Company: FRHC
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000924805-25-000031
Chunk: 247

Company: Freedom Holding Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 247
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 accident insurance products. This reflects the overall expansion of the insurance portfolio. In addition, other insurance expense increased by 

72

$10.4 million, or 83%, primarily due to higher redemptions under pension annuity contracts and terminations under accident insurance policies. Claims paid also grew by $9.5 million, or 118%. Part of these claims has been reimbursed from the reinsurers in the amount of $2.9 million.

Payroll and bonuses

For the three months ended June 30, 2025, we had payroll and bonuses expense of $93.1 million, representing an increase of $35.6 million or 62% compared to payroll and bonuses expense of $57.5 million for the three months ended June 30, 2024. The increase is primarily attributable to the expansion of our workforce through hiring, establishment of new subsidiaries and acquisitions. The increase was also due to increased salary and bonus amounts between the two periods.

Professional services

For the three months ended June 30, 2025, our professional services expense was $13.0 million, representing an increase by $5.8 million, or 79%, compared to $7.3 million for the three months ended June 30, 2024. The increase was primarily attributable to an increase in expenses for auditing services rendered by our external auditors.

Stock compensation expense

For the three months ended June 30, 2025, our stock compensation expense was $23.1 million, representing an increase of $12.4 million compared to stock compensation expense of $10.6 million for the three months ended June 30, 2024. The increase is attributable to new stock grants awarded in April and May 2025 and to the partial amortization of stock grants which were awarded during fiscal 2025 and 2024. 

Advertising and sponsorship expense

Advertising and sponsorship expense for the three months ended June 30, 2025, was $24.5 million, representing an increase of $2.6 million, or 12%, compared to $21.9 million for the three months ended June 30, 2024. Sponsorship expense increased by $6.5 million and included several contributions made through Company subsidiaries. The most significant sponsorships during the period were directed to the State Fund "Astana-20" in the amount of $3.4 million and the Junior Football League of Kazakhstan in the amount of $2.5 million, reflecting the Company’s continued