Freedom Holding Corp (FRHC) Q1 2026 earnings summary

Executive summary

• Total net revenue for the quarter ended June 30, 2025, was $533.4 million, up 17% year-over-year, driven by insurance, banking, and a turnaround in trading securities gains.

• Net income for the quarter was $30.4 million, down 11% from the prior year, with segment contributions led by Brokerage and Banking.

• Customer growth continued, with 725,000 brokerage, 2,927,000 banking, and 1,396,000 insurance customers as of June 30, 2025.

• The company completed the acquisition of Astel Group Ltd. to expand its telecommunications business in Kazakhstan.

• Continued investment in technology and expansion in Central Asia and Europe.

Financial highlights

• Insurance premiums earned, net of reinsurance, rose 18% to $153.3 million, driven by pension annuity and accident insurance growth.

• Net gain on trading securities was $45.6 million, reversing a $52.1 million loss in the prior year, mainly due to Kazakhstan sovereign bond price increases.

• Fee and commission income fell 7% to $107.6 million, mainly due to lower bank services and payment processing income.

• Interest income declined 12% to $198.6 million, reflecting a lower trading securities portfolio, partially offset by higher loan and margin lending income.

• Operating cash flow totaled $480.8 million for the quarter.

Outlook and guidance

• Management continues to prioritize digital ecosystem expansion, including telecom and media, and expects ongoing customer growth in core markets.

• Capital expenditures for telecom expansion are expected to be funded by a mix of internal funds and recent bond issuances.

• No cash dividends are anticipated in the foreseeable future as earnings are retained for growth and development.