Freedom Holding Corp. Reports Second 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 second quarter of fiscal year 2026 ended September 30, 2025.

Highlights during the three and six months ended September 30, 2025 include the following:

	Three months ended	Six months ended
	September 30, 2025
Total revenue, net	$526.1 million	$1,060 million
Income before income tax	$60.4 million	$101 million
Net income	$38.7 million	$69.1 million
Earnings per common share – basic	$0.65	$1.15
Earnings per common share – diluted	$0.63	$1.13

Financial Condition
At September 30, 2025, cash and cash equivalents, restricted cash, and investment securities totaled $4.5 billion, total assets were $10.3 billion, and shareholders’ equity was $1.2 billion. Net cash flows from operating activities was $1.0 Billion.

• Total customers rose to 6.2 million, which included client growth in each of our three primary business segments
• S&P raised its long-term issuer credit and financial strength ratings on life insurance company Freedom Life to 'BB+' from 'BB'. The outlook is stable. Agency also raised its national scale rating to 'kzAA' from 'kzAA-'.

Management Commentary
“During the second quarter of fiscal 2026, we continued to make deliberate investments aimed at building the foundation for Freedom Holding Corp.’s next phase of sustainable growth,” said Timur Turlov, the Company’s founder and chief executive officer. “Our results reflect a conscious decision to expand capacity across our key business lines, strengthen our digital and financial infrastructure, and prepare the Company for future scale and efficiency.”

“We are in an active phase of transformation - creating an integrated, technology-driven ecosystem that connects brokerage, banking, insurance, telecom and new digital services under one platform. This stage requires disciplined spending to build the operational backbone that will support higher margins and stronger earnings in the years ahead. We view these expenditures as strategic investments for the benefit of our clients.”

“Our customer base continues to grow rapidly across all major segments, surpassing 6.2 million clients as of September 30, 2025. Our financial position remains solid, with over $4.5 billion in cash and investments and more than $1.0 billion generated from operating activities during the first half of the fiscal year.

“The dual rating upgrades of Freedom Life by S&P further validate our disciplined approach to building long-term value and financial strength within our ecosystem. At the same time, our partnership with UnionPay Business and the establishment of a China-Kazakhstan settlement system position us strategically for growth in cross-border payments and e-commerce.”

“Looking ahead, we remain focused on executing our long-term strategy - expanding the reach of our financial ecosystem, scaling our technology infrastructure, and improving the profitability of our core businesses. The foundation we are laying today will enable Freedom Holding Corp. to achieve sustainable growth, increased operating leverage, and enhanced shareholder value over the coming years.”

Three months ended September 30, 2025 Financial Overview
All comparisons are to the three months ended September 30, 2024, unless otherwise noted

The Company reported total revenues, net, of $526.1 million for the fiscal 2026 second quarter as compared to $586.1 million, reflecting higher fee and commission revenue, interest income and sales of goods and services offset by a decline in insurance premiums earned (net of reinsurance), lower net gain on trading securities, and a net loss on derivatives.

Fee and commission income for the fiscal 2026 second quarter rose to $132.2 million from $121.1 million, primarily driven by higher fee and commission income from brokerage services and agency fees, partially offset by lower income from banking services and payment processing.

Net gain on trading securities was $37.1 million for the fiscal 2026 second quarter compared to a net gain on trading securities of $68.3 million, with the decline attributable to the sale of Kazakhstani corporate debts at favorable market prices following a short-term rally in the local debt market.

Insurance premiums earned (net of reinsurance) for the fiscal 2026 second quarter were $125.2 million compared to $160.3 million. Net loss on derivatives for the fiscal 2026 second quarter was $3.2 million compared to a net gain of $6.3 million. The decrease was primarily driven by the regulatory cap on commissions paid to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the period.

Total expense was approximately $465.6 million in the fiscal 2026 second quarter compared to $457.7 million, driven by higher payroll and bonuses, insurance claims incurred, net, higher professional services and higher stock compensation expense.

Net income was $38.7 million for the fiscal 2026 second quarter compared to $114.5 million.

Basic and diluted earnings per share were $0.65 and $0.63, respectively, compared to $1.93 and $1.89 per share, respectively, in last year’s second quarter.

Weighted average common shares outstanding used to compute diluted earnings per share for the quarter ended September 30, 2025 and 2024 were 61.1 million and 60.5 million, respectively.

Six Months ended September 30, 2025 Financial Overview
All comparisons are to the six months ended September 30, 2024, unless otherwise noted

The Company reported total revenues, net, of $1060 million for the fiscal 2026 second quarter as compared to $1,041 million, reflecting higher fee and commission revenue, net gain on trading securities and sales of goods and services offset by a decline in insurance premiums earned (net of reinsurance), lower interest income, net loss on foreign exchange operations and net gain on derivatives.

Fee and commission income for the fiscal 2026 second quarter rose to $239.9 million from $236.5 million, primarily driven by higher fee and commission income from brokerage services and agency fees, partially offset by lower income from banking services and payment processing.

The Company had a net gain on trading securities of $82.7 million for the six months ended September 30, 2025, an increase of $66.5 million as compared to a net gain of $16.2 million for the six months ended September 30, 2024 which is attributable to Kazakhstani corporate debt securities sold during the six months ended September 30, 2025.

For the six months ended September 30, 2025, the Company had insurance premiums earned, net of reinsurance of $278.5 million, a decrease of $11.3 million, or 4%, as compared to the six months ended September 30, 2024. The decrease was primarily attributable to a $15.4 million, or 5%, 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.

Total expense was approximately $958.5 million for the six months ended September 30, 2025, compared to $871.1 million, driven by higher payroll and bonuses, insurance claims incurred, net, higher professional services and higher stock compensation expense.

Net income was $69.1 million for the six months ended September 30, 2025, compared to $149.1 million.

Basic and diluted earnings per share were $1.15 and $1.13, respectively, compared to $2.51 and $2.46 per share, respectively, in last year’s second quarter.

Weighted average common shares outstanding used to compute diluted earnings per share for the six months ended September 30, 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 10,348 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 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," "seek," and "will," or the negative of such terms or other comparable terminology and include statements relating to our plans, intensions and expectations including our plans to enter the telecommunications market, our expectations with respect to 2026 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. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (All amounts in thousands of United States dollars, unless otherwise stated)
	September 30, 2025				March 31, 2025
ASSETS
Cash and cash equivalents	$	635,975			$	837,302
Restricted cash		1,312,229				807,468
Investment securities		2,511,419				2,814,733
Margin lending, brokerage and other receivables, net		3,528,382				3,319,145
Loans issued (including $225,217 and $188,445 to related parties)		1,750,575				1,595,435
Fixed assets, net		263,830				191,103
Intangible assets, net		55,931				54,186
Goodwill		46,247				49,093
Right-of-use asset		37,103				39,828
Insurance contract assets		19,475				37,183
Other assets, net (including $20,568 and $18,994 with related parties)		188,603				168,541
TOTAL ASSETS	$	10,349,769			$	9,914,017
LIABILITIES AND SHAREHOLDERS’ EQUITY
Securities repurchase agreement obligations	$	806,344			$	1,418,443
Customer liabilities		5,759,636				4,304,999
Margin lending and trade payables		507,734				1,322,241
Liabilities from insurance activity		520,220				481,539
Current income tax liability		51,153				28,919
Debt securities issued		742,774				469,551
Lease liability		38,804				40,525
Liability arising from continuing involvement		476,030				503,705
Other liabilities		225,852				129,737
TOTAL LIABILITIES	$	9,128,547			$	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; 61,159,931 shares issued and outstanding as of September 30, 2025, and 60,993,949 shares issued and outstanding as of March 31, 2025, respectively		61				61
Additional paid in capital		285,160				246,610
Retained earnings		1,154,682				1,085,565
Accumulated other comprehensive loss		(218,681	)			(117,995	)
TOTAL FRHC SHAREHOLDERS’ EQUITY	$	1,221,222			$	1,214,241
Non-controlling interest		—				117
TOTAL SHAREHOLDERS’ EQUITY	$	1,221,222			$	1,214,358
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	10,349,769			$	9,914,017

The accompanying notes are an integral part of these condensed consolidated financial statements

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 September 30,								Six Months Ended September 30,
		2025				2024				2025				2024
Revenue:
Fee and commission income	$	132,238			$	121,051			$	239,880			$	236,540
Net gain on trading securities		37,104				68,317				82,706				16,215
Interest income		211,662				210,324				410,233				436,328
Insurance premiums earned, net of reinsurance		125,228				160,344				278,485				289,752
Net gain/(loss) on foreign exchange operations		5				6,479				(12,888	)			14,568
Net (loss)/gain on derivatives		(3,163	)			6,308				12,296				18,802
Sales of goods and services		19,998				12,024				37,222				17,244
Other income		3,035				1,292				11,596				11,689
TOTAL REVENUE, NET	$	526,107			$	586,139			$	1,059,530			$	1,041,138
Expense:
Fee and commission expense	$	64,162			$	90,837			$	149,033			$	170,984
Interest expense		102,259				124,665				215,669				270,383
Insurance claims incurred, net of reinsurance		79,923				66,684				160,208				113,993
Payroll and bonuses		93,143				66,210				186,244				123,734
Professional services		10,497				8,245				23,521				15,513
Stock compensation expense		15,496				12,056				38,550				22,671
Advertising and sponsorship expense (including $4,892 and $4,644 from related parties for the three months ended, and $10,405 and $6,689 for the six months ended)		27,502				32,433				51,965				54,329
General and administrative expense		45,556				40,856				87,531				81,266
Allowance for expected credit losses		11,944				10,427				16,766				8,657
Cost of sales		15,139				5,239				29,042				9,523
TOTAL EXPENSE	$	465,621			$	457,652			$	958,529			$	871,053
INCOME BEFORE INCOME TAX		60,486				128,487				101,001				170,085
Income tax expense		(21,765	)			(13,999	)			(31,884	)			(21,338	)
NET INCOME	$	38,721			$	114,488			$	69,117			$	148,747
Less: Net loss attributable to non-controlling interest in subsidiary		—				(170	)			—				(311	)
NET INCOME ATTRIBUTABLE TO COMMON	$	38,721			$	114,658			$	69,117			$	149,058
OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect		4,403				4,306				7,401				7,680
Reclassification adjustment for net realized (gain)/loss on available-for-sale investments disposed of in the period, net of tax effect		(929	)			185				(755	)			167
Foreign currency translation adjustments		(65,528	)			(19,967	)			(107,332	)			(85,778	)
OTHER COMPREHENSIVE LOSS		(62,054	)			(15,476	)			(100,686	)			(77,931	)
COMPREHENSIVE (LOSS)/INCOME BEFORE NON-CONTROLLING INTERESTS	$	(23,333	)		$	99,012			$	(31,569	)		$	70,816
Less: Comprehensive loss attributable to non-controlling interest in subsidiary		—				(170	)			—				(311	)
COMPREHENSIVE (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(23,333	)		$	99,182			$	(31,569	)		$	71,127
EARNINGS PER COMMON SHARE (In U.S. dollars):
Earnings per common share - basic		0.65				1.93				1.15				2.51
Earnings per common share - diluted		0.63				1.89				1.13				2.46
Weighted average number of shares (basic)		59,947,187				59,363,122				59,900,589				59,310,891
Weighted average number of shares (diluted)		61,120,016				60,460,173				61,090,631				60,358,442

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/20251107373093/en/

Natalia Kharlashina

Public Relations

Freedom Holding Corp.

+7 701 364 1454

prglobal@ffin.kz



Ramina Fakhrutdinova (KZ)

Public Relations

Freedom Finance JSC

+7 777 377 8868

pr@ffin.kz



Media Contact for Freedom US Markets

Deborah Kostroun, Zito Partners

deborah@zitopartners.com

+1 201-403-8158

Source: Freedom Holding Corp.