Freedom Holding Reports 36% Drop in Nine-Month Net Income Amid Regulatory Headwinds and Tax Changes
FRHC is trading near its 52-week low of $111.85 (9.2% above the low).
Summary
Freedom Holding Corp. reported a 36% decline in nine-month net income, influenced by new insurance regulations and reduced trading gains, despite overall asset growth and strategic expansion initiatives.
Key Events · Earnings and Guidance · FRHC
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Nine-Month Net Income Decline
Net income attributable to common shareholders decreased by 36% to $145.4 million for the nine months ended December 31, 2025, compared to $227.3 million in the prior year.
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Regulatory Impact on Insurance Segment
Insurance premiums earned, net of reinsurance, decreased by 40% for the three months and 18% for the nine months, primarily due to a new regulatory cap on commissions to insurance agents.
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Kazakhstan Tax Code Changes
New tax legislation in Kazakhstan, effective January 1, 2026 (with 2025 impact), introduces an additional 10% corporate income tax on certain income for 2025 and increases the banking sector tax rate to 25% from 2026.
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Significant Balance Sheet Growth
Total assets increased by 25% to $12.4 billion as of December 31, 2025, driven by substantial increases in restricted cash and customer liabilities.
Analysis · FRHC · Crypto Assets
Freedom Holding Corp. reported a significant 36% decrease in net income for the nine months ended December 31, 2025, primarily driven by a new regulatory cap on insurance commissions and lower net gains on trading securities. While overall revenue saw a modest decline, the company experienced substantial growth in its balance sheet, with total assets increasing by 25%. New tax legislation in Kazakhstan is expected to further impact the effective tax rate. The company continues its strategic expansion into telecommunications and is exploring a $2 billion AI Hub collaboration, alongside a positive governance move to discontinue purchasing loans from a related party. Investors should monitor the impact of regulatory changes and tax reforms on future profitability.
How filings like this one have moved
In the 30 days to Sep 12, 2026, 29.8% of the 1910 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.15%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FRHC was trading at $122.16 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $7.5B. The 52-week trading range was $111.85 to $194.01. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.