NEW YORK--(BUSINESS WIRE)--February 09, 2026--
Freedom Holding Corp. (the "Company") $(FRHC)$, 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 Nine months
ended ended
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December 31, 2025
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Total revenue, net $628.6 million $1,688.2 million
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Income before income tax $93.9 million $194.9 million
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Net income $76.2 million $145.4 million
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Earnings per common share -- basic $1.27 $2.43
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Earnings per common share -- diluted $1.25 $2.38
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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
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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
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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)
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TOTAL FRHC SHAREHOLDERS' EQUITY $ 1,394,847 $ 1,214,241
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Non-controlling interest -- 117
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TOTAL SHAREHOLDERS' EQUITY $ 1,394,847 $ 1,214,358
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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 Nine Months Ended December
December 31, 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
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TOTAL REVENUE, NET $ 628,621 $ 664,578 $ 1,688,151 $ 1,705,716
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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
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TOTAL EXPENSE $ 534,676 $ 566,250 $ 1,493,205 $ 1,437,303
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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
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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/
CONTACT: 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
(END) Dow Jones Newswires
February 09, 2026 16:45 ET (21:45 GMT)