Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 33

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 2
Chunk 33
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Nine months ended December 31,2024 vs 2023 (Decrease)/increase due to change in(amounts in thousands)RateVolumeNetInterest expenseInterest expense on securities repurchase agreement obligations$(30,543)$(5,650)$(36,193)Interest expense on customer accounts and deposits20,238 4,753 24,991 Interest expense on debt securities issued5,265 15,260 20,525 Other interest expense— — 26,546 Total$(5,040)$14,363 $35,869 

Insurance claims incurred, net of reinsurance

For the nine months ended December 31, 2024, we had a $122.0 million, or 126%, increase in insurance claims incurred, net of reinsurance, as compared to the nine months ended December 31, 2023. The increase was primarily attributable to the general expansion of our insurance operations between the two periods.

Payroll and bonuses

For the nine months ended December 31, 2024, we had payroll and bonuses expense of $201.1 million, representing an increase of $84.4 million or 72% compared to payroll and bonuses expense of $116.7 million for the nine months ended December 31, 2023. The increase in payroll and bonus expenses is primarily attributable to increased salary and bonus amounts between the two periods. The increase was also due to the expansion of our workforce through acquisitions, establishment of new subsidiaries and hiring.

Professional services

For the nine months ended December 31, 2024, our professional services expense was $26.5 million, representing an increase by $1.7 million, or 7%, compared to $24.8 million for the nine months ended December 31, 2023. The increase was attributable to the overall growth of our company organically and through acquisitions between the two periods.

Stock compensation expense

For the nine months ended December 31, 2024, our stock compensation expense was $36.1 million, representing an increase of $32.8 million, or 993%, compared to stock compensation expense of $3.3 million for the nine months ended December 31, 2023. The increase is attributable to new stock grants, the majority of which vested on the date of issuance, during the nine months ended December 31, 2024 as well as the partial amortization of stock grants awarded during fiscal 2024. 

Advertising expense

Advertising