Business overview
Information on the Company—A. History and Development of the Company—Corporate Reorganization.” The financial information contained in this Annual Report does not amount to statutory accounts within the meaning of section 434(3) of the U.K. Companies Act 2006 (the “Companies Act”). INDUSTRY AND MARKET DATA This Annual Report contains estimates, projections and other information concerning our industry, our business and the markets for our products, including, but not limited to, our general expectations and market position, market opportunity and market size. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information.
Unless otherwise expressly stated, we obtained this industry, business, market and other data from our own internal estimates and research as well as from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry and general publications, government data and similar sources. While we are responsible for the accuracy of such information and believe our internal company research as to such matters is reliable and the market definitions are appropriate, neither such research nor these definitions have been verified by any independent source. In addition, assumptions and estimates of our and our industry’s future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the section titled “Item 3.
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Key Information—D. Risk Factors.” These and other factors could cause our future performance to differ materially from our assumptions and estimates. See “Special Note Regarding Forward-Looking Statements.” SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to our operations, results of operations and other matters that are based on our current expectations, estimates, assumptions and projections. Statements regarding our future and projections relating to revenue, cost of sales, operating expenses, income (loss), and potential growth opportunities are typical of such statements.
The forward-looking statements appear in a number of places, including, but not limited to, “ Item 5. Operating and Financial Review and Prospects .” Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. In some cases, you can identify forward-looking statements by the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “is/are likely to,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “continue” and “ongoing,” or the negative of these terms or other comparable terminology intended to identify statements about the future. The forward-looking statements and opinions are based upon current expectations and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.
These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward looking statements.
Such risks and uncertainties include, but are not limited to: • our future financial performance, including our expectations regarding our revenues, cost of sales, gross profit, operating expenses and other operating results, as well as our ability to maintain profitability; • our dependence on the semiconductor and electronics industries and the demand for our products and the products of our customers; • risks related to our development of production silicon products, such as the Arm AGI CPU, compute subsystems (“CSS”), chiplets, complete chip solutions, and other more integrated compute products; • risks related to changes in our pricing or our business terms or business model; • our dependence on the compatibility of our products with the manufacturing and design processes of our customers; • our reliance on third parties to market and sell chips and end products incorporating our products, as well as add value to our licensed products; • our dependence on a limited number of customers for a significant portion of our revenue; • our ability to attract new customers and sell additional products to our existing customers; […]
Source: 20-F · Period ended March 31, 2026 · View report
Latest results
No quarterly report is available from the source. Showing the available annual report.
Original excerpts. Reporting periods, units and comparisons are retained in the text.
Revenue
Such risks and uncertainties include, but are not limited to: • our future financial performance, including our expectations regarding our revenues, cost of sales, gross profit, operating expenses and other operating results, as well as our ability to maintain profitability; • our dependence on the semiconductor and electronics industries and the demand for our products and the products of our customers; • risks related to our development of production silicon products, such as the Arm AGI CPU, compute subsystems (“CSS”), chiplets, complete chip solutions, and other more integrated compute products; • risks related to changes in our pricing or our business terms or business model; • our dependence on the compatibility of our products with the manufacturing and design processes of our customers; […]
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• Our results of operations can vary significantly between periods and may be unpredictable. • Customers may decide to license our architecture and develop their own processors based on our architecture, rather than utilize our processor products pursuant to an implementation license. • A significant portion of our total revenue comes from a limited number of customers, which exposes us to greater risks than if our customer base were more diversified. • Our revenues predominantly come from a limited number of end markets. • If we fail to develop new products in response to, or in anticipation of, rapid technological changes in our industry or the industries we serve, our business may be materially and adversely affected.
Cash flow & liquidity
For example, we recently entered into an agreement to arrange for certain semiconductor products to be supplied by a third party to a customer. In connection with this agreement, we have purchase commitments of approximately $100 million to be purchased over the next 12 months. We expect that our purchase commitments are likely to grow materially in subsequent years pursuant to this agreement or others of a similar nature. As a result, we face additional risk and financial exposure from these arrangements in the form of third-party default, order cancellation, periods during which we bear financial exposure without corresponding customer cash flows, and related inventory risks. We may also be exposed to claims for contractual breach, reputational harm and loss of future business opportunities.
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Our ability to fund research and development expenditures depends on generating sufficient revenue and cash flow from operations and the availability of external financing, if necessary. Our research and development expenditures, together with other ongoing operating expenses, is a substantial drain on cash flow and may decrease cash balances, which may limit our ability to pursue other potentially attractive initiatives. On the other hand, if we allocate our resources to such other potentially attractive initiatives or pay dividends to our shareholders, our research and development efforts may be harmed or we may need to seek external financing in order to fund our efforts. If new competitors, technological advances by existing competitors, other competitive factors or market changes require us to invest significantly greater resources than anticipated in research and development efforts, total operating expenses would increase.
Management commentary
Operating and Financial Review and Prospects .” Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. In some cases, you can identify forward-looking statements by the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “is/are likely to,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “continue” and “ongoing,” or the negative of these terms or other comparable terminology intended to identify statements about the future. The forward-looking statements and opinions are based upon current expectations and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.
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These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward looking statements.
Such risks and uncertainties include, but are not limited to: • our future financial performance, including our expectations regarding our revenues, cost of sales, gross profit, operating expenses and other operating results, as well as our ability to maintain profitability; • our dependence on the semiconductor and electronics industries and the demand for our products and the products of our customers; • risks related to our development of production silicon products, such as the Arm AGI CPU, compute subsystems (“CSS”), chiplets, complete chip solutions, and other more integrated compute products; • risks related to changes in our pricing or our business terms or business model; • our dependence on the compatibility of our products with the manufacturing and design processes of our customers; • our reliance on third parties to market and sell chips and end products incorporating our products, as well as add value to our licensed products; • our dependence on a limited number of customers for a significant portion of our revenue; • our ability to attract new customers and sell additional products to our existing customers; • the loss of any of our senior management personnel or one or more key employees or our inability to attract and retain qualified personnel; • our ability to adequately fund our research and development efforts; • risks related to the availability of development tools, systems software, electronic design automation (“EDA”) tools and operating systems compatible with our architecture; • our ability to protect our proprietary products and our brand, and the costs of protecting such intellectual property (“IP”) rights, particularly as a result of litigation; • fluctuation and unpredictability of our results; • our ability to verify royalty amounts owed to us under our licensing agreements; • risks related to foreign exchange fluctuations; • changes in our effective tax rate; • risks associated with organic growth or growth from strategic investments or acquisitions we make, and the risk of failing to effectively manage our growth; • risks associated with the slow development of the market for our connectivity, device and data management platform; • the possibility of cyberattacks, breaches of our security controls and unauthorized access to our data or a customer’s data; • our ability to satisfy data protection, security, privacy or other government- and industry-specific requirements; • risks associated with the interests of SoftBank Group Corp., our controlling shareholder (“SoftBank Group”), conflicting with the interests of other holders of our ordinary shares, nominal value £0.001 per share (“ordinary shares”), and American depositary shares, each of which represents the right to receive one ordinary share (“ADSs”), may be evidenced by American depositary receipts (“ADRs”); • effects of global general economic conditions, political factors, war or hostility, pandemics and other events outside of our control; and • other factors relating to our financial condition and arrangements.
5 We caution that you should not place undue reliance on any of our forward-looking statements. For a further discussion of these and other factors that could affect our future results, performance, or transactions, see the factors discussed in “ Item 3. Key Information—D. Risk Factors” and “ Item 5. Operating and Financial Review and Prospects” of this Annual Report. We undertake no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof and disclaim any obligation to do so except as required by applicable laws.
PART I Item 1. Identity of Directors, Senior Management and Advisers Not applicable. Item 2. Offer Statistics and Expected Timetable Not applicable. […]
Annual report details
Read annual management analysis & tone analysis
Annual MD&A Tone Analysis
+42.9
5 · 71.4%Positive terms
2 · 28.6%Negative terms
750Analyzed annual MD&A words
Only the extracted annual management discussion is evaluated using dictionary version 1.1. Score = (positive − negative) ÷ matched terms × 100. Quarterly reports and current filings are excluded. This lexical measure does not assess financial health and may not fully capture context or negation.
Operating and Financial Review and Prospects .” Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. In some cases, you can identify forward-looking statements by the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “is/are likely to,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “continue” and “ongoing,” or the negative of these terms or other comparable terminology intended to identify statements about the future. The forward-looking statements and opinions are based upon current expectations and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.
These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward looking statements.
Such risks and uncertainties include, but are not limited to: • our future financial performance, including our expectations regarding our revenues, cost of sales, gross profit, operating expenses and other operating results, as well as our ability to maintain profitability; • our dependence on the semiconductor and electronics industries and the demand for our products and the products of our customers; • risks related to our development of production silicon products, such as the Arm AGI CPU, compute subsystems (“CSS”), chiplets, complete chip solutions, and other more integrated compute products; • risks related to changes in our pricing or our business terms or business model; • our dependence on the compatibility of our products with the manufacturing and design processes of our customers; • our reliance on third parties to market and sell chips and end products incorporating our products, as well as add value to our licensed products; • our dependence on a limited number of customers for a significant portion of our revenue; • our ability to attract new customers and sell additional products to our existing customers; • the loss of any of our senior management personnel or one or more key employees or our inability to attract and retain qualified personnel; • our ability to adequately fund our research and development efforts; • risks related to the availability of development tools, systems software, electronic design automation (“EDA”) tools and operating systems compatible with our architecture; • our ability to protect our proprietary products and our brand, and the costs of protecting such intellectual property (“IP”) rights, particularly as a result of litigation; • fluctuation and unpredictability of our results; • our ability to verify royalty amounts owed to us under our licensing agreements; • risks related to foreign exchange fluctuations; • changes in our effective tax rate; • risks associated with organic growth or growth from strategic investments or acquisitions we make, and the risk of failing to effectively manage our growth; • risks associated with the slow development of the market for our connectivity, device and data management platform; • the possibility of cyberattacks, breaches of our security controls and unauthorized access to our data or a customer’s data; • our ability to satisfy data protection, security, privacy or other government- and industry-specific requirements; • risks associated with the interests of SoftBank Group Corp., our controlling shareholder (“SoftBank Group”), conflicting with the interests of other holders of our ordinary shares, nominal value £0.001 per share (“ordinary shares”), and American depositary shares, each of which represents the right to receive one ordinary share (“ADSs”), may be evidenced by American depositary receipts (“ADRs”); • effects of global general economic conditions, political factors, war or hostility, pandemics and other events outside of our control; and • other factors relating to our financial condition and arrangements.
5 We caution that you should not place undue reliance on any of our forward-looking statements. For a further discussion of these and other factors that could affect our future results, performance, or transactions, see the factors discussed in “ Item 3. Key Information—D. Risk Factors” and “ Item 5. Operating and Financial Review and Prospects” of this Annual Report. We undertake no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof and disclaim any obligation to do so except as required by applicable laws.
PART I Item 1. Identity of Directors, Senior Management and Advisers Not applicable. Item 2. Offer Statistics and Expected Timetable Not applicable. […]