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Arm Holdings cash flow, quarter by quarter

Latest: Q2 FY27 · from the cash-flow statements filed with the SEC

Free cash flow$135M in Q2 FY27 · $1.2B over twelve months

Operating cash flow$207M
Capital spending−$72.0M
Free cash flow+$135M
Cash / net income1.6×
Cash conversion cycle-48 days

Analysis

In Q2 FY27, Arm Holdings generated $207M of operating cash flow and spent $72.0M on capital projects, leaving free cash flow of $135M. That is $294M less than in Q2 FY26 ($429M).

Over the twelve months to Sep 30, 2026, operating cash flow was $1.7B; the largest uses were taxes on employees’ shares ($649M), capital spending ($522M), other financing ($104M); besides operations, cash came from other investing ($209M), shares issued ($79.0M); the cash balance rose by $733M.

Operating cash flow was $207M against net income of $130M — 1.6× profit, cash ran ahead of reported earnings. The largest differences: stock-based pay +$376M, contract assets −$203M, other liabilities −$149M.

Its cash conversion cycle was -48 days (receivables 70 + inventory 0 − payables 118): suppliers fund its working capital.

Free cash flow

Arm Holdings: free cash flow by quarterArm Holdings: free cash flow by quarter$360MQ3 FY25$184MQ4 FY25$178MQ1 FY26$429MQ2 FY26$186MQ3 FY26$186MQ4 FY26$705MQ1 FY27$135MQ2 FY27
Operating cash flow less capital spending.
Arm Holdings: operating cash flow against capital spendingArm Holdings: operating cash flow against capital spendingOperating cash flowCapital spending$423M$63.0MQ3 FY25$258M$74.0MQ4 FY25$332M$154MQ1 FY26$567M$138MQ2 FY26$365M$179MQ3 FY26$260M$74.0MQ4 FY26$902M$197MQ1 FY27$207M$72.0MQ2 FY27
Latest (Q2 FY27): Operating cash flow $207M, Capital spending $72.0M.

Capital allocation, year by year

Arm Holdings: where the cash came from (up) and went (down), by fiscal yearArm Holdings: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingFY22: Operating cash flow $458MFY22: Net borrowing $50.0MFY22: Capital spending −$34.0M$508MFY22FY23: Operating cash flow $739MFY23: Capital spending −$64.0M$739MFY23FY24: Operating cash flow $1.1BFY24: Net borrowing −$10.0MFY24: Capital spending −$92.0M$1.1BFY24FY25: Operating cash flow $397MFY25: Net borrowing −$23.0MFY25: Capital spending −$219M$397MFY25FY26: Operating cash flow $1.5BFY26: Net borrowing −$26.0MFY26: Shares issued $74.0MFY26: Asset sales $127MFY26: Capital spending −$545M$1.7BFY26
Over these 5 years operating cash flow totalled $4.2B; the largest uses were capital spending ($954M) and net borrowing ($59.0M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$3.6B
Debtnone
Net cash$3.6B

Arm Holdings funds itself: free cash flow was $1.2B over the last twelve months, with $3.6B of cash and investments and no debt on the balance sheet.

Where the cash came from and went

Arm Holdings: sources (+) and uses (−) of cash, Q2 FY27Arm Holdings: sources (+) and uses (−) of cash, Q2 FY27Operating cash flow$207MCash drawn (+) / kept (−)−$193MOther investing$175MTaxes on employees’ shares−$129MCapital spending−$72.0MOther financing$16.0MExchange rates−$4.0M
Arm Holdings: sources (+) and uses (−) of cash, TTM to Q2 FY27Arm Holdings: sources (+) and uses (−) of cash, TTM to Q2 FY27Operating cash flow$1.7BCash drawn (+) / kept (−)−$733MTaxes on employees’ shares−$649MCapital spending−$522MOther investing$209MOther financing−$104MShares issued$79.0MExchange rates−$14.0M

From profit to cash

Arm Holdings: net income to operating cash flow, Q2 FY27Arm Holdings: net income to operating cash flow, Q2 FY27Net income$130MDepreciation & amortization$81.0MStock-based pay$376MDeferred taxes$42.0MGains on investments$20.0MOther non-cash$3.0MReceivables$33.0MEmployee-related liabilities−$15.0MDeferred revenue−$64.0MContract assets−$203MPrepaid and other assets−$14.0MOther liabilities−$149MIncome taxes payable−$35.0MOperating cash flow$207M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q2 FY2770—118-48
Q1 FY2785—167-81
Q4 FY2669—222-153
Q3 FY2678—222-144
Q2 FY2699—219-120
Q1 FY26105—203-99
Q4 FY2574—214-140
Q3 FY2591—171-80

Every quarter

QuarterOperating cash flowCapital spendingShares issuedCash drawn (+) / kept (−)Free cash flow
Q2 FY27$207M−$72.0M—−$193M$135M
Q1 FY27$902M−$197M—−$307M$705M
Q4 FY26$260M−$74.0M$39.0M$56.0M$186M
Q3 FY26$365M−$179M—−$289M$186M
Q2 FY26$567M−$138M—−$562M$429M
Q1 FY26$332M−$154M—$129M$178M
Q4 FY25$258M−$74.0M—−$49.0M$184M
Q3 FY25$423M−$63.0M—−$538M$360M

Arm Holdings: income statement and cash flow

Arm Holdings, Q2 FY27: revenue $1.4B (+27% year over year), operating margin 13.9%. The chart follows the revenue to costs, profit and cash.

Arm Holdings: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.