Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 39

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 39
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 interest income due to a reduction in the size of the trading portfolio, a $20.7 million decrease in fee and commission income due to SuperApp cashback payments, a $8.6 million decrease in net gain/(loss) on foreign exchange operations due to a depreciation of the U.S. dollar against the Kazakhstan tenge between the two periods and a $8.1 million decrease in net gain on derivatives mainly due to losses on currency swaps and the decrease of transactions. These decreases were partially offset by a $7.2 million increase in other income.

Insurance Segment

•In the three months ended September 30, 2025, total revenue, net in the Insurance segment decreased mainly due to a  $35.1 million decrease in insurance underwriting income particularly for accident insurance. The decrease was partially offset by $3.6 million increase in interest income due to increase of trading portfolio, $1.8 million increase in net gain on foreign exchange operations due to the appreciation of the Kazakhstani tenge against the U.S. dollar between the two periods, $1.6 million increase in other income. 

Other Segment

•In the three months ended September 30, 2025, total revenue, net in the Other segment increased mostly due to an $8.0 million increase in sales of goods and services, driven by our continued expansion into the telecommunications sector and higher order volumes and customer activity at Arbuz. Fee and commission income increased by $1.4 million, which is primarily attributable to an increase in agency fee income in Ticketon and 

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Aviata which was partially offset by a decrease in Paybox's transaction volume following the cessation of operations of its counterparty that previously contributed significantly to such volume. These increases were partially offset by a decrease in other income by $7.2 million, as well as decrease in net gain on foreign exchange operations of $1.7 million between the two quarters. 

Total expenses associated with our segments are summarized in the following table:

Three months ended September 30,20252024Amount Change%ChangeBrokerage$82,365 $74,519 $7,846 11 %Banking131,234 149,196 (17,962)(12)%Insurance137,581 160,676 (23,095)(14)%Other114,441 73,261 41,180 56 %Total expense, net$465,621 $457,652 $7,969 2