Freedom Holding Corp. Reports Third Quarter Fiscal Year 2026 Financial Results

Key Terms

held-to-maturity securities financial

Held-to-maturity securities are debt investments—like bonds—that a company or investor intends and is able to keep until they mature and repay their face value. Think of them as money you lock in like a fixed-term certificate: they matter to investors because their value is recorded at amortized cost rather than market price, so they provide predictable interest income and reduce balance-sheet volatility but limit flexibility to sell.

derivatives financial

Derivatives are financial contracts whose value depends on the price or performance of another asset, such as a stock, bond, commodity, currency or interest rate. Investors use them to hedge against risk, to speculate on future price moves, or to gain exposure without owning the asset — like buying insurance or placing a leveraged bet — so they can both protect portfolios and magnify gains or losses, affecting risk and market liquidity.

reinsurance financial

Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.

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 ended	Nine months ended
	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 31,								Nine Months Ended December 31,
		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

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.