Freedom Holding Corp Financial Performance and Market Highlights

The global financial sector is witnessing rapid transformation, and Freedom Holding Corp stands out as a dynamic player shaping this evolution. Over recent years, the company has consistently demonstrated robust financial growth and an expanding market presence. Its strategy of diversifying revenue streams and focusing on customer-centric innovation has allowed it to thrive in a highly competitive environment. Through a combination of strong operational results and a commitment to digital transformation, this holding has established itself as a benchmark for success across multiple financial segments.

Revenue Growth and Financial Results

In the third quarter of fiscal year 2025, the holding achieved a remarkable 57% increase in total revenue, reaching $655.2 million compared to $418.6 million in the same period of the previous year. This surge was driven by significant improvements in trading securities, which shifted from a loss of $5.1 million to a gain of $89.6 million. Insurance underwriting income also experienced a dramatic rise, climbing by 125% to $177.5 million, reflecting the expansion of pension annuities and accident insurance operations. The banking segment contributed robustly, with revenue increasing by 47% year-over-year, while brokerage revenues grew by 29% to $213.3 million. These figures underscore the company’s ability to adapt and capitalize on emerging opportunities.

• Third quarter revenue: $655.2 million (+57%)
• Insurance underwriting income: $177.5 million (+125%)
• Banking segment revenue: $206.4 million (+47%)
• Brokerage revenue: $213.3 million (+29%)
• Total assets: $9.1 billion (+10%)

Despite the increase in revenue, operational expenses also rose significantly, reaching $557 million for the quarter, up from $307 million a year earlier. This increase was primarily due to higher insurance claims, expanded commission expenses, and growing administrative costs as the company scaled its operations. Net income for the third quarter was $78.1 million, reflecting a 19% decrease compared to the previous year, largely attributed to these rising costs. Nevertheless, the company’s basic earnings per share remained strong at $1.32, with diluted earnings per share at $1.29.

Market Expansion and Customer Base

The holding’s market footprint has expanded impressively, now operating in 22 countries and serving a diverse clientele. The overall customer base saw a 55% increase, reaching 3.2 million clients. In particular, the banking subsidiary, Freedom Bank KZ, experienced notable growth, with customer numbers rising from 904,000 to 1,407,000 within the year. The insurance segment also demonstrated exceptional momentum, with a 58% increase in clients and a substantial rise in revenue, confirming the effectiveness of the group’s cross-segment strategy.

Key Market Highlights

• Presence in 22 countries
• 3.2 million total clients (+55%)
• 1.4 million banking customers at Freedom Bank KZ
• 846,000 insurance clients (+58%)
• Expansion of digital services through the Freedom SuperApp

One of the most significant drivers of client growth has been the introduction of innovative digital solutions, particularly the Freedom SuperApp. This platform enables clients to access a comprehensive suite of financial services, including banking, brokerage, insurance, and payment solutions, all in one ecosystem. The digital transformation has not only improved customer engagement but also provided the company with valuable data for developing new products tailored to evolving client needs.

Segment Performance and Diversification

The holding’s revenue structure has become more balanced and diversified. While brokerage services were historically the primary source of income, recent performance shows a more even distribution across banking, insurance, and brokerage segments. Insurance underwriting has emerged as the fastest-growing area, with revenue more than doubling year-over-year due to new product launches and increased demand for pension and accident insurance. The banking division also continues to be a key contributor, supported by the growth in retail clients and the introduction of innovative financial products.

Trading activities have played a crucial role in the company’s financial results. The shift from a net loss to a substantial net gain in trading securities was primarily due to successful transactions involving Kazakhstan’s sovereign bonds and positive revaluation of security positions. Additionally, the derivatives segment reported a significant turnaround, moving from a loss to a notable profit, further enhancing the group’s profitability.

Financial Segment Overview

• Insurance: 125% revenue growth, driven by pension annuities and accident insurance
• Banking: 47% revenue growth, expansion in retail banking services
• Brokerage: 29% revenue growth, increased trading activity and commissions
• Trading Securities: From $5.1 million loss to $89.6 million gain
• Derivatives: From $42.6 million loss to $11.9 million gain

As a result of these strategic shifts, the holding has achieved a more stable and resilient business model, less dependent on any single revenue stream. This diversification has positioned the company to better withstand market volatility and adapt to changing economic conditions.

Operational Efficiency and Investment in Growth

While revenue and client numbers have surged, the holding has also faced rising operational costs. Insurance claims, commission expenses, and administrative outlays have all increased in line with the company’s expansion. However, these investments are closely linked to growth initiatives, such as the acquisition of EliteCom to develop the telecommunications business and ongoing enhancements to digital infrastructure. The company’s workforce has grown to over 7,100 full-time employees, supporting its expanding operations and customer service capabilities.

Strategic investments in technology, product innovation, and market expansion continue to be central to the holding’s long-term vision. The focus on identifying high-margin, low-competition niches has allowed the company to maintain strong performance despite global economic uncertainties. The use of advanced analytics and big data through its digital platforms provides a competitive advantage, enabling rapid development and deployment of new services that meet specific client needs.

Balance Sheet Strength and Shareholder Value

The holding’s balance sheet remains robust, with total assets rising to $9.1 billion and net working capital improving to $890 million. The company’s prudent approach to risk management and capital allocation has ensured ongoing financial stability. Earnings per share, although slightly lower than the previous year due to increased expenses, remain at healthy levels, reflecting the underlying strength of the business model.

Shareholder value is further supported by the company’s commitment to transparency, innovation, and sustainable growth. The ongoing diversification of revenue streams and expansion into new markets are expected to drive future profitability and enhance the company’s competitive position in the global financial sector.

Freedom Holding Corp continues to set new benchmarks in financial performance and market expansion. Its ability to deliver strong revenue growth, diversify income sources, and embrace digital transformation has established it as a leader in the industry. The company’s strategic investments and customer-focused approach ensure that it remains well-positioned for future success. As Freedom Holding Corp enters the next phase of its development, its commitment to innovation, operational excellence, and value creation will remain central to its ongoing achievements.