Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 43

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 43
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 $2.6 million, which is primarily attributable to a decrease in Paybox's transaction volume following the cessation of operations of its counterparty that previously contributed significantly to such volume. These decreases were partially offset by an increase in sales of goods and services of $20.0 million, driven by our continued expansion into the telecommunications sector and higher order volumes 

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and customer activity at Arbuz, as well as an increase in net gain on trading securities of $11.3 million between the two quarters.

Total expenses associated with our segments are summarized in the following table:

Six months ended September 30,20252024Amount Change%ChangeBrokerage$168,284 $169,600 $(1,316)(1)%Banking257,443 272,106 (14,663)(5)%Insurance309,326 290,661 18,665 6 %Other223,476 138,686 84,790 61 %Total expense, net$958,529 $871,053 $87,476 10 %

For the six months ended September 30, 2025, total expenses, net increased across Insurance and Other segments compared to the six months ended September 30, 2024. Below is a discussion of changes in expenses for each of our segments for the six months ended September 30, 2025 versus the six months ended September 30, 2024:

Brokerage Segment

•In the six months ended September 30, 2025, the total expenses, net, in our Brokerage segment decreased by $1.3 million. The decrease was primarily driven by a $28.6 million decrease in interest expense, mainly related to lower interest paid on securities repurchase agreements. Advertising and sponsorship expenses in this segment also decreased by $8.7 million, as marketing activities were scaled back during the period. Additionally, allowance for expected credit losses decreased by $2.0 million. These decrease were partially offset by an increase in payroll and bonus expenses of $25.6 million, reflecting our continued investment in attracting and retaining top talent, as well as fee and commission expenses of $10.3 million, due to higher customer activity. 

Banking Segment

•In the six months ended September 30, 2025, total expenses, net in our Banking segment decreased primarily due to a $44.6 million decrease in interest expense due to reduction in the securities portfolio for which the Bank uses repurchase agreements. The decrease was