Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 156

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 156
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, 2024. The increase was primarily attributable to an increase in expenses for legal services and consulting services.

Stock compensation expense

For the three months ended September 30, 2025, our stock compensation expense was $15.5 million, representing an increase of $3.4 million compared to stock compensation expense of $12.1 million for the three months ended September 30, 2024. The increase is attributable to new stock grants awarded and the partial amortization of stock grants which were awarded during 2025 and 2024 fiscal years. 

Advertising and sponsorship expense

Advertising and sponsorship expense for the three months ended September 30, 2025, was $27.5 million, representing a decrease of $4.9 million, or 15%, compared to $32.4 million for the three months ended September 30, 2024. 

The decrease was primarily driven by a $5.3 million reduction in advertising expenditures by Freedom EU, mainly due to the seasonal nature and timing of marketing campaigns, as well as a decline in sponsorship expenses compared to the prior-year period. This was partially offset by a $1.7 million increase in expenses attributable to Freedom Bank KZ, primarily related to its “Blogger Race” marketing campaign aimed at promoting our SuperApp and enhancing its visibility across social media. In addition, there was a $1.0 million increase in expenses attributable to Freedom Advertising, an advertising company, primarily reflecting payments to external contractors for advertisement placement and promotion. The Company continued to support socially significant initiatives through contributions to the Kazakhstan Chess Federation, the Junior Football League of Kazakhstan, and other community programs, reaffirming its commitment to the development of sports, education, and social well-being.

General and administrative expense

General and administrative expense for the three months ended September 30, 2025, was $45.6 million, representing an increase of $4.7 million or 12% compared to general and administrative expense of $40.9 million for the three months ended September 30, 2024. The increase was primarily driven by higher business trip expenses due to increased travel activity supporting expanded operational and strategic initiatives across multiple regions, as well as a rise in depreciation and amortization expenses related to the continued growth of our operations.

Provision for allowance for expected credit losses

We recognized provision for allowance for credit losses in the amount of $11.9 million for the three months ended September 30, 2025, as compared to provision for allowance for credit