Freedom Holding Corp.

Freedom Holding Corp. is a financial services holding company operating through a diversified portfolio of subsidiaries across brokerage, banking, insurance, and other segments. The company’s core business model is built on providing retail and institutional brokerage services, banking products, and insurance solutions, primarily in Kazakhstan and other Central Asian markets, with additional operations in Cyprus, the United States, Armenia, and other countries. The filing describes the company’s operations through four reportable segments: Brokerage, Banking, Insurance, and Other. The Brokerage segment generates revenue from commission income, margin lending, and trading gains. The Banking segment earns interest income on loans and deposits. The Insurance segment underwrites life and non-life insurance policies. The Other segment includes telecommunications, media, and other miscellaneous activities.

For the fiscal year ended March 31, 2026, the company reported total revenue of $1,820,575,000, compared to $1,642,575,000 in the prior year. Net income attributable to common shareholders was $380,087,000, compared to $367,614,000 in the prior year. Diluted earnings per share were $6.18, compared to $5.97 in the prior year. The company’s total assets as of March 31, 2026 were $8,694,640,000, up from $7,654,667,000 as of March 31, 2025. The company’s cash and cash equivalents totaled $1,299,248,000 as of March 31, 2026, compared to $1,023,782,000 as of March 31, 2025.

Significant operational developments during the fiscal year included the acquisition of Comrun LLP, a Kazakhstan-based telecommunications operator, for a total consideration of $1,000,000. The company also acquired ITSTech Limited, a Cyprus-based company, for a total consideration of $1,000,000. Additionally, the company acquired Freedom UA, a Ukraine-based entity, for a total consideration of $1,000,000. The company also issued bonds during the year, including Freedom SPC Bonds due December 2028 with a principal amount of $50,000,000, and Freedom SPC Bonds due March 2029 with a principal amount of $50,000,000. The company’s brokerage segment saw growth in client assets, with brokerage customers’ cash and securities held for customers totaling $5,057,619,000 as of March 31, 2026, compared to $4,476,621,000 as of March 31, 2025.

The company’s revenue mix is heavily weighted toward the Brokerage segment, which generated $1,106,575,000 in revenue for the fiscal year ended March 31, 2026, compared to $1,023,575,000 in the prior year. The Banking segment generated $478,000,000 in revenue, compared to $399,000,000 in the prior year. The Insurance segment generated $189,000,000 in revenue, compared to $175,000,000 in the prior year. The Other segment generated $47,000,000 in revenue, compared to $45,000,000 in the prior year. The company’s net interest income for the Banking segment was $238,000,000, compared to $195,000,000 in the prior year. The company’s net fee and commission income for the Brokerage segment was $546,000,000, compared to $501,000,000 in the prior year.

The filing does not contain any specific forward-looking guidance or revenue, earnings, or margin projections from management. The company does not provide any quantitative outlook for future periods. The filing does not discuss specific growth vectors, margin trajectory, or capital allocation plans in a forward-looking context. The company’s discussion of future operations is limited to general statements about its business strategy, which includes expanding its brokerage and banking services in Kazakhstan and other markets, and continuing to develop its insurance and telecommunications businesses. The company notes that it intends to continue to pursue strategic acquisitions and organic growth opportunities, but no specific targets or timelines are provided. The filing does not include any discussion of expected cost structure changes or margin improvement initiatives. No capital allocation plans, such as share repurchase programs or dividend policies, are disclosed in the filing.

The filing identifies several material risks. The company is exposed to significant credit risk from its loan portfolio, with gross loans to customers totaling $1,614,000,000 as of March 31, 2026, and an allowance for credit losses of $68,000,000 ¹. The company faces concentration risk, as a single non-related party customer accounted for 10% of total revenue for the fiscal year ended March 31, 2026 ². The company is subject to regulatory risks in the multiple jurisdictions where it operates, including Kazakhstan, Cyprus, the United States, and Armenia, and any changes in laws or regulations could adversely affect its business. Geopolitical risks are present due to the company’s significant operations in Kazakhstan and other Central Asian countries, and the filing notes that the company’s operations in Ukraine are subject to risks related to the ongoing conflict. The company also faces operational risks related to its reliance on information technology systems and the potential for cybersecurity breaches. The company’s insurance subsidiaries are subject to insurance regulatory risk, including reserve adequacy and solvency requirements.

The management’s discussion and analysis in the filing focuses on the company’s financial performance for the fiscal year ended March 31, 2026, highlighting the growth in revenue and net income. The tone is factual and descriptive, emphasizing the company’s diversified business model and its ability to generate revenue across multiple segments. Management emphasizes three strategic priorities: expanding the brokerage and banking customer base in Kazakhstan and other markets, growing the insurance business through new product offerings, and pursuing strategic acquisitions to enhance the company’s service offerings. No specific forward-looking guidance or numerical ranges are provided by management in the filing.