Freedom Holding Corp. Reports Third Quarter Fiscal Year 2025 Financial Results
Company Continues Top Line Growth Trend with
-
in revenue for the quarter$655 million -
Net income of
earnings per share, diluted, and$1.29 earnings per share, basic$1.32 -
Total expenses of
$557 million -
in total assets$9.1 billion -
55% increase in overall customer base to 3.2 million -
in interest income,$225 million in insurance underwriting income,$178 million in fee and commission income,$143 million in net gain on trading securities.$90 million
Third Quarter Financial Highlights:
The Company recognized revenue of approximately
Net income was approximately
9 Months Year to Date Financial Highlights:
For the nine months ending December 31, 2024, the Company's revenue totaled approximately
Net income was approximately
Balance Sheet Highlights:
Total assets were
"Our ongoing investments in digital infrastructure, AI, and an offering of increasingly diversified fintech based services continues to bear fruit… ”
“I am pleased to report that Freedom Holding Corp. delivered another record quarter on several fronts,” stated Timur Turlov, the Company's founder and chief executive officer. “Our ongoing investments in digital infrastructure, AI, and an offering of increasingly diversified fintech based services continues to bear fruit as evidenced by the extensive growth of our customer base, particularly in our banking and insurance segments which grew by
Turlov commented further, “We’ve been actively developing our Freedom digital ecosystem with Freedom Bank at its core, disrupting the regional banking and online retail services sectors with the delivery of innovative financial services and lifestyle products for our clients. The Bank now serves over 1.4 million customers who form part of the 522,486 individuals who use the Freedom SuperApp, where many of our breakthrough products are available. The SuperApp not only provides access to the best products and services available in the Freedom ecosystem, but also allows them to shop, compare, save money, and earn cash back.”
“We expect that our continued development and deployment of new AI based analytics will have a positive impact on insurance risk assessments…”
“Commensurate with our record revenues, we experienced a significant increase in our operating expenses during the quarter, which included a near doubling of our advertising expenses and a similar increase in our Fee and commission expenses, which were in line with our expectations. We also saw a substantial increase in our Insurance claims incurred, net of reinsurance, which came in at
Additional third quarter fiscal 2025 highlights:
Insurance underwriting income for the quarter was
Fee and commission income for the three months ended December 31, 2024 was
The Company reported approximately 618,000 total retail brokerage customers as of December 31, 2024 as compared to approximately 530,000 as of March 31, 2024. Banking customer count totaled approximately 1,407,000 at the Company’s subsidiary, Freedom Bank KZ, as of December 31, 2024, as compared to approximately 904,000 as of March 31, 2024.
About Freedom Holding Corp.
Freedom Holding Corp., a
Freedom Holding Corp.'s common shares are registered with the United States Securities and Exchange Commission 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
To learn more about Freedom Holding Corp., visit www.freedomholdingcorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking" statements, including with respect to Freedom Holding Corp.'s (the "Company") potential for future growth and success, and the ongoing development and deployment of technology, services, and products that would continue to sustain future growth or improve related expenses. 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 used in connection with any discussion of future plans, actions, and events. 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 certain economic, business, and regulatory risks and factors identified in the Company's periodic and current reports filed with the
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
Financial Tables to Follow
FREEDOM HOLDING CORP. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|||||||
|
December 31, 2024 |
|
March 31, 2024 |
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents (including |
$ |
577,940 |
|
|
$ |
545,084 |
|
Restricted cash (including |
|
742,153 |
|
|
|
462,637 |
|
Trading securities (including |
|
3,415,517 |
|
|
|
3,688,620 |
|
Available-for-sale securities, at fair value |
|
418,614 |
|
|
|
216,621 |
|
Margin lending, brokerage and other receivables, net (including |
|
2,037,673 |
|
|
|
1,660,275 |
|
Loans issued (including |
|
1,454,259 |
|
|
|
1,381,715 |
|
Fixed assets, net |
|
159,384 |
|
|
|
83,002 |
|
Intangible assets, net |
|
44,488 |
|
|
|
47,668 |
|
Goodwill |
|
48,217 |
|
|
|
52,648 |
|
Right-of-use asset |
|
39,242 |
|
|
|
36,324 |
|
Insurance contract assets |
|
26,518 |
|
|
|
24,922 |
|
Other assets, net (including |
|
171,040 |
|
|
|
102,414 |
|
TOTAL ASSETS |
$ |
9,135,045 |
|
|
$ |
8,301,930 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Securities repurchase agreement obligations |
$ |
2,199,703 |
|
|
$ |
2,756,596 |
|
Customer liabilities (including |
|
3,783,291 |
|
|
|
2,273,830 |
|
Margin lending and trade payables |
|
319,043 |
|
|
|
867,880 |
|
Liabilities from insurance activity |
|
407,877 |
|
|
|
297,180 |
|
Current income tax liability |
|
48,276 |
|
|
|
32,996 |
|
Debt securities issued |
|
468,835 |
|
|
|
267,251 |
|
Lease liability |
|
40,401 |
|
|
|
35,794 |
|
Liability arising from continuing involvement |
|
472,867 |
|
|
|
521,885 |
|
Other liabilities (including |
|
132,007 |
|
|
|
81,560 |
|
TOTAL LIABILITIES |
$ |
7,872,300 |
|
|
$ |
7,134,972 |
|
Commitments and Contingent Liabilities (Note 23) |
|
— |
|
|
|
— |
|
|
|
|
|
||||
SHAREHOLDERS’ EQUITY |
|
|
|
||||
Preferred stock - |
|
— |
|
|
|
— |
|
Common stock - |
|
61 |
|
|
|
60 |
|
Additional paid in capital |
|
222,968 |
|
|
|
183,788 |
|
Retained earnings |
|
1,226,079 |
|
|
|
998,740 |
|
Accumulated other comprehensive loss |
|
(189,216 |
) |
|
|
(18,938 |
) |
TOTAL FRHC SHAREHOLDERS’ EQUITY |
$ |
1,259,892 |
|
|
$ |
1,163,650 |
|
|
|
|
|
||||
Non-controlling interest |
|
2,853 |
|
|
|
3,308 |
|
TOTAL SHAREHOLDERS’ EQUITY |
$ |
1,262,745 |
|
|
$ |
1,166,958 |
|
|
|
|
|
||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
9,135,045 |
|
|
$ |
8,301,930 |
|
FREEDOM HOLDING CORP. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited)
|
|||||||||||||||
|
Three Months Ended December 31, |
|
Nine Months Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Fee and commission income (including for the three months ended |
$ |
143,436 |
|
|
$ |
120,159 |
|
|
$ |
379,976 |
|
|
$ |
330,565 |
|
Net gain/(loss) on trading securities |
|
89,564 |
|
|
|
(5,089 |
) |
|
|
105,779 |
|
|
|
77,498 |
|
Interest income (including for the three months ended |
|
224,688 |
|
|
|
226,445 |
|
|
|
661,016 |
|
|
|
588,857 |
|
Insurance underwriting income |
|
177,472 |
|
|
|
79,017 |
|
|
|
467,224 |
|
|
|
181,882 |
|
Net gain on foreign exchange operations |
|
3,945 |
|
|
|
38,825 |
|
|
|
18,513 |
|
|
|
54,430 |
|
Net gain/(loss) on derivatives |
|
11,889 |
|
|
|
(42,568 |
) |
|
|
30,691 |
|
|
|
(71,795 |
) |
Other income |
|
4,196 |
|
|
|
1,845 |
|
|
|
23,606 |
|
|
|
8,988 |
|
TOTAL REVENUE, NET |
$ |
655,190 |
|
|
$ |
418,634 |
|
|
$ |
1,686,805 |
|
|
$ |
1,170,425 |
|
|
|
|
|
|
|
|
|
||||||||
Expense: |
|
|
|
|
|
|
|
||||||||
Fee and commission expense |
$ |
93,927 |
|
|
$ |
42,818 |
|
|
$ |
264,911 |
|
|
$ |
103,116 |
|
Interest expense |
|
131,136 |
|
|
|
131,223 |
|
|
|
401,519 |
|
|
|
365,650 |
|
Insurance claims incurred, net of reinsurance |
|
104,511 |
|
|
|
40,989 |
|
|
|
218,504 |
|
|
|
96,491 |
|
Payroll and bonuses |
|
77,395 |
|
|
|
45,083 |
|
|
|
201,129 |
|
|
|
116,711 |
|
Professional services |
|
10,955 |
|
|
|
6,217 |
|
|
|
26,468 |
|
|
|
24,793 |
|
Stock compensation expense |
|
13,417 |
|
|
|
1,039 |
|
|
|
36,088 |
|
|
|
3,303 |
|
Advertising expense |
|
21,472 |
|
|
|
11,066 |
|
|
|
58,722 |
|
|
|
27,805 |
|
General and administrative expense (including for the three months ended |
|
73,437 |
|
|
|
32,106 |
|
|
|
171,782 |
|
|
|
86,211 |
|
Provision for/(recovery of) allowance for expected credit losses |
|
30,612 |
|
|
|
(3,526 |
) |
|
|
39,269 |
|
|
|
15,462 |
|
TOTAL EXPENSE |
$ |
556,862 |
|
|
$ |
307,015 |
|
|
$ |
1,418,392 |
|
|
$ |
839,542 |
|
|
|
|
|
|
|
|
|
||||||||
INCOME BEFORE INCOME TAX |
|
98,328 |
|
|
|
111,619 |
|
|
|
268,413 |
|
|
|
330,883 |
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
(20,191 |
) |
|
|
(15,544 |
) |
|
|
(41,529 |
) |
|
|
(51,408 |
) |
|
|
|
|
|
|
|
|
||||||||
NET INCOME |
$ |
78,137 |
|
|
$ |
96,075 |
|
|
$ |
226,884 |
|
|
$ |
279,475 |
|
|
|
|
|
|
|
|
|
||||||||
Less: Net loss attributable to non-controlling interest in subsidiary |
|
(144 |
) |
|
|
(293 |
) |
|
|
(455 |
) |
|
|
(842 |
) |
NET INCOME ATTRIBUTABLE TO COMMON |
$ |
78,281 |
|
|
$ |
96,368 |
|
|
$ |
227,339 |
|
|
$ |
280,317 |
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
||||||||
Change in unrealized gain on investments available-for-sale, net of tax effect |
|
7,993 |
|
|
|
1,486 |
|
|
|
15,673 |
|
|
|
5,893 |
|
Reclassification adjustment for net realized (gain)/loss on available-for-sale investments disposed of in the period, net of tax effect |
|
872 |
|
|
|
(1,881 |
) |
|
|
1,039 |
|
|
|
(3,145 |
) |
Foreign currency translation adjustments |
|
(101,212 |
) |
|
|
28,100 |
|
|
|
(186,990 |
) |
|
|
(3,593 |
) |
OTHER COMPREHENSIVE (LOSS)/INCOME |
|
(92,347 |
) |
|
|
27,705 |
|
|
|
(170,278 |
) |
|
|
(845 |
) |
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE (LOSS)/INCOME BEFORE NON-CONTROLLING INTERESTS |
$ |
(14,210 |
) |
|
$ |
123,780 |
|
|
$ |
56,606 |
|
|
$ |
278,630 |
|
|
|
|
|
|
|
|
|
||||||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary |
|
(144 |
) |
|
|
(293 |
) |
|
|
(455 |
) |
|
|
(842 |
) |
|
|
|
|
|
|
|
|
||||||||
COMPREHENSIVE (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
(14,066 |
) |
|
$ |
124,073 |
|
|
$ |
57,061 |
|
|
$ |
279,472 |
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER COMMON SHARE (In |
|
|
|
|
|
|
|
||||||||
Earnings per common share - basic |
|
1.32 |
|
|
|
1.65 |
|
|
|
3.83 |
|
|
|
4.79 |
|
Earnings per common share - diluted |
|
1.29 |
|
|
|
1.63 |
|
|
|
3.76 |
|
|
|
4.73 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares (basic) |
|
59,372,323 |
|
|
|
58,578,691 |
|
|
|
59,331,443 |
|
|
|
58,557,577 |
|
Weighted average number of shares (diluted) |
|
60,548,794 |
|
|
|
59,289,256 |
|
|
|
60,422,124 |
|
|
|
59,287,086 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206597838/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
Al Palombo (US)
Global Communications Chief
Freedom US Markets
+1 212-980-4400, Ext. 1013
apalombo@freedomusmkts.com
Source: Freedom Holding Corp.