- Net Income increases to $153.3 million from $76.2 million;
- Revenue increases to $2.19 billion from $2.0 billion;
- Banking segment customers increase to 5,026,000 from 2,515,000;
- Brokerage segment customers increase to 858,000 from 683,000;
- Other segment customers increase to 1,105,000 from 605,000
Freedom Holding Corp. (the "Company") (NASDAQ:FRHC), a multinational diversified financial services holding company with a presence in 22 countries, today reported financial results for fiscal year 2026, including revenue of $2.19 billion, and net income of $153.3 million for the 2026 fiscal year.
|
Year ended |
Year ended |
March 31, 2026 |
||
Total revenue, net |
$2,191.3 million |
$2,004.2 million |
Income before income tax |
$226 million |
$104.6 million |
Net income |
$153.3 million |
$76.2 million |
|
|
|
Earnings per common share – basic |
$2.56 |
$1.28 |
Earnings per common share – diluted |
$2.51 |
$1.26 |
Fiscal Year ended March 31, 2026 Financial Overview
All comparisons are to the twelve months ended March 31, 2025 unless otherwise noted
The Company reported total revenue, net of $2,191.3 million, as compared to $2,004.2 million. The increase was primarily attributable to the following:
- The Company's net gain on trading securities was $158.8 million, an increase of $216.6 million, or 375%, primarily from sales of Kazakhstan sovereign and corporate debt securities.
- Sales of goods and services increased by $57.3 million, or 143%, to $97.4 million from $40.1 million, primarily the result of the Company's expansion into the telecommunications sector and increased customer activity at Arbuz, online retail trade and e-commerce subsidiary.
- Net gain on derivatives was $66.8 million, an increase of $54.4 million, driven primarily by Freedom Bank KZ's realized net gain of $40.9 million largely due to positive revaluation of currency swaps.
- Interest income was $882.5 million, an increase of $18.0 million, or 2%, primarily driven by increased margin loans to customers and continued expansion of Freedom Bank KZ's customer loan portfolio.
- Our net insurance revenue for fiscal 2026 was $402.4 million, representing a decrease of $168.8 million, or 29%, compared to fiscal 2025. This decrease was primarily driven by lower written insurance premiums, reflecting regulatory caps on agent commissions for bank and microfinance loan products, and by higher deferred profit liability issuance expense.
Customer Growth
The Company's bank customers approximately doubled from 2.52 million to 5.03 million and retail brokerage accounts increased to 858,000, from 683,000 in the prior year.
"Over the past few years, we have significantly expanded our customer base across brokerage, banking, and insurance by building a unified digital ecosystem," said Timur Turlov, Freedom Chairman and CEO. "At the core of this growth is our SuperApp, which brings together essential financial services, including banking, insurance and lifestyle services in a single application.
"The addition of attractive loyalty and referral programs, improvement and further diversification of our offerings within our SuperApp during fiscal 2026 has further supported customer adoption, increasing overall engagement within the ecosystem. Our mission is to provide our customers with the most convenient, seamless, and beneficial experience possible, engaging them across a broad range of digital products, each offered on terms designed to deliver maximum value and ease of use."
Freedom SuperApp
In March 2026, monthly active users (MAU) climbed to 2.59 million, up from 1.02 million in March 2025, an increase of 154% year over year, while daily active users (DAU) averaged 634,578 compared with 183,000 in March 2025.
Regional and Global Expansion
One of the Company's strategic goals is to build a network of banks, brokers, and digital financial infrastructure that connects markets across Central Asia, the Caucasus, and beyond. In this regard, in March 2026, the Company entered into an agreement to purchase approximately 99.32% of Turkish Bank A.S., a bank operating in Türkiye. Subject to completion of the transaction, the Company expects this bank may serve as a core platform for its financial services operations in Türkiye. The Company also plans to establish a fully operational brokerage business in Türkiye, subject to obtaining the required license from the Turkish financial regulator.
External Social Projects
During fiscal year 2026, the Company continued to support sports, education, and culture in the communities where it operates, including:
- Sports and chess — funding the Kazakhstan Chess Federation, hosting the World School Team Chess Championship and the "Chess in Education" Scientific Conference, launching construction of a football academy in Karaganda, sponsoring FC Zhenis and the youth teams of FC Shakhter, and supporting the inclusive "UNI FOOTBALL LEAGUE."
- Education — supporting "Teach for Qazaqstan," the Freedom Grants scholarship program, the IQanat Educational Fund, and student scholarships at Karagandy Buketov University.
- Culture — contributing to the renovation of Lermontov National Theatre in Almaty and the development of the Reception House in Astana.
Additional highlights:
Banking
As of March 31, 2026, our Banking segment combined assets increased by 21% to $5,359.8 million, our loan portfolio increased by 29% to $2,045.3 million, our deposit portfolio increased by 46% to $2,522.8 million, and held-to-maturity securities increased by 552% to $429,423.
Insurance
Freedom Life recognized a net profit of approximately $32.9 million. As of March 31, 2026, Freedom Life held an approximately 7.4% market share in the Kazakhstan voluntary accident insurance and 19.3% of the pension annuity insurance segment in Kazakhstan, in each case according to the National Bank of Kazakhstan (NBK).
Freedom Insurance recognized net profit of approximately $10.8 million in fiscal year 2026. According to the NBK, as of March 31, 2026, Freedom Insurance had an approximately 6.55% share of the total Kazakhstan general insurance market based on total assets and had an approximately 14.53% share of the Kazakhstan car owners liability insurance market based on insurance premiums received.
Brokerage
As of March 31, 2026 and 2025, we had approximately 858,000 and 683,000 total brokerage customer accounts respectively, of which more than 56% and 63% respectively had positive cash or asset account balances.
Other
The Other segment accounted for $172.8 million, or 8%, of our total revenue, net for the fiscal year ended March 31, 2026, 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.
AI Data Center in Kazakhstan
In November 2025, we signed a non-binding memorandum of understanding with the Kazakhstan Ministry of AI and Digital Development and NVIDIA Corporation with a view to develop a large-scale AI data center in Kazakhstan. This prospective growth project is expected to be implemented in phases.
Employees
As of March 31, 2026, we had 11,846 (11,627 full-time and 219 part-time) employees spanning 22 countries in the following regions: Central Asia - 10,830, Europe - 334, Middle East - 627, USA - 55.
About Freedom Holding Corp.
Freedom Holding Corp., a Nevada corporation, is a diversified financial services holding company conducting retail securities brokerage, investment research, investment counseling, securities trading, investment banking and underwriting services, mortgages, insurance, and consumer banking through its subsidiaries, operating under the name Freedom Finance in Europe and Central Asia, and Freedom Capital Markets in the United States. Through its subsidiaries, Freedom Holding Corp. employs more than 11,000 people and is a professional participant in the Kazakhstan Stock Exchange, the Astana International Exchange, the Republican Stock Exchange of Tashkent, International Trading System Limited, Armenia Stock Exchange, Kyrgyz Stock Exchange, the Uzbek Republican Currency Exchange and is a member of the New York Stock Exchange and the Nasdaq Stock Exchange.
Freedom Holding Corp.'s common shares are registered under the United States Securities Exchange Act of 1934 and are traded under the symbol FRHC on the Nasdaq Capital Market, operated by Nasdaq, Inc. The Company has its main market of operations in Kazakhstan and has a presence in 22 countries.
To learn more about Freedom Holding Corp., visit www.freedomholdingcorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release, and any related statements, contains "forward-looking" statements within the meaning of section 21E of the United States Securities Exchange Act of 1934. All forward-looking statements are subject to uncertainty and changes in circumstances. In some cases, forward-looking statements can be identified by terminology such as "expect," "new," "plan," "strategy," "mission, " "seek," and "will," or the negative of such terms or other comparable terminology and include statements relating to our plans, intentions and expectations, regional and global expansion including our plans related to Turkish Bank A.S. and establishment of a fully operational brokerage business in Türkiye, the memorandum of understanding relating to AI data center in Kazakhstan and other non-historical statements. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions, and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include economic, business, and regulatory risks and other factors including those identified in under Risk Factors and elsewhere in the Company's periodic and current reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements.
Website Disclosure
Freedom Holding Corp. intends to use its website, https://ir.freedomholdingcorp.com, as a means for disclosing material non-public information and for complying with U.S. Securities and Exchange Commission Regulation FD and other disclosure obligation.
FREEDOM HOLDING CORP.
CONSOLIDATED BALANCE SHEETS (All amounts in thousands of United States dollars, unless otherwise stated) |
|||||||
|
March 31, 2026 |
|
March 31, 2025
|
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
966,115 |
|
|
$ |
837,302 |
|
Restricted cash |
|
1,246,312 |
|
|
|
807,468 |
|
Investment securities |
|
3,342,561 |
|
|
|
2,814,733 |
|
Margin lending, brokerage and other receivables, net |
|
4,690,782 |
|
|
|
3,319,145 |
|
Loans issued (including $21,321 and $188,445 to related parties) |
|
2,077,606 |
|
|
|
1,595,435 |
|
Fixed assets, net |
|
358,396 |
|
|
|
191,103 |
|
Intangible assets, net |
|
73,319 |
|
|
|
54,186 |
|
Goodwill |
|
51,099 |
|
|
|
49,093 |
|
Right-of-use asset |
|
47,579 |
|
|
|
39,828 |
|
Insurance contract assets |
|
36,849 |
|
|
|
37,183 |
|
Other assets, net (including $40,119 and $18,080 with related parties) |
|
264,621 |
|
|
|
169,641 |
|
TOTAL ASSETS |
$ |
13,155,239 |
|
|
$ |
9,915,117 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
||||
Securities repurchase agreement obligations |
$ |
1,024,923 |
|
|
$ |
1,418,443 |
|
Customer liabilities |
|
7,103,984 |
|
|
|
4,304,999 |
|
Margin lending and trade payables |
|
689,641 |
|
|
|
1,322,241 |
|
Insurance contract liabilities |
|
653,907 |
|
|
|
472,433 |
|
Current income tax liability |
|
43,701 |
|
|
|
28,919 |
|
Debt securities issued |
|
1,261,120 |
|
|
|
469,551 |
|
Lease liability |
|
48,843 |
|
|
|
40,525 |
|
Liability arising from continuing involvement |
|
554,594 |
|
|
|
503,705 |
|
Other liabilities |
|
285,247 |
|
|
|
129,737 |
|
TOTAL LIABILITIES |
$ |
11,665,960 |
|
|
$ |
8,690,553 |
|
Commitments and Contingent Liabilities (Note 29) |
|
— |
|
|
|
— |
|
|
|
|
|
||||
SHAREHOLDERS' EQUITY |
|
|
|
||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding |
|
— |
|
|
|
— |
|
Common stock - $0.001 par value; 500,000,000 shares authorized; 61,292,581 and 60,993,949 shares issued and outstanding as of March 31, 2026 and March 31, 2025, respectively |
|
61 |
|
|
|
61 |
|
Additional paid in capital |
|
314,657 |
|
|
|
246,610 |
|
Retained earnings |
|
1,231,500 |
|
|
|
1,078,172 |
|
Accumulated other comprehensive loss |
|
(56,939 |
) |
|
|
(100,396 |
) |
TOTAL FRHC SHAREHOLDERS' EQUITY |
$ |
1,489,279 |
|
|
$ |
1,224,447 |
|
|
|
|
|
||||
Non-controlling interest |
|
— |
|
|
|
117 |
|
TOTAL SHAREHOLDERS' EQUITY |
$ |
1,489,279 |
|
|
$ |
1,224,564 |
|
|
|
|
|
||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
13,155,239 |
|
|
$ |
9,915,117 |
|
The accompanying notes are an integral part of these consolidated financial statements
|
Years ended March 31, |
||||||||||
|
|
2026 |
|
|
2025 (Recasted) |
|
2024 (Recasted) |
||||
|
|
|
|
|
|
||||||
Revenue: |
|
|
|
|
|
||||||
Fee and commission income (including $7,680, $4,725 and $65,972 from related parties) |
$ |
489,765 |
|
|
$ |
505,026 |
|
|
$ |
440,333 |
|
Net gain/(loss) on trading securities |
|
158,824 |
|
|
|
(57,810 |
) |
|
|
133,854 |
|
Interest income (including $12,703, $1,731 and $24,941 from related parties) |
|
882,478 |
|
|
|
864,453 |
|
|
|
828,224 |
|
Net insurance revenue |
|
402,396 |
|
|
|
571,224 |
|
|
|
245,122 |
|
Net gain on foreign exchange operations |
|
67,680 |
|
|
|
51,684 |
|
|
|
72,245 |
|
Net gain/(loss) on derivatives |
|
66,772 |
|
|
|
12,404 |
|
|
|
(103,794 |
) |
Sales of goods and services |
|
97,446 |
|
|
|
40,102 |
|
|
|
21,576 |
|
Other income |
|
25,930 |
|
|
|
17,072 |
|
|
|
9,696 |
|
TOTAL REVENUE, NET |
|
2,191,291 |
|
|
|
2,004,155 |
|
|
|
1,647,256 |
|
|
|
|
|
|
|
||||||
Expense: |
|
|
|
|
|
||||||
Fee and commission expense |
|
218,565 |
|
|
|
346,502 |
|
|
|
154,716 |
|
Interest expense |
|
489,036 |
|
|
|
535,895 |
|
|
|
501,111 |
|
Insurance claims and policyholder benefits, net of reinsurance |
|
259,309 |
|
|
|
260,488 |
|
|
|
117,273 |
|
Payroll and bonuses |
|
426,471 |
|
|
|
287,347 |
|
|
|
180,283 |
|
Professional services |
|
46,258 |
|
|
|
28,924 |
|
|
|
34,238 |
|
Stock compensation expense |
|
68,047 |
|
|
|
59,592 |
|
|
|
22,719 |
|
Advertising and sponsorship expense (including $27,151, $18,497, and $0 from related parties) |
|
103,304 |
|
|
|
124,627 |
|
|
|
38,327 |
|
General and administrative expense |
|
222,339 |
|
|
|
162,474 |
|
|
|
120,888 |
|
Allowance for expected credit losses |
|
52,365 |
|
|
|
62,445 |
|
|
|
21,225 |
|
Cost of sales |
|
79,632 |
|
|
|
31,278 |
|
|
|
17,538 |
|
TOTAL EXPENSE |
|
1,965,326 |
|
|
|
1,899,572 |
|
|
|
1,208,318 |
|
|
|
|
|
|
|
||||||
INCOME BEFORE INCOME TAX |
|
225,965 |
|
|
|
104,583 |
|
|
|
438,938 |
|
|
|
|
|
|
|
||||||
Income tax expense |
|
(72,637 |
) |
|
|
(28,425 |
) |
|
|
(60,419 |
) |
|
|
|
|
|
|
||||||
NET INCOME |
|
153,328 |
|
|
|
76,158 |
|
|
|
378,519 |
|
|
|
|
|
|
|
||||||
Less: Net loss attributable to non-controlling interest in subsidiary |
|
— |
|
|
|
(129 |
) |
|
|
(588 |
) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
153,328 |
|
|
$ |
76,287 |
|
|
$ |
379,107 |
|
|
|
|
|
|
|
||||||
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
||||||
Change in unrealized (loss)/gain on investments available-for-sale, net of tax effect |
|
(4,771 |
) |
|
|
4,364 |
|
|
|
6,196 |
|
Reclassification adjustment for net realized (gain)/loss on available-for-sale investments disposed of in the period, net of tax effect |
|
(4,937 |
) |
|
|
681 |
|
|
|
(3,209 |
) |
Change in discount rate on liability for future policy benefits |
|
(881 |
) |
|
|
6,807 |
|
|
|
(4,811 |
) |
Foreign currency translation adjustments |
|
54,046 |
|
|
|
(104,102 |
) |
|
|
12,075 |
|
OTHER COMPREHENSIVE INCOME/(LOSS) |
|
43,457 |
|
|
|
(92,250 |
) |
|
|
10,251 |
|
COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS |
$ |
196,785 |
|
$ |
(16,092 |
) |
|
$ |
388,770 |
|
|
|
|
|
|
|
|
||||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary |
|
— |
|
|
(129 |
) |
|
|
(588 |
) |
|
|
|
|
|
|
|
||||||
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
196,785 |
|
$ |
(15,963 |
) |
|
$ |
389,358 |
|
|
|
|
|
|
|
|
||||||
EARNINGS PER COMMON SHARE (In U.S. dollars): |
|
|
|
|
|
||||||
Earnings per common share - basic |
|
2.56 |
|
|
1.28 |
|
|
|
6.43 |
|
|
Earnings per common share - diluted |
|
2.51 |
|
|
1.26 |
|
|
|
6.39 |
|
|
|
|
|
|
|
|
||||||
Weighted average number of shares (basic) |
|
59,992,357 |
|
|
59,393,629 |
|
|
|
58,958,363 |
|
|
Weighted average number of shares (diluted) |
|
61,117,931 |
|
|
60,490,564 |
|
|
|
59,362,982 |
|
|
The accompanying notes are an integral part of these consolidated financial statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260601134977/en/
Natalia Kharlashina
Public Relations
Freedom Holding Corp.
+7 701 364 1454
prglobal@ffin.kz
Ramina Fakhrutdinova (KZ)
Public Relations
Freedom Finance JSC
+7 777 377 8868
pr@ffin.kz
Media Contact for Freedom US Markets
Deborah Kostroun, Zito Partners
deborah@zitopartners.com
+1 201-403-8158