Arm Holdings vs Monolithic Power Systems
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KIRA’s take AI analyst
I put Arm Holdings and Monolithic Power Systems side by side, using each one’s latest annual report. Here is what stands out:
- Arm Holdings is the larger business, with $4.9B of revenue in fiscal 2026 against $2.8B for Monolithic Power Systems, about 1.8 times as much.
- Monolithic Power Systems grew revenue faster (26.4%, against 22.8%).
- Monolithic Power Systems kept more of each dollar of sales as operating profit (26.1% operating margin, against 18.3%).
- Monolithic Power Systems turned more of its sales into free cash flow (23.9% FCF margin, against 19.9%).
Who comes out ahead
Of the 7 measures where higher (or lower) is clearly better, how many each company leads.
Arm Holdings
ARM
1/7
Gross margin
Monolithic Power Systems
MPWR
6/7
Revenue growthOperating marginNet marginFCF marginReturn on equityShare count change
Side by side
Best in the row
| Latest fiscal year | ARM FY26 | MPWR FY25 |
|---|---|---|
| Size | ||
| Market cap | $238.5B | $57.5B |
| Revenue | $4.9B | $2.8B |
| Free cash flow | $979M | $666M |
| Net income | $904M | $622M |
| Growth | ||
| Revenue growth | 22.8% | 26.4% |
| 5-year growth | — | 27.0% |
| Share count change | 0.5% | −1.1% |
| Profitability | ||
| Gross margin | 97.5% | 55.2% |
| Operating margin | 18.3% | 26.1% |
| Net margin | 18.4% | 22.3% |
| FCF margin | 19.9% | 23.9% |
| Return on capital | — | 27.1% |
| Return on equity | 12.0% | 19.2% |
| Balance sheet | ||
| Net debt | — | −$1.3B |
| Net debt / EBITDA | — | −1.6x |
| Dividends and buybacks | $0.0M | $291M |
| Valuation & quality | ||
| P/E | — | 71.3x |
| Piotroski F-score | — | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.