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Freedom Holding Corp. Reports First Quarter Fiscal Year 2026 Financial Results

Freedom Holding Corp. Reports First Quarter Fiscal Year 2026 Financial Results

NEW YORK–(BUSINESS WIRE)–
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.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(All amounts in thousands of United States dollars, unless otherwise stated)
 

 

  

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.

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 June 30,

 

  

2025

 

2024

 

  

 

 

 

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

)

 

  

 

 

 

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

 

 

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

KEYWORDS: Kazakhstan United States North America Asia Pacific New York

INDUSTRY KEYWORDS: Banking Professional Services Insurance Finance

MEDIA:

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