Core Insights - The Motley Fool has added Freedom Holding Corp. to its TMF Moneyball Portfolio, indicating a strong assessment of the company's financial performance and strategic positioning [1][3]. Company Overview - Freedom Holding Corp. operates in 22 countries, including the U.S., Kazakhstan, and several European nations, providing a range of financial services [7]. - The company is involved in developing a financial and digital ecosystem in Kazakhstan, which includes various financial institutions and lifestyle services [7]. - Freedom Holding Corp. is publicly traded on NASDAQ, KASE, and AIX under the ticker symbol FRHC and is regulated by the U.S. SEC [7]. Investment Strategy - The TMF Moneyball Portfolio utilizes an intelligent investment system based on AI and a proprietary database, analyzing thousands of companies to select those with the highest growth potential [2][5]. - The portfolio focuses on companies demonstrating sustainable growth, financial stability, and innovative leadership [4].

Core Insights - Freedom Holding Corp. (NASDAQ: FRHC) has seen a stock price increase of 228% since March 2021, outperforming the S&P 500 [1] Group 1: Company Performance - The stock of Freedom Holding Corp. has significantly appreciated, indicating strong market performance and investor confidence [1] Group 2: Investment Services - Beyond the Wall Investing offers a subscription service that provides access to high-quality equity research reports, portfolio management, and insights from institutional investors [1] - The service includes regular alerts for short-term trading ideas based on technical signals and community engagement features [1]

Core Points - GM Financial has been awarded the 2025 Secretary of Defense Employer Support Freedom Award, which is the highest recognition from the U.S. government for employers supporting National Guard and Reserve employees [1] - GM Financial is one of 15 recipients selected from over 1700 nominations across the nation, highlighting its exceptional support for military employees [1] - The award acknowledges GM Financial's efforts that exceed standard workplace requirements in supporting its employees who serve in the National Guard and Reserve [1]

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - The service offers features such as model portfolios with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and dividend and portfolio trackers [2] - The philosophy of the service emphasizes community and education, advocating that investors should not navigate the market alone [2] Group 2 - The article mentions that the service closely monitors all positions and provides exclusive Buy and Sell alerts to its members [4] - It highlights the involvement of various contributors who support the service, indicating a collaborative approach to investment recommendations [4]

Core Viewpoint - BlackRock, Inc. has increased its stake in Freedom Holding Corp. to 0.85%, investing approximately $89 million, making it the second-largest shareholder after founder Timur Turlov [1][2][3] Group 1: Investment Details - BlackRock acquired an additional 443,965 shares, raising its total holdings to 520,565 shares [2] - The investment by BlackRock reflects growing interest from global institutional investors in Freedom Holding Corp. [3] Group 2: Company Overview - Freedom Holding Corp. operates in 22 countries, including Kazakhstan, the United States, and several European nations, providing a range of financial services [4] - The company is actively developing its financial and digital ecosystem in Kazakhstan, which includes various subsidiaries such as Freedom Bank and Freedom Broker [4] - Freedom Holding Corp. is listed on NASDAQ, Kazakhstan Stock Exchange, and Astana International Exchange under the ticker symbol FRHC [4]

Core Insights - BlackRock, Inc. has increased its stake in Freedom Holding Corp. to 0.85%, investing approximately $89 million, making it the second-largest shareholder after founder and CEO Timur Turlov [1][2] - BlackRock acquired an additional 443,965 shares, bringing its total holdings to 520,565 shares [2] - The presence of BlackRock and other institutional investors indicates the resilience and strategic potential of Freedom Holding in international markets [3] Company Overview - Freedom Holding Corp. operates in 22 countries, including Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and Armenia [4] - The company is developing a financial and digital ecosystem in Kazakhstan, which includes Freedom Bank, Freedom Broker, and various insurance companies [4] - Freedom Holding Corp. is listed on NASDAQ, Kazakhstan Stock Exchange (KASE), and Astana International Exchange (AIX) under the ticker symbol FRHC [4]

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes the importance of community and education in investing, suggesting that individuals should not invest alone [2] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to support investors [2] Group 2 - The article mentions the involvement of various contributors who provide insights and recommendations, indicating a collaborative approach to investment strategies [4] - It highlights the monitoring of positions and the issuance of alerts for buy and sell recommendations, which are exclusive to members [4] - The article includes a disclosure about the analysts' positions in certain stocks, indicating a beneficial long position in SLRC and ET [3]

Core Insights - Freedom Holding Corp. reported a 17% year-over-year increase in revenue for Q1 FY2026, reaching $533.4 million, indicating strong momentum across its diversified business model [1][9] - The CEO emphasized ongoing investments in technology and market expansion, particularly in Central Asia and Europe [1] Financial Highlights - Banking segment revenue increased by 60% to $146.2 million, with Freedom Bank Kazakhstan's customer base growing from 2.5 million to 2.9 million [2] - Insurance segment revenue surged by 18% to $174 million, with net insurance premiums earned reaching $153.3 million and a client base of 1.4 million [2] - Brokerage segment revenue amounted to $176.3 million, marking a 1% year-over-year increase, with brokerage accounts rising from 683,000 to 725,000 [3] - Business units contributed $36.9 million in revenue, driven by growth in Arbuz.kz, Freedom Ticketon, Aviata, and Freedom Telecom [3] Trading and Investment Performance - Net gain on trading securities was $45.6 million, a significant recovery from a net loss of $52.1 million in the same period of 2024, primarily due to increased market value of Kazakhstan government bonds [4] Cost Dynamics and Strategic Investments - Total expenses for the quarter were $492.9 million, with significant components including $113.4 million in interest expense and $93.1 million in payroll and bonuses [6] - The acquisition of Astel Group Ltd was completed, enhancing the telecom infrastructure under the Freedom Telecom brand [5] Profitability and Balance Sheet - The company maintained a net profit of $30.4 million, with diluted earnings per share (EPS) of $0.50 despite higher costs and foreign exchange challenges [7] - Total assets reached $9.69 billion, with shareholders' equity at $1.23 billion [9][10]

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q2 2025 present the company's financial position, operations, and cash flows, noting a decrease in total assets and net income [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$9.69 billion** as of June 30, 2025, driven by lower cash and receivables, while total shareholders' equity increased to **$1.23 billion** Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total Assets** | **$9,689,753** | **$9,914,017** | | Cash and cash equivalents | $567,907 | $837,302 | | Investment securities | $2,796,881 | $2,814,733 | | Margin lending, brokerage and other receivables, net | $2,896,713 | $3,319,145 | | Loans issued | $1,749,402 | $1,595,435 | | **Total Liabilities** | **$8,460,694** | **$8,699,659** | | Securities repurchase agreement obligations | $1,070,787 | $1,418,443 | | Customer liabilities | $4,446,747 | $4,304,999 | | Debt securities issued | $670,125 | $469,551 | | **Total Shareholders' Equity** | **$1,229,059** | **$1,214,358** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, total net revenue increased to **$533.4 million**, primarily due to a gain on trading securities, while net income decreased to **$30.4 million** due to higher operating expenses Statement of Operations Summary (in thousands USD, except EPS) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenue, Net** | **$533,423** | **$454,999** | | Fee and commission income | $107,642 | $115,489 | | Net gain/(loss) on trading securities | $45,602 | $(52,102) | | Interest income | $198,571 | $226,004 | | Insurance premiums earned, net | $153,257 | $129,408 | | **Total Expense** | **$492,908** | **$413,401** | | Interest expense | $113,410 | $145,718 | | Payroll and bonuses | $93,101 | $57,524 | | **Net Income** | **$30,396** | **$34,259** | | **Diluted EPS (USD)** | **$0.50** | **$0.57** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$480.8 million** for the three months ended June 30, 2025, while net cash used in investing activities significantly increased to **$505.5 million** Cash Flow Summary (in thousands USD) | Cash Flow Activity | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | $480,831 | $854,066 | | Net cash flows used in investing activities | $(505,516) | $(94,685) | | Net cash flows from financing activities | $123,381 | $245,534 | | **Net Change in Cash, Cash Equivalents and Restricted Cash** | **$24,096** | **$890,467** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business segments, investment concentrations in Kazakhstan sovereign debt, loan portfolio specifics, and the acquisition of Astel Group Ltd., alongside related party transactions - The company operates through four main segments: Brokerage, Banking, Insurance, and Other, with a significant presence in Kazakhstan and expanding into telecommunications and media[15](index=15&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) - As of June 30, 2025, the Group held significant concentrations in debt securities from two issuers: the Ministry of Finance of the Republic of Kazakhstan (**$1.55 billion**) and the Kazakhstan Sustainability Fund JSC (**$477 million**)[58](index=58&type=chunk) - On April 30, 2025, the company acquired 100% of Astel Group Ltd., a Kazakh telecom operator, for a total purchase price of **$22.3 million**, recognizing **$1.74 million** in goodwill[148](index=148&type=chunk)[149](index=149&type=chunk) - The company has significant related party transactions, including purchasing uncollateralized retail loans from FFIN Credit, a company controlled by CEO Timur Turlov, and providing credit risk insurance to the same entity[132](index=132&type=chunk)[136](index=136&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=62&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a **17% revenue growth** driven by trading gains and insurance premiums, offset by a **19% expense increase** leading to a net income decrease, alongside strategic expansion into telecommunications Financial Highlights for Q1 FY2026 (Three months ended June 30, 2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Total Revenue, Net | $533.4M | $455.0M | +17% | | Total Expense | $492.9M | $413.4M | +19% | | Net Income | $30.4M | $34.3M | -11% | - The company is expanding its digital fintech ecosystem by entering the telecommunications market in Kazakhstan through its subsidiary Freedom Telecom, which recently acquired Astel Group Ltd[217](index=217&type=chunk)[218](index=218&type=chunk) Customer Growth | Segment | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Brokerage | 725,000 | 683,000 | | Banking | 2,927,000 | 2,515,000 | | Insurance | 1,396,000 | 1,170,000 | [Qualitative and Quantitative Disclosures About Market Risk](index=87&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) The company faces significant market risks including interest rate, foreign currency, and credit risk, with a hypothetical interest rate increase impacting the trading portfolio by **$91.0 million** and substantial margin lending receivables - A hypothetical increase in interest rates (200 bps for non-USD/EUR, 50 bps for USD/EUR) would result in a **$91.0 million** decline in the fair market value of the trading portfolio as of June 30, 2025[342](index=342&type=chunk) - The company has significant foreign currency exchange risk, particularly with the Kazakhstan tenge, where a **10% adverse change** in the USD relative to other currencies would result in a total loss of **$147.4 million** as of June 30, 2025[343](index=343&type=chunk)[346](index=346&type=chunk)[354](index=354&type=chunk) - Credit risk from margin lending is substantial, with **$2.86 billion** in receivables as of June 30, 2025, of which three non-related party customers accounted for **$1.40 billion**[351](index=351&type=chunk) [Controls and Procedures](index=91&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[370](index=370&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[371](index=371&type=chunk) [PART II — OTHER INFORMATION](index=92&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=92&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in an arbitration case with Einride AB regarding a **$10 million** convertible debenture, with a final award expected in May 2026, while other legal matters are routine - Einride AB filed an arbitration claim against the company for an alleged failure to pay a **$10,000** subscription for a convertible debenture, which the company contests, with a final award scheduled for May 2026[153](index=153&type=chunk)[373](index=373&type=chunk) [Risk Factors](index=92&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025, were reported - No material changes from the risk factors disclosed in the 2025 Form 10-K were reported as of June 30, 2025[374](index=374&type=chunk) [Exhibits](index=92&type=section&id=Item%206.%20Exhibits) The report includes various exhibits, such as bond program prospectuses, recent bond offering terms, and CEO/CFO certifications, as required by regulations - Exhibits filed with the report include details on the **$1 billion** bond program, recent bond offerings in May 2025, and certifications from the CEO and CFO[376](index=376&type=chunk)

Core Viewpoint - Freedom Financial Holdings reported a net income of $799,896 for Q2 2025, a significant decrease from $2,019,348 in Q1 2025 and $2,044,233 in Q2 2024, indicating challenges in profitability despite improvements in core operations [1][10]. Financial Performance - Net income for the six months ended June 30, 2025, was $2,819,240, down from $3,208,460 for the same period in 2024 [1][10]. - Pre-tax, pre-provision income increased by 35.7% year-over-year to $1.84 million, driven by a 25-basis point increase in net interest margin to 2.66% and a 7.8% rise in non-interest income [2]. - Total revenue decreased by 5.86% compared to the linked quarter but increased by 10.57% compared to the same quarter in 2024 [7]. Income and Expenses - Net interest income was $6.88 million for Q2 2025, down 10.93% from the previous quarter but up 11.12% from Q2 2024 [4]. - Non-interest income rose to $1.31 million, a 34.14% increase from the linked quarter and a 7.79% increase from the same period in 2024 [6]. - Non-interest expenses increased by 5.49% compared to the linked quarter and by 4.95% compared to Q2 2024, primarily due to higher compensation and data processing costs [8]. Asset Quality - Non-accrual loans remained stable at 1.45% of loans held-for-investment, while total non-performing assets decreased to 0.98% of total assets [9]. - The company recognized a loan loss provision of $688,865, increasing the allowance for credit losses to 0.96% of loans held-for-investment [11]. Capital and Liquidity - Total assets as of June 30, 2025, were $1.07 billion, a decrease of $18.41 million from December 31, 2024 [12]. - Total liabilities were $987.96 million, down from $999.01 million in the previous quarter [13]. - Stockholders' equity increased to $84.12 million, with a tangible book value per share of $12.01 [14]. Capital Ratios - The bank's capital ratios as of June 30, 2025, were well above regulatory minimums, with a Total Capital Ratio of 15.20% and a Tier 1 Capital Ratio of 14.30% [16].