Arm Revenues Up 34 Percent to $1.24 Billion

Arm Holding reported quarterly revenues of over $1 billion for the first time, but it also warned the current quarter could disappoint. The firm reported a net income of $210 million on revenues of $1.24 billion in the quarter ending March 31, 2025. Those figures represent a decline of 6 percent and a gain of 34 percent, respectively, year-over-year (YOY).

“The fourth quarter was a strong end to another great year,” an Arm letter to shareholders explains. “Arm achieved record-breaking results in Q4, delivering record revenue and crossing the $1 billion revenue milestone for the first time in our history. We achieved record licensing revenue and, in a clear signal that we are increasing royalty per chip, delivered record royalty revenue exceeding $600 million.”

Royalty revenues in the quarter were up 18 percent YOY to $607 million, Arm said, driven primarily by the continued adoption of the Armv9 architecture, Arm Compute Subsystem ramp-up in embedded markets, and increased usage of Arm-based chips in data centers. License and other revenue was up 53 percent to $634 million.

Arm declined to give financial guidance for the current fiscal year, as it did a year ago. But it forecast revenues in the current quarter to be $1 billion to $1.1 billion, below estimates. Arm blamed a licensing deal that may not materialize in the quarter, but Wall Street will always be Wall Street, so Arm shares fell 8 percent in after hours trading.