Freedom Holding Corp. financial results for Q1 FY2027

Freedom Holding Corp. announces financial results for Q1 fiscal year 2027, which for the Company ended on June 30, 2026*.

Financial highlights

The Company reported total revenue of $732.9 million for Q1 FY2027 compared with $524 million for the same period a year earlier. Revenue growth was driven by several areas at once: an increase in interest and fee income, and positive dynamics in net financial result from trading securities transactions. For the reporting period, profit before tax reached $40.8 million, net profit exceeded $31.7 million, and earnings per common share amounted to $0.52**.

As of June 30, 2026, cash and cash equivalents, restricted cash, and investment securities totaled $7 billion, total assets reached $14 billion, and total shareholders’ equity amounted to $1.5 billion.

Client base

The client base of companies within Freedom Holding Corp. grew to 8.7 million. Compared to figures as of March 31, 2026, the results were: brokerage accounts – 874 thousand (+16 thousand), users of the Freedom SuperApp mobile banking application – 5.7 million (+493 thousand), and clients of non-financial companies – 1 498 thousand (+393 thousand).

As of June 30, 2026, the total number of clients in the Freedom ecosystem, including users of partner companies, exceeded 13.8 million versus 11.7 million a year earlier.

Key drivers of the results

The holding’s interest income increased from $198.6 million to $295.1 million due to growth in income from margin loans, loans issued to customers, as well as securities held to maturity, trading and available-for-sale securities, reverse REPO transactions, and funds placed with banks.

Fee and commission income rose from $107.6 million to $156.7 million mainly due to increased brokerage services revenue as a result of growth in the client base and trading activity.

Net profit on trading securities increased to $79.8 million (vs. $45.6 million a year earlier) — primarily due to the sale of Kazakhstan sovereign securities, corporate debt securities, and an increase in the fair value of securities remaining in the Group’s portfolio at the end of the reporting period.

Foreign exchange result improved — from a loss of $12.9 million to a profit of $13.7 million — mainly due to a significant reduction in losses from foreign exchange revaluation amid a stable tenge-to-euro exchange rate compared to its significant weakening a year earlier.

The Company’s expenses totaled about $691.3 million versus $476.5 million a year earlier. The main drivers of growth were an increase in insurance losses and payments to policyholders (net of reinsurance), interest expense, personnel costs and bonuses, and general and administrative expenses. At the same time, the increase in expenses was partially offset by a decrease in commission expenses.

Freedom Holding Corp. consistently invests in implementing social initiatives and sustainable development projects in Kazakhstan through the corporate foundation “Freedom Shapagat”. In the first half of the 2026 calendar year, about $25 million was allocated for these purposes.

Notable achievements of the period

In June 2026, the Company announced a transition to a single Freedom brand, bringing the ecosystem’s financial and digital services under it. The rebranding reflects the holding’s strategy to develop a unified platform, increase brand recognition, and create a seamless client experience across all markets of presence.

Another important event was an upgrade by S&P Global Ratings of the credit ratings of key financial divisions of Freedom Holding Corp. from “B+” to “BB-” with a stable outlook, as well as the ratings of subsidiaries on Kazakhstan’s national scale to “kzA-”. The rating of Freedom Holding Corp. itself remained at “B-” with a stable outlook. The agency noted the strengthening of the Group’s risk management and solid financial performance as key factors behind the upgrade.

A significant milestone in implementing the holding’s development strategy in Turkey was the completion of the acquisition of Turkish Bank A.Ş.: Freedom Finansal Hizmetler A.Ş. became the owner of a controlling stake of 99.32% of the bank’s share capital after obtaining the necessary regulatory approvals in Turkey. The general meeting of shareholders approved a new composition of the Board of Directors and decided to rename the bank to Freedom Bank A.Ş.

Also, on July 10, 2026, Freedom completed the placement of 2 374 356 common shares for a total of $300 million in accordance with the procedure applicable to non-U.S. residents under Regulation S of the U.S. Securities Act of 1933.

As of the date of this press release, the Company has completed the acquisition of a stake in one of the leading technology companies – LLP Bilim Group LTD. It is the largest player in Kazakhstan and Central Asia in the field of educational technologies. The transaction received approval from the Agency for Protection and Development of Competition of the Republic of Kazakhstan, which opens opportunities for further development of joint educational projects using artificial intelligence.

 

Reference

Change in the reserve related to translation of the reporting currency.

Other comprehensive income/expenses of the holding include income and expenses from translation of the reporting currency reserve that arise when translating the financial statements of subsidiaries into the holding’s currency upon consolidation. Asset and liability items are translated at the exchange rate as of the reporting date, income and expense items — at the average exchange rate for the reporting period. A positive change in the reserve arises when the functional currencies of subsidiaries depreciate against the currency in which the holding reports.

* Unless otherwise specified, all comparisons are made to the quarter ended June 30, 2025.

** Earnings are calculated based on a basic weighted-average number of shares of 60.4 million.

About the Company

Freedom Holding Corp. is a diversified company providing financial services, engaged in telecommunications, online sales of air tickets and tickets to cultural and sporting events, offers online supermarket services, and much more. Including subsidiaries, Freedom Holding Corp. employs more than 12.1 thousand people. The holding’s divisions and subsidiaries are located in 24 countries, including Kazakhstan, the U.S., Cyprus, Armenia, Uzbekistan, EU countries, and others. Freedom Holding Corp. common shares are registered with the U.S. Securities and Exchange Commission and trade under the ticker FRHC on the Nasdaq Capital Market.

Media contacts: [email protected]

www.freedomholdingcorp.com