Freedom Holding Corp. Reports Second Quarter Fiscal Year 2025 Financial Results
A
-
$581 million in revenue for the quarter -
Net income of
$115 million , or$1.89 earnings per share, diluted, and$1.93 earnings per share, basic -
Operating expenses of
$452 million -
$8.8 billion in assets at the end of the quarter - Insurance underwriting segment lead revenue growth with a 121% Y.O.Y. increase
- Expansion to 189 offices worldwide with over 7,100 full-time employees
Second Quarter Financial Highlights:
The Company recognized revenue of approximately
Net income was approximately
6 Months Year to Date Financial Highlights:
For the six months ending
Net income was approximately
Balance Sheet Highlights:
Total assets were
"We experienced an expansion of retail client activity across all key business segments …”
Commenting on the results of the quarter, Timur Turlov, the Company's founder and chief executive officer, stated, "Overall we are pleased with the company’s financial performance during the reporting period. It was a record revenue quarter for Freedom where we achieved a 33% increase in revenues as compared to the same quarter last year, and a 29% increase over our first quarter of fiscal 2025. Insurance underwriting was the primary revenue growth driver for the period, which was in line with our expectations as we continued to penetrate the
“Of the
“Staying ahead of the game…”
Commenting further, Turlov stated, “A key differentiator for
Additional second quarter fiscal 2025 highlights:
Insurance underwriting income for the quarter was
Fee and commission income for the three months ended
The Company reported approximately 555,000 total retail brokerage customers as of
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To learn more about
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking" statements, including with respect to
Website Disclosure
Financial Tables to Follow
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
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(All amounts in thousands of |
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|
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|
|
|
|
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ASSETS |
|
|
|
||||
Cash and cash equivalents (including |
$ |
569,179 |
|
|
$ |
545,084 |
|
Restricted cash (including |
|
895,651 |
|
|
|
462,637 |
|
Trading securities (including |
|
3,601,118 |
|
|
|
3,688,620 |
|
Available-for-sale securities, at fair value |
|
284,580 |
|
|
|
216,621 |
|
Margin lending, brokerage and other receivables, net (including |
|
1,623,962 |
|
|
|
1,660,275 |
|
Loans issued (including |
|
1,368,656 |
|
|
|
1,381,715 |
|
Fixed assets, net |
|
142,446 |
|
|
|
83,002 |
|
Intangible assets, net |
|
46,112 |
|
|
|
47,668 |
|
|
|
53,166 |
|
|
|
52,648 |
|
Right-of-use asset |
|
37,028 |
|
|
|
36,324 |
|
Insurance contract assets |
|
24,982 |
|
|
|
24,922 |
|
Other assets, net (including |
|
169,375 |
|
|
|
102,414 |
|
TOTAL ASSETS |
$ |
8,816,255 |
|
|
$ |
8,301,930 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Securities repurchase agreement obligations |
$ |
2,584,131 |
|
|
$ |
2,756,596 |
|
Customer liabilities (including |
|
3,329,133 |
|
|
|
2,273,830 |
|
Margin lending and trade payables |
|
303,411 |
|
|
|
867,880 |
|
Liabilities from insurance activity |
|
364,156 |
|
|
|
297,180 |
|
Current income tax liability |
|
27,844 |
|
|
|
32,996 |
|
Debt securities issued |
|
267,341 |
|
|
|
267,251 |
|
Lease liability |
|
37,664 |
|
|
|
35,794 |
|
Liability arising from continuing involvement |
|
506,091 |
|
|
|
521,885 |
|
Other liabilities (including |
|
133,248 |
|
|
|
81,560 |
|
TOTAL LIABILITIES |
$ |
7,553,019 |
|
|
$ |
7,134,972 |
|
Commitments and Contingent Liabilities (Note 23) |
|
— |
|
|
|
— |
|
|
|
|
|
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SHAREHOLDERS’ EQUITY |
|
|
|
||||
Preferred stock - |
|
— |
|
|
|
— |
|
Common stock - |
|
61 |
|
|
|
60 |
|
Additional paid in capital |
|
209,249 |
|
|
|
183,788 |
|
Retained earnings |
|
1,147,798 |
|
|
|
998,740 |
|
Accumulated other comprehensive loss |
|
(96,869 |
) |
|
|
(18,938 |
) |
TOTAL FRHC SHAREHOLDERS’ EQUITY |
$ |
1,260,239 |
|
|
$ |
1,163,650 |
|
|
|
|
|
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Non-controlling interest |
|
2,997 |
|
|
|
3,308 |
|
TOTAL SHAREHOLDERS’ EQUITY |
$ |
1,263,236 |
|
|
$ |
1,166,958 |
|
|
|
|
|
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
8,816,255 |
|
|
$ |
8,301,930 |
|
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) |
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(All amounts in thousands of |
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|
Three Months Ended |
|
Six Months Ended |
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|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
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|
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Revenue: |
|
|
|
|
|
|
|
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Fee and commission income (including for the three months ended |
$ |
121,051 |
|
|
$ |
111,703 |
|
|
$ |
236,540 |
|
|
$ |
210,406 |
|
Net gain on trading securities |
|
68,317 |
|
|
|
50,771 |
|
|
|
16,215 |
|
|
|
82,587 |
|
Interest income (including for the three months ended |
|
210,324 |
|
|
|
213,063 |
|
|
|
436,328 |
|
|
|
362,412 |
|
Insurance underwriting income |
|
160,344 |
|
|
|
57,976 |
|
|
|
289,752 |
|
|
|
102,865 |
|
Net gain/(loss) on foreign exchange operations |
|
6,479 |
|
|
|
(3,696 |
) |
|
|
14,568 |
|
|
|
15,605 |
|
Net gain/(loss) on derivative |
|
6,308 |
|
|
|
1,378 |
|
|
|
18,802 |
|
|
|
(29,227 |
) |
Other income |
|
8,077 |
|
|
|
4,386 |
|
|
|
19,410 |
|
|
|
7,143 |
|
TOTAL REVENUE, NET |
$ |
580,900 |
|
|
$ |
435,581 |
|
|
$ |
1,031,615 |
|
|
$ |
751,791 |
|
|
|
|
|
|
|
|
|
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Expense: |
|
|
|
|
|
|
|
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Fee and commission expense |
$ |
90,837 |
|
|
$ |
31,614 |
|
|
$ |
170,984 |
|
|
$ |
60,298 |
|
Interest expense |
|
124,665 |
|
|
|
139,381 |
|
|
|
270,383 |
|
|
|
234,427 |
|
Insurance claims incurred, net of reinsurance |
|
66,684 |
|
|
|
33,988 |
|
|
|
113,993 |
|
|
|
55,502 |
|
Payroll and bonuses |
|
66,210 |
|
|
|
39,998 |
|
|
|
123,734 |
|
|
|
71,628 |
|
Professional services |
|
8,245 |
|
|
|
11,951 |
|
|
|
15,513 |
|
|
|
18,576 |
|
Stock compensation expense |
|
12,056 |
|
|
|
1,031 |
|
|
|
22,671 |
|
|
|
2,264 |
|
Advertising expense |
|
20,049 |
|
|
|
8,639 |
|
|
|
37,250 |
|
|
|
16,739 |
|
General and administrative expense (including for the three months ended |
|
53,240 |
|
|
|
29,630 |
|
|
|
98,345 |
|
|
|
54,105 |
|
Provision for allowance for expected credit losses |
|
10,427 |
|
|
|
4,662 |
|
|
|
8,657 |
|
|
|
18,988 |
|
TOTAL EXPENSE |
$ |
452,413 |
|
|
$ |
300,894 |
|
|
$ |
861,530 |
|
|
$ |
532,527 |
|
|
|
|
|
|
|
|
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||||||||
INCOME BEFORE INCOME TAX |
|
128,487 |
|
|
|
134,687 |
|
|
|
170,085 |
|
|
|
219,264 |
|
|
|
|
|
|
|
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Income tax expense |
|
(13,999 |
) |
|
|
(19,208 |
) |
|
|
(21,338 |
) |
|
|
(35,864 |
) |
|
|
|
|
|
|
|
|
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NET INCOME |
$ |
114,488 |
|
|
$ |
115,479 |
|
|
$ |
148,747 |
|
|
$ |
183,400 |
|
|
|
|
|
|
|
|
|
||||||||
Less: Net loss attributable to non-controlling interest in subsidiary |
|
(170 |
) |
|
|
(368 |
) |
|
|
(311 |
) |
|
|
(549 |
) |
NET INCOME ATTRIBUTABLE TO COMMON |
$ |
114,658 |
|
|
$ |
115,847 |
|
|
$ |
149,058 |
|
|
$ |
183,949 |
|
|
|
|
|
|
|
|
|
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OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
||||||||
Change in unrealized gain on investments available-for-sale, net of tax effect |
|
4,306 |
|
|
|
2,168 |
|
|
|
7,680 |
|
|
|
4,407 |
|
Reclassification adjustment for net realized (gain)/loss on available-for-sale investments disposed of in the period, net of tax effect |
|
185 |
|
|
|
(306 |
) |
|
|
167 |
|
|
|
(1,264 |
) |
Foreign currency translation adjustments |
|
(19,967 |
) |
|
|
(29,933 |
) |
|
|
(85,778 |
) |
|
|
(31,693 |
) |
OTHER COMPREHENSIVE LOSS |
|
(15,476 |
) |
|
|
(28,071 |
) |
|
|
(77,931 |
) |
|
|
(28,550 |
) |
|
|
|
|
|
|
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||||||||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS |
$ |
99,012 |
|
|
$ |
87,408 |
|
|
$ |
70,816 |
|
|
$ |
154,850 |
|
|
|
|
|
|
|
|
|
||||||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary |
|
(170 |
) |
|
|
(368 |
) |
|
|
(311 |
) |
|
|
(549 |
) |
|
|
|
|
|
|
|
|
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COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
99,182 |
|
|
$ |
87,776 |
|
|
$ |
71,127 |
|
|
$ |
155,399 |
|
|
|
|
|
|
|
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EARNINGS PER COMMON SHARE (In |
|
|
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|
|
|
|
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Earnings per common share - basic |
|
1.93 |
|
|
|
1.97 |
|
|
|
2.51 |
|
|
|
3.13 |
|
Earnings per common share - diluted |
|
1.89 |
|
|
|
1.95 |
|
|
|
2.46 |
|
|
|
3.09 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares (basic) |
|
59,363,122 |
|
|
|
58,581,332 |
|
|
|
59,310,891 |
|
|
|
58,546,963 |
|
Weighted average number of shares (diluted) |
|
60,460,173 |
|
|
|
59,291,832 |
|
|
|
60,358,442 |
|
|
|
59,292,757 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241108030211/en/
Natalia Kharlashina
Public Relations
+7 701 364 1454
[email protected]
Ramina Fakhrutdinova (KZ)
Public Relations
Freedom Finance JSC
+7 777 377 8868
[email protected]
Freedom US Markets
+1 212-980-4400, Ext. 1013
[email protected]
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