Freedom Holding Corp (FRHC) Reports First Quarter Fiscal Year 2027 Earnings
NEW YORK–(BUSINESS WIRE)–
Freedom Holding Corp. (the “Company”) (NASDAQ: FRHC), a multinational diversified financial services holding company with a presence in 24 countries, today announced financial results for the fiscal quarter ended June 30, 2026.
Highlights for the quarter included the following:
- $732.5 million in total revenue, net, compared to $524.0 million for the quarter ended June 30, 2025, a 40% increase;
- Net income of $31.7 million ($0.52 per diluted share and $0.52 per basic share) compared to $37.4 million for the quarter ended June 30, 2025;
- Total assets of $14.0 billion, up from $13.2 billion as of March 31, 2026;
- Total customers across banking, brokerage, insurance and other segments rose to 8,743,000 as of June 30, 2026, compared to 8,100,000 as of March 31, 2026;
- In June, S&P Global Ratings raised its long-term issuer credit ratings to ‘BB-’ from ‘B+’ on Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC.
“Our results this quarter reflect the continued strength and momentum of our business across the Freedom ecosystem,” said Timur Turlov, the Company’s founder and CEO. “We saw meaningful growth in revenue and in our customer base, underscoring the durability of our diversified model as we continue to expand into new markets and new lines of business.
“A core driver of this performance is our digital fintech strategy. The Freedom SuperApp continues to bring our financial and lifestyle services together into a single, seamless experience for our customers. As customers can move between products effortlessly, and our platform anticipates their needs through data and AI, we build deeper relationships and deliver more value with greater efficiency.
“It was gratifying that S&P Global Ratings recently raised its credit ratings on several of our key subsidiaries, an external affirmation of the financial discipline and risk management that our teams have built over the past several years. We approach the future with confidence in our strategy and gratitude to our customers, employees, and shareholders for their continued trust.”
Fiscal First Quarter 2027 Financial Performance
The Company had total revenues, net of $732.5 million in the fiscal 2027 first quarter, up from $524.0 million in the comparable prior-year period.
- Interest income was $295.1 million, an increase of $96.5 million compared to the same period in the prior year. The increase was primarily attributable to an increase in interest income on margin loans to customers and loans to customers, together with increases in interest income on held-to-maturity securities, trading securities, securities available-for-sale, and reverse repurchase agreements and amounts due from banks.
- Fee and commission income rose to $156.7 million, a 46% increase compared to the comparable period a year ago. The increase was primarily driven by higher fee and commission income from brokerage services, reflecting growth in our retail brokerage customer base. These increases were partially offset by lower fee and commission income from banking services, primarily due to the active use of our cashback-based loyalty program, with cashback amounts reflected as a reduction of banking service revenue.
- We had a net gain on trading securities of $79.8 million, as compared to a net gain on trading securities of $45.6 million in the same period in the prior year. The change was attributable mainly to an increase in the value of securities positions and gains from the sale of Kazakhstan sovereign and corporate debt securities.
Total expenses were $691.7 million, compared to $476.5 million in the same period in the prior year. The increase was mainly attributable to higher insurance claims and policyholder benefits (net of reinsurance), interest expenses, payroll and bonus expenses and general and administrative expenses.
Net income in the quarter was $31.7 million, compared to $37.4 million for the comparable period a year ago. Our Brokerage and Banking segments contributed net income of $133.6 million and $3.7 million, respectively, and our Insurance and Other segments contributed net losses of $19.2 million and $86.5 million, respectively, to our total net income in the quarter.
Basic and diluted earnings per share were $0.52, compared to $0.62 and $0.61, respectively in the first quarter of last year. The weighted average number of shares outstanding used to calculate basic and diluted earnings per share was 60.4 million and 61.3 million, respectively, as of June 30, 2026 and 59.9 million and 61.1 million, respectively, as of June 30, 2025.
Business Segment Highlights in the First Quarter of FY 2027
Brokerage: Revenue increased by 60% to $282.6 million, driven mainly by increased fee and commission income, higher interest income and an increase in net gain/(loss) in foreign exchange operations, partially offset by a decrease in net gains on trading securities. Total retail brokerage customers rose to 874,000, compared to 858,000 as of March 31, 2026.
Banking: Revenue grew by 54% to $225.2 million, mostly driven by an increase in net gain/(loss) on foreign exchange operations, an increase in net gain on trading securities, higher unrealized gains attributable to an increase in the fair value of securities, and an increase in interest income. The increase was partially offset by lower fee and commission income because of higher SuperApp cashback volumes and a decline in net gain on derivatives. Total banking clients reached 5,447,000 as of June 30, 2026, compared to 5,026,000 as of March 31, 2026.
Insurance: Revenue declined by 8% to $150.9 million, as insurance volumes decreased due to updates in the Kazakhstan Law on Insurance Activities and a decrease in net gains on trading securities, partially offset by higher interest income. Total insurance customers were 924,000, compared to 1,117,000 as of March 31, 2026.
Other: Revenue grew by 100% to $73.9 million, driven by growth in the telecommunications sector, higher customer activity at Arbuz, our online supermarket and fresh food delivery service, and higher fee and commission income from payment processing. Total customers in this segment grew to 1,498,000, from 1,105,000 as of March 31, 2026.
Additional Highlights
On June 1, 2026, the Company acquired 100% interest in ChessBase GmbH. ChessBase GmbH. is one of the world’s oldest and largest platforms specializing in chess software, analytics and database solutions. ChessBase GmbH. develops and sells game databases, analytical software, training products and online services for chess players, and also operates its major chess news platform.
The purpose of the acquisition of ChessBase GmbH. was to strengthen our digital ecosystem and expand our technology offerings through the acquisition of a leading provider of chess software, databases, analytics, and online services.
At the reporting date, June 30, 2026, final valuation of ChessBase GmbH. was not completed. As of June 1, 2026, the date of acquisition of ChessBase GmbH., the acquired net assets amounted to $2,802. The total purchase consideration was $4,875. As a result of acquisition, the Group recognized goodwill of $2,073.
On July 10, 2026, FRHC completed an offering and sale of 2,374,356 shares of its common stock, par value of $0.001 per share, for an aggregate offering price of $300,000. The securities were offered and sold pursuant to Regulation S of the Securities Act of 1933. The offering was made only to non-U.S. persons in offshore transactions outside the United States, in accordance with the requirements of Regulation S, including the provisions applicable to a Category 3 offering under Regulation S.
On July 31, 2026, FRHC and its subsidiary, Freedom Financial Hizmetler Anonim Sirketi, completed the acquisition of approximately 99.32% of Turkish Bank A.Ş., a bank operating in Türkiye, for a total consideration of $33.4 million.
About Freedom Holding Corp.
Freedom Holding Corp., a Nevada corporation, is a diversified financial services holding company of a group of subsidiaries conducting securities brokerage, securities dealing for customers and for our own account, market making activities, investment research, investment counseling, retail and commercial banking, insurance products, payment services information, processing services and lifestyle services, operating under the name Freedom or Freedom Finance in Europe and Central Asia, and Freedom Capital Markets in the United States. Through its subsidiaries, Freedom Holding Corp. employs more than 12,000 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’s main market of operations in Kazakhstan and has a presence in 24 countries.
To learn more about Freedom Holding Corp., visit www.freedomholdingcorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release, and any related statements, contains “forward-looking” statements within the meaning of section 21E of the United States 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,” “mission, ” “seek,” and “will,” or the negative of such terms or other comparable terminology and include statements relating to our plans, intentions and expectations, the Company’s strategy, our business’s strength and momentum, growth prospects, our diversified model and expansion into new markets and new lines of business, our platform capabilities, 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 under Risk Factors and elsewhere 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.
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FREEDOM HOLDING CORP. CONDENSED BALANCE SHEETS (Unaudited) (All amounts in thousands of United States dollars, unless otherwise stated) |
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June 30, 2026 |
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March 31, 2026 |
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ASSETS |
|
|
|
||||
|
Cash and cash equivalents |
$ |
1,351,050 |
|
|
$ |
966,115 |
|
|
Restricted cash |
|
1,473,196 |
|
|
|
1,246,312 |
|
|
Investment securities |
|
4,182,982 |
|
|
|
3,342,561 |
|
|
Margin lending, brokerage and other receivables, net |
|
3,996,783 |
|
|
|
4,690,782 |
|
|
Loans issued (including $25,157 and $21,321 to related parties) |
|
2,036,515 |
|
|
|
2,077,606 |
|
|
Fixed assets, net |
|
371,980 |
|
|
|
358,396 |
|
|
Intangible assets, net |
|
85,996 |
|
|
|
73,319 |
|
|
Goodwill |
|
52,995 |
|
|
|
51,099 |
|
|
Right-of-use asset |
|
61,438 |
|
|
|
47,579 |
|
|
Insurance contract assets |
|
57,011 |
|
|
|
36,849 |
|
|
Other assets, net (including $40,641 and $40,119 with related parties) |
|
376,937 |
|
|
|
264,621 |
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TOTAL ASSETS |
$ |
14,046,883 |
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|
$ |
13,155,239 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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|
|
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Securities repurchase agreement obligations |
$ |
1,254,206 |
|
|
$ |
1,024,923 |
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Customer liabilities |
|
7,048,800 |
|
|
|
7,103,984 |
|
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Margin lending and trade payables |
|
594,005 |
|
|
|
689,641 |
|
|
Insurance contract liabilities |
|
768,095 |
|
|
|
653,907 |
|
|
Current income tax liability |
|
62,601 |
|
|
|
43,701 |
|
|
Debt securities issued |
|
1,470,693 |
|
|
|
1,261,120 |
|
|
Lease liability |
|
62,986 |
|
|
|
48,843 |
|
|
Liability arising from continuing involvement |
|
561,891 |
|
|
|
554,594 |
|
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Unsettled liability arising from a private placement |
|
300,000 |
|
|
|
— |
|
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Other liabilities |
|
388,330 |
|
|
|
285,247 |
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TOTAL LIABILITIES |
$ |
12,511,607 |
|
|
$ |
11,665,960 |
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Commitments and Contingent Liabilities (Note 24) |
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— |
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|
|
— |
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SHAREHOLDERS’ EQUITY |
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Preferred stock – $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding |
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— |
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— |
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Common stock – $0.001 par value; 500,000,000 shares authorized; 61,428,760 shares issued and outstanding as of June 30, 2026, and 61,292,581 shares issued and outstanding as of March 31, 2026, respectively |
|
61 |
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|
61 |
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Additional paid in capital |
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338,123 |
|
|
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314,657 |
|
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Retained earnings |
|
1,263,160 |
|
|
|
1,231,500 |
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Accumulated other comprehensive loss |
|
(66,068 |
) |
|
|
(56,939 |
) |
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TOTAL FRHC SHAREHOLDERS’ EQUITY |
$ |
1,535,276 |
|
|
$ |
1,489,279 |
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|
|
|
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Non-controlling interest |
|
— |
|
|
|
— |
|
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TOTAL SHAREHOLDERS’ EQUITY |
$ |
1,535,276 |
|
|
$ |
1,489,279 |
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|
|
|
|
|
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
14,046,883 |
|
|
$ |
13,155,239 |
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FREEDOM HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) (All amounts in thousands of United States dollars, unless otherwise stated) |
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Three Months Ended June 30, |
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2026 |
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2025 (Recasted) |
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Revenue: |
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Fee and commission income |
$ |
156,734 |
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$ |
107,642 |
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Net gain on trading securities |
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79,778 |
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|
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45,602 |
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Interest income |
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295,106 |
|
|
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198,571 |
|
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Net insurance revenue |
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124,175 |
|
|
|
143,815 |
|
|
Net gain/(loss) on foreign exchange operations |
|
13,726 |
|
|
|
(12,893 |
) |
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Net gain on derivatives |
|
9,853 |
|
|
|
15,459 |
|
|
Sales of goods and services |
|
41,510 |
|
|
|
17,224 |
|
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Other income |
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11,645 |
|
|
|
8,561 |
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TOTAL REVENUE, NET |
$ |
732,527 |
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|
$ |
523,981 |
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|
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Expense: |
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|
|
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Fee and commission expense |
$ |
31,289 |
|
|
$ |
84,354 |
|
|
Interest expense |
|
177,563 |
|
|
|
113,410 |
|
|
Insurance claims and policyholder benefits, net of reinsurance |
|
131,582 |
|
|
|
64,996 |
|
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Payroll and bonuses |
|
153,127 |
|
|
|
92,505 |
|
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Professional services |
|
10,004 |
|
|
|
13,024 |
|
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Stock compensation expense |
|
23,235 |
|
|
|
23,054 |
|
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Advertising and sponsorship expense (including for the three months ended $11,831 and $5,513 from related parties) |
|
35,785 |
|
|
|
24,463 |
|
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General and administrative expense |
|
76,205 |
|
|
|
41,975 |
|
|
Allowance for expected credit losses |
|
17,659 |
|
|
|
4,822 |
|
|
Cost of sales |
|
35,244 |
|
|
|
13,903 |
|
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TOTAL EXPENSE |
$ |
691,693 |
|
|
$ |
476,506 |
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INCOME BEFORE INCOME TAX |
|
40,834 |
|
|
|
47,475 |
|
|
|
|
|
|
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Income tax expense |
|
(9,174 |
) |
|
|
(10,119 |
) |
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NET INCOME |
$ |
31,660 |
|
|
$ |
37,356 |
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Less: Net loss attributable to non-controlling interest in subsidiary |
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— |
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|
— |
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NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
31,660 |
|
|
$ |
37,356 |
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OTHER COMPREHENSIVE INCOME |
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Change in unrealized (gain)/loss on investments available-for-sale, net of tax effect |
|
(1,141 |
) |
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|
2,998 |
|
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Reclassification adjustment for net realized (gain)/loss on available-for-sale investments disposed of in the period, net of tax effect |
|
(238 |
) |
|
|
174 |
|
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Change in discount rate on liability for future policy benefits |
|
(3,350 |
) |
|
|
(848 |
) |
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Foreign currency translation adjustments |
|
(4,400 |
) |
|
|
(41,804 |
) |
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OTHER COMPREHENSIVE LOSS |
|
(9,129 |
) |
|
|
(39,480 |
) |
|
|
|
|
|
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COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS |
$ |
22,531 |
|
|
$ |
(2,124 |
) |
|
|
|
|
|
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Less: Comprehensive loss attributable to non-controlling interest in subsidiary |
|
— |
|
|
|
— |
|
|
|
|
|
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COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
22,531 |
|
|
$ |
(2,124 |
) |
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|
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EARNINGS PER COMMON SHARE (In U.S. dollars): |
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|
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Earnings per common share – basic |
|
0.52 |
|
|
|
0.62 |
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Earnings per common share – diluted |
|
0.52 |
|
|
|
0.61 |
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Weighted average number of shares (basic) |
|
60,416,219 |
|
|
|
59,853,479 |
|
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Weighted average number of shares (diluted) |
|
61,269,787 |
|
|
|
61,057,627 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20260810954136/en/
Natalia Kharlashina
Public Relations Freedom Holding Corp.
+7 701 364 1454
[email protected]
Ramina Fakhrutdinova
(Freedom Holding Corp. in Kazakhstan) Public Relations
Freedom Finance JSC
[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: Professional Services Technology Finance Software Fintech Banking
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