Freedom (US:FRHC)2026-02-09 21:25Customer Growth and Banking Operations - As of December 31, 2025, the number of banking customers increased to 4,471,000 from 2,515,000 as of March 31, 2025, representing a growth of 77.5%[215] - The loan portfolio of Freedom Bank KZ increased by 23% and the deposit portfolio increased by 30% compared to March 31, 2025[223] - Freedom Bank KZ's total assets increased by 13% as of December 31, 2025, compared to the previous reporting period[223] - The banking segment is considering expansion into other jurisdictions, contingent upon market conditions and regulatory approvals[222] - Total assets increased to $12.4 billion as of December 31, 2025, up from $9.9 billion as of March 31, 2025[250] Insurance Operations - Freedom Life had 329,167 active contracts as of December 31, 2025, down from 1,038,516 active contracts as of March 31, 2025, due to regulatory changes affecting new business volumes[226] - Freedom Insurance saw an increase in active contracts to 1,383,501 as of December 31, 2025, up from 824,838 as of March 31, 2025, reflecting a growth of 67.5%[227] - Insurance premiums earned, net of reinsurance, decreased by 40% to $106.9 million for the three months ended December 31, 2025, compared to $177.5 million for the same period in 2024[252] - Insurance premiums earned, net of reinsurance, amounted to $385.4 million, a decrease of $81.8 million or 18% compared to $467.2 million for the same period in 2024[329][330] - Insurance claims incurred, net of reinsurance, decreased by $26.6 million or 25% to $77.9 million for the three months ended December 31, 2025[295] Financial Performance - Total revenues for the three months ended December 31, 2025, were $628.6 million, a decrease of 5% from $664.6 million for the same period in 2024[248] - Net income for the three months ended December 31, 2025, was $76.2 million, compared to $78.1 million for the same period in 2024[249] - Total revenue for the nine months ended December 31, 2025, was $1,688.2 million, reflecting a decrease of $17.6 million or 1% compared to $1,705.7 million for the same period in 2024[309] - For the nine months ended December 31, 2025, net income decreased by 36% to $145.4 million compared to $226.9 million for the same period in 2024[357] Revenue and Expense Trends - Fee and commission income decreased by 12% to $126.1 million for the three months ended December 31, 2025, compared to $143.4 million for the same period in 2024[255] - Total expenses for the three months ended December 31, 2025, were $534.7 million, a decrease of $31.6 million or 6% compared to $566.3 million for the same period in 2024[280] - Total expenses for the nine months ended December 31, 2025, were $1.49 billion, an increase of $55.9 million or 4% compared to $1.44 billion for the same period in 2024[334] - Interest expense decreased to $343.6 million, a reduction of $57.9 million or 14% compared to $401.5 million for the same period in 2024[340] Market Expansion and Strategic Initiatives - The company received a brokerage license in the UAE on December 29, 2025, and is in the process of obtaining a license to provide brokerage services in Turkey[216] - The company is expanding into the telecommunications market in Kazakhstan, aiming to provide a range of services including high-quality internet and cloud solutions[240] - A non-binding arrangement was established with the Kazakhstan Ministry of Artificial Intelligence and Digital Development for a potential $2 billion Sovereign AI Hub[241] - The company plans significant capital expenditures for its telecommunications expansion through Freedom Telecom, with commitments amounting to $112.3 million as of December 31, 2025[396][1] Employee and Operational Metrics - As of December 31, 2025, Freedom Holding Corp. had 11,311 employees and 233 offices across various regions[210] - Payroll and bonuses expense increased by $46.7 million or 60% to $124.1 million for the three months ended December 31, 2025, driven by workforce expansion and higher salary amounts[297] - General and administrative expenses rose by $17.5 million or 33% to $71.4 million for the three months ended December 31, 2025, due to increased operating expenses and business expansion[301] Stock and Market Performance - The company's common stock was included in the Russell 3000® Index during the first quarter of fiscal 2026[212] - S&P Global Ratings revised its outlook to positive for several subsidiaries, reflecting achievements in risk management and compliance[243]