Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 173

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 173
---
Brokerage$82,365 $74,519 $7,846 11 %Banking131,234 149,196 (17,962)(12)%Insurance137,581 160,676 (23,095)(14)%Other114,441 73,261 41,180 56 %Total expense, net$465,621 $457,652 $7,969 2 %

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

Brokerage Segment

•In the three months ended September 30, 2025, the total expenses, net, in our Brokerage segment increased by $7.8 million. The increase was primarily driven by a $16.6 million rise in payroll and bonus expenses, reflecting our continued investment in attracting and retaining top talent, a $5.2 million increase in fee and commission expenses due to higher customer trading activity, and a $2.4 million increase in general and administrative expenses. These increases were partially offset by a $10.0 million decrease in interest expense, mainly related to lower interest paid on securities repurchase agreements, a $5.0 million decrease in advertising and sponsorship expenses, as marketing activities were scaled back during the period, and a $1.4 million decrease in stock-based compensation.

Banking Segment

•In the three months ended September 30, 2025, total expenses, net in our Banking segment decreased primarily due to a $24.0 million decrease in interest expense due to reduction in the securities portfolio for which the Bank uses repurchase agreements, decrease for a $1.6 million in provision for credit losses, a $1.0 million decrease in payroll and bonuses expense. The decrease was partially offset by a $3.8 million increase in fee and commission expense, in particular for the banking services, a $2.1 million increase in general and administrative expense, in particular for the depreciation of fixed assets and software expenses, and a $1.7 million increase in advertising and sponsorship expenses.

Insurance Segment

•In the three months ended September 30, 2025, total expenses, net in our insurance segment decreased mainly due to a $32