NASDAQ$FRHC

Freedom Holding Corp. · Q3 2025 earnings

Q3 2025 earnings · · Investor relations

Briefing

Freedom Holding reported a significant increase in total revenues, driven by strong performance in insurance underwriting, trading securities, and fee and commission income.

Freedom Holding Corp. reported a substantial increase in total revenues, net, reaching $655.2 million for the three months ended December 31, 2024, up 57% from $418.6 million in the same period last year. This growth was primarily fueled by a 125% increase in insurance underwriting income, a significant net gain on trading securities, and a 19% rise in fee and commission income. Despite the revenue growth, net income decreased by 19% to $78.1 million, compared to $96.1 million in the prior year, mainly due to higher expenses across various categories including fee and commission, insurance claims, payroll, and advertising.

  • Total revenues, net, increased by 57% to $655.2 million, driven by strong performance across all business segments.
  • Insurance underwriting income surged by 125% to $177.5 million, primarily due to the expansion of pension annuity and accident insurance operations.
  • Net gain on trading securities was $89.6 million, a significant improvement from a net loss of $5.1 million in the prior year, mainly due to increased market prices of Kazakhstan sovereign bonds.
  • Net income decreased by 19% to $78.1 million, primarily due to substantial increases in operating expenses, including fee and commission, insurance claims, payroll, and advertising.

Headline financials

Total Revenue

$655K

Previous: $419M-99.8%
EPS (adj)

$1.32

Previous: $1.29+2.3%
Fee & commission income

$143M

No prior period
Trading securities gain

$89.6M

No prior period
Interest income

$225M

No prior period
Insurance premiums

$177M

No prior period
FX gain

$3.95M

No prior period
Derivatives gain

$11.9M

No prior period
Other income

$2.77M

No prior period
Payroll & bonuses

$77.4M

No prior period
Professional services

$11M

No prior period
Stock compensation

$13.4M

No prior period
Advertising expense

$41M

No prior period
G&A expense

$53.9M

No prior period
Credit loss provision

$30.6M

No prior period
Insurance claims

$105M

No prior period
Income tax expense

$20.2M

No prior period
Total expense

$566M

No prior period
Basic EPS

$1.32

No prior period
Diluted EPS

$1.29

No prior period
Weighted avg shares basic

59.4M

No prior period
Weighted avg shares diluted

60.5M

No prior period
Capital Expenditures

-$53.6M

Previous: -$36.3M-47.7%
Net Income

$78.1K

Previous: $96.4M-99.9%
Operating Income

$98.3K

Previous: $247M-100.0%

Revenue & EPS history

Freedom Holding · Revenue · Quarterly

$655K

Q3 2025-99.8%vs Q3 2024
Beat estimate in 5 of 6 quarters(83%)
ActualEstimate

Forward guidance

The company plans to finance capital expenditures for its telecommunications and media businesses primarily using own funds and borrowings, including vendor financing and proceeds from a $200 million U.S. dollar domestic bond placement. The company intends to retain future earnings to fund operations, development, and expansion, and does not anticipate paying cash dividends in the foreseeable future.

Tailwinds

  • Strategic plan to expand into the telecommunications market in Kazakhstan through Freedom Telecom subsidiary.
  • Plans to finance capital expenditures for new business areas with a combination of own funds and borrowings.
  • Completed a $200 million U.S. dollar domestic bond placement to support liquidity and growth.
  • Established Freedom Media as a subsidiary to provide media content in Kazakhstan and Central Asia.
  • Focus on brand visibility and enhanced marketing efforts to drive growth.

Headwinds

  • Specific amount of capital expenditure for telecommunications business is currently uncertain and subject to revisions.
  • No anticipated cash dividends on common stock in the foreseeable future as earnings will be retained for business expansion.
  • The company's strategy and budget for Freedom Telecom are currently being reassessed and are subject to material revisions.
  • The company's ability to raise additional capital on acceptable terms is not assured.
  • Market events beyond the company's control could significantly impact liquidity, capitalization, and projected return on investment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+1.2%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+2.4%

Avg return

30 days after

61%

19 / 31 earnings

Positive

+9.1%

Q3 2019

Best reaction

-4.1%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-0.8%+9.9%
Q3 2026+1.8%-4.7%+9.6%
Q2 2026+3.6%+2.2%-3.2%
Q2 2025-1.1%-3.1%-7.0%
Q1 2025-4.0%-6.3%-8.9%
Q1 2026-4.1%-6.3%-8.9%
Q3 2024+6.5%+3.1%-9.7%
Q3 2025+1.7%+2.4%+8.3%
Q2 2024+4.8%+3.7%+14.4%
Q1 2024+3.5%-3.0%+7.7%
Q4 2023+5.9%+3.9%+4.0%
Q4 2024-0.7%+5.4%+14.2%
Q3 2023+1.4%-1.7%-8.9%
Q2 2023-1.3%+3.8%+0.7%
Q1 2023-0.3%-1.2%-6.5%
Q4 2022+0.2%-2.5%+26.9%
Q3 2022+0.2%+22.1%+11.8%
Q2 2022-2.4%-0.8%-0.2%
Q1 2022+7.3%+4.8%+9.6%
Q4 2021+3.4%+3.9%+4.2%
Q3 2021+2.7%-1.2%-11.2%
Q2 2021+0.5%-0.1%-3.6%
Q1 2021+2.6%-0.0%-3.8%
Q4 2020+3.2%+2.0%+6.6%
Q3 2020-1.4%+4.5%-6.3%
Q2 2020-3.2%+3.5%+38.4%
Q1 2020+0.4%+1.3%-1.2%
Q3 2019+9.1%+10.7%+3.8%
Q2 2019+2.1%-1.0%+1.0%
Q1 2019-1.4%-6.9%-5.6%
Q3 2018-3.2%-5.1%-5.1%
Q2 2018
Q1 2018
Q3 2017
Q2 2017
Q1 2017
Q3 2016
Q1 2016
Q4 2016
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2010
Q2 2010
Q1 2010
Q4 2010

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