10-Q · November 7, 2025
FRHC reported quarterly revenue of $526,107,000 and diluted EPS of $0.63 for the three months ended September 30, 2025. Revenue and profitability declined versus the prior-year quarter (revenue down $60,032,000; diluted…
Earnings analysis · 10-Q
FRHC earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Freedom Holding delivered strong top-line growth, with revenue up 40% year over year to $732.5 million, led by Brokerage revenue growth of 60% and Other-segment growth of 100%. Profitability weakened, however, as net…
Read full summary
Freedom Holding delivered strong top-line growth, with revenue up 40% year over year to $732.5 million, led by Brokerage revenue growth of 60% and Other-segment growth of 100%. Profitability weakened, however, as net income declined 15% to $31.7 million and operating cash flow shifted to a $341.6 million outflow amid 45% expense growth. Higher cash and financing proceeds improved near-term liquidity, but insurance losses, margin concentration, substantial expansion funding needs and the SEC Wells Notice remain material concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
-
Revenue growth accelerated
Total revenue, net increased 40% year over year to $732.5 million from $524.0 million. Growth was led by interest income of $295.1 million, up 49%, and fee and commission income of $156.7 million, up 46%.
-
Brokerage led segment growth
Brokerage revenue rose 60% to $282.6 million, supported by brokerage-service fees of $164.3 million, up 60%, and retail brokerage customers increasing to 874,000 from 725,000 year over year.
-
Telecom and commerce expanded
Other-segment revenue doubled to $73.9 million, driven by a $24.3 million increase in sales of goods and services tied to telecommunications expansion and higher Arbuz activity.
-
Liquidity and assets increased
Cash and cash equivalents increased to $1.35 billion from $966.1 million at March 31, 2026, while total assets increased to $14.05 billion from $13.16 billion.
-
Credit ratings improved
S&P raised the long-term issuer credit ratings of Freedom KZ, Freedom EU, Freedom Global and Freedom Bank KZ to BB- from B+ on June 24, 2026, citing a three-year track record of consolidated risk management and compliance.
-
Financing offset cash outflow
Net cash from financing activities was $1.22 billion, including $475.2 million of bank deposits, $300.0 million of private-placement equity proceeds and $210.0 million of net debt issuance proceeds.
What to watch
-
Expense growth pressured earnings
Net income declined 15% to $31.7 million from $37.4 million despite 40% revenue growth. Total expenses increased 45% to $691.7 million, including payroll and bonuses up 66% to $153.1 million and general and administrative expense up 82% to $76.2 million.
-
Negative operating cash flow
Operating cash flow turned negative at $341.6 million used, versus $480.8 million generated in the prior-year quarter. The outflow included a $548.7 million increase in trading securities and a $508.2 million decrease in brokerage customer liabilities.
-
Insurance profitability deteriorated
Insurance revenue fell 14% to $124.2 million, while insurance claims and policyholder benefits increased 102% to $131.6 million. Written premiums were $170.0 million, down 1%, and deferred profit liability issuance expense increased 457% to $38.9 million.
-
Margin concentration risk
The Company had $3.94 billion of margin lending receivables, with $2.98 billion attributable to three non-related-party customers. Management states that exposure from margin lending and customer short sales can be unlimited and not quantifiable.
-
Expansion requires substantial funding
Management expects Freedom Telecom capital expenditures to be significant, but the amount is currently uncertain; related capital-expenditure commitments were up to $113.1 million as of June 30, 2026. The proposed Sovereign AI Hub also has a potential project cost of $2 billion and would require significant financing.
-
SEC regulatory investigation
The Company and CEO Timur Turlov received a Wells Notice from SEC staff on March 11, 2026, in connection with an SEC investigation. The filing states that regulatory actions could materially adversely affect reputation, business, financial condition, results of operations, prospects and cash flows; management reported no material changes to the 2026 Form 10-K risk factors as of June 30, 2026.
Management's outlook
No numeric revenue or EPS guidance was provided. Management stated that Freedom Telecom capital expenditures are expected to be significant but the specific amount is currently uncertain; capital expenditure commitments were up to $113.1 million as of June 30, 2026.
Earlier filings 4
10-Q · August 8, 2025
Freedom Holding Corp. reported quarterly revenue of $533,423 (in thousands) for the three months ended June 30, 2025, up from $454,999 (in thousands) a year earlier, driven by higher interest income and insurance…
10-Q · November 8, 2024
FRHC reported quarterly revenue of $580,900,000 for the three months ended September 30, 2024, up from $435,581,000 a year earlier (+33.4%), driven largely by higher insurance underwriting income. Income before tax fell…
10-Q · August 9, 2024
Q2 results show strong revenue expansion to $450,715 (thousands) driven by higher interest and insurance underwriting income, but profitability declined: pre-tax income fell to $41,598 (thousands) and diluted EPS to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.