Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 314

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 314
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, other insurance expense increased 

91

by $13.3 million, or 47%, primarily due to higher redemptions under compulsory motor third-party liability (MTPL) insurance policies. Claims paid also grew by $29.1 million, or 179%. Part of these claims has been reimbursed from the reinsurers in the amount of $7.2 million.

Payroll and bonuses

For the six months ended September 30, 2025, we had payroll and bonuses expense of $186.2 million, representing an increase of $62.5 million or 51% compared to payroll and bonuses expense of $123.7 million for the six months ended September 30, 2024. The increase in payroll and bonus expenses is primarily attributable to increased salary and bonus amounts between the two periods. The increase was also due to the expansion of our workforce through acquisitions, establishment of new subsidiaries and hiring.

Professional services

For the six months ended September 30, 2025, our professional services expense was $23.5 million, representing a increase by $8.0 million or 52% compared to $15.5 million for the six months ended September 30, 2024. The increase was primarily attributable to an increase in expenses for auditing services rendered by our external auditors due to timing differences in the provision of such services. The increase was also attributable to higher legal fees and consulting fees.

Stock compensation expense

For the six months ended September 30, 2025, our stock compensation expense was $38.6 million, representing an increase of $15.9 million compared to stock compensation expense of $22.7 million for the six 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 six months ended September 30, 2025, was $52.0 million, representing a decrease for $2.4 million or 4%, compared to $54.3 million for the six months ended September 30, 2024. The decrease was primarily driven by an $8.5 million reduction in advertising expenditures by Freedom EU, mainly due to the seasonal nature and timing of marketing campaigns. This was partially offset by $3.0 million increase in sponsorship expenses, reflecting the Company’s ongoing support of socially significant initiatives, and by a $2.0 million increase