Freedom Holding Corp. Reports Third Quarter Fiscal Year 2026 Financial Results

Core Insights - Freedom Holding Corp. reported its financial results for the third quarter of fiscal year 2026, showing total revenue of $628.6 million, a decrease from $664.6 million in the same quarter of the previous year [1][2] - The company experienced a net income of $76.2 million for the third quarter, compared to $78.1 million in the prior year [1][2] - Customer growth was significant, with brokerage customers increasing by 145,000 to a total of 828,000, and banking customers rising by two million to 4.5 million [1] Financial Overview - Three Months Ended December 31, 2025 - Total revenue for the quarter was $628.6 million, down from $664.6 million, influenced by higher net gains in foreign exchange operations and derivatives, but offset by declines in insurance premiums and trading securities [1][2] - Net gain on foreign exchange operations increased to $45.8 million from $3.9 million, primarily due to currency revaluation [1][2] - Interest income rose to $228.8 million, a 2% increase, driven by higher loan portfolio activity [1][2] - Insurance premiums earned decreased by 40% to $106.9 million, attributed to regulatory caps on commissions affecting new business volumes [1][2] - Total expenses were approximately $534.7 million, down from $566.3 million, mainly due to higher payroll and administrative costs [1][2] Financial Overview - Nine Months Ended December 31, 2025 - Total revenue for the nine months was $1,688.2 million, a slight decrease from $1,705.7 million, with notable declines in insurance premiums and interest income [2] - Realized gains on trading securities for the nine months reached $126.2 million, primarily from Kazakhstani corporate debt sales [2] - Interest income for the nine months was $639.0 million, down 3% due to a significant decrease in trading securities income [2] - Total expenses increased to approximately $1,493.2 million from $1,437.3 million, driven by higher payroll and insurance claims [2] - Net income for the nine months was $145.4 million, down from $226.9 million in the previous year [2] Customer Growth - The company reported a total of 828,000 brokerage customers, an increase of 145,000 over the past nine months [1] - Banking customers rose to 4.5 million, reflecting a growth of two million customers [1] - Insurance and other segments also saw customer increases of 8,000 and 92,000, respectively [1]