Freedom Holding Corp. Reports Third Quarter Fiscal Year 2025 Financial Results
Freedom Holding Corp. (NASDAQ: FRHC) reported strong Q3 fiscal 2025 results with revenue reaching $655 million, a 56.5% increase from Q3 2024. The company achieved net income of $78 million with diluted EPS of $1.29. Key revenue streams included $225 million in interest income, $178 million in insurance underwriting income, and $143 million in fee and commission income.
Total assets grew to $9.1 billion, with customer base expanding 55% to 3.2 million. The company's banking segment grew 56% while insurance segment increased 82%. Operating expenses rose 81% to $557 million, including increased advertising and insurance claims. The Freedom SuperApp now serves 522,486 users, with Freedom Bank KZ reaching 1.4 million customers.
Freedom Holding Corp. (NASDAQ: FRHC) ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2025, con ricavi che hanno raggiunto 655 milioni di dollari, un aumento del 56,5% rispetto al terzo trimestre del 2024. L'azienda ha registrato un reddito netto di 78 milioni di dollari con un utile per azione diluito di 1,29 dollari. Le principali fonti di fatturato includevano 225 milioni di dollari di reddito da interessi, 178 milioni di dollari di reddito da sottoscrizione assicurativa e 143 milioni di dollari di reddito da commissioni.
Il totale degli attivi è cresciuto a 9,1 miliardi di dollari, con una base clienti in espansione del 55% a 3,2 milioni. Il segmento bancario dell'azienda è cresciuto del 56%, mentre il segmento assicurativo è aumentato dell'82%. Le spese operative sono aumentate dell'81% a 557 milioni di dollari, includendo un incremento della pubblicità e dei sinistri assicurativi. La Freedom SuperApp ora serve 522.486 utenti, con la Freedom Bank KZ che raggiunge 1,4 milioni di clienti.
Freedom Holding Corp. (NASDAQ: FRHC) reportó resultados sólidos para el tercer trimestre del año fiscal 2025, con ingresos que alcanzaron 655 millones de dólares, un aumento del 56.5% en comparación con el tercer trimestre de 2024. La compañía logró un ingreso neto de 78 millones de dólares con un EPS diluido de 1.29 dólares. Las principales fuentes de ingresos incluyeron 225 millones de dólares en ingresos por intereses, 178 millones de dólares en ingresos por suscripción de seguros y 143 millones de dólares en ingresos por comisiones.
Los activos totales crecieron a 9.1 mil millones de dólares, con una base de clientes que se expandió un 55% a 3.2 millones. El segmento bancario de la empresa creció un 56% mientras que el segmento de seguros aumentó un 82%. Los gastos operativos aumentaron un 81% a 557 millones de dólares, incluyendo un incremento en publicidad y reclamaciones de seguros. La Freedom SuperApp ahora sirve a 522,486 usuarios, con Freedom Bank KZ alcanzando 1.4 millones de clientes.
프리덤 홀딩 코퍼레이션 (NASDAQ: FRHC)은 2025 회계 연도 3분기 강력한 실적을 보고했으며, 수익이 6억 5,500만 달러에 달하여 2024 회계 연도 3분기보다 56.5% 증가했습니다. 회사는 7,800만 달러의 순이익을 달성했으며, 희석주당순이익(EPS)은 1.29 달러입니다. 주요 수익원에는 2억 2,500만 달러의 이자 수익, 1억 7,800만 달러의 보험 언더라이팅 수익, 1억 4,300만 달러의 수수료 수익이 포함되었습니다.
총 자산은 91억 달러로 증가했으며, 고객 기반은 55% 증가하여 320만 명에 도달했습니다. 회사의 은행 부문은 56% 성장했으며, 보험 부문은 82% 증가했습니다. 운영 비용은 81% 증가하여 5억 5,700만 달러에 이르렀으며, 이는 광고 및 보험 청구 증가를 포함합니다. 프리덤 슈퍼앱은 현재 522,486명의 사용자에게 서비스를 제공하며, 프리덤 뱅크 KZ는 140만 명의 고객에 도달했습니다.
Freedom Holding Corp. (NASDAQ: FRHC) a annoncé des résultats solides pour le troisième trimestre de l'exercice 2025, avec un chiffre d'affaires atteignant 655 millions de dollars, soit une augmentation de 56,5% par rapport au troisième trimestre de 2024. L'entreprise a réalisé un bénéfice net de 78 millions de dollars avec un BPA dilué de 1,29 dollar. Les principales sources de revenus comprenaient 225 millions de dollars de revenus d'intérêts, 178 millions de dollars de revenus d'assurance et 143 millions de dollars de revenus de frais et de commissions.
Les actifs totaux ont augmenté pour atteindre 9,1 milliards de dollars, et la base de clients s'est élargie de 55% pour atteindre 3,2 millions. Le segment bancaire de l'entreprise a crû de 56%, tandis que le segment d'assurance a augmenté de 82%. Les dépenses d'exploitation ont augmenté de 81% pour atteindre 557 millions de dollars, en raison de la hausse des dépenses publicitaires et des réclamations d'assurance. La Freedom SuperApp compte désormais 522 486 utilisateurs, et la Freedom Bank KZ a atteint 1,4 million de clients.
Freedom Holding Corp. (NASDAQ: FRHC) hat starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 gemeldet, mit Einnahmen von 655 Millionen US-Dollar, was einem Anstieg von 56,5% im Vergleich zum dritten Quartal 2024 entspricht. Das Unternehmen erzielte ein Nettoeinkommen von 78 Millionen US-Dollar mit einem verwässerten EPS von 1,29 US-Dollar. Zu den wichtigsten Einnahmequellen gehörten 225 Millionen US-Dollar an Zinseinnahmen, 178 Millionen US-Dollar an Prämieneinnahmen und 143 Millionen US-Dollar an Gebühren und Provisionen.
Die Gesamtsumme der Vermögenswerte wuchs auf 9,1 Milliarden US-Dollar, mit einer Kundenbasis, die um 55% auf 3,2 Millionen anwuchs. Der Bankensektor des Unternehmens wuchs um 56%, während der Versicherungssektor um 82% zunahm. Die Betriebskosten stiegen um 81% auf 557 Millionen US-Dollar, einschließlich erhöhter Ausgaben für Werbung und Versicherungsansprüche. Die Freedom SuperApp bedient nun 522.486 Nutzer, während die Freedom Bank KZ 1,4 Millionen Kunden erreicht hat.
- Revenue increased 56.5% YoY to $655 million
- Insurance underwriting income grew 125% to $177.5 million
- Customer base expanded 55% to 3.2 million
- Total assets increased to $9.1 billion from $8.3 billion
- Net working capital improved to $890 million from $675 million
- Banking customer count grew to 1.4 million from 904,000
- Net income decreased to $78 million from $96 million YoY
- Operating expenses increased 81% to $557 million
- Diluted EPS declined to $1.29 from $1.63 YoY
- Insurance claims increased substantially to $105 million
Insights
Freedom Holding Corp.'s Q3 FY2025 results present a complex picture of aggressive growth coupled with strategic investments and margin compression. The 56.5% revenue surge to
The revenue mix shows impressive diversification:
- Interest income:
$225 million - Insurance underwriting:
$178 million (up125% ) - Fee and commission income:
$143 million (up19% ) - Trading gains:
$90 million
The 81% increase in operating expenses reflects substantial investments in growth initiatives, particularly in digital infrastructure and customer acquisition. While this impacts short-term profitability, the strategy appears sound given the impressive customer growth metrics:
- Banking customers up
56% to 1.4 million - Insurance segment growth of
82% - Total customer base expansion of
55% to 3.2 million
The company's innovative approach to customer retention through share-linked cashback programs and the Freedom SuperApp demonstrates sophisticated fintech integration. The investment in AI for insurance risk assessment could drive future operational efficiencies and improve underwriting profitability.
Working capital increased to
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.