Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 320

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 320
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 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 two periods. In addition, interest income contributed to the growth, rising by $27.5 million, largely due to increased usage of margin loans for trades by our customers. Net gain on trading securities also increased by $8.7 million due to an increase in the value of securities positions. However, this growth was partially offset by a $10.4 million decrease in net (loss)/gain on foreign exchange operations and a $1.5 million decrease in other income.

Banking Segment

•In the six months ended September