Filing Flows › Arm Holdings (ARM) › Q3 FY25
Arm Holdings (ARM) Q3 FY25 earnings results (third quarter fiscal 2025)
6-K filed Feb 5, 2025
Arm Holdings (ARM) reported revenue of $983M for the third quarter fiscal 2025 (Q3 FY25), +19% from a year earlier and +16% from the quarter before. Operating margin was 17.8%, net earnings $252M (25.6% of revenue).
Arm Holdings, Q3 FY25: revenue $983M (+19% year over year), operating margin 17.8%, net earnings $252M, operating cash flow $423M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $983M | +16% | +19% |
| Gross profit | $955M | +18% | +21% |
| Operating profit | $175M | +173% | +31% |
| Net earnings | $252M | +136% | +190% |
| Operating cash flow | $423M | 70× | +36% |
| Free cash flow | $360M | — | +25% |
What changed
Revenue was $983.0M in Q3 FY25, up 19% year over year and up 16% from the previous quarter. Revenue from external customers was the largest line at 71% of revenue. Revenue from external customers added $122.0M year over year (up 21%), 77% of the total change.
Gross margin was 97.2%, up 1.5 points from a year earlier. Operating profit was $175.0M, a 17.8% margin (up 1.5 points year over year). Of the extra revenue versus a year earlier, 26% reached operating profit, above the 16% margin then. Operating expenses grew 19% against revenue growth of 19%. The fastest-growing cost line was Research & development (+23%). Net earnings were $252.0M, up 190% year over year. The effective tax rate was 6.0%. Non-operating items added $93.0M, 35% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $423.0M (up 36% year over year), 168% of net earnings. Non-cash charges added back $47.0M of depreciation and amortization and $227.0M of share-based compensation. Working capital and other items used $103.0M. Capital expenditures of $63.0M left free cash flow of $360.0M.
Questions
What was Arm Holdings' revenue in the third quarter fiscal 2025?
Arm Holdings (ARM) reported revenue of $983M for the third quarter fiscal 2025 (Q3 FY25), +19% from a year earlier and +16% from the quarter before.
Was Arm Holdings profitable in the third quarter fiscal 2025?
Operating profit was $175M (17.8% of revenue) and net earnings $252M.
Source: Arm Holdings 6-K on SEC EDGAR.