Revenue Breakdown
Composition ()
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Revenue Streams
Arm Holdings PLC (ARM) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Royalty Revenue, accounting for 54.6% of total sales, equivalent to $620.00M. Another important revenue stream is License and Other Revenue. Understanding this composition is critical for investors evaluating how ARM navigates market cycles within the Semiconductors industry.
Profitability & Margins
Evaluating the bottom line, Arm Holdings PLC maintains a gross margin of 97.44%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 14.36%, while the net margin is 20.97%. These profitability ratios, combined with a Return on Equity (ROE) of 12.37%, provide a clear picture of how effectively ARM converts its operational activities into shareholder value.
Comparative Benchmarking
In the context of the broader market, ARM competes directly with industry leaders such as ADI and QCOM. With a market capitalization of $114.16B, it holds a significant position in the sector. When comparing efficiency, ARM's gross margin of 97.44% stands against ADI's 57.03% and QCOM's 55.34%. Such benchmarking helps identify whether Arm Holdings PLC is trading at a premium or discount relative to its financial performance.
