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Arm Holdings (ARM) Q2 FY25 earnings results (second quarter fiscal 2025)

6-K filed Nov 7, 2024

Arm Holdings (ARM) reported revenue of $844M for the second quarter fiscal 2025 (Q2 FY25), +5% from a year earlier and -10% from the quarter before. Operating margin was 7.6%, net earnings $107M (12.7% of revenue).

Revenue$844M
Year over year+5%
Quarter over quarter-10%
Operating margin7.6%
Net earnings$107M

Arm Holdings, Q2 FY25: revenue $844M (+5% year over year), operating margin 7.6%, net earnings $107M, operating cash flow $6.0M. The chart follows the revenue to costs, profit and cash.

Q2 FY25AmountQ/QY/Y
Revenue$844M-10%+5%
Gross profit$812M-10%+7%
Operating profit$64.0M-65%—
Net earnings$107M-52%—
Operating cash flow$6.0M—-97%

What changed

Revenue was $844.0M in Q2 FY25, up 5% year over year and down 10% from the previous quarter. Revenue from external customers was the largest line at 77% of revenue. Revenue from related parties added $30.0M year over year (up 19%), 79% of the total change.

Gross margin was 96.2%, up 1.9 points from a year earlier. Operating profit was $64.0M, a 7.6% margin (up 26.9 points year over year). Operating expenses fell 18% while revenue rose 5%. Net earnings were $107.0M. The effective tax rate was -67.2%.

Operating cash flow was $6.0M (down 97% year over year), 6% of net earnings. Non-cash charges added back $44.0M of depreciation and amortization and $218.0M of share-based compensation. Working capital and other items used $363.0M. Capital expenditures of $53.0M exceeded it, leaving free cash flow of −$47.0M.

Questions

What was Arm Holdings' revenue in the second quarter fiscal 2025?

Arm Holdings (ARM) reported revenue of $844M for the second quarter fiscal 2025 (Q2 FY25), +5% from a year earlier and -10% from the quarter before.

Was Arm Holdings profitable in the second quarter fiscal 2025?

Operating profit was $64.0M (7.6% of revenue) and net earnings $107M.

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Source: Arm Holdings 6-K on SEC EDGAR.