How does Arrow Financial (AROW) make money?

Arrow Financial (AROW) generates revenue primarily from Deposit Account, which accounted for 51.7% of total revenue in TTM through Q1 2026. The company reported $246.80M in revenue and converted 20.7% of it into net profit, equivalent to roughly $51.13M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Arrow Financial (AROW)?

Arrow Financial (AROW) reported a gross profit margin of 68.2% in TTM through Q1 2026, equivalent to $168.35M in gross profit on $246.80M in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Arrow Financial (AROW)?

Arrow Financial (AROW) reported an operating profit margin of 26.2% in TTM through Q1 2026, equivalent to $64.60M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Arrow Financial (AROW)?

Arrow Financial (AROW) reported a net profit margin of 20.7% in TTM through Q1 2026, equivalent to $51.13M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Arrow Financial (AROW) profitable?

Yes. Arrow Financial (AROW) reported $51.13M in net income for TTM through Q1 2026, with a net profit margin of 20.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Arrow Financial (AROW) spend on capital expenditures?

Arrow Financial (AROW) spent $5.12M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 2.1% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Arrow Financial (AROW) generate?

Arrow Financial (AROW) generated $41.34M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 16.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Arrow Financial (AROW)?

Arrow Financial (AROW) had an effective tax rate of 20.9% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Arrow Financial (AROW)?

Arrow Financial (AROW) reports revenue across 2 reportable product segments, led by Deposit Account at 51.7% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Arrow Financial Makes Money: 2026 Visual Revenue Map

Arrow Financial (AROW) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 8, 2026).

Arrow Financial discloses geographic revenue only in annual filings. to view the full breakdown.

Arrow Financial (AROW) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Arrow Financial (AROW) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Deposit Account	$127.62M	51.7%
Fiduciary and Trust	$119.17M	48.3%
Total	$246.80M	100%

Deposit Account$127.62M
Fiduciary and Trust$119.17M
Total$246.80M

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Arrow Financial (AROW) reports revenue across 2 operating segments; the largest segment was Deposit Account at 51.7%, followed by Fiduciary and Trust (48.3%).

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