Freedom Holding Corp. Announces Fiscal Second Quarter 2026 Results, Highlights Strategic Transformation and Continued Customer Growth
Freedom Holding Corp. (NASDAQ: FRHC), a diversified multinational financial services company operating across 21 countries, reported its financial results for the second quarter of fiscal year 2026, which ended September 30, 2025. The company continued to execute on its long-term strategy of building a unified financial and digital ecosystem, even as earnings reflected both investment-related expenses and shifts in certain revenue streams.
For the three months ended September 30, 2025, Freedom Holding Corp. reported total net revenue of $526.1 million, and net income of $38.7 million, resulting in basic earnings per share of $0.65 and diluted earnings per share of $0.63. For the six-month period, total net revenue reached $1.06 billion, with net income of $69.1 million, translating to basic and diluted earnings per share of $1.15 and $1.13, respectively.
Strong Liquidity and Expanding Customer Base
As of September 30, 2025, Freedom Holding Corp. maintained a solid financial position, with:
- $4.5 billion in cash, restricted cash, and investment securities
- $10.3 billion in total assets
- $1.2 billion in shareholders’ equity
- $1.0 billion in net cash flow generated from operating activities during the first six months of the fiscal year
The company also reported continued customer growth across all major business segments, with the total customer base rising to 6.2 million clients globally. This expansion reflects Freedom’s ability to attract new users across brokerage, banking, insurance, and its emerging digital service platforms.
Additionally, S&P Global Ratings upgraded its long-term issuer and financial strength ratings on Freedom Life, the company’s insurance subsidiary, raising its rating from ‘BB’ to ‘BB+’ with a stable outlook. The agency also increased the subsidiary’s national scale rating to ‘kzAA’ from ‘kzAA-’, signaling strengthened capitalization and operational performance within the insurance business.
CEO Commentary: Strategic Investment for Long-Term Growth
Timur Turlov, Founder and Chief Executive Officer of Freedom Holding Corp., emphasized the company’s ongoing strategic transformation in his remarks accompanying the earnings announcement.
“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 Turlov. “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.”
Turlov explained that Freedom Holding is actively developing an integrated, technology-driven financial ecosystem connecting brokerage services, banking operations, insurance products, telecom solutions, and emerging digital offerings such as online payments, financial technology tools, and e-commerce applications.
“This stage requires disciplined spending to build the operational backbone that will support higher margins and stronger earnings in the years ahead,” he added. “We view these expenditures as investments for the long-term benefit of our clients and shareholders.”
He also pointed to meaningful progress in building the company’s cross-border payments presence. Freedom’s partnership with UnionPay Business and the creation of a China–Kazakhstan settlement system represent strategic steps toward expanding the company’s role in international payment and financial connectivity.
Quarterly Financial Performance Overview (Three Months Ended September 30, 2025)
Compared with the same quarter in the prior year, Freedom Holding Corp. reported several shifts in revenue composition and expense levels.
- Total revenue, net for the quarter was $526.1 million, compared to $586.1 million in the prior year period.
- Fee and commission income increased to $132.2 million, up from $121.1 million, driven primarily by growth in brokerage services and agency business.
- Net gain on trading securities was $37.1 million, compared to $68.3 million in the prior year. The decrease was mainly due to timing and market dynamics associated with the sale of Kazakhstani corporate debt during favorable price conditions.
- Insurance premiums earned (net of reinsurance) declined to $125.2 million, compared to $160.3 million. The decrease was largely attributable to recent regulatory changes that capped commissions paid to insurance agents for policies linked to bank and microfinance loans.
- Net loss on derivatives amounted to $3.2 million, compared to a net gain of $6.3 million in the year-ago quarter.
Total expenses rose slightly to $465.6 million, up from $457.7 million in the prior year period. Higher expenses stemmed from increases in compensation, insurance claims, professional services, and stock-based compensation.
As a result, net income for the quarter declined to $38.7 million, compared to $114.5 million a year earlier. The lower earnings reflect both market-driven revenue shifts and the company’s continued investment in its technology and operating capabilities.
Financial Review for the Six Months Ended September 30, 2025
For the six-month period:
- Total revenue, net increased to $1.06 billion, compared to $1.04 billion in the prior year period.
- Fee and commission income rose to $239.9 million from $236.5 million.
- Net gain on trading securities increased significantly to $82.7 million, driven by security sales within the Kazakhstani debt market.
- Insurance premiums earned (net of reinsurance) declined to $278.5 million, due primarily to regulatory caps on agent commissions affecting new business volumes.
Total expenses for the six-month period were $958.5 million, compared to $871.1 million last year. Expense growth was primarily driven by:
- Higher personnel compensation
- Stronger insurance claim activity
- Increased professional and operational services
- Higher stock-based compensation
Net income for the six-month period was $69.1 million, versus $149.1 million in the prior-year comparable period, reflecting the combined impact of market conditions, expense investments, and product mix changes.
Freedom Holding Corp. remains committed to expanding and integrating its ecosystem of financial and digital services. Management continues to focus on:
- Strengthening technology and operational infrastructure
- Increasing efficiency across banking, insurance, and brokerage segments
- Enhancing cross-border payment and trade support services
- Scaling digital applications to deepen customer engagement
Our long-term strategy remains unchanged,” Turlov reiterated. “We are focused on 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 in the years ahead.
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