Freedom Holding Corp. reports 17% revenue growth in Q1 FY2026 driven by strong insurance and banking segments

Rhea-AI Summary

Freedom Holding Corp. (Nasdaq: FRHC) reported strong Q1 FY2026 financial results with revenue growing 17% year-over-year to $533.4 million. The company's performance was driven by significant growth in its banking segment (+60% to $146.2M) and insurance operations (+18% to $174M).

Key highlights include net income of $30.4 million ($0.50 per diluted share), operating cash flow of $480.8M, and total assets of $9.69B. The banking division expanded its customer base to 2.9M users, while insurance clients reached 1.4M. The brokerage segment grew modestly at 1% to $176.3M, with accounts increasing to 725,000.

Notable developments include a positive net gain on trading securities of $45.6M compared to a $52.1M loss in the previous year, primarily due to Kazakhstan government bonds' performance. The company also completed the acquisition of Astel Group Ltd to strengthen its telecom infrastructure.

Positive

• Revenue increased 17% YoY to $533.4 million
• Banking segment revenue surged 60% to $146.2 million
• Insurance segment grew 18% to $174 million
• Net gain on trading securities of $45.6M vs previous year's loss of $52.1M
• Strong customer base growth: Banking clients up to 2.9M, Insurance clients at 1.4M
• Healthy operating cash flow of $480.8 million

Negative

• Total expenses increased to $492.9 million
• Significant interest expense of $113.4 million
• Large related party loan exposure of $231.7 million
• Modest 1% growth in brokerage segment revenue

NEW YORK, Aug. 9, 2025 /PRNewswire/ -- Freedom Holding Corp. (Nasdaq: FRHC), a diversified financial services and technology group, today announced its unaudited financial results for the first quarter of fiscal year 2026, ended June 30, 2025. FRHC reported a 17% year-over-year increase in revenue, reaching $533.4 million, highlighting the strength and expansion of its multi-segment business model across emerging and developed markets.

"Our Q1 results reflect strong momentum across our core verticals and confirm the resilience of our diversified ecosystem," said Timur Turlov, Chief Executive Officer of Freedom Holding Corp. "We are continuing to invest in technology, expand our offerings, and deepen our presence in key markets, particularly in Central Asia and Europe."

Q1 FY2026 key financial highlights:

• Total revenue: $533.4 million (+17% YoY)
• Net income attributable to common shareholders: $30.4 million, or $0.50 per diluted share
• Operating cash flow: $480.8 million
• Total assets: $9.69 billion
• Shareholders' equity: $1.23 billion

The company reported a 60% increase in banking segment revenue to $146.2 million, with Freedom Bank Kazakhstan's customer base expanding from 2.5 million to 2.9 million. The insurance segment was another strong contributor to revenue growth, with revenue surging by 18% to $174 million and insurance premiums earned, net of reinsurance reaching $153.3 million. The insurance client base grew to 1.4 million people.

Revenue from brokerage segment amounted to $176.3 million, marking a 1% year-on-year increase. The number of brokerage accounts increased from 683,000 to 725,000, driven by organic growth.

The business units (including lifestyle and telecoms businesses) contributed $36.9 million in revenue, reflecting the ongoing growth of Arbuz.kz, Freedom Ticketon, Aviata, and Freedom Telecom.

Net gain on trading securities also had a positive impact on financial results, amounting to $45.6 million over the three-month period ended June 30, 2025, compared to a net loss of $52.1 million for the same period in 2024. The majority of the profit was related to the increase in the market value of Kazakhstan government bonds included in the group's proprietary portfolio.

Cost dynamics and strategic investments

During the quarter, Freedom Holding completed the acquisition of Astel Group Ltd, thereby strengthening its telecoms infrastructure under the Freedom Telecom brand. 

Total company expenses for the quarter amounted to $492.9 million, reflecting the scale of ongoing business operations. Key components included $113.4 million in interest expense, $84.9 million in fee and commission expenses, $93.1 million in payroll and bonuses, and $24.5 million in advertising and sponsorship expenses directed toward high-impact social investments. These expenditures are viewed as strategic contributions supporting the Company's continued expansion and long-term growth.

Despite higher costs and foreign exchange headwinds, the group maintained a net profit of $30.4 million, with diluted earnings per share (EPS) of $0.50.

Balance Sheet Highlights

• Cash and cash equivalents: $567.9 million
• Restricted cash: $1.1 billion (mainly for client accounts)
• Investment securities portfolio: $2.8 billion
• Loan portfolio: $1.75 billion, including $231.7 million to related parties

About Freedom Holding Corp.

Freedom Holding Corp. provides financial services in 22 countries, including Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and Armenia. The Company's principal executive office is located in New York City. In Kazakhstan, Freedom is actively developing its financial and digital ecosystem, which includes Freedom Bank, Freedom Broker, the insurance companies Freedom Life and Freedom insurance, as well as a lifestyle segment that features Arbuz.kz, Freedom Ticketon, and Aviata. Freedom Holding Corp. shares are traded on the U.S. technology exchange NASDAQ, the Kazakhstan Stock Exchange (KASE), and the Astana International Exchange (AIX) under the ticker symbol FRHC. Freedom Holding Corp. is regulated by the U.S. Securities and Exchange Commission (SEC) and is included on the Russell 3000 Index.

Contact

Public relations
Natalia Kharlashina
Freedom Holding Corp.
prglobal@ffin.kz 

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SOURCE Freedom Holding Corp.

FAQ

What was Freedom Holding Corp's (FRHC) revenue growth in Q1 FY2026?

Freedom Holding Corp reported revenue of $533.4 million, representing a 17% increase year-over-year in Q1 FY2026.

How much did FRHC's banking segment grow in Q1 2026?

FRHC's banking segment revenue grew by 60% to $146.2 million, with Freedom Bank Kazakhstan's customer base expanding to 2.9 million users.

What was Freedom Holding's net income for Q1 FY2026?

Freedom Holding Corp reported net income of $30.4 million, or $0.50 per diluted share for Q1 FY2026.

How many brokerage accounts does Freedom Holding have?

Freedom Holding's brokerage accounts increased from 683,000 to 725,000 accounts, driven by organic growth.

What was FRHC's trading securities performance in Q1 2026?

FRHC reported a net gain of $45.6 million on trading securities, compared to a loss of $52.1 million in the same period of 2024, mainly due to Kazakhstan government bonds' performance.

What are Freedom Holding's total assets and shareholders' equity?

Freedom Holding reported total assets of $9.69 billion and shareholders' equity of $1.23 billion.