NEW YORK--(BUSINESS WIRE)--November 07, 2025--
Freedom Holding Corp. (the "Company") $(FRHC)$, a multinational diversified financial services holding company with a presence in 21 countries, today announced financial results for the second quarter of fiscal year 2026 ended September 30, 2025.
Highlights during the three and six months ended September 30, 2025 include the following:
Three months ended Six months ended
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September 30, 2025
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Total revenue, net $526.1 million $1,060 million
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Income before income tax $60.4 million $101 million
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Net income $38.7 million $69.1 million
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Earnings per common share -- basic $0.65 $1.15
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Earnings per common share --
diluted $0.63 $1.13
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Financial Condition
At September 30, 2025, cash and cash equivalents, restricted cash, and investment securities totaled $4.5 billion, total assets were $10.3 billion, and shareholders' equity was $1.2 billion. Net cash flows from operating activities was $1.0 Billion.
-- Total customers rose to 6.2 million, which included client growth in each
of our three primary business segments
-- S&P raised its long-term issuer credit and financial strength ratings on
life insurance company Freedom Life to 'BB+' from 'BB'. The outlook is
stable. Agency also raised its national scale rating to 'kzAA' from
'kzAA-'.
Management Commentary
"During the second quarter of fiscal 2026, we continued to make deliberate investments aimed at building the foundation for Freedom Holding Corp.'s next phase of sustainable growth," said Timur Turlov, the Company's founder and chief executive officer. "Our results reflect a conscious decision to expand capacity across our key business lines, strengthen our digital and financial infrastructure, and prepare the Company for future scale and efficiency."
"We are in an active phase of transformation - creating an integrated, technology-driven ecosystem that connects brokerage, banking, insurance, telecom and new digital services under one platform. This stage requires disciplined spending to build the operational backbone that will support higher margins and stronger earnings in the years ahead. We view these expenditures as strategic investments for the benefit of our clients."
"Our customer base continues to grow rapidly across all major segments, surpassing 6.2 million clients as of September 30, 2025. Our financial position remains solid, with over $4.5 billion in cash and investments and more than $1.0 billion generated from operating activities during the first half of the fiscal year.
"The dual rating upgrades of Freedom Life by S&P further validate our disciplined approach to building long-term value and financial strength within our ecosystem. At the same time, our partnership with UnionPay Business and the establishment of a China-Kazakhstan settlement system position us strategically for growth in cross-border payments and e-commerce."
"Looking ahead, we remain focused on executing our long-term strategy - expanding the reach of our financial ecosystem, scaling our technology infrastructure, and improving the profitability of our core businesses. The foundation we are laying today will enable Freedom Holding Corp. to achieve sustainable growth, increased operating leverage, and enhanced shareholder value over the coming years."
Three months ended September 30, 2025 Financial Overview
All comparisons are to the three months ended September 30, 2024, unless otherwise noted
The Company reported total revenues, net, of $526.1 million for the fiscal 2026 second quarter as compared to $586.1 million, reflecting higher fee and commission revenue, interest income and sales of goods and services offset by a decline in insurance premiums earned (net of reinsurance), lower net gain on trading securities, and a net loss on derivatives.
Fee and commission income for the fiscal 2026 second quarter rose to $132.2 million from $121.1 million, primarily driven by higher fee and commission income from brokerage services and agency fees, partially offset by lower income from banking services and payment processing.
Net gain on trading securities was $37.1 million for the fiscal 2026 second quarter compared to a net gain on trading securities of $68.3 million, with the decline attributable to the sale of Kazakhstani corporate debts at favorable market prices following a short-term rally in the local debt market.
Insurance premiums earned (net of reinsurance) for the fiscal 2026 second quarter were $125.2 million compared to $160.3 million. Net loss on derivatives for the fiscal 2026 second quarter was $3.2 million compared to a net gain of $6.3 million. The decrease was primarily driven by the regulatory cap on commissions paid to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the period.
Total expense was approximately $465.6 million in the fiscal 2026 second quarter compared to $457.7 million, driven by higher payroll and bonuses, insurance claims incurred, net, higher professional services and higher stock compensation expense.
Net income was $38.7 million for the fiscal 2026 second quarter compared to $114.5 million.
Basic and diluted earnings per share were $0.65 and $0.63, respectively, compared to $1.93 and $1.89 per share, respectively, in last year's second quarter.
Weighted average common shares outstanding used to compute diluted earnings per share for the quarter ended September 30, 2025 and 2024 were 61.1 million and 60.5 million, respectively.
Six Months ended September 30, 2025 Financial Overview
All comparisons are to the six months ended September 30, 2024, unless otherwise noted
The Company reported total revenues, net, of $1060 million for the fiscal 2026 second quarter as compared to $1,041 million, reflecting higher fee and commission revenue, net gain on trading securities and sales of goods and services offset by a decline in insurance premiums earned (net of reinsurance), lower interest income, net loss on foreign exchange operations and net gain on derivatives.
Fee and commission income for the fiscal 2026 second quarter rose to $239.9 million from $236.5 million, primarily driven by higher fee and commission income from brokerage services and agency fees, partially offset by lower income from banking services and payment processing.
The Company had a net gain on trading securities of $82.7 million for the six months ended September 30, 2025, an increase of $66.5 million as compared to a net gain of $16.2 million for the six months ended September 30, 2024 which is attributable to Kazakhstani corporate debt securities sold during the six months ended September 30, 2025.
For the six months ended September 30, 2025, the Company had insurance premiums earned, net of reinsurance of $278.5 million, a decrease of $11.3 million, or 4%, as compared to the six months ended September 30, 2024. The decrease was primarily attributable to a $15.4 million, or 5%, decrease in written insurance premiums due to the regulatory cap on commissions to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the period.
Total expense was approximately $958.5 million for the six months ended September 30, 2025, compared to $871.1 million, driven by higher payroll and bonuses, insurance claims incurred, net, higher professional services and higher stock compensation expense.
Net income was $69.1 million for the six months ended September 30, 2025, compared to $149.1 million.
Basic and diluted earnings per share were $1.15 and $1.13, respectively, compared to $2.51 and $2.46 per share, respectively, in last year's second quarter.
Weighted average common shares outstanding used to compute diluted earnings per share for the six months ended September 30, 2025 and 2024 were 61.1 million and 60.4 million, respectively.
About Freedom Holding Corp.
Freedom Holding Corp., a Nevada corporation, is a diversified financial services holding company conducting retail securities brokerage, investment research, investment counseling, securities trading, investment banking and underwriting services, mortgages, insurance, and consumer banking through its subsidiaries, operating under the name Freedom Finance in Europe and Central Asia, and Freedom Capital Markets in the United States. Through its subsidiaries, Freedom Holding Corp. employs more than 10,348 people and is a professional participant in the Kazakhstan Stock Exchange, the Astana International Exchange, the Republican Stock Exchange of Tashkent, International Trading System Limited, Armenia Stock Exchange, Kyrgyz Stock Exchange, the Uzbek Republican Currency Exchange and is a member of the New York Stock Exchange and the Nasdaq Stock Exchange.
Freedom Holding Corp.'s common shares are registered under the United States Securities Exchange Act of 1934 and are traded under the symbol FRHC on the Nasdaq Capital Market, operated by Nasdaq, Inc. The Company has its main market of operations in Kazakhstan and has operations through its subsidiaries in 21 countries.
To learn more about Freedom Holding Corp., visit www.freedomholdingcorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking" statements within the meaning of section 21E of the Securities Exchange Act of 1934. All forward-looking statements are subject to uncertainty and changes in circumstances. In some cases, forward-looking statements can be identified by terminology such as "expect," "new," "plan," "seek," and "will," or the negative of such terms or other comparable terminology and include statements relating to our plans, intensions and expectations including our plans to enter the telecommunications market, our expectations with respect to 2026 and other non-historical statements. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions, and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include economic, business, and regulatory risks and other factors including those identified in the Company's periodic and current reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements.
Website Disclosure
Freedom Holding Corp. intends to use its website, https://ir.freedomholdingcorp.com, as a means for disclosing material non-public information and for complying with U.S. Securities and Exchange Commission Regulation FD and other disclosure obligation.
FREEDOM HOLDING CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise
stated)
September 30, 2025 March 31, 2025
-------------------- ------------------
ASSETS
Cash and cash equivalents $ 635,975 $ 837,302
Restricted cash 1,312,229 807,468
Investment securities 2,511,419 2,814,733
Margin lending, brokerage and
other receivables, net 3,528,382 3,319,145
Loans issued (including $225,217
and $188,445 to related
parties) 1,750,575 1,595,435
Fixed assets, net 263,830 191,103
Intangible assets, net 55,931 54,186
Goodwill 46,247 49,093
Right-of-use asset 37,103 39,828
Insurance contract assets 19,475 37,183
Other assets, net (including
$20,568 and $18,994 with
related parties) 188,603 168,541
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TOTAL ASSETS $ 10,349,769 $ 9,914,017
=============== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Securities repurchase agreement
obligations $ 806,344 $ 1,418,443
Customer liabilities 5,759,636 4,304,999
Margin lending and trade
payables 507,734 1,322,241
Liabilities from insurance
activity 520,220 481,539
Current income tax liability 51,153 28,919
Debt securities issued 742,774 469,551
Lease liability 38,804 40,525
Liability arising from
continuing involvement 476,030 503,705
Other liabilities 225,852 129,737
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TOTAL LIABILITIES $ 9,128,547 $ 8,699,659
=============== ===========
Commitments and Contingent
Liabilities (Note 23) -- --
SHAREHOLDERS' EQUITY
Preferred stock - $0.001 par
value; 20,000,000 shares
authorized, no shares issued or
outstanding -- --
Common stock - $0.001 par value;
500,000,000 shares authorized;
61,159,931 shares issued and
outstanding as of September 30,
2025, and 60,993,949 shares
issued and outstanding as of
March 31, 2025, respectively 61 61
Additional paid in capital 285,160 246,610
Retained earnings 1,154,682 1,085,565
Accumulated other comprehensive
loss (218,681) (117,995)
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TOTAL FRHC SHAREHOLDERS' EQUITY $ 1,221,222 $ 1,214,241
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Non-controlling interest -- 117
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TOTAL SHAREHOLDERS' EQUITY $ 1,221,222 $ 1,214,358
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 10,349,769 $ 9,914,017
=============== ===========
The accompanying notes are an integral part of these condensed consolidated financial statements
FREEDOM HOLDING CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF
OTHER COMPREHENSIVE INCOME (Unaudited) (All amounts in thousands of United
States dollars, unless otherwise stated)
Three Months Ended Six Months Ended September
September 30, 30,
-------------------------- ----------------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
Revenue:
Fee and commission
income $ 132,238 $ 121,051 $ 239,880 $ 236,540
Net gain on trading
securities 37,104 68,317 82,706 16,215
Interest income 211,662 210,324 410,233 436,328
Insurance premiums
earned, net of
reinsurance 125,228 160,344 278,485 289,752
Net gain/(loss) on
foreign exchange
operations 5 6,479 (12,888) 14,568
Net (loss)/gain on
derivatives (3,163) 6,308 12,296 18,802
Sales of goods and
services 19,998 12,024 37,222 17,244
Other income 3,035 1,292 11,596 11,689
---------- ---------- ---------- ----------
TOTAL REVENUE, NET $ 526,107 $ 586,139 $ 1,059,530 $ 1,041,138
---------- ---------- ---------- ----------
Expense:
Fee and commission
expense $ 64,162 $ 90,837 $ 149,033 $ 170,984
Interest expense 102,259 124,665 215,669 270,383
Insurance claims
incurred, net of
reinsurance 79,923 66,684 160,208 113,993
Payroll and bonuses 93,143 66,210 186,244 123,734
Professional
services 10,497 8,245 23,521 15,513
Stock compensation
expense 15,496 12,056 38,550 22,671
Advertising and
sponsorship expense
(including $4,892
and $4,644 from
related parties for
the three months
ended, and $10,405
and $6,689 for the
six months ended) 27,502 32,433 51,965 54,329
General and
administrative
expense 45,556 40,856 87,531 81,266
Allowance for
expected credit
losses 11,944 10,427 16,766 8,657
Cost of sales 15,139 5,239 29,042 9,523
---------- ---------- ---------- ----------
TOTAL EXPENSE $ 465,621 $ 457,652 $ 958,529 $ 871,053
---------- ---------- ---------- ----------
INCOME BEFORE INCOME
TAX 60,486 128,487 101,001 170,085
Income tax expense (21,765) (13,999) (31,884) (21,338)
NET INCOME $ 38,721 $ 114,488 $ 69,117 $ 148,747
========== ========== ========== ==========
Less: Net loss
attributable to
non-controlling
interest in
subsidiary -- (170) -- (311)
---------- ---------- ---------- ----------
NET INCOME
ATTRIBUTABLE TO
COMMON $ 38,721 $ 114,658 $ 69,117 $ 149,058
========== ========== ========== ==========
OTHER COMPREHENSIVE
INCOME
Change in unrealized
gain on investments
available-for-sale,
net of tax effect 4,403 4,306 7,401 7,680
Reclassification
adjustment for net
realized
(gain)/loss on
available-for-sale
investments
disposed of in the
period, net of tax
effect (929) 185 (755) 167
Foreign currency
translation
adjustments (65,528) (19,967) (107,332) (85,778)
OTHER COMPREHENSIVE
LOSS (62,054) (15,476) (100,686) (77,931)
COMPREHENSIVE
(LOSS)/INCOME
BEFORE
NON-CONTROLLING
INTERESTS $ (23,333) $ 99,012 $ (31,569) $ 70,816
---------- ---------- ---------- ----------
Less: Comprehensive
loss attributable
to non-controlling
interest in
subsidiary -- (170) -- (311)
COMPREHENSIVE
(LOSS)/INCOME
ATTRIBUTABLE TO
COMMON
SHAREHOLDERS $ (23,333) $ 99,182 $ (31,569) $ 71,127
---------- ---------- ---------- ----------
EARNINGS PER COMMON
SHARE (In U.S.
dollars):
Earnings per common
share - basic 0.65 1.93 1.15 2.51
Earnings per common
share - diluted 0.63 1.89 1.13 2.46
Weighted average
number of shares
(basic) 59,947,187 59,363,122 59,900,589 59,310,891
Weighted average
number of shares
(diluted) 61,120,016 60,460,173 61,090,631 60,358,442
The accompanying notes are an integral part of these condensed consolidated financial statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251107373093/en/
CONTACT: Natalia Kharlashina
Public Relations
Freedom Holding Corp.
+7 701 364 1454
prglobal@ffin.kz
Ramina Fakhrutdinova $(KZ)$
Public Relations
Freedom Finance JSC
+7 777 377 8868
pr@ffin.kz
Media Contact for Freedom US Markets
Deborah Kostroun, Zito Partners
deborah@zitopartners.com
+1 201-403-8158
(END) Dow Jones Newswires
November 07, 2025 16:45 ET (21:45 GMT)
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