Freedom Holding Corp. Reports Fiscal Year 2025 Financial Results

Rhea-AI Summary

Freedom Holding Corp. (NASDAQ: FRHC) reported strong financial results for FY2025, with revenue increasing 23% to $2.05 billion. The company saw growth across multiple segments: fee and commission income rose 15% to $505.0 million, interest income grew 4% to $864.5 million, and brokerage services income increased 29% to $430.1 million. Brokerage accounts grew 29% to 683,000, while bank clients doubled to 2.5 million. However, earnings per share decreased to $1.43 (basic) from $6.37 in FY2024, with net income at $84.5 million. The company's insurance segment performed exceptionally well, with underwriting income up 134% to $617.6 million. Freedom Holding expanded its ecosystem beyond finance into telecommunications and media, focusing on developing its Freedom SuperApp platform that integrates various financial and lifestyle services.

Positive

• Revenue increased 23% year-over-year to $2.05 billion
• Brokerage accounts grew 29% to 683,000 with active accounts up 57%
• Bank clients more than doubled to 2.5 million
• Insurance segment underwriting income surged 134% to $617.6 million
• Fee and commission income increased 15% to $505.0 million
• Successful expansion into new business segments including telecom and media

Negative

• Significant decline in earnings per share from $6.37 to $1.43 (basic)
• Trading securities income declined due to market volatility
• Large-scale investments impacting current profitability

Insights

Financial Analyst

Freedom Holding reports strong 23% revenue growth to $2.05B, but net income declined substantially with EPS dropping from $6.37 to $1.43.

Freedom Holding's fiscal 2025 results present a mixed financial picture that requires careful analysis. Revenue growth of 23% to $2.05 billion demonstrates robust top-line expansion, driven primarily by their brokerage and insurance segments. The 15% increase in fee and commission income to $505 million and 29% growth in brokerage services revenue to $430.1 million point to successful client acquisition strategies.

However, the most striking figure is the sharp decline in earnings per share from $6.37 to $1.43 (basic), representing a 77.6% decrease despite the strong revenue growth. Total net income of $84.5 million indicates significant margin compression, likely due to substantial reinvestment in ecosystem development as mentioned by CEO Turlov.

The company's diversification strategy is evident in segment performance. Insurance was particularly strong with underwriting income up 134% to $617.6 million. The expansion into non-financial sectors through Freedom Telecom and media projects reflects their ecosystem ambitions, though these investments are clearly impacting short-term profitability.

Customer metrics are impressive across all segments: brokerage accounts increased 29% to 683,000, active accounts surged 57% to over 151,000, bank clients more than doubled to 2.5 million, and insurance customers reached 1.17 million. These growth figures suggest the ecosystem strategy is successfully attracting users.

While the revenue and user growth are positive indicators, the significant earnings decline requires scrutiny. The company is explicitly prioritizing reinvestment over short-term profits, betting that their SuperApp ecosystem integrating investing, banking, payments, and lifestyle services will yield stronger long-term returns. This high-investment, lower-profit phase appears to be a deliberate strategic choice rather than operational weakness.

ALMATY, Kazakhstan, June 15, 2025 /PRNewswire/ -- Freedom Holding Corp. (NASDAQ: FRHC), the diversified financial group with operations spanning 22 countries, today reported financial results for the fiscal year ended March 31, 2025, highlighting continued growth across core segments and meaningful progress on its digital ecosystem strategy.

Revenue for the year increased by 23% to $2.05 billion, up from $1.67 billion the previous year. The company delivered strong operational performance.Total assets increased to $9.9 billion, and customer growth remained strong across all sectors.

"Our 2025 results show that the strategy we've been building for years is paying off," said Timur Turlov, founder and CEO of Freedom Holding Corp. "We are transitioning from a collection of financial products to a unified ecosystem that touches nearly every aspect of our customers' financial lives. We're proud of the growth we've achieved, especially in our core businesses, and excited about what lies ahead."

Fiscal 2025 Highlights

• The company delivered strong operational growth, with total revenue reaching $2.05 billion — a 23% increase on the $1.67 billion recorded the previous year. This growth was driven by increased activity in brokerage and insurance segments, as well as higher interest income from margin and customer loans, reflecting the continued expansion of the company's diverse financial ecosystem.
• Fee and commission income totaled $505.0 million, marking a 15% increase from $440.3 million in fiscal 2024. This growth was primarily fueled by a 29% increase in income from brokerage services, reaching $430.1 million, supported by an expanding retail customer base.
• Interest income increased to $864.5 million, a 4% rise on the previous year. This was driven by increased margin lending to retail clients and an expanded loan portfolio at Freedom Bank KZ. Margin loan interest increased by 21%, while interest from customer loans grew by 18%. Increased returns from available-for-sale securities also contributed to gains, though income from trading securities declined amid market volatility.
• Earnings per share were $1.43 (basic) and $1.40 (diluted), compared to $6.37 (basic) and $6.33 (diluted) in fiscal 2024. Net income amounted to $84.5 million.
• Brokerage accounts reached 683,000, marking a 29% year-on-year increase, while active accounts surged by 57% to surpass 151,000. The number of bank clients more than doubled to 2.5 million, and the number of insurance customers reached 1.17 million, reflecting the rising demand for integrated financial services.

The insurance segment was one of the year's top performers, with underwriting income up 134% to $617.6 million amid robust demand for pension and accident insurance products. The brokerage division generated $717.3 million in revenue, with fee and commission income, as well as interest income, remaining strong. The company's banking segment posted $506.1 million in revenue, while the "Other" segment — which includes lifestyle, telecom, and payment services — saw revenue increase 72% to $144 million, buoyed by contributions from e-commerce platform Arbuz, ticketing service Aviata, and newly acquired SilkNetCom LLP.

Freedom Holding took further bold steps to diversify its operations beyond finance. In 2024, it expanded its telecommunications business under the name Freedom Telecom and launched new media projects. These ventures form part of a broader plan to develop a comprehensive digital ecosystem centered on the company's flagship Freedom SuperApp, which integrates investing, banking, payments, and lifestyle services on a single platform.

"This year is a period of large-scale investments in the development of the holding's ecosystem for us. We are reinvesting a significant portion of the income from our key business areas into strengthening and growing the group's companies. This strategy is already yielding results: our market position is strengthening, and our presence is expanding. At the same time, we continue to invest in business development in new regions — both where licenses have already been obtained and where they are still in the process of being acquired," noted Timur Turlov.

The holding continued to provide sponsorship support to various initiatives: the Kazakhstan Chess and Tennis Federations, the Competitive Programming Federation, the Junior Football League of Kazakhstan, and other organizations.

The company's focus remains on scaling its technology, expanding geographically, and deepening customer experience through artificial intelligence and product personalization.

"We believe connected ecosystems will define the next era of finance," said Turlov. "By combining traditional financial stability with tech-enabled innovation, we're building something that goes far beyond banking or brokerage. We're building infrastructure for how people live, spend, save, and grow."

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. The Company has a market capitalization exceeding $8 billion as of March 31, 2025. Freedom Holding Corp. is regulated by the U.S. Securities and Exchange Commission (SEC).

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 fiscal year 2025?

Freedom Holding Corp reported revenue growth of 23%, reaching $2.05 billion in fiscal year 2025, up from $1.67 billion the previous year.

How much did FRHC's earnings per share decrease in FY 2025?

FRHC's basic earnings per share decreased from $6.37 in FY2024 to $1.43 in FY2025, while diluted EPS dropped from $6.33 to $1.40.

What was the growth in Freedom Holding's brokerage accounts for FY 2025?

Brokerage accounts increased by 29% year-over-year to 683,000, with active accounts growing by 57% to over 151,000.

How did Freedom Holding's insurance segment perform in 2025?

The insurance segment showed strong performance with underwriting income increasing 134% to $617.6 million, driven by robust demand for pension and accident insurance products.

What new business areas did Freedom Holding expand into during 2025?

Freedom Holding expanded into telecommunications under Freedom Telecom, launched new media projects, and enhanced its digital ecosystem through the Freedom SuperApp platform.