Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 22

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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$(36,009)$(52,065)Interest expense on customer accounts and deposits10,343 8,985 19,328 Interest expense on debt securities issued(406)10,937 10,531 Interest expense on margin lending payable(6,711)4,893 (1,818)Other interest expense— — 1,618 Total$(12,830)$(11,195)$(22,406)

Insurance claims incurred, net of reinsurance

For the three months ended September 30, 2025 we had a $13.2 million, or 20%, increase in insurance claims incurred, net of reinsurance, as compared to the three months ended September 30, 2024. The increase was primarily attributable to $19.6 million increase in claims paid in particular for compulsory motor third-party liability (MTPL). In addition, other insurance expense increased by $2.9 million, or 18%, primarily due to higher redemptions under pension 

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annuity contracts and terminations under accident insurance policies. The increase was partially offset by $6.7 million decrease in change in insurance reserves. Part of these claims has been reimbursed from the reinsurers in the amount of $4.3 million.

Payroll and bonuses

For the three months ended September 30, 2025, we had payroll and bonuses expense of $93.1 million, representing an increase of $26.9 million or 41% compared to payroll and bonuses expense of $66.2 million for the three months ended September 30, 2024. The increase is primarily attributable to the expansion of our workforce through hiring, establishment of new subsidiaries and acquisitions. The increase was also due to increased salary and bonus amounts between the two periods.

Professional services

For the three months ended September 30, 2025, our professional services expense was $10.5 million, representing an increase of $2.3 million, or 27%, compared to $8.2 million for the three months ended September 30, 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