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Freedom Holding Corp. reports 17% revenue growth in Q1 FY2026 driven by strong insurance and banking segments

1. FRHC reports a 17% YoY revenue increase, reaching $533.4 million. 2. Net income is $30.4 million with diluted EPS of $0.50. 3. Banking segment revenue increased 60% due to customer growth. 4. Successfully acquired Astel Group to enhance telecoms infrastructure. 5. Net gain on trading securities shows a significant market rebound.

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$178.2908/10 08:00 PM EDTEvent Start
$17508/12 02:36 AM EDTLatest Updated
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FAQ

Why Bullish?

The positive financial results and acquisition signal strong growth prospects, similar to earnings-driven stock price increases seen in peer firms.

How important is it?

The financial performance and strategic acquisitions directly influence FRHC's growth trajectory, indicating significant importance to investors.

Why Long Term?

Strategic investments and revenue diversification should support continued growth over the next several quarters.

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AMTDIBKRSCHW
, /PRNewswire/ -- Freedom Holding Corp. (Nasdaq: FRHC), a diversified financial services and technology group, today announced its unaudited financial results for the first quarter of fiscal year 2026, ended June 30, 2025. FRHC reported a 17% year-over-year increase in revenue, reaching $533.4 million, highlighting the strength and expansion of its multi-segment business model across emerging and developed markets. Freedom Holding Corp "Our Q1 results reflect strong momentum across our core verticals and confirm the resilience of our diversified ecosystem," said Timur Turlov, Chief Executive Officer of Freedom Holding Corp. "We are continuing to invest in technology, expand our offerings, and deepen our presence in key markets, particularly in Central Asia and Europe." Q1 FY2026 key financial highlights: Total revenue: $533.4 million (+17% YoY) Net income attributable to common shareholders: $30.4 million, or $0.50 per diluted share Operating cash flow: $480.8 million Total assets: $9.69 billion Shareholders' equity: $1.23 billion The company reported a 60% increase in banking segment revenue to $146.2 million, with Freedom Bank Kazakhstan's customer base expanding from 2.5 million to 2.9 million. The insurance segment was another strong contributor to revenue growth, with revenue surging by 18% to $174 million and insurance premiums earned, net of reinsurance reaching $153.3 million. The insurance client base grew to 1.4 million people.Revenue from brokerage segment amounted to $176.3 million, marking a 1% year-on-year increase. The number of brokerage accounts increased from 683,000 to 725,000, driven by organic growth.The business units (including lifestyle and telecoms businesses) contributed $36.9 million in revenue, reflecting the ongoing growth of Arbuz.kz, Freedom Ticketon, Aviata, and Freedom Telecom.Net gain on trading securities also had a positive impact on financial results, amounting to $45.6 million over the three-month period ended June 30, 2025, compared to a net loss of $52.1 million for the same period in 2024. The majority of the profit was related to the increase in the market value of Kazakhstan government bonds included in the group's proprietary portfolio.Cost dynamics and strategic investmentsDuring the quarter, Freedom Holding completed the acquisition of Astel Group Ltd, thereby strengthening its telecoms infrastructure under the Freedom Telecom brand. Total company expenses for the quarter amounted to $492.9 million, reflecting the scale of ongoing business operations. Key components included $113.4 million in interest expense, $84.9 million in fee and commission expenses, $93.1 million in payroll and bonuses, and $24.5 million in advertising and sponsorship expenses directed toward high-impact social investments. These expenditures are viewed as strategic contributions supporting the Company's continued expansion and long-term growth.Despite higher costs and foreign exchange headwinds, the group maintained a net profit of $30.4 million, with diluted earnings per share (EPS) of $0.50.Balance Sheet Highlights Cash and cash equivalents: $567.9 million Restricted cash: $1.1 billion (mainly for client accounts) Investment securities portfolio: $2.8 billion Loan portfolio: $1.75 billion, including $231.7 million to related parties About Freedom Holding Corp.Freedom Holding Corp. provides financial services in 22 countries, including Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and Armenia. The Company's principal executive office is located in New York City. In Kazakhstan, Freedom is actively developing its financial and digital ecosystem, which includes Freedom Bank, Freedom Broker, the insurance companies Freedom Life and Freedom insurance, as well as a lifestyle segment that features Arbuz.kz, Freedom Ticketon, and Aviata. Freedom Holding Corp. shares are traded on the U.S. technology exchange NASDAQ, the Kazakhstan Stock Exchange (KASE), and the Astana International Exchange (AIX) under the ticker symbol FRHC. Freedom Holding Corp. is regulated by the U.S. Securities and Exchange Commission (SEC) and is included on the Russell 3000 Index.ContactPublic relationsNatalia KharlashinaFreedom Holding Corp.[email protected] SOURCE Freedom Holding Corp. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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