Arm Holdings(NASDAQ:ARM) 
Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products. It offers microprocessors, systems intellectual property (IPs), graphics processing units, physi...
Website: https://www.arm.com/
Founded: 1990
IPO Price: $51 (Sep 14, 2023)
Full Time Employees: 5,963
CEO: Rene Haas
Sector: Technology
Industry: Semiconductors
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At a glance:
- Royalty + Licensing Model Drives High-Margin Revenue: Arm primarily monetizes its CPU and IP portfolio through licensing fees and per-chip royalties, which typically supports strong gross margins versus chip manufacturers.
- AI and Data Center Adoption Expands TAM Beyond Mobile: Growth is increasingly tied to Arm’s penetration in servers, cloud infrastructure, and AI workloads, alongside its long-standing strength in smartphones and embedded devices.
- Customer Concentration and Ecosystem Dependence Are Key Risks: Revenue can be sensitive to a relatively small number of large customers and the health of the broader semiconductor ecosystem, including end-market demand cycles.
- Competitive and Architectural Pressures Continue: Arm faces competition from alternative architectures and in-house silicon designs, requiring continued innovation and ecosystem support to sustain pricing power.
- Regulatory and Geopolitical Factors Can Affect Licensing: Export controls, IP licensing restrictions, and geopolitical tensions can influence customer access, deal structure, and the pace of adoption in certain regions.
Bull Thesis:
- Dominance in Mobile and Edge AI: Arm's architecture is foundational for nearly all smartphones and is increasingly critical for power-efficient AI processing at the edge (IoT, automotive, wearables). As AI workloads shift from cloud to edge, Arm's optimized designs become even more indispensable, driving licensing and royalty revenue.
- Expansion into Data Center and Cloud: Arm Neoverse is gaining significant traction in data centers, with major cloud providers like AWS (Graviton) and other companies adopting Arm-based CPUs. This represents a substantial new market opportunity beyond its traditional mobile stronghold, challenging the long-standing x86 dominance and diversifying Arm's revenue streams.
- High Royalty Rates and IP Licensing Growth: Arm is strategically shifting towards higher royalty rates for its newer, more advanced architectures (e.g., Armv9). This, combined with increased demand for custom silicon and specialized IP blocks across various industries, ensures a growing and high-margin revenue stream from its intellectual property.
- Strong Automotive Market Penetration: Arm is a critical enabler in the rapidly evolving automotive sector, powering everything from infotainment systems to advanced driver-assistance systems (ADAS) and autonomous driving platforms. The increasing complexity and software-defined nature of modern vehicles will continue to drive demand for Arm-based solutions.
Bear Thesis:
- Growing Competition from RISC-V: The open-source RISC-V instruction set architecture is gaining momentum, particularly in embedded systems, IoT, and potentially some edge AI applications. While not an immediate threat to Arm's high-performance segments, RISC-V could erode Arm's market share in certain areas over the long term, especially if it matures rapidly and attracts more ecosystem support.
- Reliance on a Few Large Customers and Geopolitical Risks: While Arm has numerous licensees, a significant portion of its revenue is concentrated among a few major players (e.g., Apple, Qualcomm, Samsung, NVIDIA). Any shift in strategy, market share, or design choices by these giants could significantly impact Arm. Furthermore, as a global IP provider, Arm is exposed to geopolitical tensions and export controls, particularly concerning US-China tech relations, which could restrict its ability to license to key markets.
- Slowing Smartphone Market Growth: Despite diversification efforts, Arm's core revenue still heavily relies on the smartphone market. If global smartphone shipments continue to stagnate or decline, it could put pressure on Arm's royalty revenues, which are tied to the volume of Arm-based chips shipped.
- High Valuation and Pressure to Justify Growth: Arm's public valuation is substantial, placing significant pressure on the company to demonstrate sustained high growth rates and expanding profitability. Any slowdown in revenue acceleration or unexpected margin pressures could lead to a re-evaluation by investors, potentially impacting its stock performance.
Main Competitors:
- Intel Corporation ($INTC) (x86 Architecture (Xeon, Core processors)), Intel is Arm's primary competitor in the traditional CPU market, particularly in servers (data centers), laptops, and desktops, where its x86 architecture has historically dominated. Arm is making significant inroads into these markets (e.g., AWS Graviton, Apple M-series, Ampere Computing), directly challenging Intel's stronghold. Intel also offers its own foundry services, potentially competing with Arm's licensees.
- RISC-V International (and ecosystem companies like SiFive, Andes Technology) (RISC-V Instruction Set Architecture (ISA)), RISC-V is an open-source instruction set architecture that offers a royalty-free alternative to Arm's proprietary licensing model. Companies can design their own CPU cores based on the open standard without paying royalties to Arm, making it a significant long-term threat, especially in embedded systems, IoT, and potentially more complex applications, by removing licensing costs and offering greater customization.
- NVIDIA Corporation ($NVDA) (CUDA, Grace CPU Superchip, GPUs), While a major Arm licensee, NVIDIA competes by offering alternative computing paradigms centered around GPUs and AI accelerators, which are increasingly taking on workloads traditionally handled by CPUs. NVIDIA's integrated platforms (like Grace CPU Superchip, which uses Arm cores) and proprietary software stack (CUDA) create a powerful ecosystem that can shift compute focus away from general-purpose CPU optimization, potentially reducing reliance on Arm's core IP in high-growth areas like AI and HPC.
- Qualcomm Technologies, Inc. (representing custom Arm core designers like Apple, Amazon) ($QCOM) (Snapdragon (Oryon CPU), Apple M-series, AWS Graviton), Major Arm licensees like Qualcomm, Apple, and Amazon are increasingly designing their own custom high-performance CPU cores based on the Arm instruction set architecture (ISA), rather than solely licensing Arm's off-the-shelf IP cores. This trend represents a form of 'co-opetition,' as these companies compete directly with Arm's IP core design business by developing their own optimized core designs, even while continuing to pay Arm for the architectural license.
Moat:
Arm Holdings maintains a strong moat built on its pervasive presence in mobile computing, a vast and mature software ecosystem, and a reputation for power-efficient designs across a broad IP portfolio. However, it faces multifaceted competition. Intel's x86 architecture remains a formidable rival in servers and PCs, while the open-source RISC-V ISA presents a royalty-free alternative gaining traction, particularly in embedded and IoT markets. Furthermore, companies like NVIDIA are pushing alternative compute paradigms with GPUs and accelerators, potentially shifting workloads away from general-purpose CPUs. A unique challenge comes from Arm's own major licensees (e.g., Apple, Qualcomm, Amazon), who are increasingly designing their own custom high-performance CPU cores based on the Arm ISA, competing with Arm's own IP core design business while still paying for architectural licenses. Arm's ability to innovate, expand into new markets, and manage these complex co-opetitive relationships will be key to its continued success.
Income Statements:
Quarterly
Annual
| Unit: USD | 2025-09-30 | 2025-07-30 | 2025-06-30 | 2025-03-31 | 2025-02-05 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 |
|---|---|---|---|---|---|---|---|---|---|---|---|
revenue: | |||||||||||
revenue from external customers | 713,000,000 | 725,000,000 | 725,000,000 | 1,019,000,000 | 698,000,000 | 698,000,000 | 652,000,000 | 815,000,000 | 754,000,000 | 576,000,000 | 644,000,000 |
revenue from related parties | 422,000,000 | 328,000,000 | 328,000,000 | 222,000,000 | 285,000,000 | 285,000,000 | 192,000,000 | 124,000,000 | 174,000,000 | 248,000,000 | 162,000,000 |
total revenue | 1,135,000,000 | 1,053,000,000 | 1,053,000,000 | 1,241,000,000 | 983,000,000 | 983,000,000 | 844,000,000 | 939,000,000 | 928,000,000 | 824,000,000 | 806,000,000 |
yoy | 15.46% | 7.12% | 24.76% | 32.16% | 5.93% | 19.30% | 4.71% | ||||
qoq | 7.79% | 0.00% | -15.15% | 26.25% | 0.00% | 16.47% | -10.12% | 1.19% | 12.62% | 2.23% | |
cost of sales | -29,000,000 | -30,000,000 | -30,000,000 | -28,000,000 | -28,000,000 | -28,000,000 | -32,000,000 | -33,000,000 | -41,000,000 | -36,000,000 | -46,000,000 |
gross profit | 1,106,000,000 | 1,023,000,000 | 1,023,000,000 | 1,213,000,000 | 955,000,000 | 955,000,000 | 812,000,000 | 906,000,000 | 887,000,000 | 788,000,000 | 760,000,000 |
yoy | 15.81% | 7.12% | 25.99% | 33.89% | 7.67% | 21.19% | 6.84% | ||||
qoq | 8.11% | 0.00% | -15.66% | 27.02% | 0.00% | 17.61% | -10.38% | 2.14% | 12.56% | 3.68% | |
gross margin % | 97.44% | 97.15% | 97.15% | 97.74% | 97.15% | 97.15% | 96.21% | 96.49% | 95.58% | 95.63% | 94.29% |
operating expenses: | |||||||||||
research and development | -691,000,000 | -650,000,000 | -650,000,000 | -546,000,000 | -533,000,000 | -533,000,000 | -507,000,000 | -485,000,000 | -584,000,000 | -432,000,000 | -626,000,000 |
selling, general and administrative | -252,000,000 | -259,000,000 | -259,000,000 | -257,000,000 | -247,000,000 | -247,000,000 | -241,000,000 | -239,000,000 | -281,000,000 | -216,000,000 | -290,000,000 |
total operating expense | -943,000,000 | -909,000,000 | -909,000,000 | -803,000,000 | -780,000,000 | -780,000,000 | -748,000,000 | -724,000,000 | -865,000,000 | -654,000,000 | -916,000,000 |
operating income | 163,000,000 | 114,000,000 | 114,000,000 | 410,000,000 | 175,000,000 | 175,000,000 | 64,000,000 | 182,000,000 | 22,000,000 | 134,000,000 | -156,000,000 |
yoy | -6.86% | -34.86% | 78.13% | 125.27% | 695.45% | 30.60% | -141.03% | ||||
qoq | 42.98% | 0.00% | -72.20% | 134.29% | 0.00% | 173.44% | -64.84% | 727.27% | -83.58% | -185.90% | |
operating margin % | 14.36% | 10.83% | 10.83% | 33.04% | 17.80% | 17.80% | 7.58% | 19.38% | 2.37% | 16.26% | -19.35% |
income from equity investments | -16,000,000 | 4,000,000 | 4,000,000 | -290,000,000 | 39,000,000 | 39,000,000 | -10,000,000 | 24,000,000 | -7,000,000 | -1,000,000 | -5,000,000 |
interest income | 27,000,000 | 27,000,000 | 27,000,000 | 27,000,000 | 28,000,000 | 28,000,000 | 29,000,000 | 32,000,000 | 30,000,000 | 28,000,000 | 28,000,000 |
other non-operating income | 128,000,000 | 1,000,000 | 1,000,000 | -3,000,000 | 26,000,000 | 26,000,000 | -19,000,000 | 6,000,000 | 13,000,000 | -15,000,000 | 14,000,000 |
income before income taxes | 302,000,000 | 146,000,000 | 146,000,000 | 144,000,000 | 268,000,000 | 268,000,000 | 64,000,000 | 244,000,000 | 58,000,000 | 146,000,000 | -119,000,000 |
income tax benefit | -64,000,000 | -16,000,000 | -16,000,000 | 66,000,000 | -16,000,000 | -16,000,000 | 43,000,000 | -21,000,000 | 166,000,000 | -59,000,000 | 9,000,000 |
net income | 238,000,000 | 130,000,000 | 130,000,000 | 210,000,000 | 252,000,000 | 252,000,000 | 107,000,000 | 223,000,000 | 224,000,000 | 87,000,000 | -110,000,000 |
yoy | -5.56% | -48.41% | 21.50% | -5.83% | 12.50% | 189.66% | -197.27% | ||||
qoq | 83.08% | 0.00% | -38.10% | -16.67% | 0.00% | 135.51% | -52.02% | -0.45% | 157.47% | -179.09% | |
net income margin % | 20.97% | 12.35% | 12.35% | 16.92% | 25.64% | 25.64% | 12.68% | 23.75% | 24.14% | 10.56% | -13.65% |
net income per share | |||||||||||
basic | 0.22 | 0.12 | 0.12 | 0.19 | 0.24 | 0.24 | 0.1 | 0.21 | 0.02 | 0.08 | -0.11 |
diluted | 0.22 | 0.12 | 0.12 | 0.2 | 0.24 | 0.24 | 0.1 | 0.21 | 0.02 | 0.08 | -0.11 |
weighted-average ordinary shares outstanding | |||||||||||
basic | 1,060 | 1,058 | 1,058 | 1,050 | 1,052 | 1,052 | 1,049 | 1,044 | 1,027,443,122 | 1,026,894,266 | 1,025,312,845 |
diluted | 1,069 | 1,065 | 1,065 | 1,063 | 1,064 | 1,064 | 1,063 | 1,060 | 1,044,497,032 | 1,048,888,489 | 1,025,312,845 |
disposal, restructuring and other operating expenses | -6,000,000 |
Balance Sheets:
Quarterly
Annual
| Unit: USD | 2025-09-30 | 2025-07-30 | 2025-06-30 | 2025-03-31 | 2025-02-05 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 | 2023-09-30 |
|---|---|---|---|---|---|---|---|---|---|---|---|
assets: | |||||||||||
current assets: | |||||||||||
cash and cash equivalents | 2,518,000,000 | 1,956,000,000 | 1,956,000,000 | 2,085,000,000 | 2,036,000,000 | 2,036,000,000 | 1,498,000,000 | 1,465,000,000 | 1,923,000,000 | 1,551,000,000 | 1,406,000,000 |
short-term investments | 740,000,000 | 950,000,000 | 950,000,000 | 740,000,000 | 635,000,000 | 635,000,000 | 860,000,000 | 1,000,000,000 | 1,000,000,000 | 850,000,000 | 800,000,000 |
accounts receivable | 1,119,000,000 | 1,315,000,000 | 1,315,000,000 | 1,107,000,000 | 940,000,000 | 940,000,000 | 1,006,000,000 | 804,000,000 | 781,000,000 | 799,000,000 | 864,000,000 |
contract assets | 647,000,000 | 645,000,000 | 645,000,000 | 642,000,000 | 511,000,000 | 511,000,000 | 454,000,000 | 455,000,000 | 336,000,000 | 280,000,000 | 235,000,000 |
prepaid expenses and other current assets | 346,000,000 | 307,000,000 | 307,000,000 | 256,000,000 | 212,000,000 | 212,000,000 | 246,000,000 | 116,000,000 | 157,000,000 | 148,000,000 | 137,000,000 |
total current assets | 5,370,000,000 | 5,173,000,000 | 5,173,000,000 | 4,830,000,000 | 4,334,000,000 | 4,334,000,000 | 4,064,000,000 | 3,840,000,000 | 4,197,000,000 | 3,628,000,000 | 3,442,000,000 |
non-current assets: | |||||||||||
property and equipment | 573,000,000 | 467,000,000 | 467,000,000 | 394,000,000 | 354,000,000 | 354,000,000 | 291,000,000 | 231,000,000 | 215,000,000 | 221,000,000 | 205,000,000 |
operating lease right-of-use assets | 358,000,000 | 328,000,000 | 328,000,000 | 320,000,000 | 245,000,000 | 245,000,000 | 232,000,000 | 233,000,000 | 205,000,000 | ||
finance lease right-of-use assets | 83,000,000 | 78,000,000 | 78,000,000 | ||||||||
equity investments | 556,000,000 | 570,000,000 | 570,000,000 | 565,000,000 | 845,000,000 | 845,000,000 | 796,000,000 | 800,000,000 | 741,000,000 | 748,000,000 | 725,000,000 |
goodwill | 1,625,000,000 | 1,626,000,000 | 1,626,000,000 | 1,620,000,000 | 1,616,000,000 | 1,616,000,000 | 1,641,000,000 | 1,625,000,000 | 1,625,000,000 | 1,628,000,000 | 1,615,000,000 |
intangible assets | 245,000,000 | 263,000,000 | 263,000,000 | 151,000,000 | 165,000,000 | 165,000,000 | 184,000,000 | 159,000,000 | 152,000,000 | 163,000,000 | 147,000,000 |
deferred tax assets | 403,000,000 | 425,000,000 | 425,000,000 | 401,000,000 | 374,000,000 | 374,000,000 | 351,000,000 | 324,000,000 | 282,000,000 | 140,000,000 | 139,000,000 |
non-current portion of contract assets | 248,000,000 | 220,000,000 | 220,000,000 | 346,000,000 | 272,000,000 | 272,000,000 | 273,000,000 | 363,000,000 | 240,000,000 | 143,000,000 | 121,000,000 |
other non-current assets | 249,000,000 | 245,000,000 | 245,000,000 | 305,000,000 | 291,000,000 | 291,000,000 | 254,000,000 | 305,000,000 | 270,000,000 | 240,000,000 | 211,000,000 |
total non-current assets | 4,340,000,000 | 4,222,000,000 | 4,222,000,000 | 4,102,000,000 | 4,162,000,000 | 4,162,000,000 | 4,022,000,000 | 4,040,000,000 | 3,730,000,000 | 3,487,000,000 | 3,368,000,000 |
total assets | 9,710,000,000 | 9,395,000,000 | 9,395,000,000 | 8,932,000,000 | 8,496,000,000 | 8,496,000,000 | 8,086,000,000 | 7,880,000,000 | 7,927,000,000 | 7,115,000,000 | 6,810,000,000 |
liabilities: | |||||||||||
current liabilities: | |||||||||||
accrued compensation and benefits | 115,000,000 | 137,000,000 | 137,000,000 | 140,000,000 | 114,000,000 | 114,000,000 | 104,000,000 | 97,000,000 | |||
tax liabilities | 98,000,000 | 93,000,000 | 93,000,000 | 124,000,000 | 142,000,000 | 142,000,000 | 148,000,000 | 182,000,000 | 147,000,000 | 127,000,000 | 107,000,000 |
contract liabilities | 296,000,000 | 259,000,000 | 259,000,000 | 209,000,000 | 176,000,000 | 176,000,000 | 218,000,000 | 209,000,000 | 198,000,000 | 223,000,000 | 288,000,000 |
operating lease liabilities | 37,000,000 | 36,000,000 | 36,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | 29,000,000 | 28,000,000 | 27,000,000 | 26,000,000 | 24,000,000 |
other current liabilities | 414,000,000 | 512,000,000 | 512,000,000 | 426,000,000 | 412,000,000 | 412,000,000 | 400,000,000 | 549,000,000 | 835,000,000 | 279,000,000 | 217,000,000 |
total current liabilities | 960,000,000 | 1,037,000,000 | 1,037,000,000 | 929,000,000 | 874,000,000 | 874,000,000 | 899,000,000 | 1,065,000,000 | 1,505,000,000 | 866,000,000 | 795,000,000 |
non-current liabilities: | |||||||||||
non-current portion of accrued compensation | 27,000,000 | 28,000,000 | 28,000,000 | 26,000,000 | 22,000,000 | 22,000,000 | 21,000,000 | 20,000,000 | |||
deferred tax liabilities | 27,000,000 | 55,000,000 | 55,000,000 | 41,000,000 | 123,000,000 | 123,000,000 | 131,000,000 | 142,000,000 | 135,000,000 | 237,000,000 | 241,000,000 |
non-current portion of contract liabilities | 734,000,000 | 742,000,000 | 742,000,000 | 702,000,000 | 750,000,000 | 750,000,000 | 704,000,000 | 715,000,000 | 717,000,000 | 734,000,000 | 740,000,000 |
non-current portion of operating lease liabilities | 373,000,000 | 339,000,000 | 339,000,000 | 316,000,000 | 231,000,000 | 231,000,000 | 229,000,000 | 221,000,000 | 194,000,000 | 195,000,000 | 190,000,000 |
other non-current liabilities | 182,000,000 | 187,000,000 | 187,000,000 | 79,000,000 | 77,000,000 | 77,000,000 | 90,000,000 | 54,000,000 | 61,000,000 | 61,000,000 | 52,000,000 |
total non-current liabilities | 1,343,000,000 | 1,351,000,000 | 1,351,000,000 | 1,164,000,000 | 1,203,000,000 | 1,203,000,000 | 1,175,000,000 | 1,152,000,000 | 1,127,000,000 | 1,245,000,000 | 1,242,000,000 |
total liabilities | 2,303,000,000 | 2,388,000,000 | 2,388,000,000 | 2,093,000,000 | 2,077,000,000 | 2,077,000,000 | 2,074,000,000 | 2,217,000,000 | 2,632,000,000 | 2,111,000,000 | 2,037,000,000 |
commitments and contingencies | |||||||||||
shareholders’ equity: | |||||||||||
ordinary shares, 0.001 par value... | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 |
additional paid-in capital | 3,101,000,000 | 2,921,000,000 | 2,921,000,000 | 2,922,000,000 | 2,739,000,000 | 2,739,000,000 | 2,519,000,000 | 2,316,000,000 | 2,171,000,000 | 2,087,000,000 | 1,979,000,000 |
accumulated other comprehensive income | 393,000,000 | 411,000,000 | 411,000,000 | 372,000,000 | 345,000,000 | 345,000,000 | 410,000,000 | 371,000,000 | 371,000,000 | 388,000,000 | 352,000,000 |
retained earnings | 3,911,000,000 | 3,673,000,000 | 3,673,000,000 | 3,543,000,000 | 3,333,000,000 | 3,333,000,000 | 3,081,000,000 | 2,974,000,000 | 2,751,000,000 | 2,527,000,000 | 2,440,000,000 |
total shareholders’ equity | 7,407,000,000 | 7,007,000,000 | 7,007,000,000 | 6,839,000,000 | 6,419,000,000 | 6,419,000,000 | 6,012,000,000 | 5,663,000,000 | 5,295,000,000 | 5,004,000,000 | 4,773,000,000 |
total liabilities and shareholders’ equity | 9,710,000,000 | 9,395,000,000 | 9,395,000,000 | 8,932,000,000 | 8,496,000,000 | 8,496,000,000 | 8,086,000,000 | 7,880,000,000 | 7,927,000,000 | 7,115,000,000 | 6,810,000,000 |
accrued compensation and benefits and share-based compensation | 298,000,000 | 211,000,000 | 159,000,000 | ||||||||
non-current portion of accrued compensation and share-based compensation | 20,000,000 | 18,000,000 | 19,000,000 | ||||||||
operating lease right of use assets | 204,000,000 | 205,000,000 |
Cashflow Statements:
Quarterly
Annual
| Unit: USD | 2025-09-30 | 2025-06-30 | 2025-03-31 | 2024-12-31 | 2024-09-30 | 2024-06-30 | 2024-03-31 | 2023-12-31 |
|---|---|---|---|---|---|---|---|---|
cash flows from operating activities: | ||||||||
net income | 238,000,000 | 130,000,000 | 540,000,000 | 252,000,000 | 107,000,000 | 223,000,000 | 224,000,000 | 87,000,000 |
adjustments to reconcile net income to net cash from operating activities: | ||||||||
depreciation and amortization | 55,000,000 | 60,000,000 | 136,000,000 | 47,000,000 | 44,000,000 | 43,000,000 | 38,000,000 | 42,000,000 |
deferred income taxes | -12,000,000 | -14,000,000 | -225,000,000 | 7,000,000 | -13,000,000 | 2,000,000 | -247,000,000 | -9,000,000 |
loss from equity investments | 16,000,000 | -4,000,000 | ||||||
share-based compensation cost | 265,000,000 | 241,000,000 | 593,000,000 | 227,000,000 | 218,000,000 | 182,000,000 | 185,000,000 | 199,000,000 |
operating lease expense | 14,000,000 | 13,000,000 | 30,000,000 | 10,000,000 | 9,000,000 | 9,000,000 | 9,000,000 | 9,000,000 |
gain on business divestiture | ||||||||
other non-cash operating activities | -13,000,000 | -5,000,000 | 20,000,000 | 11,000,000 | 1,000,000 | 0 | 1,000,000 | |
changes in assets and liabilities: | ||||||||
accounts receivable | 196,000,000 | -208,000,000 | -397,000,000 | 66,000,000 | -202,000,000 | -23,000,000 | 18,000,000 | 65,000,000 |
contract assets | -30,000,000 | 123,000,000 | -356,000,000 | -56,000,000 | 91,000,000 | -242,000,000 | -153,000,000 | -67,000,000 |
prepaid expenses and other assets | -34,000,000 | 38,000,000 | -114,000,000 | -26,000,000 | -62,000,000 | 6,000,000 | -42,000,000 | -32,000,000 |
accrued compensation and benefits | -17,000,000 | -4,000,000 | -163,000,000 | 11,000,000 | 8,000,000 | -201,000,000 | ||
contract liabilities | 29,000,000 | 90,000,000 | -8,000,000 | 4,000,000 | -2,000,000 | 9,000,000 | -42,000,000 | -76,000,000 |
tax liabilities | 12,000,000 | -34,000,000 | 32,000,000 | -38,000,000 | -64,000,000 | -4,000,000 | 16,000,000 | 18,000,000 |
operating lease liabilities | -13,000,000 | -9,000,000 | -7,000,000 | -10,000,000 | -11,000,000 | -10,000,000 | -1,000,000 | |
other liabilities | -8,000,000 | -85,000,000 | -358,000,000 | -23,000,000 | -139,000,000 | -260,000,000 | 573,000,000 | |
net cash from operating activities | 567,000,000 | 332,000,000 | -26,000,000 | 423,000,000 | 6,000,000 | -290,000,000 | 667,000,000 | 310,000,000 |
capital expenditures | -138,000,000 | -154,000,000 | -156,000,000 | -63,000,000 | -53,000,000 | -29,000,000 | -11,000,000 | -21,000,000 |
free cash flows | 429,000,000 | 178,000,000 | -182,000,000 | 360,000,000 | -47,000,000 | -319,000,000 | 656,000,000 | 289,000,000 |
cash flows from investing activities | ||||||||
purchases of short-term investments | -50,000,000 | -355,000,000 | -390,000,000 | -290,000,000 | ||||
proceeds from maturity of short-term investments | 260,000,000 | 145,000,000 | 425,000,000 | 515,000,000 | 155,000,000 | 50,000,000 | 74,000,000 | 105,000,000 |
purchases of equity investments | -1,000,000 | -2,000,000 | -46,000,000 | -11,000,000 | -5,000,000 | -36,000,000 | 0 | -21,000,000 |
purchases of intangible assets | -2,000,000 | -7,000,000 | 0 | -7,000,000 | -9,000,000 | -8,000,000 | -30,000,000 | |
proceeds from business divestiture | ||||||||
purchases of property and equipment | -138,000,000 | -154,000,000 | -156,000,000 | -63,000,000 | -53,000,000 | -29,000,000 | -11,000,000 | -21,000,000 |
other investing activities, net, including investments in convertible loans | 0 | 1,000,000 | 0 | 0 | ||||
net cash from investing activities | 196,000,000 | -372,000,000 | -187,000,000 | 152,000,000 | 75,000,000 | -74,000,000 | -170,000,000 | -123,000,000 |
cash flows from financing activities | ||||||||
payments of intangible asset obligations | -16,000,000 | -21,000,000 | -48,000,000 | -11,000,000 | ||||
proceeds from employee stock purchase plan | ||||||||
other financing activities | -7,000,000 | -17,000,000 | 0 | -17,000,000 | -4,000,000 | 0 | -4,000,000 | |
payments of withholding tax on vested shares | -202,000,000 | -85,000,000 | -105,000,000 | -15,000,000 | ||||
net cash from financing activities | -190,000,000 | -123,000,000 | -176,000,000 | -26,000,000 | -53,000,000 | -96,000,000 | -121,000,000 | -48,000,000 |
effect of foreign exchange rate changes on cash and cash equivalents | -11,000,000 | 34,000,000 | 13,000,000 | -11,000,000 | 5,000,000 | 2,000,000 | -4,000,000 | 6,000,000 |
net increase in cash and cash equivalents | 562,000,000 | -129,000,000 | -376,000,000 | 538,000,000 | 33,000,000 | -458,000,000 | 372,000,000 | |
cash and cash equivalents at the beginning of the period | 0 | 2,085,000,000 | 425,000,000 | 0 | 0 | 1,923,000,000 | 0 | 0 |
cash and cash equivalents at the end of the period | 562,000,000 | 1,956,000,000 | 49,000,000 | 538,000,000 | 33,000,000 | 1,465,000,000 | 372,000,000 | 145,000,000 |
(income) income from equity investments | -39,000,000 | 10,000,000 | -24,000,000 | |||||
purchase of short-term investments | -50,000,000 | -225,000,000 | -155,000,000 | |||||
payment of intangible asset obligations | -20,000,000 | -11,000,000 | -8,000,000 | |||||
payment of withholding tax on vested shares | -72,000,000 | -110,000,000 | -36,000,000 | |||||
impairment losses on long-lived assets and loans receivable | ||||||||
accrued compensation and benefits and share-based compensation | 91,000,000 | 59,000,000 | ||||||
cash transfers associated with distribution and sale of treasure data and iotp, respectively | ||||||||
proceeds from short-term debt borrowing | ||||||||
income from equity investments | 1,000,000 | |||||||
other current liabilities | ||||||||
net decrease in cash and cash equivalents |