Company: FRHC
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000924805-25-000031
Chunk: 118

Company: Freedom Holding Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 118
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,538 4,708 (170)(4)%Underwriting and market-making services2,905 4,702 (1,797)(38)%Bank services(9,379)2,516 (11,895)(473)%Other fee and commission income768 1,833 (1,065)(58)%Total fee and commission income$107,642 $115,489 $(7,847)(7)%

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The following table sets out the components of our fee and commission income as a percentage of total fee and commission income, net for the periods presented.

Three months ended June 30, 20252024(as a % of total fee and commission income)Brokerage services96 %81 %Commission income from payment processing6 %7 %Agency fee income4 %4 %Underwriting and market-making services2 %4 %Bank services(9)%2 %Other fee and commission income1 %2 %Total fee and commission income100 %100 %

Fee and commission income for the three months ended June 30, 2025 amounted to $107.6 million, reflecting a decrease of $7.8 million or 7% compared to $115.5 million for the three months ended June 30, 2024. This decrease was driven by multiple factors, including the factors discussed below.

Fee and commission income from brokerage services generated $102.9 million, representing a 10% increase from $93.2 million in the three months ended June 30, 2024. This growth was primarily due to an increase in the number of retail brokerage customers from 532,000 as of June 30, 2024 to 725,000 as of June 30, 2025. During the three months ended June 30, 2025 and June 30, 2024, we earned fee and commission income from a market maker customer at our subsidiary Freedom Global of $72.3 million and $64.9 million, representing 67% and 56%, respectively, of our total fee and commission income for that period.

Fee and commission income from payment processing decreased to $5.9 million in the three months ended June 30, 2025 from $8.6 million for the three months ended June 30, 2024. The $2.6 million decrease is attributable to a strategic decrease in our average acquiring rate and overall decline in transaction turnover during the period