Arm Holdings plc

Good day and thank you for standing by. Welcome to the arm fourth quarter and fiscal year ended 2025 webcast and conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Ian Thornton, Vice President, Investor Relations. Please go ahead, sir.

Thank you very much indeed, operator. Thank you and welcome, everybody. I'll be standing in for Jeff Goyle today. Welcome to our earnings conference call for the fourth quarter of fiscal year ended March 31st, 2025. On the call today are Rene Haas, Arms Chief Executive Officer, and Jason Child, Arms Chief Financial Officer. During the call, Arm will discuss forecasts, targets, and other forward-looking information regarding the company and its financial results. While these statements represent our best current judgment about future results and performance, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially. In addition to any risks that we highlight during this call, important risk factors that may affect our future results and performance are described in our registration statements on Form 20F filed with the SEC. Arm assumes no obligations to update any forward-looking statements. We will refer to non-GAAP financial measures during the discussion. Reconciliations of certain of these non-GAAP financial measures to their most directly comparable GAAP financial measures, as well as a discussion of certain projected non-GAAP financial measures that we are not able to reconcile without unreasonable efforts and supplementary financial information can be found on our shareholder letter. The shareholder letter and other earnings related materials are available on our website at investors.arm.com. And with that, I'll turn the call over to Rene.

Thank you, Ian, and welcome everyone. Q4 marked a record breaking close to a strong year for Arm, driven by strong demand for power efficient AI compute from cloud to edge. We crossed a major milestone in Q4 revenue, exceeding 1 billion for the first time ever in our history. For the full year, Revenue topped $4 billion, and royalty revenue surpassed $2 billion, also a first. We delivered record royalty of $607 million this quarter, reflecting the growing value of every chip shipped with ARM inside. And licensing revenue hit an all-time high of $634 million, driven by new deals, including a multi-year AI partnership with the Malaysian government. Our royalty growth is broad-based. It comes from all major markets, data center, automotive, smartphones, and IoT. showing the strength of our diversification strategy. ARM is now increasingly the first choice for AI cloud deployments. We expect up to 50% of new server chips at hyperscalers to be ARM-based this year. NVIDIA's Grace Blackwell, ARMv9, is now in full production. Google's Axion, ARMv9, now deployed in 10 regions, used by 40 of their top 100 customers, offering up to 65% better price performance than current generation x86. And Microsoft Cobalt 100 supports major workloads for Databricks, Siemens, Snowflake, and internal services like Teams and Copilot. And over 50% of new AWS CPU capacity in the past two years is powered by ARM-based Graviton. We're also seeing strong momentum in custom silicon, with companies turning to ARM for CPU, GPU, and NPU solutions. This is driving both license and royalty growth. NVIDIA's AI desktop, DGX Spark, powered by the Grace Blackwell super chip with ARMv9 CPUs is gaining traction, reinforcing strong demand for ARM-based AI infrastructure. Royalty revenue growth was driven by broader adoption of ARMv9 CPUs and compute subsystems in smartphones. Our smartphone royalties jumped 30% year on year, far outpacing the modest 2% growth in shipments, proof of our rising value per device. We launched the first ARMv9 Edge AI platform, combining Cortex A320 and Ethos U85 MPU to run billion parameter models, adopted by leaders like Infineon, NXP, Renaissance, Qualcomm, and STM Microelectronics. GM and NVIDIA announced a collaboration on ARM-based drive AGX platforms for next generation vehicles. Our compute subsystems are now shipping volume, boosting both mobile and cloud royalty revenue. We also signed our first automotive CSS license with a global EV leader, enabling custom silicon for next-gen vehicles. Our common CPU architecture from car to cloud enables OEMs to deliver cloud features to vehicles. On the software front, we now support over 22 million developers, the largest such community in the world. Cliety AI, our core AI software layer, has now surpassed 8 billion cumulative installs across ARM-based devices. The AI revolution is accelerating, and ARM is at its heart. And with that, I'll turn it over to Jason.