Freedom Holding Corp. Reports Third 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 21 countries, today announced financial results for the third quarter of fiscal year 2026 ended December 31, 2025.
Highlights during the three and nine months ended December 31, 2025 include the following:
|
|
Three months |
Nine months |
|
December 31, 2025 |
||
|
Total revenue, net |
$628.6 million |
$1,688.2 million |
|
Income before income tax |
$93.9 million |
$194.9 million |
|
Net income |
$76.2 million |
$145.4 million |
|
|
|
|
|
Earnings per common share – basic |
$1.27 |
$2.43 |
|
Earnings per common share – diluted |
$1.25 |
$2.38 |
Customer Growth
The Company continued to grow its number of customers in several key areas.
Brokerage customers totaled 828,000 as of December, 31, 2025, an increase of 145,000 customers over the past nine months. Banking customers rose by two million customers, to 4.5 million customers. Customers for insurance and other segments rose by 8,000 and 92,000 customers respectively.
Three months ended December 31, 2025 Financial Overview
All comparisons are to the three months ended December 31, 2024, unless otherwise noted
The Company reported total revenues, net, of $628.6 million for the fiscal 2026 third quarter as compared to $664.6 million, reflecting higher net gain on foreign exchange operations, net gain on derivatives, interest income, sales of goods and services and other income offset by a decline in insurance premiums earned (net of reinsurance), lower net gain on trading securities, and fee and commission income.
For the three months ended December 31, 2025, we realized a net gain on foreign exchange operations of $45.8 million compared to a net gain of $3.9 million. The increase was primarily due to the gain from the revaluation of foreign currency.
For the three months ended December 31, 2025, we had net gain on derivatives of $26.5 million compared to a net gain of $11.9 million. The change was primarily driven by the revaluation of derivative positions at our subsidiary, which resulted in an unrealized net gain of $8.2 million for the three months ended December 31, 2025.
For the three months ended December 31, 2025, we had interest income of $228.8 million, representing an increase of $4.1 million, or 2%. The increase was primarily driven by a $24.1 million increase in interest income on loans to customers due to the increase of the loan portfolio. Additionally, interest income on held-to-maturity securities increased by $19.3 million due to the increase of the held-to-maturity portfolio. Interest income on margin loans to customers increased by $12.6 million, or 21% reflecting higher customer activity in margin lending. Increase in interest income was partially offset by decrease in interest income on trading securities.
For the three months ended December 31, 2025, we had insurance premiums earned, net of reinsurance of $106.9 million, a decrease of $70.5 million, or 40%. The decrease was primarily attributable to a $73.1 million, or 41%, 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.
During the three months ended December 31, 2025, we had a realized gain on trading securities of $52.3 million. The gain primarily reflected our active portfolio management strategy, which mostly attributable to the sale of Kazakhstani corporate debts at favorable market prices following a short-term rally in the local debt market. However, we also incurred an unrealized net loss of $8.8 million during the same period due to the decline in the value of securities positions we held as of December 31, 2025.
Fee and commission income from banking services decreased by $27.4 million during the three months ended December 31, 2025 from $8.4 million for the three months ended December 31, 2024. The decrease was primarily driven by active use by our customers of a cashback-based loyalty program, with cashback amounts reflected as a reduction of banking service revenue.
Total expense was approximately $534.7 million in the fiscal 2026 third quarter compared to $566.3 million, driven by higher payroll and bonuses, general and administrative expense, cost of sales, professional services and stock compensation expense.
Net income was $76.2 million for the fiscal 2026 third quarter compared to $78.1 million.
Basic and diluted earnings per share were $1.27 and $1.25, respectively, compared to $1.32 and $1.29 per share, respectively, in last year’s third quarter.
Weighted average common shares outstanding used to compute diluted earnings per share for the quarter ended December 31, 2025 and 2024 were 61.1 million and 60.5 million, respectively.
Nine months ended December 31, 2025 Financial Overview
All comparisons are to the nine months ended December 31, 2024, unless otherwise noted
The Company reported total revenues, net, of $1,688.2 million for the fiscal 2026 third quarter as compared to $1,705.7 million, reflecting higher sale of goods and services, net gain on trading securities, net gain on derivatives, net gain on foreign exchange operations and other income offset by a decline in insurance premiums earned (net of reinsurance), lower interest income and fee and commission income.
During the nine months ended December 31, 2025, we had a realized gain on trading securities of $126.2 million, which is mostly attributable to Kazakhstani corporate debt securities sold during the nine months ended December 31, 2025. Also, we recognized an unrealized net gain of $21.1 million during the same period due to an increase in the value of securities positions we held as of December 31, 2025. The majority of the unrealized net gain is attributable to Kazakhstan sovereign bonds.
For the nine months ended December 31, 2025, we had net gain on derivatives of $38.8 million compared to a net gain of $30.7 million. The change was primarily attributable to the increase in realized gain from $2.5 million for the nine months ended December 31, 2024 to $8.6 million for the nine months ended December 31, 2025 due to the increased volume of swap turnover between two periods.
For the nine months ended December 31, 2025, we realized a net gain on foreign exchange operations of $32.9 million compared to a net gain of $18.5 million. The change was primarily due to the $54.9 million gain on dealing transactions.
For the nine months ended December 31, 2025, we had insurance premiums earned, net of reinsurance of $385.4 million, a decrease of $81.8 million, or 18%. The decrease was primarily attributable to a $88.5 million, or 18%, 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.
For the nine months ended December 31, 2025, we had interest income of $639.0 million, representing a decrease of $22.0 million, or 3%. The decrease was primarily driven by a $176.6 million, or 57%, decrease in interest income on trading securities. This decrease was primarily due to a lower volume of trading securities held during the period.
Fee and commission income from banking services decreased by $60.1 million during the nine months ended December 31, 2025 from $12.7 million. The decrease was primarily driven by active use by our customers of a cashback-based loyalty program, with cashback amounts reflected as a reduction of banking service revenue.
Total expense was approximately $1,493.2 million for the nine months ended December 31, 2025, compared to $1,437.3 million, driven by higher payroll and bonuses, cost of sales, insurance claims incurred, net of reinsurance and professional services.
Net income was $145.4 million for the nine months ended December 31, 2025, compared to $226.9 million.
Basic and diluted earnings per share were $2.43 and $2.38, respectively, compared to $3.83 and $3.76 per share, respectively, in last year’s nine months ended December 31, 2024.
Weighted average common shares outstanding used to compute diluted earnings per share for the nine months ended December 31, 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 11,000 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 across 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,” “strategy,” “seek,” and “will,” or the negative of such terms or other comparable terminology and include statements relating to our plans, intensions and expectations 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 STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) (All amounts in thousands of United States dollars, unless otherwise stated) |
|||||||
|
|
December 31, 2025 |
|
March 31, 2025 |
||||
|
|
|
|
|
||||
|
ASSETS |
|
|
|
||||
|
Cash and cash equivalents |
$ |
869,167 |
|
|
$ |
837,302 |
|
|
Restricted cash (including $463,254 and $30 to related parties) |
|
2,643,375 |
|
|
|
807,468 |
|
|
Investment securities |
|
3,129,439 |
|
|
|
2,814,733 |
|
|
Margin lending, brokerage and other receivables, net |
|
3,010,625 |
|
|
|
3,319,145 |
|
|
Loans issued (including $19,534 and $188,445 to related parties) |
|
1,982,543 |
|
|
|
1,595,435 |
|
|
Fixed assets, net |
|
328,805 |
|
|
|
191,103 |
|
|
Intangible assets, net |
|
65,856 |
|
|
|
54,186 |
|
|
Goodwill |
|
49,453 |
|
|
|
49,093 |
|
|
Right-of-use asset |
|
41,929 |
|
|
|
39,828 |
|
|
Insurance contract assets |
|
28,011 |
|
|
|
37,183 |
|
|
Other assets, net (including $37,559 and $18,080 with related parties) |
|
227,607 |
|
|
|
168,541 |
|
|
TOTAL ASSETS |
$ |
12,376,810 |
|
|
$ |
9,914,017 |
|
|
|
|
|
|
||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
|
Securities repurchase agreement obligations |
$ |
1,055,274 |
|
|
$ |
1,418,443 |
|
|
Customer liabilities |
|
6,815,396 |
|
|
|
4,304,999 |
|
|
Margin lending and trade payables |
|
557,938 |
|
|
|
1,322,241 |
|
|
Liabilities from insurance activity |
|
580,106 |
|
|
|
481,539 |
|
|
Current income tax liability |
|
50,248 |
|
|
|
28,919 |
|
|
Debt securities issued |
|
1,075,397 |
|
|
|
469,551 |
|
|
Lease liability |
|
43,767 |
|
|
|
40,525 |
|
|
Liability arising from continuing involvement |
|
520,397 |
|
|
|
503,705 |
|
|
Other liabilities |
|
283,440 |
|
|
|
129,737 |
|
|
TOTAL LIABILITIES |
$ |
10,981,963 |
|
|
$ |
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; 61,180,039 shares issued and outstanding as of December 31, 2025, and 60,993,949 shares issued and outstanding as of March 31, 2025, respectively |
|
61 |
|
|
|
61 |
|
|
Additional paid in capital |
|
299,849 |
|
|
|
246,610 |
|
|
Retained earnings |
|
1,230,917 |
|
|
|
1,085,565 |
|
|
Accumulated other comprehensive loss |
|
(135,980 |
) |
|
|
(117,995 |
) |
|
TOTAL FRHC SHAREHOLDERS’ EQUITY |
$ |
1,394,847 |
|
|
$ |
1,214,241 |
|
|
|
|
|
|
||||
|
Non-controlling interest |
|
— |
|
|
|
117 |
|
|
TOTAL SHAREHOLDERS’ EQUITY |
$ |
1,394,847 |
|
|
$ |
1,214,358 |
|
|
|
|
|
|
||||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
12,376,810 |
|
|
$ |
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 December |
|
Nine Months Ended December |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
Fee and commission income |
$ |
126,089 |
|
|
$ |
143,436 |
|
|
$ |
365,969 |
|
|
$ |
379,976 |
|
|
Net gain on trading securities |
|
43,478 |
|
|
|
89,564 |
|
|
|
126,184 |
|
|
|
105,779 |
|
|
Interest income |
|
228,794 |
|
|
|
224,688 |
|
|
|
639,027 |
|
|
|
661,016 |
|
|
Insurance premiums earned, net of reinsurance |
|
106,924 |
|
|
|
177,472 |
|
|
|
385,409 |
|
|
|
467,224 |
|
|
Net gain on foreign exchange operations |
|
45,774 |
|
|
|
3,945 |
|
|
|
32,886 |
|
|
|
18,513 |
|
|
Net gain on derivatives |
|
26,540 |
|
|
|
11,889 |
|
|
|
38,836 |
|
|
|
30,691 |
|
|
Sales of goods and services |
|
29,148 |
|
|
|
10,815 |
|
|
|
66,370 |
|
|
|
28,059 |
|
|
Other income |
|
21,874 |
|
|
|
2,769 |
|
|
|
33,470 |
|
|
|
14,458 |
|
|
TOTAL REVENUE, NET |
$ |
628,621 |
|
|
$ |
664,578 |
|
|
$ |
1,688,151 |
|
|
$ |
1,705,716 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expense: |
|
|
|
|
|
|
|
||||||||
|
Fee and commission expense |
$ |
33,691 |
|
|
$ |
93,927 |
|
|
$ |
182,724 |
|
|
$ |
264,911 |
|
|
Interest expense |
|
127,915 |
|
|
|
131,136 |
|
|
|
343,584 |
|
|
|
401,519 |
|
|
Insurance claims incurred, net of reinsurance |
|
77,937 |
|
|
|
104,511 |
|
|
|
238,145 |
|
|
|
218,504 |
|
|
Payroll and bonuses |
|
124,084 |
|
|
|
77,395 |
|
|
|
310,328 |
|
|
|
201,129 |
|
|
Professional services |
|
15,963 |
|
|
|
10,955 |
|
|
|
39,484 |
|
|
|
26,468 |
|
|
Stock compensation expense |
|
15,352 |
|
|
|
13,417 |
|
|
|
53,902 |
|
|
|
36,088 |
|
|
Advertising and sponsorship expense (including $10,759 and $5,894 from related parties for the three months ended, and $21,164 and $12,583 for the nine months ended) |
|
36,628 |
|
|
|
41,035 |
|
|
|
88,593 |
|
|
|
95,364 |
|
|
General and administrative expense |
|
71,416 |
|
|
|
53,874 |
|
|
|
158,947 |
|
|
|
135,140 |
|
|
Allowance for expected credit losses |
|
6,342 |
|
|
|
30,612 |
|
|
|
23,108 |
|
|
|
39,269 |
|
|
Cost of sales |
|
25,348 |
|
|
|
9,388 |
|
|
|
54,390 |
|
|
|
18,911 |
|
|
TOTAL EXPENSE |
$ |
534,676 |
|
|
$ |
566,250 |
|
|
$ |
1,493,205 |
|
|
$ |
1,437,303 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
INCOME BEFORE INCOME TAX |
|
93,945 |
|
|
|
98,328 |
|
|
|
194,946 |
|
|
|
268,413 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income tax expense |
|
(17,710 |
) |
|
|
(20,191 |
) |
|
|
(49,594 |
) |
|
|
(41,529 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
NET INCOME |
$ |
76,235 |
|
|
$ |
78,137 |
|
|
$ |
145,352 |
|
|
$ |
226,884 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Less: Net loss attributable to non-controlling interest in subsidiary |
|
— |
|
|
|
(144 |
) |
|
|
— |
|
|
|
(455 |
) |
|
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
76,235 |
|
|
$ |
78,281 |
|
|
$ |
145,352 |
|
|
$ |
227,339 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
||||||||
|
Change in unrealized (loss)/gain on investments available-for-sale, net of tax effect |
|
(929 |
) |
|
|
7,993 |
|
|
|
6,472 |
|
|
|
15,673 |
|
|
Reclassification adjustment for net realized (gain)/loss on available-for-sale investments disposed of in the period, net of tax effect |
|
(4,103 |
) |
|
|
872 |
|
|
|
(4,858 |
) |
|
|
1,039 |
|
|
Foreign currency translation adjustments |
|
87,733 |
|
|
|
(101,212 |
) |
|
|
(19,599 |
) |
|
|
(186,990 |
) |
|
OTHER COMPREHENSIVE INCOME/(LOSS) |
|
82,701 |
|
|
|
(92,347 |
) |
|
|
(17,985 |
) |
|
|
(170,278 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS |
$ |
158,936 |
|
|
$ |
(14,210 |
) |
|
$ |
127,367 |
|
|
$ |
56,606 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Less: Comprehensive loss attributable to non-controlling interest in subsidiary |
|
— |
|
|
|
(144 |
) |
|
|
— |
|
|
|
(455 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
158,936 |
|
|
$ |
(14,066 |
) |
|
$ |
127,367 |
|
|
$ |
57,061 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
EARNINGS PER COMMON SHARE (In U.S. dollars): |
|
|
|
|
|
|
|
||||||||
|
Earnings per common share – basic |
|
1.27 |
|
|
|
1.32 |
|
|
|
2.43 |
|
|
|
3.83 |
|
|
Earnings per common share – diluted |
|
1.25 |
|
|
|
1.29 |
|
|
|
2.38 |
|
|
|
3.76 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of shares (basic) |
|
59,955,472 |
|
|
|
59,372,323 |
|
|
|
59,918,950 |
|
|
|
59,331,443 |
|
|
Weighted average number of shares (diluted) |
|
61,114,058 |
|
|
|
60,548,794 |
|
|
|
61,098,469 |
|
|
|
60,422,124 |
|
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/20260209307353/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
KEYWORDS: New York United States North America
INDUSTRY KEYWORDS: Banking Professional Services Finance
MEDIA:
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