Freedom Holding Corp. Reports First Quarter Fiscal Year 2026 Financial Results
Freedom Holding Corp. (the "Company") (NASDAQ:FRHC), a multinational diversified financial services holding company with a presence in 22 countries, today announced financial results for the first quarter of fiscal year 2026 ended June 30, 2025.
Highlights during the quarter include the following:
- $533.4 million in total revenue, net, versus $455 million for the quarter ended June 30, 2024, a 17% increase
- Net income of $30.4 million, or $0.50 per diluted share, $0.51 per basic share
- Total assets of $9.7 billion
- Total customers across segments rose to 5.3 million at June 30, 2025
- Added to the Russell 3000® Index on June 27, 2025
- S&P Global Ratings revised its outlook to Positive from Stable and affirms Credit Ratings for Freedom KZ, Freedom EU, Freedom Global, and Freedom Bank KZ
Fiscal First Quarter 2026 Financial Highlights:
The Company recognized total revenue, net of $533.4 million in the fiscal 2026 first quarter, an increase of 17% from $455 million in the comparable prior-year period. Revenue rose at the brokerage, banking, and insurance segments.
Insurance premiums earned, net of reinsurance rose by 18% to $153.3 million from last year's first quarter and the Company realized a net gain on trading securities of $45.6 million compared to a net loss of $52.1 million in last year's fiscal first quarter.
The Company had a net gain on derivatives of $15.5 million in the fiscal 2026 first quarter, an increase of 24% from $12.5 million in last year's first quarter due to revaluation of currency swaps.
The Company's total expense was approximately $492.9 million in fiscal 2026 first quarter as compared to $413.4 million in last year's first quarter.
Net income was $30.4 million for the fiscal 2026 first quarter compared to $34.4 million in the first quarter of fiscal 2025.
Basic and diluted earnings per share were $0.51 and $0.50, respectively, compared to $0.58 and $0.57 per share, respectively, in last year's first quarter.
Weighted average common shares outstanding used to compute basic and diluted earnings per share for the quarter ended June 30, 2025 were 59.9 million and 61.1 million, respectively, and 59.3 million and 60.3 million, respectively, for the quarter ended June 30, 2024.
Total assets were $9.7 billion on June 30, 2025, compared to $9.9 billion as of the fiscal 2025 year ended March 31, 2025.
Continuing the Growth and Evolution of our Business Model
"Our results for the fiscal 2026 first quarter reflect the continuing growth and evolution of our business model," said Timur Turlov, the Company's founder and chief executive officer. "We have expanded our product portfolio, embraced the digital transformation of our platform, and strengthened our market presence. We are also elevating our profile in the investment community, as reflected by our inclusion in the Russell 3000® Index on June 27, 2025. We remain ever-grateful for the dedication and hard work of our 10,054 employees in 231 offices around the world."
Mr. Turlov noted the Company's success in transforming into a one-stop shop, multi-point financial ecosystem that allows clients to manage their diverse financial needs in partnership with a single, trusted provider.
He continued, "Our commitment to providing the highest level of client service and accountability, including the continuing success of our Super App, has allowed us to expand our client base to more than 5.3 million across our three primary segments, representing a nearly 5% increase from March 31, 2025. Our strong financial position will support our growth objectives for fiscal 2026, with a focus on continuing our investments in digital infrastructure and AI to build out the Freedom services portfolio."
Additional Fiscal First Quarter 2026 highlights
Brokerage: Revenue increased to $176.3 million from $174.9 million, driven by increases in fee and commission income, net gain on trading securities, and interest income, partially offset by a decrease in net (loss)/gain on foreign exchange operations and lower other income. Total retail brokerage clients rose to 725,000 as of June 30, 2025 compared to 683,000 as of March 31, 2025. Brokerage services were offered at 44 offices as of June 30, 2025.
Banking: Revenue increased by 60% to $146.2 million from $91.2 million, driven primarily by an increase of net gain in trading securities, partially offset by lower commission income, which was primarily driven by active use by customers of a cashback-based loyalty program. The loyalty program is leveraged to effectively reduce transaction costs for customers by supporting our customer base expansion and increasing engagement across the ecosystem.
Total banking clients rose to 2,927,000 as of June 30, 2025, up from 2,515,000 as of March 31, 2025. Banking services were offered at 30 offices as of June 30, 2025.
Insurance: Revenue rose by 18% to $174.0 million from $147.3 million, driven by improved insurance premiums earned, net of reinsurance from written insurance premiums due to the expansion of the Company's insurance operations such as pension annuity and accident insurance. Total insurance clients rose to 1,396,000 as of June 30, 2025, from 1,170,000 as of March 31, 2025. Insurance services were offered at 57 offices as of June 30, 2025.
Other Segments: Revenue declined to $36.9 million from $41.6 million as additional lifestyle benefits were added for customers as we invest in and develop the telecom business as part our long-term strategic planning.
Acquisition of Astel Group Ltd
On April 30, 2025, the Company acquired 100% interest in Astel Group Ltd. Astel Group Ltd. is a provider of digital solutions and telecommunications services, and ranks among the largest telecom operators in Kazakhstan. Astel Group Ltd provides advanced IT solutions including information security and cloud services. The purpose of the acquisition of Astel Group Ltd was to use the acquired assets and licenses to develop our telecommunications business. As of April 30, 2025, the date of the acquisition of Astel Group Ltd, the fair value of net assets of Astel Group Ltd was $20.6 million. The total purchase price was $22.3 million.
About Freedom Holding Corp.
Freedom Holding Corp., a Nevada corporation, is a diversified financial services holding company conducting securities brokerage, investment research, investment counseling, securities dealing, commercial banking and insurance products 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 10,054 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 22 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, intentions and expectations including our plans to enter the telecommunications market, our expectations with respect to further years 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. |
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CONSOLIDATED BALANCE SHEETS (Unaudited) |
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(All amounts in thousands of United States dollars, unless otherwise stated) |
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|
June 30, 2025 |
|
March 31, 2025 |
|||||
|
|
|
|
|||||
ASSETS |
|
|
|
|||||
Cash and cash equivalents |
$ |
567,907 |
|
|
$ |
837,302 |
|
|
Restricted cash |
|
1,100,959 |
|
|
|
807,468 |
|
|
Investment securities |
|
2,796,881 |
|
|
|
2,814,733 |
|
|
Margin lending, brokerage and other receivables, net |
|
2,896,713 |
|
|
|
3,319,145 |
|
|
Loans issued (including $231,731 and $188,445 to related parties) |
|
1,749,402 |
|
|
|
1,595,435 |
|
|
Fixed assets, net |
|
212,663 |
|
|
|
191,103 |
|
|
Intangible assets, net |
|
53,970 |
|
|
|
54,186 |
|
|
Goodwill |
|
48,471 |
|
|
|
49,093 |
|
|
Right-of-use asset |
|
39,631 |
|
|
|
39,828 |
|
|
Insurance contract assets |
|
25,932 |
|
|
|
37,183 |
|
|
Other assets, net (including $17,122 and $18,080 with related parties) |
|
197,224 |
|
|
|
168,541 |
|
|
TOTAL ASSETS |
$ |
9,689,753 |
|
|
$ |
9,914,017 |
|
|
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|||||
Securities repurchase agreement obligations |
$ |
1,070,787 |
|
|
$ |
1,418,443 |
|
|
Customer liabilities |
|
4,446,747 |
|
|
|
4,304,999 |
|
|
Margin lending and trade payables |
|
993,146 |
|
|
|
1,322,241 |
|
|
Liabilities from insurance activity |
|
519,057 |
|
|
|
481,539 |
|
|
Current income tax liability |
|
38,604 |
|
|
|
28,919 |
|
|
Debt securities issued |
|
670,125 |
|
|
|
469,551 |
|
|
Lease liability |
|
41,042 |
|
|
|
40,525 |
|
|
Liability arising from continuing involvement |
|
496,414 |
|
|
|
503,705 |
|
|
Other liabilities |
|
184,772 |
|
|
|
129,737 |
|
|
TOTAL LIABILITIES |
$ |
8,460,694 |
|
|
$ |
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; 61,205,640 shares issued and outstanding as of June 30, 2025, and 60,993,949 shares issued and outstanding as of March 31, 2025, respectively |
|
61 |
|
|
|
61 |
|
|
Additional paid in capital |
|
269,664 |
|
|
|
246,610 |
|
|
Retained earnings |
|
1,115,961 |
|
|
|
1,085,565 |
|
|
Accumulated other comprehensive loss |
|
(156,627 |
) |
|
|
(117,995 |
) |
|
TOTAL FRHC SHAREHOLDERS' EQUITY |
$ |
1,229,059 |
|
|
$ |
1,214,241 |
|
|
|
|
|
|
|||||
Non-controlling interest |
|
— |
|
|
|
117 |
|
|
TOTAL SHAREHOLDERS' EQUITY |
$ |
1,229,059 |
|
|
$ |
1,214,358 |
|
|
|
|
|
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
9,689,753 |
|
|
$ |
9,914,017 |
|
|
FREEDOM HOLDING CORP. |
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CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) |
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(All amounts in thousands of United States dollars, unless otherwise stated) |
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|
Three Months Ended June 30, |
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|
2025 |
|
2024 |
|||||
|
|
|
|
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Revenue: |
|
|
|
|||||
Fee and commission income |
$ |
107,642 |
|
|
$ |
115,489 |
|
|
Net gain/(loss) on trading securities |
|
45,602 |
|
|
|
(52,102 |
) |
|
Interest income |
|
198,571 |
|
|
|
226,004 |
|
|
Insurance premiums earned, net of reinsurance |
|
153,257 |
|
|
|
129,408 |
|
|
Net (loss)/ gain on foreign exchange operations |
|
(12,893 |
) |
|
|
8,089 |
|
|
Net gain on derivatives |
|
15,459 |
|
|
|
12,494 |
|
|
Sales of goods and services |
|
17,224 |
|
|
|
5,220 |
|
|
Other income |
|
8,561 |
|
|
|
10,397 |
|
|
TOTAL REVENUE, NET |
$ |
533,423 |
|
|
$ |
454,999 |
|
|
|
|
|
|
|||||
Expense: |
|
|
|
|||||
Fee and commission expense |
$ |
84,871 |
|
|
$ |
80,147 |
|
|
Interest expense |
|
113,410 |
|
|
|
145,718 |
|
|
Insurance claims incurred, net of reinsurance |
|
80,285 |
|
|
|
47,309 |
|
|
Payroll and bonuses |
|
93,101 |
|
|
|
57,524 |
|
|
Professional services |
|
13,024 |
|
|
|
7,268 |
|
|
Stock compensation expense |
|
23,054 |
|
|
|
10,615 |
|
|
Advertising and sponsorship expense (including for the three months ended $5,513 and $2,045 from related parties) |
|
24,463 |
|
|
|
21,896 |
|
|
General and administrative expense |
|
41,975 |
|
|
|
40,410 |
|
|
Allowance for/(recovery of) expected credit losses |
|
4,822 |
|
|
|
(1,770 |
) |
|
Cost of sales |
|
13,903 |
|
|
|
4,284 |
|
|
TOTAL EXPENSE |
$ |
492,908 |
|
|
$ |
413,401 |
|
|
|
|
|
|
|||||
INCOME BEFORE INCOME TAX |
|
40,515 |
|
|
|
41,598 |
|
|
|
|
|
|
|||||
Income tax expense |
|
(10,119 |
) |
|
|
(7,339 |
) |
|
|
|
|
|
|||||
NET INCOME |
$ |
30,396 |
|
|
$ |
34,259 |
|
|
|
|
|
|
|||||
Less: Net loss attributable to non-controlling interest in subsidiary |
|
— |
|
|
|
(141 |
) |
|
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
30,396 |
|
|
$ |
34,400 |
|
|
|
|
|
|
|||||
OTHER COMPREHENSIVE INCOME |
|
|
|
|||||
Change in unrealized gain on investments available-for-sale, net of tax effect |
|
2,998 |
|
|
|
3,374 |
|
|
Reclassification adjustment for net realized loss/(gain) on available-for-sale investments disposed of in the period, net of tax effect |
|
174 |
|
|
|
(18 |
) |
|
Foreign currency translation adjustments |
|
(41,804 |
) |
|
|
(65,811 |
) |
|
OTHER COMPREHENSIVE LOSS |
|
(38,632 |
) |
|
|
(62,455 |
) |
|
|
|
|
|
|||||
COMPREHENSIVE LOSS BEFORE NON-CONTROLLING INTERESTS |
$ |
(8,236 |
) |
|
$ |
(28,196 |
) |
|
|
|
|
|
|||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary |
|
— |
|
|
|
(141 |
) |
|
|
|
|
|
|||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
(8,236 |
) |
|
$ |
(28,055 |
) |
|
|
|
|
|
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EARNINGS PER COMMON SHARE (In U.S. dollars): |
|
|
|
|||||
Earnings per common share - basic |
|
0.51 |
|
|
|
0.58 |
|
|
Earnings per common share - diluted |
|
0.50 |
|
|
|
0.57 |
|
|
|
|
|
|
|||||
Weighted average number of shares (basic) |
|
59,853,479 |
|
|
|
59,258,085 |
|
|
Weighted average number of shares (diluted) |
|
61,057,627 |
|
|
|
60,255,593 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250808971322/en/
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