Arm Holdings plc (ARM) Cash Flow Statement
Where ARM’s cash came from and went, FY2026
March 31, 2026 · U.S. dollars- Cash from operations
- $1.52B +283.9% vs FY2025
- Capital expenditures
- $545.0M 11.1% of revenue
- Free cash flow
- $979.0M 19.9% margin
- Returned to shareholders
- —
- Change in cash
- $666.0M cash at year-end $2.75B
Drawn to scale: where the cash came from and how it was used. Hover for values.
ARM operating cash flow, capex and free cash flow
ARM cash flow trends, FY2021–FY2026
| Metric | Trend | Then | Latest | Change |
|---|---|---|---|---|
| Operating cash flow | $1.23BFY2021 | $1.52BFY2026 | +4.3%/yr | |
| Capital expenditures | $165.0MFY2021 | $545.0MFY2026 | +27.0%/yr | |
| Free cash flow | $1.07BFY2021 | $979.0MFY2026 | −1.7%/yr | |
| Free cash flow margin | 52.7%FY2021 | 19.9%FY2026 | −32.8 pts | |
| Operating cash flow / net income | 3.18FY2021 | 1.69FY2026 | −1.49 | |
| Stock-based compensation | $54.0MFY2021 | $1.05BFY2026 | +81.1%/yr | |
| Dividends paid | $750.0MFY2021 | $0FY2023 | −100.0% | |
| Capex / revenue | 8.1%FY2021 | 11.1%FY2026 | +2.9 pts |
Change is the average annual growth (CAGR) or the difference between the first and latest year.
ARM cash flow by activity
ARM net income vs operating cash flow
Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).
ARM cash flow statement
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|---|
| Operating activities | ||||||
| Net income | $904.0M | $792.0M | $306.0M | $524.0M | $549.0M | $388.0M |
| Depreciation & amortization | $249.0M | $183.0M | $162.0M | $170.0M | $185.0M | $201.0M |
| Stock-based compensation | $1.05B | $820.0M | $1.04B | $79.0M | $26.0M | $54.0M |
| Change in working capital | −$602.0M | −$1.47B | −$195.0M | −$73.0M | −$188.0M | $1.01B |
| Other non-cash items | −$79.0M | $67.0M | −$220.0M | $39.0M | −$114.0M | −$420.0M |
| Cash from operating activities | $1.52B | $397.0M | $1.09B | $739.0M | $458.0M | $1.23B |
| Investing activities | ||||||
| Capital expenditures | −$545.0M | −$219.0M | −$143.0M | −$93.0M | −$75.0M | −$165.0M |
| Investments (net) | $95.0M | −$35.0M | −$516.0M | −$138.0M | −$619.0M | −$340.0M |
| Acquisitions & other investing | $125.0M | $219.0M | $143.0M | $93.0M | $75.0M | $165.0M |
| Cash from investing activities | −$325.0M | −$35.0M | −$516.0M | −$138.0M | −$619.0M | −$340.0M |
| Financing activities | ||||||
| Dividends paid | — | — | — | $0 | $0 | −$750.0M |
| Net borrowing (repayment) | — | — | $0 | $0 | $50.0M | $50.0M |
| Shares issued | $0 | $0 | $0 | $0 | $0 | $0 |
| Other financing | −$548.0M | −$202.0M | −$208.0M | −$42.0M | −$82.0M | −$89.0M |
| Cash from financing activities | −$548.0M | −$202.0M | −$208.0M | −$42.0M | −$32.0M | −$789.0M |
| Summary | ||||||
| Net change in cash | $666.0M | $162.0M | $369.0M | $550.0M | −$210.0M | $105.0M |
| Cash at end of period | $2.75B | $2.08B | $1.92B | $1.55B | $1.00B | $1.21B |
| Free cash flow | $979.0M | $178.0M | $947.0M | $646.0M | $383.0M | $1.07B |
| Free cash flow margin | 19.9% | 4.4% | 29.3% | 24.1% | 14.2% | 52.7% |
| Capex / revenue | 11.1% | 5.5% | 4.4% | 3.5% | 2.8% | 8.1% |
| Operating cash flow / net income | 1.69 | 0.50 | 3.56 | 1.41 | 0.83 | 3.18 |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||||
| Net income | $270.0M | $313.0M | $223.0M | $238.0M | $130.0M | $210.0M | $252.0M | $107.0M | $223.0M | $224.0M | $87.0M | −$110.0M |
| Depreciation & amortization | $75.0M | $71.0M | $63.0M | $55.0M | $60.0M | $49.0M | $47.0M | $44.0M | $43.0M | $38.0M | $42.0M | $41.0M |
| Stock-based compensation | $343.0M | $261.0M | $285.0M | $265.0M | $241.0M | $193.0M | $227.0M | $218.0M | $182.0M | $185.0M | $199.0M | $513.0M |
| Change in working capital | $389.0M | −$469.0M | −$179.0M | $135.0M | −$89.0M | −$290.0M | −$69.0M | −$380.0M | −$726.0M | $451.0M | −$20.0M | −$224.0M |
| Other non-cash items | −$175.0M | $84.0M | −$27.0M | −$126.0M | −$10.0M | $96.0M | −$34.0M | $17.0M | −$12.0M | −$231.0M | $2.0M | $7.0M |
| Cash from operating activities | $902.0M | $260.0M | $365.0M | $567.0M | $332.0M | $258.0M | $423.0M | $6.0M | −$290.0M | $667.0M | $310.0M | $227.0M |
| Investing activities | ||||||||||||
| Capital expenditures | −$208.0M | −$90.0M | −$184.0M | −$138.0M | −$161.0M | −$78.0M | −$63.0M | −$60.0M | −$38.0M | −$19.0M | −$51.0M | −$47.0M |
| Investments (net) | $21.0M | −$104.0M | $199.0M | $196.0M | −$372.0M | −$188.0M | $152.0M | $75.0M | −$74.0M | −$170.0M | −$123.0M | −$46.0M |
| Acquisitions & other investing | −$80.0M | −$7.0M | $37.0M | $138.0M | $161.0M | $78.0M | $63.0M | $60.0M | $38.0M | $19.0M | $51.0M | $47.0M |
| Cash from investing activities | −$267.0M | −$201.0M | $52.0M | $196.0M | −$372.0M | −$188.0M | $152.0M | $75.0M | −$74.0M | −$170.0M | −$123.0M | −$46.0M |
| Financing activities | ||||||||||||
| Share repurchases & issuance (net) | — | — | — | −$202.0M | −$85.0M | — | — | — | — | — | — | — |
| Shares issued | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Other financing | −$326.0M | −$105.0M | −$130.0M | $12.0M | −$38.0M | −$27.0M | −$26.0M | −$53.0M | −$96.0M | −$121.0M | −$48.0M | −$24.0M |
| Cash from financing activities | −$326.0M | −$105.0M | −$130.0M | −$190.0M | −$123.0M | −$27.0M | −$26.0M | −$53.0M | −$96.0M | −$121.0M | −$48.0M | −$24.0M |
| Summary | ||||||||||||
| Net change in cash | $307.0M | −$56.0M | $289.0M | $562.0M | −$129.0M | $49.0M | $538.0M | $33.0M | −$458.0M | $372.0M | $145.0M | $158.0M |
| Cash at end of period | $3.06B | $2.75B | $2.81B | $2.52B | $1.96B | $2.08B | $2.04B | $1.50B | $1.47B | $1.92B | $1.55B | $1.41B |
| Free cash flow | $694.0M | $170.0M | $181.0M | $429.0M | $171.0M | $180.0M | $360.0M | −$54.0M | −$328.0M | $648.0M | $259.0M | $180.0M |
| Free cash flow margin | 53.8% | 11.4% | 14.6% | 37.8% | 16.2% | 14.5% | 36.6% | −6.4% | −34.9% | 69.8% | 31.4% | 22.3% |
| Capex / revenue | 16.1% | 6.0% | 14.8% | 12.2% | 15.3% | 6.3% | 6.4% | 7.1% | 4.0% | 2.0% | 6.2% | 5.8% |
| Operating cash flow / net income | 3.34 | 0.83 | 1.64 | 2.38 | 2.55 | 1.23 | 1.68 | 0.06 | −1.30 | 2.98 | 3.56 | — |
Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.
ARM cash generation
In fiscal 2026 (ended March 31, 2026), Arm Holdings generated $1.5 billion of cash from operations (up 283.9%) and spent $545.0 million on capital expenditures, leaving free cash flow of $979.0 million, 19.9% of revenue. Cash and equivalents rose by $666.0 million over the year.
Related: ARM income statement, ARM balance sheet. See the ARM stock overview for the latest quote and news.
ARM cash flow FAQ
What is Arm Holdings's free cash flow?
Arm Holdings's free cash flow was $979.0 million in fiscal 2026: $1.5 billion of operating cash flow minus $545.0 million of capital expenditures It was $178.0 million a year earlier..
How much cash does Arm Holdings generate from operations?
Arm Holdings generated $1.5 billion of cash from operating activities in fiscal 2026, 1.69 times its net income of $904.0 million.
How much does Arm Holdings spend on capital expenditures?
Arm Holdings spent $545.0 million on capital expenditures in fiscal 2026, 11.1% of revenue, compared with $219.0 million the year before.