NEW YORK–(BUSINESS WIRE)–Freedom Holding Corp. (the “Company”) (NASDAQ: 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 |
|
September 30, 2025 |
||
|
Total revenue, net |
$526.1 million |
$1,060 million |
|
Income before income tax |
$60.4 million |
$101 million |
|
Net income |
$38.7 million |
$69.1 million |
|
|
|
|
|
Earnings per common share – basic |
$0.65 |
$1.15 |
|
Earnings per common share – diluted |
$0.63 |
$1.13 |
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 |
|
|
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 |
|
|
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 |
) |
|
TOTAL FRHC SHAREHOLDERS’ EQUITY |
$ |
1,221,222 |
|
|
$ |
1,214,241 |
|
|
|
|
|
|
||||
|
Non-controlling interest |
|
— |
|
|
|
117 |
|
|
TOTAL SHAREHOLDERS’ EQUITY |
$ |
1,221,222 |
|
|
$ |
1,214,358 |
|
|
|
|
|
|
||||
|
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 September 30, |
|
Six Months Ended September 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.
Contacts
Natalia Kharlashina
Public Relations
Freedom Holding Corp.
+7 701 364 1454
[email protected]
Ramina Fakhrutdinova (KZ)
Public Relations
Freedom Finance JSC
+7 777 377 8868
[email protected]
Media Contact for Freedom US Markets
Deborah Kostroun, Zito Partners
[email protected]
+1 201-403-8158
