Arm reports record revenue in 3rd quarter

Today, Arm published a letter to his shareholders containing the company’s results for its fiscal third quarter of Fye25, ending December 31, 2024. The infography below provides the main highlights:

Here’s what the results mean and how they were achieved:

• Revenue of 983 million dollarswhich is up 19% year-over-years due to record levels of royalty revenue and continued strength in the license revenue.
• Royalty income of $ 580 millionwhich is up 23% year-over-year. This is primarily driven by the continued adoption of Armv9, the ramp of chips based on the arm compute subsystems (CSS), IoT improvement and increased use of arm-based chips in data centers.
• License and other income of 403 million dollarswhich has increased by 14% year-over-year due to normal fluctuations in the timing and size of several high-value licensing agreements that were signed during the quarter.
• Non-GAAP operating income at 442 million dollars resulting in a 45% non-GAAP operating margin and non-GAAP earnings per year. Share of $ 0.39.
• Arm expects Arm css to become the chosen product for many partners to licenses for future chip design, With strong demand due to the requirements for increasingly complex, adapted silicon to specific workloads and benefits of reduced development costs and time for market.
• All major global car manufacturers including BMW, Honda, Rivian, Nuro and Mercedes are dependent on Arm’s energy efficient and secure platform for power for automated driving, parking, advanced autonomous capabilities and functional cockpit experiences in their latest vehicles. On CES 2025, an important focus was on the arm -based Nvidia Drive Agx Thor, the first centralized computer platform for AI and autonomous driving workload built on ARMS SERVER CLASSE NEOVER AUTOMOTIVE Enhanced (AE) CPU. The adoption of the same neoversy platform in the cloud and at the edge-in the car-Software developers develop applications in the cloud and then seamlessly drive them in the car and speed up time to the market.
• The emergence of New arm-based ai-hardware-why many are units that do not largely trust the cloud for processing and are loosened from the power network-and smaller, lighter language models is to unlock AI use cases across consumer technologies, the automotive and industrial IoT. Examples include:
  • Nvidia’s new project digits combining the arm-based Grace CPU with 20 effective arm Cortex-X and Arm Cortex-A CPU cores with Blackwell GPU into the GB10 Superchip to operate the world’s smallest AI super computer;
  • The recently announced arm-based Samsung Galaxy S25, which brings context-conscious multimodal AI-Agents-combines voice, video and text input-to mobile for the first time; and
  • Flagship AI-Smartphones from Oppo and Vivo, which has adopted Mediatek’s new arm-powered Dimennesity 9400 System-On-Chip (SOC).
• Arm is a key technology provider for the newly announced Stargate projecttogether with Microsoft, Nvidia, Openai and Oracle. The news cemented additional arm in the center of one of the largest AI infrastructure investments to date.
• Arm is a strategic partner with the Openai and the Softbank group at “Cristal Intelligence”that enables AI agents who solve complex problems for knowledge work. The Arm Compute Platform, powered by Kleidiai libraries, is set to provide performance, efficiency and scalability required to support the growing calculation requirements from these new AI agents from edge to cloud.

The full letter to the shareholders is available on the Web site Arm Investor Relations (https://investors.arm.com/financials/quarterly-analal-results). Information about the arm -earnings conference call can be found here.