Freedom (US:FRHC) Businesswireยท2025-11-07 21:45Core Insights - Freedom Holding Corp. reported total revenue of $526.1 million for Q2 FY 2026, a decrease from $586.1 million in the same quarter last year, primarily due to a decline in insurance premiums and lower net gains on trading securities [5][9] - The company achieved a net income of $38.7 million for Q2 FY 2026, down from $114.5 million in the previous year, with basic and diluted earnings per share at $0.65 and $0.63 respectively [9][16] - As of September 30, 2025, the company had total assets of $10.3 billion and shareholders' equity of $1.2 billion, with cash and cash equivalents totaling $4.5 billion [22][23] Financial Performance - For the six months ended September 30, 2025, total revenue was $1,060 million, compared to $1,041 million for the same period last year, driven by higher fee and commission revenue and net gains on trading securities [11][12] - Fee and commission income for Q2 FY 2026 rose to $132.2 million from $121.1 million, mainly due to increased brokerage services and agency fees [6][12] - The net gain on trading securities for Q2 FY 2026 was $37.1 million, down from $68.3 million, attributed to the sale of Kazakhstani corporate debts [7][9] Operational Highlights - The customer base grew to 6.2 million as of September 30, 2025, reflecting growth across all major segments [2][4] - The company is focused on creating a technology-driven ecosystem that integrates various financial services, which requires disciplined spending for future scalability and efficiency [2][3] - S&P upgraded the ratings for Freedom Life, validating the company's approach to building long-term value and financial strength [3][4] Expense Overview - Total expenses for Q2 FY 2026 were approximately $465.6 million, an increase from $457.7 million, driven by higher payroll, insurance claims, and professional services [9][15] - The company reported a net loss on derivatives of $3.2 million for Q2 FY 2026, compared to a net gain of $6.3 million in the previous year [8][9] Balance Sheet Strength - As of September 30, 2025, the company had cash and cash equivalents of $635.975 million, restricted cash of $1.312 billion, and investment securities totaling $2.511 billion [22] - Total liabilities stood at $9.128 billion, with customer liabilities increasing to $5.759 billion [23]