Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 40

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 2
Chunk 40
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 appreciation of the U.S. dollar against the Kazakhstan tenge between the two periods. However, this increase was partially offset by a decrease of other income, net gain on trading securities and interest income due to changes in securities portfolio. 

Other Segment

In the nine months ended December 31, 2024, total revenue, net in the Other segment increased mostly due to an increase of $41.7 million in net gain on foreign exchange operations mainly from FRHC, which was attributable to an appreciation of the U.S. dollar against the Kazakhstan tenge between the two periods. There was also an increase of $17.2 million due to the increase in other income. These increases were partially offset by a $12.3 million decrease in fee and commission income attributable to a decrease in Paybox's transaction volumes due to the cessation of operation of a counterparty that contributed significantly to its transaction volume. There was also a decrease in interest income and net gain on derivatives.

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

Nine months ended December 31,(amounts in thousands)20242023Amount Change%ChangeBrokerage$259,530 $198,753 $60,777 31 %Banking437,801 341,048 96,753 28 %Insurance490,323 204,018 286,305 140 %Other230,738 95,723 135,015 141 %Total expense, net$1,418,392 $839,542 $578,850 69 %

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For the nine months ended December 31, 2024, total expenses, net increased across each of our business segments compared to the nine months ended December 31, 2023.

Brokerage Segment

In the nine months ended December 31, 2024, total expenses, net in our Brokerage segment increased primarily due to an increase in payroll and bonuses, reflecting our efforts to attract and retain top talent. Additionally, there was an increase in fee and commission expense, which was in turn mainly due to agency fees expense. Advertising expenses in this segment also increased as we intensified our marketing efforts to expand our client base. Furthermore, stock compensation expense increased, attributable to new stock grants and partial amortization of old stock grants. These increases were partially offset by a decrease in general and administrative expenses and provision for allowance for expected credit loses, due to a one-off accrual of allowance in the nine months ended December 31,