Company: FRHC
Filing Date: 2025-07-29
Form Type: ARS
Source: 0000924805-25-000027
Chunk: 131

Company: Freedom Holding Corp.
Filing Date: 2025-07-29
Form: ARS
Chunk 131
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 (137,038) 12,194 Effect of expected credit losses on cash and cash equivalents and restricted cash 79 (3,406) NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH $ 637,049 $ (19,224) Net Cash From Operating Activities Net cash used in operating activities during fiscal 2025 was comprised of net cash from operating activities and net income adjusted for non-cash movements (changes in deferred taxes, unrealized gain on trading securities, net change in accrued interest, change in insurance reserves, and allowance for credit losses). Net cash used in operating activities resulted primarily from changes in operating assets and liabilities. Such changes included those set out in the following table. Year ended March 31, 2025 2024 Decreases/(Increases) in trading securities (1) $ 827,157 $ (1,048,205) Increases in brokerage customer liabilities (2) $ 1,516,767 $ 112,258 Increases in margin lending, brokerage and other receivables (3) $ (1,743,595) $ (1,272,652) Increases in margin lending and trade payables (4) $ 474,087 $ 734,605 (1) Resulted from an decrease in the amount of securities held in our proprietary account. (2) Resulted from increased funds in brokerage accounts from new and existing customers. (3) Resulted from an increase in volume of margin lending receivables. (4) Resulted from increased volume of margin lending payables. The change from net cash used in operating activities of $1.1 billion in fiscal 2024 to net cash from operating activities of $1.7 billion in fiscal 2025 was primarily attributable to a decrease in trading securities and an increase in brokerage customer liabilities. Net cash flows from operating activities in the fiscal 2025 were primarily driven by an increase in customer liabilities, reflecting the growth in customer accounts within our Freedom Global subsidiary. A decrease in trading securities further contributed to the positive cash flow. These inflows were partially offset by an increase in margin lending, brokerage and other receivables, as the Company has provided more margin lending to its customers, which lead to an increase in related receivable balance. Net Cash Used In Investing Activities During fiscal 2025, net cash used in investing activities was $905.5 million compared to net cash used in investing activities of $638.2 million during fiscal 2024,