Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 41

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 41
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 the three months ended September 30, 2025, the increase in our Other segment's total expenses, net was driven by an increase in interest expense, payroll and bonuses, cost of sales, general and administrative expense and stock compensation expense. Interest expense increased by $12.2 million, mainly attributable to an increase in interest expense from the debt securities issued by Freedom SPC. There was a $10.3 million increase in payroll and bonuses and $5.8 million in general and administrative expense in our Other segment which was mostly attributable to the overall growth of our operations as well as the addition of new subsidiaries. Cost of sales increased by $9.9 million due to a higher sales volume, which reflects our expansion into the telecommunications sector as well as increased customer activity and order volume at Arbuz. Additionally, stock compensation expense increased by $5.7 million, which is attributable to new stock grants awarded and the partial amortization of stock grants which were awarded during 2025 and 2024 fiscal years.

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Comparison of the Six-month Periods Ended September 30, 2025 and 2024

The following table presents total revenue, net by segment for the six month periods presented:

Six months ended September 30,(amounts in thousands)20252024Amount Change%ChangeBrokerage$411,144 $349,713 $61,431 18 %Banking251,964 292,711 (40,747)(14)%Insurance324,908 325,438 (530)— %Other71,514 73,276 (1,762)(2)%Total revenue, net$1,059,530 $1,041,138 $18,392 2 %

Total revenue, net for the six months ended September 30, 2025 increased primarily due to growth in the Brokerage segment compared to the six months ended September 30, 2024. In our segment reporting, we account for all operations within each business segment, including all related subsidiaries and their activities. Below is a discussion of revenue of our segments for the six months ended September 30, 2025 compared to the six months ended September 30, 2024. 

Brokerage Segment

•In the six months ended September 30, 2025, the Brokerage segment experienced an increase in total revenue, net, primarily driven by a $38.5 million increase in fee and commission income, reflecting a general increase in brokerage activity between the