoftBank. Royalty model per chip. The AI chip design wave (Nvidia Grace, AWS Graviton) is driving royalty scale. [source: ARM 20-F FY2025]

Sector / Sub-sectorTechnology · Semiconductors

[ARM 10-K]

HeadquartersCambridge, UK

[ARM 10-K]

Founded1990

[ARM 10-K]

CEOMr. Rene Anthony Andrada Haas

[ARM DEF 14A]

ChairmanN/A

[ARM DEF 14A]

Employees~8,330

[ARM 10-K]

Market Cap$177.1B

[snapshot 2026-04-17]

Revenue FY2025$4.0B

[ARM 10-K]

Net Income$0.8B

[ARM 10-K]

Shares Outstanding1,062M

[ARM 10-K]

IRlink

Market Cap

$177.1B

1,062M | P/E 222.31

[ARM 10-K] · [yfinance snapshot 2026-04-17]

Revenue FY2025

$4.0B

+23.9% Y/Y

[ARM 10-K]

Net Income

$0.8B

EPS $0.61 | +158.8% Y/Y

[ARM 10-K]

Gross Margin

97.0%

Op Margin 20.7%

[ARM 10-K]

FCF

$0.2B

FCF Yield (snapshot) 0.09%

[ARM 10-K] · snapshot 2026-04-17

Net Cash

$2.5B Net Cash

Debt $0B | Cash $3B

[ARM 10-K]

Closing Price

$166.73

As of 2026-04-17

[yfinance snapshot 2026-04-17]

Financial Performance — 5 Years

Revenue ($M)

Last 5 fiscal years

Operating Income & Margin

Multi-year trend

EBITDA & Free Cash Flow

5-year trend

Revenue Breakdown

Latest fiscal year

Profitability Margins — 5 Years

Gross / Operating / Net Margin %

Capital Structure

Cash, Debt, Net Debt | 5 years

Financial Statements

Item	FY-4	FY-3	FY-2	FY-1	FY (latest)
Revenue	$2.7B	$2.7B	$3.2B	$4.0B	[ARM 10-K]
Gross Profit	$2.6B	$2.6B	$3.1B	$3.9B	[ARM 10-K]
Operating Income	$680.0M	$678.0M	$117.0M	$831.0M	[ARM 10-K]
Operating Margin %	25.2%	25.3%	3.6%	20.7%	[ARM 10-K]
EBITDA	$771.0M	$900.0M	$305.0M	$1.3B	[ARM 10-K]
Net Income	$549.0M	$524.0M	$306.0M	$792.0M	[ARM 10-K]
EPS ($)	$0.54	$0.51	$0.29	$0.61	[ARM 10-K]
FCF	$383.0M	$646.0M	$947.0M	$158.0M	[ARM 10-K]

Economic Moat

Moat Sources

[source: ARM 20-F FY2025 Item 4] CPU IP — 95%+ smartphone share★★★★☆

[source: ARM 20-F FY2025] Royalty model per chip shipped★★★★☆

[source: ARM 20-F FY2025] Armv9 transition driving higher royalty★★★★☆

[source: ARM 20-F FY2025] Data center: Nvidia Grace + AWS Graviton wins★★★★☆

[source: ARM 20-F FY2025] SoftBank majority owner (~90%)★★★★☆

Multiples & Valuation

Multiple	Company	Self-Average 5Y	Gap vs 5Y Avg
P/E (TTM) [yfinance snapshot · 5Y computed 2026-04-18]	222.3x	303.0x (2Y)	-26.6%
P/E (Fwd) [yfinance forward consensus]	77.8x	N/A	N/A
EV/EBITDA [yfinance snapshot · 5Y computed 2026-04-18]	160.5x	88.2x (2Y)	+82.0%
P/S [yfinance snapshot · 5Y computed 2026-04-18]	37.9x	34.2x (2Y)	+10.9%
P/B [yfinance snapshot · 5Y computed 2026-04-18]	22.7x	20.5x (2Y)	+10.6%
Div Yield [yfinance snapshot · 5Y computed 2026-04-18]	0.00%	N/A	N/A
FCF Yield (snapshot) [computed · 2026-04-18]	0.09%	0.43% (2Y)	-79.1%
5Y statistical averages are computed from yfinance annual data (income_stmt × balance_sheet × cash_flow + price snapshots at FY-end). Source: `lib/compute_5y_multiples.py` · Refresh: 2026-04-18

How to Think About This Company

A full How to Think About This Company analysis for ARM — covering the essence of the business, the key variables, potential analytical pitfalls, and what distinguishes professional thinking from noise — is available within Family Office content.

The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.

Risks & Items Under Watch

Key Risks

[WARN][source: ARM 20-F FY2025 Risk Factors] Qualcomm licensing dispute

[WARN][source: ARM 20-F FY2025] RISC-V open-source threat (long-term)

[WARN][source: ARM 20-F FY2025] China revenue concentration

[WARN][source: ARM 20-F FY2025] SoftBank float limited (10%)

[WARN][source: ARM 20-F FY2025] Valuation premium

[WARN][source: ARM 20-F FY2025] Semiconductor cycle exposure

Items Under Watch

•[Strength] CPU IP — 95%+ smartphone share

•[Strength] Royalty model per chip shipped

•[Strength] Armv9 transition driving higher royalty

•[Strength] Data center: Nvidia Grace + AWS Graviton wins

•[Strength] SoftBank majority owner (~90%)

•[Bull-case condition] Armv9 royalty scales + data center wins + AI chip design adoption

Scenario Framework

The framework below describes which conditions need to hold in each scenario — not a price forecast.

Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes. There is no probability assessment in these scenarios, no preferred direction, and no expectation as to which one will materialize.

Bull Case

[Scenario — internal assumption by Bakshi Finance] Upside scenario [source: Bakshi scenario model V2.7]

Base Case

[Scenario — internal assumption by Bakshi Finance] Central path [source: Bakshi scenario model V2.7]

Bear Case

[Scenario — internal assumption by Bakshi Finance] Downside scenario [source: Bakshi scenario model V2.7]

The framework describes conditions, not forecasts. There is no preferred direction, no probability assessment, and no price targets in this framework.

Analytical Lens — The Questions We Ask

In professional company analysis, the question is not "is it good", but "from which angles must the company be examined so that the essential is not missed". Every analysis at Bakshi Finance passes through six lenses. The text below is not a verdict — it is the mapping of the questions this analysis is meant to answer.

The analysis is based on an internal multi-factor analytical framework used in professional portfolio management. The framework maps the questions; the answers appear woven through the analysis above.

What this lens is not: there is no rating here, no score, no comparison between this company and another, and no preference. The same six questions are asked of every company on the site — the variation is in the answers, not in the tool.

This framework is intended to structure analysis, not to produce an investment conclusion.

↑

Growth

How does the company grow? Is the growth driven by volume, price, or mix? Is it stable across cycles?

Profitability

How do profit margins behave over time? How much of accounting income actually becomes free cash flow?

Leverage

What is the capital structure? With what flexibility could the company face a downturn or higher financing costs?

★

Competitive Position

What protects its revenue from erosion? How long is that protection likely to last?

❖

Management Quality

How does management allocate capital? What is its track record on strategic decisions?

⚙

Business Complexity / Risk

Where would a simplistic analysis go wrong? What is exposed to regulation, cyclicality, or technological change?

Key Observations

This summary is not a recommendation. It is a factual list of what the analysis identified. The decision belongs to the client.

Disclosure — Family Office Format

Bakshi Finance operates as a Family Office serving qualified investors only. Mr. Yaron Bakshi held a licensed investment adviser registration in Israel from 2008 to 2023. As of the date of publication of this document, the firm does not hold a licence for investment advice, investment marketing, or portfolio management.

This document is intended for research and professional educational purposes only. Nothing herein constitutes a recommendation to buy, sell, hold, or undertake any action in any security. It is not a substitute for advice that takes into account the personal circumstances and needs of any individual. Any decision rests solely with the investor.

Past performance is not indicative of future results.