Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 159

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 1
Chunk 159
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 during the nine months ended December 31, 2024, was comprised of net change in operating assets and liabilities and net income adjusted for non-cash movements (changes in deferred taxes, unrealized gain on trading securities, net change in accrued interest, change in insurance reserves, and allowance for receivables). Net cash from operating activities resulted primarily from changes in operating assets and liabilities. Such changes included those set out in the following table.

88

Nine Months EndedDecember 31, 2024Nine Months EndedDecember 31, 2023(amounts in thousands)Increases in trading securities (1)$(170,899)$(1,149,192)Increases in brokerage customer liabilities (2)$1,187,289 $71,982 Increases in margin lending, brokerage and other receivables$(509,597)(3)$(603,701)(Decrease)/increases in margin lending and trade payables (4)$(505,097)$30,593 

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(1)Resulted from increased purchases of securities held in our proprietary account. 

(2)Resulted from increased funds in brokerage accounts from new and existing customers.  

(3)Resulted primarily from increased volume of margin lending receivables.

(4)Resulted primarily from decreased volume of margin lending payables.

Net cash flows from operating activities in the nine months ended December 31, 2024, were primarily attributable to net cash inflows attributable increase in customer liabilities over that period, which resulted from the increase of customer accounts in our Freedom Global subsidiary, which were partially offset in part by an decrease in margin lending and trade payables, and  increases in trading securities. In addition, during the nine months ended December 31, 2024, the Company has provided more margin lending to its customers, which lead to increase in related receivable balance.

Net Cash Flows Used In Investing Activities

During the nine months ended December 31, 2024, net cash used in investing activities was $652.6 million compared to net cash used in investing activities of $593.0 million during the nine months ended December 31, 2023. During the nine months ended December 31, 2024, cash used in investing activities was used for the issuance of loans, net of repayment by customers, in the amount of $341.8 million, and purchase of available-for-sale securities, net of proceeds, in the amount of $234.1 million. During the nine months ended December