Freedom Holding Corp. announces financial results for the second quarter of fiscal year 2026, which ended on September 30 of the current year, DKNews.kz reports.
| Q2 FY2026 (July – September 2025) | H1 FY2026 (April – September 2025) | |
|---|---|---|
| Revenue | $526.1 million | $1,060 million |
| Profit before tax | $60.4 million | $101 million |
| Net profit | $38.7 million | $69.1 million |
| Earnings per common share | $0.65 | $1.15 |
“In the second quarter of fiscal year 2026, we continued to purposefully invest in creating a foundation for the next stage of sustainable growth of Freedom Holding Corp. Our results reflect a deliberate decision to expand potential in key areas of business, strengthen our digital and financial infrastructure, and prepare the company for future scaling and efficiency improvements. We are now in an active transformation phase - building an integrated technological ecosystem that unites brokerage services, banking and insurance operations, telecommunications, and new digital services on a single platform. This stage requires disciplined spending to form an operational foundation that will allow us to achieve higher profitability in the future. We consider these expenses as strategic investments made in the interests of our clients. We will continue to focus on implementing our long-term strategy - expanding the reach of our financial ecosystem, scaling technological infrastructure, and increasing profitability of key businesses. The foundation we are laying today will enable Freedom Holding Corp. to achieve sustainable growth, improve operational efficiency, and increase shareholder value in the coming years.” Timur Turlov, CEO of Freedom Holding Corp.
photo by Ruslan Pryanikov/Kapital.kz
Financial results for the three months ended September 30, 2025
The company reported total net revenue of $526.1 million for the second quarter of fiscal year 2026, compared to $586.1 million for the same period of the previous year.
The revenue dynamics were driven by growth in commission income, interest income, and revenue from sales of goods and services, which was offset by a decrease in earned insurance premiums net of reinsurance, a reduction in net financial results from trading securities, and a net loss on derivative financial instruments.
As of September 30, 2025:
- Cash, cash equivalents, restricted funds, and investment securities totaled $4.5 billion;
- Total assets amounted to $10.3 billion;
- Shareholders’ equity was $1.2 billion;
- Net operating cash flow reached $1 billion.
The total number of clients increased to 6.2 million, which includes growth across all three key business segments in Q2 FY2026:
- Brokerage accounts – 776,000 (+93,000);
- Insurance company clients – 1.3 million (+115,000);
- Banking service users – 3.6 million (+1,102,000);
- Freedom SuperApp users – 3.1 million (+766,000).
Commission and fee income increased to $132.2 million compared to $121.1 million, primarily due to higher income from brokerage and agency services, partially offset by lower income from banking and payment processing services.
Net income from trading securities amounted to $37.1 million, compared to $68.3 million, with the decline caused by the sale of Kazakh corporate bonds at favorable market prices following a short-term rally in the local debt market.
Total expenses were approximately $465.6 million in Q2 FY2026 versus $457.7 million a year earlier, mainly due to higher payroll and bonuses, insurance payouts, professional service fees, and stock-based compensation.
Key events during the reporting period
- International rating agency S&P upgraded the long-term credit and financial strength rating of JSC “Freedom Life” from BB to BB+. The company’s national scale rating was also raised from kzAA- to kzAA. The outlook is Stable.
- In August 2025, the world’s largest investment company BlackRock, Inc. increased its ownership stake in FRHC to 0.85%, investing almost $89 million in the company’s shares. BlackRock became the second-largest shareholder of Freedom Holding Corp. after its founder and CEO, Timur Turlov.
- Another notable event was the inclusion of Freedom Holding Corp. shares in the Moneyball investment portfolio, managed by consulting firm The Motley Fool. The FRHC shares received a “Buy” recommendation. Moneyball is one of The Motley Fool’s flagship investment strategies. Each year, the team selects up to 250 of the most promising companies, based on deep fundamental analysis, market trend assessment, and data from its proprietary AI platform.
- In October 2025, Freedom Holding Corp. entered into an agreement to acquire 100% of Wallet Solutions, a company specializing in virtual currency services. The transaction amount is $1.9 million, and the deal is in the final stage. This acquisition will allow the holding to expand its portfolio of digital financial products and strengthen its position in the modern fintech market.
- From July to September 2025, the Freedom Shapagat corporate foundation allocated $16.5 million to sustainable development projects.
- On November 7, Freedom Holding Corp. and the Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan announced plans to strengthen Kazakhstan’s and Central Asia’s leadership in the field of artificial intelligence through a sovereign NVIDIA exascale AI infrastructure and talent development initiatives. This joint initiative involves a phased approach, including plans to establish the Kazakhstan Sovereign AI Center, managed by Freedom Holding Corp. based on NVIDIA AI infrastructure. The Ministry will facilitate favorable conditions for hosting and operating large-scale AI infrastructure and support initiatives such as establishing an AI Academy and a research laboratory to train engineers and analysts. The expected project, valued at $2 billion, will be implemented on a site with an available capacity of 100 MW in Kazakhstan. Freedom Holding Corp. intends to be the main partner in financing and executing the project.
