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

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