Company: FRHC
Filing Date: 2025-07-29
Form Type: ARS
Source: 0000924805-25-000027
Chunk: 113

Company: Freedom Holding Corp.
Filing Date: 2025-07-29
Form: ARS
Chunk 113
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 18,801 (7,591) (40) % Other fee and commission income 6,017 5,438 579 11 % Total fee and commission income $ 505,026 $ 440,333 $ 64,693 15 % Table of Contents 69

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 fiscal years presented. Year ended March 31, 2025 2024 (as a % of total fee and commission income) Brokerage services 85 % 76 % Commission income from payment processing 6 % 9 % Agency fee income 3 % 4 % Bank services 3 % 6 % Underwriting and market-making services 2 % 4 % Other fee and commission income 1 % 1 % Total fee and commission income 100 % 100 % Fee and commission income for the fiscal year ended March 31, 2025 amounted to $505.0 million, reflecting an increase of $64.7 million or 15% compared to $440.3 million in the fiscal year ended March 31, 2024. This increase was driven by multiple factors, including the factors discussed below. Fee and commission income from brokerage services generated $430.1 million, representing a 29% increase from $333.4 million in fiscal 2024. This growth was primarily due to an increase in the number of retail brokerage customers from 530,000 in 2024 to 683,000 in 2025. During the fiscal year 2025, we earned fee and commission income from a market maker customer at our subsidiary Freedom Global of $284.7 million, representing 56% of our total fee and commission income for that period. Fee and commission income from payment processing decreased to $28.7 million in fiscal 2025 from $41.7 million for the fiscal 2024. The $12.9 million decrease is attributable to a significant reduction in transaction volumes between the two periods, which was in turn due to the cessation of operations of one of our counterparties, which previously contributed substantial transaction volume. Fee and commission income from banking services decreased by $11.8 million to $13.3 million during fiscal 2025, despite a significant increase in transaction volume following the successful launch of SuperApp in April 2024. The decrease was primarily driven by the launch and active use of a cashback-based loyalty program. As part of