Freedom Holding Corp reports 57% revenue surge in Q3 fiscal 2025, driven by banking and insurance growth

Freedom Holding Corp (NASDAQ: FRHC), a leading financial services company, has reported impressive financial results for the third quarter of fiscal year 2025, showcasing a remarkable 57% increase in revenue. The company’s total revenue surged to $655.2 million, up from $418.6 million in the same quarter last year. This substantial growth reflects strong performance across the company’s key business segments, including brokerage, banking, and insurance. Additionally, Freedom Holding Corp reported an increase in total assets, which rose to $9.1 billion as of December 31, 2024, compared to $8.3 billion as of March 31, 2024. This growth underscores the company’s strategic focus on expanding its diversified financial ecosystem, with notable contributions from gains in trading securities, robust banking operations, and a significant rise in insurance underwriting income.

What drove Freedom Holding Corp’s revenue growth in Q3 2025?

The impressive revenue surge in Q3 fiscal 2025 was primarily driven by strong gains in trading securities, a rebound that saw the company shift from a $5.1 million loss in the same quarter last year to an $89.6 million gain this quarter. This dramatic turnaround highlights Freedom Holding Corp’s ability to capitalise on favourable market conditions through strategic trading decisions and an agile investment approach. The company’s diversified portfolio and strategic risk management played a crucial role in achieving these gains.

Another major factor contributing to the company’s growth was the significant expansion of its insurance underwriting income, which increased by an astonishing 125%, reaching $177.5 million. This growth was largely attributed to the company’s strategic focus on expanding its pension annuities and accident insurance operations. By tapping into high-demand insurance products, Freedom Holding Corp successfully diversified its revenue streams beyond traditional brokerage activities.

The banking segment also demonstrated robust growth, with revenue increasing by 47% to $206.4 million. This performance was supported by gains from trading securities and derivatives, reflecting the segment’s resilience and adaptability in a dynamic financial environment. The company’s strategic focus on enhancing its banking operations, expanding its client base, and introducing innovative financial products contributed to the strong growth in this segment.

Timur Turlov, founder of Freedom Holding Corp, emphasised the company’s evolving business model, stating, “We are building the Freedom ecosystem as a unified platform where banking, insurance, and lifestyle services seamlessly integrate. Our revenue, once heavily reliant on brokerage, is now evenly distributed across multiple segments, creating a more stable and balanced financial ecosystem.” His statement highlights the company’s long-term vision of creating a diversified and resilient business model that can withstand market fluctuations.

How did each segment perform in Q3 fiscal 2025?

Freedom Holding Corp’s diversified business model was reflected in the strong performance of its key segments. The brokerage segment experienced a 29% increase in revenue, reaching $213.3 million. This growth was driven by higher net gains on trading securities and an increase in fee and commission income. The rise in client activity and the company’s ability to capture new market opportunities contributed significantly to the brokerage segment’s strong performance.

The banking segment posted impressive growth, with revenue climbing by 47% to $206.4 million. This was primarily supported by gains from trading securities and derivatives, alongside a growing client base seeking diversified banking solutions. The company’s strategic investments in digital banking infrastructure and innovative financial products played a key role in driving growth in this segment.

The insurance segment experienced the most dramatic growth among all business lines, with revenue doubling to $197.8 million. This surge reflects the company’s strategic expansion in insurance underwriting, particularly within pension annuities and accident insurance operations. The strong growth in this segment demonstrates Freedom Holding Corp’s ability to identify and capitalise on emerging opportunities in the insurance market.

Revenue from other segments grew significantly as well, increasing by 120% to $37.7 million. This growth was largely driven by gains from foreign exchange operations, highlighting the company’s ability to leverage global market opportunities and diversify its income sources beyond core financial services.

Why did net income decline despite strong revenue growth?

Despite achieving strong revenue growth, Freedom Holding Corp reported a 19% decline in net income, which fell to $78.1 million from $96.1 million in the same quarter last year. This decline was primarily due to increased operational expenses, including higher fees and commission costs, general and administrative expenses, payroll and bonuses, advertising costs, and stock-based compensation. Total expenses for the quarter surged to $556.9 million, up from $307.0 million in Q3 fiscal 2024, reflecting the company’s aggressive growth strategy and investments in expanding its operations.

The company’s growth-focused approach involved significant investments in talent acquisition, technology infrastructure, and marketing initiatives, all of which contributed to the rise in expenditures. However, these investments are viewed as essential for supporting long-term growth, enhancing operational efficiencies, and maintaining a competitive edge in the rapidly evolving financial services industry.

Additionally, fee and commission income increased from $120.2 million to $143.4 million, reflecting a higher volume of transactions and an expanded client base. While the increase in income was positive, it was offset by the corresponding rise in operational costs, which ultimately impacted the company’s bottom line.

What strategic moves are shaping Freedom Holding Corp’s future?

As part of its long-term growth strategy, Freedom Holding Corp remains focused on expanding its product portfolio, improving operational efficiencies, and capitalising on emerging market opportunities. The company is actively exploring selective acquisitions to strengthen its market position and diversify its revenue streams.

In October 2024, Freedom Holding Corp acquired EliteCom, a telecommunications services company, for $3 million. This strategic acquisition includes valuable licenses and assets that will support the company’s entry into the telecommunications sector. By integrating telecommunications services into its existing ecosystem, Freedom Holding Corp aims to enhance its service offerings, improve client connectivity, and drive additional revenue growth.

The company’s strategic acquisitions are part of a broader effort to create a diversified business model that can withstand economic fluctuations and deliver consistent value to shareholders. With operations spanning 22 countries, including key markets in Central Asia, Europe, and the United States, Freedom Holding Corp is well-positioned to leverage global growth opportunities and expand its footprint in both developed and emerging markets.

What’s next for Freedom Holding Corp?

Looking ahead, Freedom Holding Corp is committed to sustaining its growth trajectory by focusing on key strategic priorities. These include expanding its global footprint, particularly in emerging markets, diversifying its product offerings across financial and non-financial sectors, and enhancing its digital infrastructure to support next-generation financial services. The company also plans to explore additional strategic acquisitions that align with its core business and long-term growth objectives.

With a strong presence in diverse markets and a commitment to innovation, Freedom Holding Corp is well-positioned to navigate the challenges and opportunities of the global financial landscape. As the company continues to build a balanced and resilient financial ecosystem, it remains focused on delivering sustained value to shareholders, clients, and stakeholders worldwide.