Freedom Holding Corp.
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
FRHC$178.85+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-09.
0000924805-26-000006
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0000924805-26-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 317 previous paragraphs and 257 current paragraphs.
124 unchanged; 84 reworded; 47 added; 81 removed; 28 previous and 2 current paragraphs rearranged.
Tables are not compared: 36 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (47)
Current report
•our ability to obtain required licenses;
Current report
•our ability to secure financing and develop an AI data center infrastructure in Kazakhstan, including procurement of financing as well as advanced graphics processing units;
Current report
Freedom Bank TJ, a closed joint-stock company organized under the laws of the Republic of Tajikistan, obtained its banking license from the National Bank of Tajikistan on October 15, 2024, which permits it to conduct banking operations in both national and foreign currencies. The bank is being developed as a digitally led retail and commercial bank intended to extend our digital fintech ecosystem to the Tajikistan market, with a target product set covering current and savings accounts, multi‑currency payment cards, money transfers, and consumer and small and medium enterprise (SME) lending, delivered primarily through digital channels. Freedom Bank TJ conducts its activities through its office in Tajikistan and continues the phased build‑out of its branch network and digital service channels.
Current report
In addition, we are expanding our digital banking presence into Georgia through FBG Company JSC, an entity organized under the laws of Georgia. FBG Company JSC's application for the required banking license remains pending. Subject to receipt of the banking license and satisfaction of applicable regulatory requirements, FBG Company JSC is expected to operate as Freedom Bank Georgia. As of June 30, 2026, FBG Company JSC had not commenced banking operations.
Current report
The Company continues considering expansion of its banking segment into other jurisdictions. In March 2026, FRHC and its subsidiary Freedom Finansial Hizmetler Anonim Şirketi entered into an agreement to purchase approximately 99.32% of Turkish Bank A.S., a bank operating in Türkiye. The transaction was completed on July 31, 2026.
Current report
In Kazakhstan, the Kazakhstan Deposit Insurance Fund ("KDIF") administers the deposit insurance system. The KDIF insures deposits in the case of liquidation of a bank-member of the KDIF fund. Kazakhstan law provides for certain maximum deposit insurance coverage limits applicable to each type of insured deposit. However, if a customer maintains multiple types of insured deposits with the same participating bank, the aggregate deposit insurance compensation in respect of such deposits, subject to the maximum coverage limit applicable to each type of deposit, may not exceed 20 million Kazakhstan tenge (approximately $40,000 as of June 30, 2026) per customer.
Current report
FRHC owns two insurance companies, both in Kazakhstan: Freedom Life and Freedom Insurance.
Current report
We believe incorporating the offerings of these insurance companies with our brokerage and banking product and service lines, along with our developing fintech ecosystem in Kazakhstan, allows us to offer an integrated, efficient and convenient single source for financial services in Kazakhstan.
Current report
According to our growth model, we add new capabilities in two ways. First, we develop products in‑house, using common technology and process for compliance with applicable laws, regulatory requirements, industry standards and internal regulations. Second, we acquire focused businesses that either deepen an existing service or introduce a complementary one. Acquired platforms are migrated to the common architecture and made available through the same front end, which preserves a seamless user experience.
Current report
During fiscal 2024, we established Freedom Media as a subsidiary of Freedom Telecom. Freedom Media is intended to develop into a national media platform in Kazakhstan, offering streaming services to customers in Kazakhstan and the broader Central Asia region. The platform provides access to a library of more than 5,000 titles, including television series, films, documentaries from major international studios and in-house produced original content, as well as more than 100 television channels and a dedicated children’s section. Its sports offering includes regular broadcasts of football, UFC, tennis, basketball and hockey, and live streaming of major events, including the UEFA Champions League and other global competitions. Freedom Media also develops proprietary content, including original series and special projects, and is integrated within the Freedom SuperApp ecosystem.
Current report
•Our interest income for the three months ended June 30, 2026 was$295.1 million, an increase of$96.5 million, or 49%, compared to the three months ended June 30, 2025. The increase in interest income was primarily attributable to an increase in interest income on margin loans to customers and loans to customers, together with increases in interest income on held-to-maturity securities, trading securities, securities available-for-sale, and reverse repurchase agreements and amounts due from banks.
Current report
•Our fee and commission income for the three months ended June 30, 2026 was $156.7 million, an increase of $49.1 million, or 46%, compared to the three months ended June 30, 2025. The increase was primarily driven by higher fee and commission income from brokerage services, reflecting growth in our retail brokerage customer base. The increase was partially offset by lower fee and commission income from banking services, primarily due to the active use of our cashback-based loyalty program, with cashback amounts reflected as a reduction of banking service revenue.
Current report
We had total expense of $691.7 million, for the three months ended June 30, 2026, compared to $476.5 million for the three months ended June 30, 2025. The increase was mainly attributable to increases in insurance claims and policyholder benefits (net of reinsurance), interest expense, payroll and bonus expenses and general and administrative expenses.
Current report
Fee and commission income from payment processing increased to $8.9 million in the three months ended June 30, 2026 from $5.9 million for the three months ended June 30, 2025. The $2.9 million increase was primarily attributable to the resumption of services to certain customers and higher transaction volumes during the period.
Current report
Fee and commission income from agency services increased by $2.5 million, or 56%, primarily driven by higher transaction volumes across travel and event-related services.
Current report
For the three months ended June 30, 2026, we had interest income of $295.1 million, representing an increase of $96.5 million, or 49%, compared to the three months ended June 30, 2025. The increase in interest income was primarily attributable to an increase in interest income on margin loans to customers and loans to customers, as well as increases in interest income on held-to-maturity securities, trading securities, securities available-for-sale, and reverse repurchase agreements and amounts due from banks.
Current report
Interest income on margin loans to customers increased by $47.9 million, or 79%, due to an increase in the usage of margin loans for trades by our customers during the three months ended June 30, 2026. For the three months ended June 30, 2026, we earned interest income from margin lending from a market maker customer of our Freedom Global subsidiary in an amount of approximately $11.1 million, representing 10% of our total interest income from margin lending for that period.
Current report
For the three months ended June 30, 2026, interest income on loans to customers increased by $19.8 million, or 32%, compared to the three months ended June 30, 2025 due to the growth of Freedom Bank KZ's average customer loan portfolio relative to the prior year period.
Current report
For the three months ended June 30, 2026, interest income on held-to-maturity securities increased by $11.9 million compared to the three months ended June 30, 2025, primarily due to the growth of the held-to-maturity securities portfolio during the three months ended June 30, 2026.
Current report
During the three months ended June 30, 2026, interest income on available-for-sale securities increased by $6.7 million, or 50%, compared to the three months ended June 30, 2025 due to the growth of available-for-sale portfolio during the three months ended June 30, 2026.
Current report
Interest income on trading securities increased by $7.2 million, or 14%, during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, due to an increase in the volume of interest-bearing trading securities held during the period. This reflects a strategic shift in our investment portfolio in response to improving market conditions, which impacted our reinvestment decisions.
Current report
Net insurance revenue
Current report
For the three months ended June 30, 2026, we had net insurance revenue of $124.2 million, a decrease of $19.6 million, or 14%, as compared to the three months ended June 30, 2025. Effective April 1, 2025, we adopted ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"), using the modified retrospective transition method. In connection with adoption, the caption previously presented as "Insurance underwriting income" was renamed "Net insurance revenue," and three new components — deferred profit liability issuance expense, deferred profit liability remeasurement gain (loss), and deferred profit liability amortization / release.
Current report
The following table sets out information on our net insurance revenue for the periods presented.
Current report
Written insurance premiums decreased by $2.0 million, or 1% to $170.0 million, primarily due to the regulatory cap on commissions to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the period.
Current report
Deferred profit liability issuance expense increased by a $31.9 million, or 457% to $38.9 million, reflecting higher gross premiums collected on Limited Payment long term contracts issued by Freedom Life during the three months ended June 30, 2026. Under LDTI, the excess of gross premium over the net premium required to fund expected future benefits is deferred and reсognized in revenue over the period insurance remains in force.
Current report
Deferred profit liability amortization / release increased by $15.6 million to $11.5 million, which was primarily attributable to higher pension annuity sales.
Current report
For the three months ended June 30, 2026, we had net gain on derivatives of $9.9 million compared to a net gain of $15.5 million for the three months ended June 30, 2025. The decrease was primarily attributable to our subsidiary Freedom Bank KZ, which had a realized gain of $7.6 million for the three months ended June 30, 2026, compared to a realized gain of $17.2 million for the three months ended June 30, 2025. This decrease was partially offset by a net gain of $2.3 million from FSP for the three months ended June 30, 2026, compared to a net loss of $1.6 million for the three months ended June 30, 2025.
Current report
Sales of goods and services
Current report
For the three months ended June 30, 2026, we had sales of goods and services in the amount of $41.5 million compared to the sales of goods and services of $17.2 million for the three months ended June 30, 2025. The increase was primarily driven by our expansion in the telecommunications sector - an increase of the customer base and projects, especially following the acquisition of Freedom Cloud Holding. There was also an increase from Arbuz, mainly due to the increased customer activity and order volume which is a result of the company's expansion strategy.
Current report
For the three months ended June 30, 2026, we had interest expense of $177.6 million, an increase of $64.2 million, or 57%, compared to the three months ended June 30, 2025. The increase was primarily attributable to higher interest expense on customer accounts and deposits and on debt securities issued, partially offset by a decrease in interest expense on margin lending payable, and was almost entirely volume-driven.
Current report
Interest expense on customer accounts and deposits increased by $47.6 million, or 121%, driven by the growth of the average balance of interest-bearing customer liabilities from 1.4 billion during the three months ended June 30, 2025 to 3.0 billion during the three months ended June 30, 2026, reflecting the continued expansion of our deposit base at Freedom Bank KZ. The average rate paid on these liabilities remained substantially unchanged at 12.0%, compared to 11.9% in the prior year period, and accordingly the increase was almost entirely volume-driven.
Current report
Interest expense on margin lending payable decreased by $6.5 million, or 48%, as the average balance of margin lending payable declined 43%, from $810.7 million to $465.1 million, and the average rate decreased from 6.8% to 6.1%.
Current report
Insurance claims and policyholder benefits, net of reinsurance
Current report
For the three months ended June 30, 2026, we had a $66.6 million, or 102%, increase in insurance claims and policyholder benefits, net of reinsurance, as compared to $65.0 million for the three months ended June 30, 2025. The increase was driven primarily by the continued growth of the pension annuity business of our life insurance subsidiary and the resulting expansion of the in-force long-duration contract block. The principal unfavorable drivers were a $25.3 million, or 145%, increase in claims paid to $42.8 million, reflecting higher annuity payments consistent with the growth of the in-force book of business of our life insurance subsidiary, as well as higher claims paid by our general insurance subsidiary, primarily under the compulsory motor third party liability, health insurance and property insurance classes, a $21.0 million, or 80%, increase in interest accretion on the liability for future policy benefits to $47.2 million, reflecting growth of the in-force long-duration block, a $1.4 million unfavorable change in liability remeasurement on long-duration contracts, as the remeasurement gain decreased to $35.3 million from $36.7 million, reflecting experience adjustments arising during the period, and a $4.8 million, or 21%, increase in other insurance net expense to $27.7 million. These were partially offset by a $16.0 million favorable movement in benefit payments, which increased to $18.5 million from $2.5 million in line with the higher annuity payments described above, and by a $9.0 million favorable change in insurance reserves, as the movement shifted from a $3.2 million build in the prior year period to a $5.8 million release for the three months ended June 30, 2026.
Current report
For the three months ended June 30, 2026, we had payroll and bonuses expense of $153.1 million, representing an increase of $60.6 million or 66% compared to $92.5 million for the three months ended June 30, 2025. The increase was primarily driven by workforce expansion through new hires, together with higher salary and bonus expenses compared to the corresponding prior-year period.
Current report
Advertising and sponsorship expense for the three months ended June 30, 2026, was $35.8 million, representing a increase of $11.3 million, or 46%, compared to $24.5 million for the three months ended June 30, 2025. The increase in advertising and sponsorship expense was primarily driven by one of our subsidiaries, which entered into a sponsorship agreement with a professional football club during the three months ended June 30, 2026 that had no equivalent in the prior year period, and by expanded placement of advertising and information materials during the period.
Current report
For the three months ended June 30, 2026, we recognized a provision for expected credit losses of $17.7 million, compared with $4.8 million for the three months ended June 30, 2025. The increase was primarily driven by higher net provisions on purchased retail loans reflecting the migration of a greater portion of these loan portfolios to credit-impaired status as the underlying loans progressed through their contractual terms. The increase also reflected higher provisions on retail loans, auto loans, corporate loans and loans to SME primarily due to a higher estimated probability of default observed during the period and growth of the loan portfolio.
Current report
During the end of the fiscal year ended March 31, 2026, the Company transitioned to the use of internal historical credit data for estimating expected credit losses under ASC 326 for certain loan products, including auto loans, loans to SME, mortgage loans, and purchased retail loans originated by microfinance institutions. The transition was driven by the availability of sufficient internal loss experience for core products and observed inconsistencies in external credit bureau data, which limited the Company’s ability to reliably assess borrower behavior. Management believes that the use of internal statistics better reflects the risk characteristics of the Company’s portfolios and enhances the accuracy of CECL estimates.
Current report
Provisions on insurance receivables also increased, consistent with the growth of our insurance business. In addition, Freedom Global recognized a provision related to margin lending receivables of $0.1 million during the three months ended June 30, 2026, compared with a recovery of provisions of $3.3 million recognized in the prior-year period.
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Removed paragraphs (81)
Previous report
We have two insurance companies in Kazakhstan, a life insurance company, Freedom Life, and a direct insurance carrier, excluding life, health and medical, Freedom Insurance.
Previous report
•Our insurance premiums earned, net of reinsurance for the three months ended December 31, 2025 were $106.9 million, a decrease of $70.5 million or 40%, compared to the three months ended December 31, 2024. The decrease was primarily driven by lower written insurance premiums as a result of the regulatory cap on commissions paid to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the period.
Previous report
•Our fee and commission income for the three months ended December 31, 2025 was $126.1 million, an decrease of $17.3 million, or 12%, compared to the three months ended December 31, 2024. The decrease was primarily driven by lower income from banking services and payment processing, partially offset by higher fee and commission income from brokerage services and agency fees. The decrease in fee and commission from banking services was primarily driven by active use by our customers of a cashback-based loyalty program, with cashback amounts reflected as a reduction of banking service revenue.
Previous report
We had total expense of $534.7 million, for the three months ended December 31, 2025, as compared to $566.3 million for the three months ended December 31, 2024. The decrease was mainly attributable to decreases in fee and commission expense, insurance claims incurred (net of reinsurance), allowance for expected credit losses, advertising and sponsorship expense, and interest expense.
Previous report
Fee and commission income from payment processing decreased to $6.3 million in the three months ended December 31, 2025 from $7.1 million for the three months ended December 31, 2024. The $0.9 million decrease is attributable to a decrease in our average acquiring rate and overall decline in transaction turnover during those periods.
Previous report
Fee and commission income from underwriting and market-making services increased to $5.7 million in the three months ended December 31, 2025 compared to $1.5 million in the prior-year period. The increase was primarily attributable to higher underwriting activity and improved market-making volumes during the period.
Previous report
During the three months ended December 31, 2025, we had a realized gain on trading securities of $52.3 million. The gain primarily reflected our active portfolio management strategy, which mostly attributable to the sale of Kazakhstani corporate debts at favorable market prices following a short-term rally in the local debt market. However, we also incurred an unrealized net loss of $8.8 million during the same period due to the decline in the value of securities positions we held as of December 31, 2025.
Previous report
For the three months ended December 31, 2025, we had interest income of $228.8 million, representing an increase of $4.1 million, or 2%, compared to the three months ended December 31, 2024. The increase was primarily driven by a $24.1 million increase in interest income on loans to customers due to the increase of the loan portfolio. Additionally, interest income on held-to-maturity securities increased by $19.3 million due to the increase of the held-to-maturity portfolio. Interest income on margin loans to customers increased by $12.6 million, or 21% reflecting higher customer activity in margin lending. Increase in interest income was partially offset by decrease in interest income on trading securities.
Previous report
The interest income on securities available-for-sale increased by $3.8 million, or 34%, compared to the three months ended December 31, 2024. Such increase was due to the increase of volume of available-for-sale securities which is attributable to the purchase of debt securities of the Ministry of Finance of the Republic of Kazakhstan. We also experienced a $54.7 million, or 57%, decrease in interest income on trading securities. This decrease was primarily due to a lower volume of trading securities held during the period.
Previous report
Interest income on margin loans to customers includes income accrued on off-balance sheet arrangements. The monthly average balance of these arrangements is not included in the table above. These off-balance sheet arrangements mainly included repurchase agreements of our brokerage customers. Therefore, as of September 30, 2024, the monthly average balance of off-balance sheet arrangements was $688.8 million, with a weighted average interest rate of 8%. Following that date, we had no such off-balance sheet arrangements on which we charge an interest. As of December 31, 2025, the monthly average balance of margin loans to customers was $— million and the weighted average interest rates was 0%.
Previous report
Insurance premiums earned, net of reinsurance
Previous report
For the three months ended December 31, 2025, we had insurance premiums earned, net of reinsurance of $106.9 million, a decrease of $70.5 million, or 40%, compared to the three months ended December 31, 2024. The decrease was primarily attributable to a $73.1 million, or 41%, decrease in written insurance premiums due to the regulatory cap on commissions to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the period. This decrease in income from written insurance premiums was partially offset by a $2.8 million increase in change in unearned premium reserve, net for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024. The following table sets out information on our insurance premiums earned, net of reinsurance for the periods presented.
Previous report
For the three months ended December 31, 2025, we had net gain on derivatives of $26.5 million compared to a net gain of $11.9 million for the three months ended December 31, 2024. The change was primarily attributable to our subsidiary FSP, which had a unrealized net gain of $8.2 million for the three months ended December 31, 2025. There was also an increased volume of swap turnover from Freedom KZ, resulting in a $8.6 million realized gain in the three months ended December 31, 2025, compared to a $1.1 million gain in three months ended December 31, 2024.
Previous report
During the three months ended December 31, 2025, total interest expense amounted to $127.9 million, representing a decrease of $3.2 million, or 2%, compared to $131.1 million for the same period in 2024. The decline was primarily driven by changes in average balances and average interest rates across several funding sources.
Previous report
There was a decrease in interest expense on securities repurchase agreement obligations, driven by a 51% decline in the average balance, from $2.4 billion during the three months ended December 31, 2024 to $1.2 billion during the three months ended December 31, 2025. This decrease primarily reflects the Group's strategic decision to reduce exposure to market risk by liquidating a portion of the trading portfolio, which historically has been primarily funded through repurchase agreements. As a result, the need for repurchase agreements financing declined, leading to both lower average balances and reduced interest expense.
Previous report
Interest expense on customer liabilities increased to $54.3 million in the three months ended December 31, 2025, compared to $27.3 million in the three months ended December 31, 2024. This increase was driven by the growth of customer deposit base reflecting the continued expansion of the Group’s banking segment.
Previous report
Insurance claims incurred, net of reinsurance
Previous report
For the three months ended December 31, 2025, insurance claims incurred, net of reinsurance, decreased by $26.6 million, or 25%, to $77.9 million, as compared to $104.5 million for the three months ended December 31, 2024. The decrease was primarily driven by a $52.0 million, or 70%, reduction in change to in insurance reserves to $22.7 million for the three months ended December 31, 2025, as compared to $74.7 million for the three months ended December 31, 2024.
Previous report
This reduction in reserve activity was largely attributable to the decrease in insurance premiums earned, net of reinsurance, during the period, which resulted in lower insured exposure and a corresponding decline in insurance claims incurred. The decrease did not reflect material changes in underlying loss assumptions or reserving methodologies. This was partially offset by higher claims paid, which increased by $28.3 million, or 261%, to $39.2 million for the three months ended December 31, 2025, as compared to $10.9 million for the three months ended December 31, 2024, and by a $4.9 million, or 26%, increase in other insurance net expense to $24.1 million for the three months ended December 31, 2025, as compared to $19.2 million for the three months ended December 31, 2024. In addition, the reinsurance offset was higher, with reinsurers’ share of claims paid totaling $8.0 million for the three months ended December 31, 2025, as compared to $0.2 million for the three months ended December 31, 2024.
Previous report
For the three months ended December 31, 2025, we had payroll and bonuses expense of $124.1 million, representing an increase of $46.7 million or 60% compared to payroll and bonuses expense of$77.4 million for the three months ended December 31, 2024. The increase in payroll and bonus expenses was driven by the expansion of our workforce through hiring, the establishment of new subsidiaries and acquisitions, as well as higher salary and bonus amounts between the two periods.
Previous report
Advertising and sponsorship expense for the three months ended December 31, 2025, was $36.6 million, representing a decrease of $4.4 million, or 11%, compared to $41.0 million for the three months ended December 31, 2024.
Previous report
The decrease was primarily driven by a $4.2 million reduction in advertising expenditures by Freedom EU, mainly due to the timing of marketing campaigns, as well as a decline in sponsorship expenses compared to the prior fiscal year. The Company continued to support socially significant initiatives through contributions to the Kazakhstan Chess Federation, the Junior Football League of Kazakhstan, and other community programs, reaffirming its commitment to the development of sports, education, and social well-being.
Previous report
We recognized provision for allowance for credit losses in the amount of $6.3 million for the three months ended December 31, 2025, as compared to provision for allowance for credit losses of $30.6 million for the three months ended
Previous report
December 31, 2024. The decrease in the provision during the period was primarily driven by lower provisions relating to purchased retail loans, loans to SME and mortgage loans, reflecting improved macroeconomic conditions and other factors that reduced the estimated probability of default across our loan portfolio, as well as the incorporation of updated forward-looking information.
Previous report
Comparison of the Nine-month Periods Ended December 31, 2025 and 2024
Previous report
Revenue
Previous report
Percentage of total revenue, net.
Previous report
Fee and commission income
Previous report
Fee and commission income for the nine months ended December 31, 2025 amounted to $366.0 million, reflecting a decrease of $14.0 million or 4% compared to $380.0 million for the nine months ended December 31, 2024. This decrease was driven by multiple factors, including the factors discussed below.
Previous report
Fee and commission income from brokerage services was $366.7 million, representing a 15% increase from $319.4 million in the nine months ended December 31, 2024. This growth was primarily due to an increase in the number of retail brokerage customers from 618,000 as of December 31, 2024 to 828,000 as of December 31, 2025. During the nine months ended December 31, 2025 and December 31, 2024, we earned fee and commission income from a market maker customer at our subsidiary Freedom Global of $255.1 million and $213.6 million, representing 70% and 56%, respectively, of our total fee and commission income for that period.
Previous report
Fee and commission income from payment processing decreased to $17.2 million in the nine months ended December 31, 2025 from $21.7 million for the nine months ended December 31, 2024. The $4.4 million decrease is attributable to a decrease in our average acquiring rate and overall decline in transaction turnover during the period.
Previous report
Net gain on trading securities
Previous report
We had a net gain on trading securities of $126.2 million for the nine months ended December 31, 2025, an increase of $20.4 million as compared to a net gain of $105.8 million for the nine months ended December 31, 2024. The following table sets forth information regarding our net gains on trading activities during the nine months ended December 31, 2025 and 2024:
Previous report
During the nine months ended December 31, 2024, we had a realized gain on trading securities of $30.3 million, which is attributable to Kazakhstan sovereign bonds sold during the nine months ended December 31, 2024. Also, we recognized an unrealized net gain of $75.5 million during the same period due to the increase in the value of securities positions we held as of December 31, 2024. The majority of the unrealized net gain is attributable to Kazakhstan sovereign bonds, as a consequence of market price increase.
Previous report
Interest income
Previous report
For the nine months ended December 31, 2025, we had interest income of $639.0 million, representing a decrease of $22.0 million, or 3%, compared to the nine months ended December 31, 2024. The decrease was primarily driven by a $176.6 million, or 57%, decrease in interest income on trading securities. This decrease was primarily due to a lower volume of trading securities held during the period.
Previous report
This decline was partially offset by increase in other streams of interest income. Specifically, interest income on loans to customers increased by $50.7 million, or 33%, due to the increase in loan portfolio. Similarly, interest income on margin loans to customers rose by $53.8 million, or 35%, reflecting increased customer activity in margin lending. The interest income on held-to-maturity has increased by $39.8 million due to expansion of the held-to-maturity portfolio.
Previous report
Additionally, the interest income on securities available-for-sale increased by $13.6 million, or 48%, compared to the nine months ended December 31, 2024. Such increase was due to the increase of volume of available-for-sale securities which is attributable to the purchase of debt securities of the Ministry of Finance of the Republic of Kazakhstan.
Previous report
Interest income on margin loans to customers includes income accrued on off-balance sheet arrangements. The monthly average balance of these arrangements is not included in the table above. These off-balance sheet arrangements mainly included repurchase agreements of our brokerage customers. As of September 30, 2024, the monthly average balance of off-balance sheet arrangements was $688.8 million, with a weighted average interest rate of 8%. Following that date, we had no such off-balance sheet arrangements on which we charge an interest. Accordingly, as of December 31, 2025, the monthly average balance of margin loans to customers was $— million and the weighted average interest rates was 0%.
Previous report
Insurance premiums earned, net of reinsurance
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Previous wording
This quarterly report on Form 10-Q and any related discussions contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which involve substantial risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "intend," "likely," "may," "might," "mission," "plan," "potential," "predict," "project," "should," "strategy," "will," "would," and other similar expressions and their negatives. Forward-looking statements generally relate to future events or our future financial or operating performance. All statements, other than statements of historical fact, included herein in this quarterly report on Form 10-Q are forward-looking statements within the meaning of Section 21E of the Exchange Act, including, without limitation, statements regarding aims, goals, and plans and objectives, including business mission and strategy, digital fintech ecosystem development, features and performance of our products and services, including Tradernet, Freedom SuperApp and Freedom Business mobile applications, our plans for expansion into telecommunication, media and other markets, expected capital expenditures and plans to finance such capital expenditures, the expected impact of changes in tax laws, credit loss exposure, credit ratings and outlook, the expected impact of new accounting pronouncements, prospects related to the Kazakhstan Sovereign AI Hub development, compliance, information security, acquisitions, payment of cash dividends on our common stock, treasury policy, statements with respect to legal proceedings, our plans for expanding our banking segment, and other non-historical statement.
Current wording
This quarterly report on Form 10-Q contains, and any related discussions may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, forward-looking statements can be identified by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "future," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "should," "strategy," "will," "would," and other similar expressions and their negatives. All statements, other than statements of historical fact, included herein and in the documents incorporated by reference in this quarterly report on Form 10-Q are forward-looking statements, including statements regarding our aims, goals, strategic goals, priorities, plans and objectives, plans to obtain licenses; key prospective markets; business strategy, including our strategy for expansion of business and entry into new business areas, such as the telecommunications, media and health sectors in Kazakhstan; our plans with respect to Freedom Media; the development of our digital fintech ecosystem; our products and services and expected operations, including Freedom SuperApp; expected capital expenditures and plans to finance such capital expenditures; our artificial intelligence ("AI") data center development project; the impact of new accounting pronouncements; acquisitions and business expansions in various regions or jurisdictions; treasury policy; regulatory investigations, including their preliminary determinations and potential outcomes, the potential outcome of legal proceedings; and other non-historical statements.
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Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, many of which may be beyond our control. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and actual results could differ materially as a result of various factors. The following are some but not all of the factors that could cause actual results or events to differ materially from anticipated results or events:
Current wording
Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, many of which may be beyond our control. Actual results could differ materially as a result of various factors. The following are some but not all of the factors that could cause actual results or events to differ materially from anticipated results or events:
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•economic, political, and regulatory conditions in the regions where we operate or in which we have customers;
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•economic and political conditions in the regions where we operate or in which we have customers;
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•the impact of regional armed conflicts, and any possible escalation of such conflicts or contagion to neighboring countries or regions;
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•the impact of war involving Iran and corresponding political and economic instability and armed conflict in the Middle East, the India-Pakistan conflict, and any possible escalation of such conflicts or contagion to neighboring countries or regions;
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•economic sanctions and countersanctions including those that limit movement of funds, restrict access to capital markets, block access to third party technologies and IT services or curtail our ability to service existing or potential new customers;
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•economic sanctions that limit movement of funds, restrict access to capital markets, block access to third party technologies and IT services or curtail our ability to service existing or potential new customers;
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•the impact of legal and regulatory actions, investigations and disputes;
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•the outcome and impact of legal and regulatory actions, proceedings, investigations and disputes;
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•the policies and actions of regulatory authorities in the jurisdictions in which we have operations, as well as the degree and pace of regulatory changes and new government initiatives generally;
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•the policies and actions of regulatory authorities in the jurisdictions in which we have operations, including changes in U.S. or other countries' trade policies, the imposition of tariffs and retaliatory tariffs, as well as the degree and pace of regulatory changes and new government initiatives generally;
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•the impact of rapid technological change, including incorporation of artificial intelligence (AI) technologies into products and processes;
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•the impact of rapid technological change, including incorporation of AI technologies into products and processes;
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•market risks and fluctuations affecting the value of our proprietary investments;
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•market risks affecting the value of our proprietary investments;
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You should not place undue reliance on forward-looking statements. Forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management and apply only as of the date of this quarterly report or the respective dates of the documents from which they incorporate by reference. Neither we nor any other person assumes any responsibility for the accuracy or completeness of forward-looking statements. Further, except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, made by us or on our behalf, are also expressly qualified by these cautionary statements.
Current wording
You should not place undue reliance on forward-looking statements. Forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management and are made only as of the date of this report or the respective dates of the documents from which they are incorporated by reference. Except to the extent required by law, we undertake no obligations to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, made by us or on our behalf, are also expressly qualified by these cautionary statements.
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Freedom Holding Corp. is organized under the laws of the State of Nevada and acts as a holding company for all of our subsidiaries. Our subsidiaries engage in a broad range of activities including securities brokerage, securities dealing for customers and for our own account, market making activities, investment research, investment counseling, retail and commercial banking, and insurance products. We also own several ancillary businesses and lifestyle solutions, which complement our core financial services businesses, including payment and information processing services, entertainment and travel ticketing services, e-commerce business, and telecommunications and media businesses in Kazakhstan that are in a developmental stage.
Current wording
Freedom Holding Corp. ("FRHC") is organized under the laws of the State of Nevada and acts as a holding company for all of our subsidiaries. Our subsidiaries engage in a broad range of activities including securities brokerage, securities dealing for customers and for our own account, market making activities, investment research, investment counseling, retail and commercial banking, and insurance products. We also own several ancillary businesses and lifestyle solutions, which complement our core financial services businesses, including payment and information processing services, entertainment and travel ticketing services, e-commerce business, cloud services, and telecommunications as well as media businesses in Kazakhstan that are in a developmental stage.
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The main market of our operations is Kazakhstan. Our operating subsidiaries are located in Kazakhstan, Cyprus, the United States, the United Kingdom, Armenia, the United Arab Emirates, Uzbekistan, Kyrgyzstan, Tajikistan, Azerbaijan, Turkey, Bulgaria, Germany, Greece, Lithuania, The Netherlands, Spain and we also have a presence in Austria, France, Italy, and Poland. We divested our Russian subsidiaries in February 2023. Our subsidiaries in the United States include an SEC- and FINRA-registered broker dealer. As of December 31, 2025, we had 11,311 employees and 233 offices (of which 36 offered brokerage services, 61 offered insurance services, 39 offered banking services and 97 offered other financial and non-financial services).
Current wording
The main market of our operations is Kazakhstan. Our operating subsidiaries are located in Kazakhstan, Cyprus, the United States, the United Kingdom, Armenia, the United Arab Emirates, Japan, Uzbekistan, Kyrgyzstan, Georgia, Tajikistan, Azerbaijan, Türkiye, Bulgaria, Germany, Greece, Lithuania, The Netherlands, Portugal, Spain, Austria, France and Poland and the Group also has representative office in Italy. Our subsidiaries in the United States include an SEC- and FINRA-registered broker dealer. As of June 30, 2026, we had 12,100 full-time employees and 264 offices (of which 34 offered brokerage services, 72 offered insurance services, 40 offered banking services and 118 offered other financial and non-financial services).
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During the first quarter of fiscal 2026, the Company's common stock was included in the Russell 3000® Index.
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FRHC's common stock is included in the Russell 3000® Index.
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Our Banking segment consists of the operations of Freedom Bank KZ and Freedom Bank TJ.
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Our Banking segment primarily consists of the operations of Freedom Bank KZ and Freedom Bank TJ.
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Freedom Bank KZ is a pioneer in digital retail and commercial banking services in Kazakhstan, offering deposits, multi‑currency payment cards, consumer and SME loans, payment and acquiring solutions. The bank extends our capital market heritage into everyday finance, providing the funding, payments and credit backbone of the wider Freedom ecosystem. Our Freedom Bank TJ obtained its banking license on October 15, 2024 and continues the phased rollout of its operations. We are also considering plans for expanding our banking segment to other jurisdictions which is contingent upon, among other factors, prevailing market conditions and obtaining the required regulatory approvals.
Current wording
Freedom Bank KZ is a pioneer in digital retail and commercial banking services in Kazakhstan, offering deposits, multi‑currency payment cards, consumer and SME loans, payment and acquiring solutions. The bank extends our capital market heritage into everyday finance, providing the funding, payments and credit backbone of the wider Freedom ecosystem.
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As of December 31, 2025, Freedom Bank KZ's assets increased by 13%. In particular, trading portfolio decreased by 13%, held-to-maturity portfolio increased by 544%, loan portfolio increased by 23%, deposit portfolio increased by 30%, in each case in comparison with March 31, 2025. The increase in the loan and deposit portfolios reflects continued customer demand and growth in our banking services, while the decline in trading portfolio aligns with our strategic focus on core banking operations.
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As of June 30, 2026, Banking segment combined assets increased by 12% to $6,026.1 million, trading portfolio increased by 31% to $2,266.8 million, held-to-maturity portfolio increased by 21% to $521.5 million, loan portfolio decreased by 2% to $1,999.0 million, deposit portfolio increased by 20% to $3,033.4 million, in comparison with March 31, 2026. The increase in the deposit, trading and held-to-maturity portfolios reflects continued customer demand, growth in our banking services, and increased investment activity, while the decline in the loan portfolio was primarily driven by loan repayments during the period.
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We have 39 office locations in Kazakhstan and Tajikistan that provide banking services to our customers. As of December 31, 2025, we had 3,764 employees in our Banking segment, all of which were full-time employees.
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We have 40 office locations in Kazakhstan, Tajikistan and Georgia. As of June 30, 2026, we had 3,847 employees in our Banking segment, all of which were full-time employees.
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Freedom Life provides a range of health and life insurance products to individuals and businesses, including life insurance, health insurance, annuity insurance, accident insurance, obligatory worker emergency insurance, travel insurance and reinsurance. As of December 31, 2025, Freedom Life had 329,167 active contracts, as compared to 1,038,516 active contracts as of March 31, 2025. "Active contracts" refers to insurance policies that are currently in force, meaning they have been issued and are not expired, canceled, or otherwise inactive as of the reporting date. The decrease in active contracts was due to the newly introduced regulatory cap on commissions to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the first quarter of fiscal 2026. As of December 31, 2025, Freedom Life had total assets of approximately $597.5 million and total liabilities of approximately $462.5 million, as compared to total assets of approximately $554 million and total liabilities of approximately $465.9 million as of March 31, 2025.
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•Freedom Life. Freedom Life provides a range of health and life insurance products to individuals and businesses, including life insurance, health insurance, annuity insurance, accident insurance, obligatory worker emergency insurance, travel insurance and reinsurance. As of June 30, 2026, Freedom Life had 291,543 customers and 325,407 active contracts, as compared to 279,615 customers and 319,538 active contracts as of March 31, 2026. "Active contracts" refers to insurance policies that are currently in force, meaning they have been issued and are not expired, canceled, or otherwise inactive as of the reporting date. As of June 30, 2026, Freedom Life had total assets of approximately $784.3 million and total liabilities of approximately $681.7 million, as compared to total assets of approximately $665.5 million and total liabilities of approximately $546.5 million as of March 31, 2026.
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Freedom Insurance operates in the "general insurance" industry and is the leader in online insurance in Kazakhstan offering various general insurance products in property (including automobile), casualty, civil liability, personal insurance and reinsurance. As of December 31, 2025, Freedom Insurance had 1,383,501 active contracts, as compared to 824,838 active contracts as of March 31, 2025. As of December 31, 2025, Freedom Insurance had total assets of approximately $222.6 million and total liabilities of approximately $167.0 million, as compared to total assets of approximately $157.4 million and total liabilities of approximately $105.5 million as of March 31, 2025.
Current wording
•Freedom Insurance. Freedom Insurance operates in the "general insurance" industry and is the leader in online insurance in Kazakhstan offering various general insurance products in property (including automobile), casualty, civil liability, personal insurance and reinsurance. As of June 30, 2026, Freedom Insurance had 632,667 customers and 1,032,789 active contracts, as compared to 837,275 customers and 1,299,046 active contracts as of March 31, 2026. The decrease was mainly due to the expiration of Motor Third Party Liability insurance contracts. As of June 30, 2026, Freedom Insurance had total assets of approximately $264.9 million and total liabilities of approximately $165.6 million, as compared to total assets of approximately $226.7 million and total liabilities of approximately $133.6 million as of March 31, 2026.
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As of December 31, 2025, we had 61 offices and 1,087 employees, including 1,069 full-time employees and 18 part-time employees, providing consumer life and general insurance services in Kazakhstan.
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As of June 30, 2026, we had 72 offices and 1,289 employees, including 1,267 full-time employees and 22 part-time employees, providing consumer life and general insurance services in Kazakhstan.
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As of December 31, 2025, in our Brokerage business segment we had 36 offices that provided brokerage and financial services, investment consulting and education, including offices in Kazakhstan, Europe, Armenia, United States, Uzbekistan, and Kyrgyzstan. On December 29, 2025, we received a brokerage license in the UAE issued by the Abu Dhabi Global Market Financial Services Regulatory Authority. In addition, following receipt of a principal approval by the Turkey's financial regulatory and supervisory authority granted on January 9, 2025, we are in the process of obtaining a license to provide brokerage services in Turkey. We provide a comprehensive range of securities brokerage services to individuals, businesses and financial institutions. Depending on the region, our brokerage services may include securities trading and margin lending. Our investment banking business, which includes underwriting and market making activities, is carried out by professionals in Kazakhstan, Uzbekistan and the United States who provide strategic advisory services and capital markets products.
Current wording
As of June 30, 2026, in our Brokerage business segment we had 34 offices that provided brokerage and financial services, investment consulting and education, including offices in Kazakhstan, Europe, Armenia, United States, Uzbekistan, UAE and Kyrgyzstan. In December 2025, our UAE subsidiary Freedom Broker Global Markets Ltd. received a brokerage license in the UAE issued by the Abu Dhabi Global Market Financial Services Regulatory Authority. In addition, we are in the process of seeking to obtain a license to provide brokerage services in Türkiye based on the principal approval granted by the financial regulatory and supervisory authority of Türkiye on January 9, 2025.
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Freedom KZ and Freedom Global are professional participants on the KASE and the AIX. Our Uzbekistan entity Foreign Enterprise LLC Freedom Finance is a professional participant on the Republican Stock Exchange of Tashkent, the Uzbek Republican Currency Exchange and International Trading System Limited. Freedom AR is a professional participant on the Armenia Stock Exchange. Our Kyrgyzstan entity Freedom Broker LLC is a professional participant on the Kyrgyz Stock Exchange.
Current wording
Freedom KZ and Freedom Finance Global PLC ("Freedom Global") are professional participants on the Kazakhstan Stock Exchange ("KASE") and the Astana International Exchange ("AIX"). Foreign Enterprise Freedom Finance LLC ("Freedom UZ") is a professional participant on the Republican Stock Exchange of Tashkent ("UZSE"), the Uzbek Republican Currency Exchange ("UZCE") and International Trading System Limited ("ITS"). FCM is a professional participant on the New York Stock Exchange ("NYSE") and Nasdaq Stock Exchange ("Nasdaq"). Freedom
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Freedom EU oversees our European region operations (including Austria, Bulgaria, Cyprus, France, Germany, Greece, Italy, The Netherlands, Poland, Lithuania, Spain, and the United Kingdom).Through Freedom EU, we provide transaction processing and intermediary services to our regional customers and to institutional customers that seek access to the securities markets in the United States and Europe. All trading of United States and European exchange traded and over-the-counter securities by Freedom group securities brokerage firms, excluding FCM, are also routed to and executed through Freedom EU.
Current wording
Freedom Finance Europe Limited ("Freedom EU") oversees our European region operations, including Austria, Bulgaria, Cyprus, France, Germany, Greece, Italy, Lithuania, The Netherlands, Poland, Portugal and Spain. Through Freedom EU, we provide transaction processing and intermediary services to our regional customers and to institutional customers that may seek access to the securities markets in the United States and Europe. All trading of United States and European exchange traded and over-the-counter ("OTC") securities by all Freedom group securities brokerage firms, excluding FCM, are also routed to and executed through Freedom EU.
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FCM is a registered agency-only execution broker-dealer on the floor of the NYSE. FCM is a member of Nasdaq, NYSE and FINRA, as well as Securities Investor Protection Corporation (SIPC) insured. FCM provides a full range of broker-dealer services, including research, sales and trading services for institutional accounts, investment banking services and independent investment research through research reports, recommendations and investment ideas to assist customers in making informed decisions.
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We entered the U.S. market in December 2020 with the acquisition of FCM, a New York corporation that is a registered agency-only execution broker-dealer on the floor of the NYSE. FCM is a member of Nasdaq, NYSE & FINRA, as well as SIPC insured. FCM provides a full range of broker-dealer services, including, research sales and trading services for institutional accounts, investment banking services such as M&A, underwriting and capital markets advisory services and a research department that provides independent and objective investment research through research reports, recommendations and investment ideas to assist customers in making informed decisions.
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As of December 31, 2025, we had 1,953 employees in our Brokerage segment, including 1,650 full-time employees and 303 part-time employees.
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As of June 30, 2026, we had 2,076 employees in our Brokerage segment, including 1,895 full-time employees and 181 part-time employees.
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As of December 31, 2025, in our Other segment we had 97 offices and 4,507 employees, including 4,264 full-time employees and 243 part-time employees, providing a range of services including payment processing, entertainment ticketing sales, online air and railway ticket purchase aggregation and an online retail trade and e-commerce services. In the recent years, we have also established subsidiaries in Kazakhstan and UAE with a view to developing a telecommunications business and a media business, each of which is in the developmental stage. In our Other segment we also conduct proprietary securities trading activities, which are mainly conducted by FRHC. Revenue in this segment is mainly derived from online retail trade and e-commerce services, provision of payment processing services, retail online ticket sales and online aggregation of purchasing air and railway tickets.
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As of June 30, 2026, in our Other segment we had 118 offices and 5,367 employees, including 5,091 full-time employees and 276 part-time employees, providing a range of services including payment processing, entertainment ticketing sales, online air and railway ticket purchase aggregation and an online retail trade and e-commerce services. In the recent years, we have also established subsidiaries in Kazakhstan and UAE with a view to developing a telecommunications business and a media business, each of which is in the early stage of development. In our Other segment we also conduct proprietary securities trading activities, which are mainly conducted by FRHC. Revenue in this segment is mainly derived from online retail trade and e-commerce services, provision of payment processing services, retail online ticket sales and online aggregation of purchasing air and railway tickets.
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We operate as a single ecosystem that delivers multicurrency banking, payments, credit, brokerage, insurance, merchant acquiring and selected lifestyle services through one login and interface. Each service is built to interoperate with the others - balances transfer instantly, loyalty rewards accrue across products and customer data is captured only once, so the combined offering is more useful to customers and more efficient for us.
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We operate as a single ecosystem that delivers financial services and selected lifestyle services through one login and interface. Each service is built to interoperate with the others - balances transfer instantly, loyalty rewards accrue across products and customer data is captured only once, so the combined offering is more useful to customers and more efficient for us.
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Our operating entities share customer transaction flows, interactions and profile updates to big data that is also enriched by our integration with government services. Predictive AI models built on this consolidated record set help us personalize our products and services reaching the combined effect of smarter targeting, faster fulfillment and fewer manual touch‑points which lowers acquisition cost and raises both customer lifetime value and retention.
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Our operating entities share customer transaction flows, interactions and profile updates to big data. Predictive AI models built on this consolidated record set personalized products and services, adjust credit limits, rank cross-selling offers and screen payments for fraud or sanctions within milliseconds, allowing low‑risk traffic to settle automatically while only exceptional cases move to manual review. Integration with government services enriches the dataset with verified third‑party information, so loan and account forms are pre‑filled and collateral ownership confirmed without paper, reducing onboarding from days to minutes. The combined effect - smarter targeting, faster fulfillment and fewer manual touch‑points lowers acquisition cost and raises both customer lifetime value and retention.
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The Freedom SuperApp ("Freedom SuperApp" or "SuperApp") is the Group’s front end for all retail services. A single sign‑on process and biometric authentication grant access to multi‑currency accounts, credit, investment, card management and lifestyle commerce. All modules are built on a micro‑services architecture with open Application Programming Interfaces (APIs) to nearly one hundred government and commercial data sources.
Current wording
The Freedom SuperApp ("Freedom SuperApp" or "SuperApp") is the Group's front end for all retail banking, payment, insurance and lifestyle services. A single sign‑on process and biometric authentication grant access to multi‑currency accounts, credit, card management and lifestyle commerce. All modules are built on a micro‑services architecture with APIs (Application Programming Interface) to nearly one hundred government and commercial data sources.
Previous wording
The SuperApp supports accounts and payments in KZT, multiple foreign currencies and Freedom Currency, an exchange‑traded note linked to the performance of FRHC common stock. Our app provides our customers with a loyalty and referral program, access to a lifestyle marketplace including ticketing (cinema, concerts via Ticketon), travel bookings (Freedom Travel), media content (Freedom Media), grocery delivery (Arbuz) and on‑demand home services (Naimi), auto accessories and tires (Freedom Drive), mobile phones and electronic devices (Freedom Mobile), e-SIM cards, and a digital pharmacy. The app also integrates customer wealth information into a real‑time net‑worth view generating secured‑loan offers where collateral is available. In addition, it enables customers to automatically complete and file certain individual tax declarations required by Kazakhstan law. All our core lending lines operate on the same end‑to‑end digital rail inside the SuperApp, enabling our eligible customers to obtain digital mortgage loans and consumer digital auto loans in a streamlined, automated way.
Current wording
The SuperApp supports accounts and payments in KZT, multiple foreign currencies and Freedom Currency, an exchange‑traded note linked to the performance of FRHC common stock. Our app provides our customers with a loyalty and referral program, access to a lifestyle marketplace with embedded verticals including ticketing (cinema, concerts via Freedom Ticketon), travel bookings (Freedom Travel), streaming services (Freedom Media), grocery delivery (Arbuz), on‑demand home services (Naimi), news feed (Super Journal), health services (My Health), auto accessories and tires (Freedom Drive), mobile phones and electronic devices (Freedom Mobile), travel e‑SIM, a digital pharmacy, motor accident reporting and Europrotocol‑based insurance claim filing without police involvement (DTP.kz), a social‑commerce feed where users publish purchases to earn likes and points that drive enhanced cashback (Freedom Lenta), digital issuance and servicing of voluntary health, motor and financial‑protection insurance policies, and a government e‑services gateway enabling online document processing, tax and fine payments and submission of applications to state agencies. Customers elect to pay in cash, by installment credit or with accumulated loyalty rewards. The app also integrates customer wealth information into a real‑time net‑worth view generating secured‑loan offers where collateral is available. In addition, it enables customers to automatically complete and file certain individual tax declarations required by Kazakhstan law. All our core lending lines operate on the same end‑to‑end digital rail inside the SuperApp, enabling our eligible customers to obtain digital mortgage loans and consumer digital auto loans in a streamlined, automated way.
Previous wording
Our Freedom Business mobile application is a full-featured mobile bank designed for individual entrepreneurs. It provides customers with 24/7 mobile access to financial management tools, including access to current accounts, balance monitoring, account detail viewing, and statement downloads. The app enables customers to perform a full range of transactions, such as payments to counterparties, transfers to the state budget, internal account transfers, and payroll management, including direct transfers to employees. The app also includes advanced acquiring functionalities, such as online ordering of point-of-sale (POS) terminals and corporate cards, accepting payments via QR code, and monitoring sales analytics. In addition, Freedom Business integrates various value-added services, including the AirShop partner marketplace builder which enables customers to launch an online store within minutes, an AI assistant, access to credit products, and a cashback loyalty program.
Current wording
Our Freedom Business mobile application is a full-featured mobile bank designed for individual entrepreneurs. It provides customers with 24/7 mobile access to financial management tools, including access to current accounts, balance monitoring, account detail viewing, and statement downloads. The app enables customers to perform a full range of transactions, such as payments to counterparties, transfers to the state budget, internal account transfers, and payroll management, including direct transfers to employees. The application also includes advanced acquiring functionalities, such as online ordering of POS terminals and corporate cards, accepting payments via QR code, and monitoring sales analytics. In addition, Freedom Business integrates various value-added services, including the AirShop partner marketplace builder enabling customers to launch an online store within minutes, an AI assistant, access to credit products, and a cashback loyalty program.
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In alignment with our digital fintech ecosystem strategy, we are expanding our business by entering the telecommunications market in Kazakhstan and regional media industry in Central Asia. We are seeking to establish a new independent telecommunications operator in Kazakhstan to provide a diverse range of telecommunications and telecommunications-related services to customers which may include, among others, high-quality internet connectivity, fixed wireless access (FWA), WiFi access, over-the-top (OTT) streaming, internet protocol television (IPTV), traffic transit for operators and cloud solutions, subject to obtaining applicable licenses, acquisitions of telecom assets or entering into partnerships where required. Our new telecommunications business in Kazakhstan is operated by Freedom Telecom, a wholly-owned subsidiary of Freedom Holding Corp., incorporated under the laws of the AIFC. As Freedom Telecom represents a new line of business, its strategy and budget are evolving dynamically in response to internal developments and external market factors, which may result in material adjustments. Our telecom services will be offered as a separate product and in a bundle with our other digital products and services and will expand the ecosystem’s reach to areas where traditional banking channels are less efficient. Through entities incorporated under the AIFC laws, we also operate Freedom Cloud that was structured during the third quarter of fiscal 2026 as a standalone business line. Freedom Cloud is an essential component of our digital ecosystem that delivers advanced cloud infrastructure and related services both within the Group and to external clients, including major enterprises and government entities.
Current wording
In alignment with our digital fintech ecosystem strategy, we are seeking to expand by developing our telecommunications and cloud services in Kazakhstan and a regional media business in Central Asia. We are seeking to establish a new independent telecommunications operator in Kazakhstan to provide a diverse range of telecommunications and telecommunications-related services to customers which may include, among others, high-quality internet connectivity, fixed wireless access (FWA), WiFi access, over-the-top (OTT) streaming, internet protocol television (IPTV), traffic transit for operators and cloud solutions, subject to obtaining applicable licenses, acquisitions of telecom assets or entering into partnerships where required. Our new telecommunications business is operated by Freedom Telecom, a wholly-owned subsidiary of FRHC incorporated under the laws of the AIFC. Freedom Telecom represents a new line of business. Its strategy and budget are evolving dynamically in response to internal developments and external market factors, which may result in material adjustments to this strategy and our plan to develop this business. Our plan is that our telecom services will be offered as a separate product and as part of bundle offerings with our other digital products and services and will expand the ecosystem’s reach to areas where traditional banking channels are less efficient. Management expects the FWA grid to evolve into the backbone for a future mobile operator, providing additional distribution capacity for our digital services and generating new data streams that feed our predictive AI models. The combined effect should widen our addressable market, deepen engagement across product lines and further reduce the unit cost of serving each customer. Through entities incorporated under AIFC laws, we also operate Freedom Cloud which is structured as a standalone business line. Freedom Cloud is an essential component of our digital ecosystem that delivers advanced cloud infrastructure and related services both within the Group and to external clients, including major enterprises and government entities.
Previous wording
In November 2025, the Company entered into a non-binding arrangement with the Kazakhstan Ministry of Artificial Intelligence and Digital Development providing for potential collaboration on the development of a $2 billion Sovereign AI Hub in Kazakhstan. The proposed AI Hub is to utilize NVIDIA’s latest computing architecture and be located at a site in Kazakhstan with 100 MW of available power, with the Company acting as the principal financing and implementation partner. In addition to strengthening Kazakhstan’s position in the global AI landscape, the initiative may enhance the Company’s competitiveness in AI innovation and support its long-term growth strategy.
Current wording
In November 2025, the Company entered into a non-binding arrangement with the Kazakhstan Ministry of Artificial Intelligence and Digital Development providing for potential collaboration on the development of a $2 billion Sovereign AI Hub in Kazakhstan. The proposed AI Hub is to utilize NVIDIA’s latest computing architecture and be located at a site in Kazakhstan with 100 MW of available power, with the Company acting as the principal financing and implementation partner. The development of this project will require significant financing. In addition to strengthening Kazakhstan’s position in the global AI landscape, the initiative may enhance the Company’s competitiveness in AI innovation and support its long-term growth strategy.
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On June 26, 2025, S&P Global Ratings ("S&P") revised its outlook to positive from stable and affirmed its 'B+/B' long- and short-term issuer credit ratings on Freedom KZ, Freedom EU, Freedom Global, and Freedom Bank KZ. S&P affirmed 'B-' long-term rating on Freedom Holding Corp. and maintained the stable outlook. The ratings of Freedom KZ and Freedom Bank KZ on the national scale were increased from "kzBBВ" to "kzBBВ+". The positive outlook on Group's financial operating companies reflects substantial achievements in establishing consolidated risk management and compliance and strengthening these functions in its financial subsidiaries.
Current wording
On June 24, 2026, S&P Global Ratings raised its long-term issuer credit ratings to 'BB-' from 'B+' on Freedom KZ, Freedom EU, Freedom Global, and Freedom Bank KZ. The outlooks on these entities are stable. The ratings of Freedom KZ and Freedom Bank KZ on the national scale were increased from "kzBBВ+" to "kzA-". The upgrade reflects Freedom Group's three-year track record of consolidated risk management and compliance and strengthening of these functions at its financial subsidiaries.
Previous wording
Our operations have been, and may continue to be, affected by certain key factors as well as certain historical events. The key factors affecting our business and the results of operations include, in particular: market and economic conditions, expansion of our digital ecosystem, acquisitions and expansion into new business areas and markets, our transactions with related parties, our arrangements with market maker customers, and governmental policies. For additional information on these factors and other risks that may affect our financial condition and results of operations, see
Current wording
Our operations have been, and may continue to be, affected by certain key factors as well as certain historical events. The key factors affecting our business and the results of operations include, in particular: market and economic conditions, expansion of our digital ecosystem, acquisitions and expansion into new business areas and markets, our transactions with related parties, our arrangements with market maker customers, and governmental policies. For additional information on these factors and other risks that may affect our financial condition and results of operations, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II Item 7 of the 2026 Form 10-K and "Risk Factors" in Part I, Item 1A, of the 2026 Form 10-K.
Previous wording
We had total revenues, net of $628.6 million for the three months ended December 31, 2025, as compared to $664.6 million for the three months ended December 31, 2024. The decrease between the two quarters was primarily attributable to the following:
Current wording
We had total revenues, net of $732.5 million for the three months ended June 30, 2026, as compared to $524.0 million for the three months ended June 30, 2025. The increase between the two quarters was primarily attributable to the following:
Previous wording
•We had a net gain on trading securities of $43.5 million for the three months ended December 31, 2025, as compared to a net gain on trading securities of $89.6 million for the three months ended December 31, 2024. The change was attributable mainly due to the decline in the value of securities positions we held as of December 31, 2025, partially offset by gains from the sale of Kazakhstan sovereign bonds during the three months ended December 31, 2025.
Current wording
•We had a net gain on trading securities of $79.8 million for the three months ended June 30, 2026, compared to a net gain on trading securities of $45.6 million for the three months ended June 30, 2025. The change was attributable mainly due to an increase in the value of securities positions as of June 30, 2026, and gains from the sale of Kazakhstan sovereign and corporate debt securities during the three months ended June 30, 2026.
Previous wording
We had net income of $76.2 million for the three months ended December 31, 2025, as compared to $78.1 million for the three months ended December 31, 2024. Our Brokerage, Banking, Insurance, and Other segments contributed net income of $81.0 million, net income of $79.6 million, net income of $23.6 million and net loss of $108.0 million, respectively, to our total net income for the three months ended December 31, 2025.
Current wording
We had net income of $31.7 million for the three months ended June 30, 2026, as compared to $37.4 million for the three months ended June 30, 2025. Our Brokerage, Banking, Insurance, and Other segments contributed net income of $133.6 million, net income of $3.7 million, net loss of $19.2 million and net loss of $86.5 million, respectively, to our total net income for the three months ended June 30, 2026.
Previous wording
Our total assets increased to $12.4 billion as of December 31, 2025 from $9.9 billion as of March 31, 2025.
Current wording
Our total assets increased to $14.0 billion as of June 30, 2026 from $13.2 billion as of March 31, 2026.
Previous wording
The operating results for any period are not necessarily indicative of the results that may be expected for any future period.
Current wording
The operating results for any period are not necessarily indicative of the results for any future period.
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Current report — wording carried from elsewhere
Finance Armenia LLC ("Freedom AR") is a professional participant on the Armenia Stock Exchange ("AMX"). Freedom Broker LLC is a professional participant on the Kyrgyz Stock Exchange ("KSE").
Current report — wording carried from elsewhere
During the fiscal year ended March 31, 2025, Freedom Bank KZ established three Kazakhstan law bond programs: (i) a program of up to 100 billion Kazakhstani tenge, of which 7-year bonds for 50 billion Kazakhstani tenge which have been listed on the KASE, with a floating interest rate to be determined following the first trades, (ii) a program of up to 200 billion Kazakhstani tenge, of which 2-year bonds for 36 billion Kazakhstani tenge have been listed on the
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Previous report — wording carried elsewhere
•trade policies of the U.S. and other countries trade policies, including the imposition of tariffs and retaliatory tariffs;
Previous report — wording carried elsewhere
During fiscal 2024, we established Freedom Media as a subsidiary of Freedom Telecom that is intended to become a major Kazakhstan media platform offering tailored streaming services to the Kazakhstan market and, potentially, the broader Central Asian region. Freedom Media is built within the Freedom ecosystem to provide unlimited access to a diverse collection of TV shows, movies, documentaries, and an exclusive content of multiple genres that is produced in-house.
Previous report — wording carried elsewhere
"Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II Item 7 of the 2025 Form 10-K and "Risk Factors" in Part I, Item 1A, of the 2025 Form 10-K.
Previous report — wording carried elsewhere
Interest expense on debt securities issued increased to $24.5 million in the three months ended December 31, 2025, compared to $10.0 million in the three months ended December 31, 2024. This increase was primarily driven by the placement of several new debt securities between the two periods.
Previous report — wording carried elsewhere
The following comparison of our financial results for the nine-month periods ended December 31, 2025 and 2024 is not necessarily indicative of future results.
Previous report — wording carried elsewhere
The following table sets out information on our total revenue, net for the periods presented.
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The following table sets forth information regarding our fee and commission income for the periods presented.
Previous report — wording carried elsewhere
Fee and commission income from banking services decreased by $60.1 million during the nine months ended December 31, 2025 from $12.7 million for the nine months ended December 31, 2024. The decrease was primarily driven by active use by our customers of a cashback-based loyalty program, with cashback amounts reflected as a reduction of banking service revenue. As part of our strategic approach, we do not prioritize revenue generation from banking service commissions. Instead, the loyalty program is leveraged to effectively reduce transaction costs for customers by supporting our customer base expansion and increasing engagement across the ecosystem.
Previous report — wording carried elsewhere
The following tables set forth information regarding our revenue from interest income for the periods presented.
Previous report — wording carried elsewhere
The following table provides a summary of the monthly average balances and average interest rates for the major categories of our interest-earning assets for the nine months ended December 31, 2025 and 2024.
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(1) Average balance and average yields relate to margin lending activities.
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(2) Average balance, average yields, and interest income relates to corporate debt, non-US sovereign debt and US sovereign debt activities.
Previous report — wording carried elsewhere
(3) Average yields are computed by dividing interest income by the corresponding average monthly balances.
Previous report — wording carried elsewhere
The following table sets forth the effects of changing rates and volumes on interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on changes due to rate and the changes due to volume.
Previous report — wording carried elsewhere
Net gain on foreign exchange operations
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The following table sets out information on our total expense for the periods presented.
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The following table sets forth information regarding our fee and commission expense for the periods presented.
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The following table sets out the components of our fee and commission expense as a percentage of total fee and commission expense, net for the periods presented.
Previous report — wording carried elsewhere
The following table provides a summary of the monthly average balances and average interest rates for the major categories of interest-bearing liabilities for the nine months ended December 31, 2025 and 2024.
Previous report — wording carried elsewhere
(1) Average balance, average rates, and interest expense relates to interest-bearing deposits.
Previous report — wording carried elsewhere
The following table sets forth the effects of changing rates and volumes on interest. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on changes due to rate and the changes due to volume.
Previous report — wording carried elsewhere
For the nine months ended December 31, 2025, our professional services expense was $39.5 million, representing a increase by $13.0 million or 49% compared to $26.5 million for the nine months ended December 31, 2024. The increase was primarily attributable to an increase in expenses for auditing services rendered by our external auditors due to timing differences in the provision of such services. The increase was also attributable to higher legal fees.
Previous report — wording carried elsewhere
Provision for allowance for expected credit losses
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Foreign currency translation adjustments, net of tax
Previous report — wording carried elsewhere
Due to a 0.2% depreciation of the Kazakhstan tenge against the U.S. dollar during the nine months ended December 31, 2025, we realized a foreign currency translation loss of $19.6 million for the nine months ended December 31, 2025 since most of our Group's companies use the Kazakhstan tenge as their functional currency, as compared to a foreign currency translation loss of $187.0 million for the nine months ended December 31, 2024.
Previous report — wording carried elsewhere
Total revenue, net for the nine months ended December 31, 2025 decreased primarily due to decline in the Banking and Insurance segments compared to the nine months ended December 31, 2024. In our segment reporting, we account for all operations within each business segment, including all related subsidiaries and their activities. Below is a discussion of revenue of our segments for the nine months ended December 31, 2025 compared to the nine months ended December 31, 2024.
Previous report — wording carried elsewhere
Total expenses associated with our segments are summarized in the following table:
Previous report — wording carried elsewhere
•In the nine months ended December 31, 2025, the total expenses, net, in our Brokerage segment increased by $15.6 million. The increase was primarily driven by a $48.7 million rise in payroll and bonus expenses, reflecting our continued investment in attracting and retaining top talent, a $13.1 million increase in fee and commission expenses due to higher customer trading activity, and a $7.4 million increase in general and administrative expenses. These increases were partially offset by a $35.0 million decrease in interest expense, mainly related to lower interest paid on securities repurchase agreements, a $12.6 million decrease in advertising and sponsorship expenses, as marketing activities were scaled back during the period, and a $3.2 million decrease in stock-based compensation.