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Freedom Holding Corp. Reports Strong Q1 FY2026 Results

Freedom Holding Corp., a versatile financial services and technology provider, has recently disclosed its unaudited financial performance for the first quarter of fiscal year 2026, showcasing impressive growth figures that highlight the firm's expanding influence in both developed and emerging markets. With a remarkable 17% increase in revenue year-over-year, the company reported total revenues hitting $533.4 million for the quarter ending June 30, 2025.

"Our Q1 results reflect strong momentum across our core verticals and confirm the resilience of our diversified ecosystem," emphasized Timur Turlov, CEO of Freedom Holding Corp. "We are continuing to invest in technology, expand our offerings, and deepen our presence in key markets, particularly in Central Asia and Europe."

Key Financial Metrics

The financial report reveals several key highlights:

• - Total revenue reached $533.4 million, marking a 17% growth compared to the same period in the previous year.
• - Net income attributed to common shareholders was $30.4 million, translating to $0.50 per diluted share.
• - The company recorded operating cash flow of $480.8 million.
• - Total assets were reported at $9.69 billion, with shareholders' equity standing at $1.23 billion.

Among the primary drivers for this growth was the banking segment, which noted a 60% increase in revenue, totaling $146.2 million. Notably, Freedom Bank Kazakhstan expanded its customer base from 2.5 million to 2.9 million. The insurance sector also played a significant role in revenue generation, reporting an 18% growth to $174 million, with net earned premiums reaching $153.3 million and an expanding client base of 1.4 million individuals.

The brokerage segment maintained a steady trajectory, contributing $176.3 million to the revenue—a 1% increase year-over-year, reflecting organic growth as the number of brokerage accounts rose from 683,000 to 725,000. Additionally, the business units, encompassing lifestyle and telecom operations, generated $36.9 million, fueled by the growth of platforms like Arbuz.kz, Freedom Ticketon, and Aviata.

Trading Gains and Cost Investment

Financial performance for the quarter was further bolstered by a net gain on trading securities of $45.6 million, a substantial turnaround from a net loss of $52.1 million over the same timeframe last year. This profit surge was largely attributed to the increasing market value of Kazakhstan government bonds within the group's investment portfolio.

Despite rising operations costs and foreign exchange challenges, Freedom Holding achieved a net profit of $30.4 million, maintaining healthy diluted earnings per share (EPS) of $0.50. Total company expenses reached $492.9 million, driven by costs associated with ongoing operations, including:

• - $113.4 million in interest expenses
• - $84.9 million in fees and commissions
• - $93.1 million in payroll and bonuses
• - $24.5 million in advertising and sponsorships, primarily focused on impactful social investments.

Strategic Acquisitions and Growth

In a strategic move to bolster its telecommunications infrastructure, Freedom Holding successfully acquired Astel Group Ltd, which is anticipated to enhance the company's connectivity offerings under the Freedom Telecom umbrella. This decision exemplifies the company's dedication to investing in growth opportunities.

Balance Sheet Overview

Freedom Holding closed the quarter with notable balance sheet highlights:

• - Cash and cash equivalents: $567.9 million
• - Restricted cash: $1.1 billion, primarily for client accounts
• - Investment securities portfolio: $2.8 billion
• - Loan portfolio: $1.75 billion, with $231.7 million allocated to related parties.

About Freedom Holding Corp.

Freedom Holding Corp. operates in 22 countries, including Kazakhstan, the USA, Cyprus, Poland, Spain, Uzbekistan, and Armenia. With its primary office located in New York City, the company is actively developing a comprehensive financial and digital ecosystem in Kazakhstan, which includes various subsidiaries such as Freedom Bank, Freedom Broker, and Freedom insurance. The publicly traded company operates under the NASDAQ symbol FRHC and is regulated by the U.S. Securities and Exchange Commission (SEC), also listed on the Russell 3000 Index.