Company: FRHC
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000924805-25-000031
Chunk: 251

Company: Freedom Holding Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 251
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 exchange operations due to the depreciation of the Kazakhstani tenge against the U.S. dollar between the two periods, a $0.5 million decrease in other income and a $0.1 million decrease in this segment's fee and commission income in the three months ended June 30, 2025. 

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Other Segment

•In the three months ended June 30, 2025, total revenue, net in the Other segment decreased mostly due to a decrease of $13.2 million in net gain on foreign exchange operations from FRHC. The decline was attributable to a reduced appreciation of the U.S. dollar against the Kazakhstani tenge in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The $5.7 million decrease in Other income in the Other segment was primarily affected by the disposal of our former subsidiary ITS Tech Limited and $4.2 million recognition in the three months ended June 30, 2024. Fee and commission income declined by $4.0 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 $12.0 million, driven by our continued expansion into the telecommunications sector and higher order volumes and customer activity at Arbuz, as well as an increase in net gain on trading securities of $7.9 million between the two quarters.

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

Three months ended June 30,20252024Amount Change%ChangeBrokerage$85,919 $95,081 $(9,162)(10)%Banking126,209 122,910 3,299 3 %Insurance171,745 129,985 41,760 32 %Other109,035 65,425 43,610 67 %Total expense, net$492,908 $413,401 $79,507 19 %

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

Brokerage Segment