Freedom Holding Corp (FRHC) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenue was $526.1 million with net income of $38.7 million, reflecting a year-over-year decline due to lower insurance premiums and trading gains, but the customer base grew to over 6.1 million across 21 countries.

• The digital ecosystem spans brokerage, banking, insurance, payments, telecom, e-commerce, and ticketing, with over 10,000 employees and $10.3 billion in assets.

• SuperApp users exceeded 3.1 million, with strong daily and monthly active user growth and new loyalty/referral programs.

• Management emphasized ongoing investments in technology and infrastructure to support future growth and efficiency.

• The effective tax rate increased to 36% from 10.9% year-over-year, primarily due to changes in Kazakhstani tax law affecting interest and capital gains on sovereign securities.

Financial highlights

• Q2 FY2026 revenue was $526.1 million, down from $586.1 million year-over-year; trailing twelve months (TTM) revenue reached $2,069 million.

• Net income for Q2 FY2026 was $38.7 million, down from $114.5 million in the prior year; TTM net income was $5 million due to higher expenses.

• Diluted EPS for Q2 FY2026 was $0.63, compared to $1.89 in Q2 FY2025.

• Total assets reached $10.3 billion and equity $1.2 billion as of September 30, 2025.

• Cash, cash equivalents, and investment securities totaled $4.5 billion as of September 30, 2025.

Outlook and guidance

• Management expects continued growth in retail brokerage and banking customers, with ongoing investment in digital fintech, telecommunications, and infrastructure expansion.

• Focus on scaling SuperApp, expanding product offerings, and leveraging cross-segment synergies.

• No cash dividends are anticipated in the foreseeable future as earnings are retained for business expansion.