Company: FRHC
Filing Date: 2025-07-29
Form Type: ARS
Source: 0000924805-25-000027
Chunk: 120

Company: Freedom Holding Corp.
Filing Date: 2025-07-29
Form: ARS
Chunk 120
---
 % 3 % Stock compensation expense 3 % 2 % Advertising and sponsorship expense 6 % 3 % General and administrative expense 8 % 10 % Allowance for expected credit losses 3 % 2 % Cost of sales 2 % 1 % Total expense 100 % 100 % Table of Contents 74

Fee and commission expense The following table sets forth information regarding our fee and commission expense for the periods presented. Year ended March 31, 2025 2024 Amount Change % Change Agency fee expense $ 284,055 $ 103,020 181,035 176 % Brokerage services 19,846 16,587 3,259 20 % Bank services 20,064 18,121 1,943 11 % Exchange services 1,776 3,302 (1,526) (46) % Central Depository services 707 446 261 59 % Other commission expenses 19,626 12,875 6,751 52 % Total fee and commission expense $ 346,074 $ 154,351 $ 191,723 124 % The following table sets out the components of our fee and commission expense as a percentage of total fee and commission expense, net for the periods presented. Year ended March 31, 2025 2024 (as a % of total fee and commission expense) Agency fee expense 82 % 67 % Brokerage services 6 % 11 % Bank services 5 % 12 % Exchange services 1 % 2 % Central Depository services — % — % Other commission expenses 6 % 8 % Total fee and commission expense 100 % 100 % Fee and commission expense increased by $191.7 million, or 124% in fiscal 2025, as compared to fiscal 2024. The increase was mainly attributable to an increase of agency fee expense of $181.0 million in fiscal 2025 as compared to fiscal 2024. The increase was mainly due to an increase of insurance product sales by Freedom Life, which are outsourced to outside agents. Additionally, there was an increase by $3.3 million in brokerage service expense, which was driven by higher customer activity. The increase in other commission expenses is attributable to increased commissions associated with Paybox that is consistent with the growth of its business activities between the two periods. Interest expense During the fiscal year ended March 31, 2025, total interest expense remained relatively flat compared to the same