Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 301

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 301
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 30, 2025 we had a $13.2 million, or 20%, increase in insurance claims incurred, net of reinsurance, as compared to the three months ended September 30, 2024. The increase was primarily attributable to $19.6 million increase in claims paid in particular for compulsory motor third-party liability (MTPL). In addition, other insurance expense increased by $2.9 million, or 18%, primarily due to higher redemptions under pension 

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annuity contracts and terminations under accident insurance policies. The increase was partially offset by $6.7 million decrease in change in insurance reserves. Part of these claims has been reimbursed from the reinsurers in the amount of $4.3 million.

Payroll and bonuses

For the three months ended September 30, 2025, we had payroll and bonuses expense of $93.1 million, representing an increase of $26.9 million or 41% compared to payroll and bonuses expense of $66.2 million for the three months ended September 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 September 30, 2025, our professional services expense was $10.5 million, representing an increase of $2.3 million, or 27%, compared to $8.2 million for the three months ended September 30, 2024. The increase was primarily attributable to an increase in expenses for legal services and consulting services.

Stock compensation expense

For the three months ended September 30, 2025, our stock compensation expense was $15.5 million, representing an increase of $3.4 million compared to stock compensation expense of $12.1 million for the three months ended September 30, 2024. The increase is attributable to new stock grants awarded and the partial amortization of stock grants which were awarded during 2025 and 2024 fiscal years. 

Advertising and sponsorship expense

Advertising and sponsorship expense for the three months ended September 30, 2025, was $27.5 million, representing a decrease of $4.9 million, or 15%, compared to $32.4 million for the three months ended September 30, 2024. 

The decrease was primarily driven by a $5.3 million reduction in advertising expenditures by Freedom