Freedom Holding 2025 Q4 Earnings Misses Targets with 249.1% Net Income Decline

Freedom Holding (FRHC) reported its fiscal 2025 Q4 earnings on June 13, 2025. The company experienced a significant downturn in performance, with total revenue declining by 26.7% and a swing to a net loss compared to the previous year. Despite the challenging quarter, Freedom Holding remains optimistic about future growth and has outlined strategic initiatives to enhance its digital capabilities and expand its market presence.

Revenue

Earnings/Net Income

Freedom Holding swung to a loss of $2.35 per share in 2025 Q4, a drastic shift from a profit of $1.58 per share in 2024 Q4, marking a 249.1% negative change. The company reported a net loss of $-142.36 million in 2025 Q4, a significant deterioration from the net income of $95.48 million in the previous year. The earnings per share reflect a challenging financial period for the company.

Post-Earnings Price Action Review

Investors who adopted the strategy of purchasing Freedom Holding (FRHC) shares following a quarterly revenue drop on the financial report release date and holding for 30 days have historically achieved robust returns. Over the past three years, this strategy demonstrated a compound annual growth rate of 59.25%, significantly outperforming the benchmark with an excess return of 238.88%. While the strategy experienced a maximum drawdown of -28.22%, it maintained a relatively high Sharpe ratio of 1.54, indicating strong risk-adjusted returns. The strategy's volatility was 38.59%, highlighting the potential for considerable price fluctuations. Overall, this approach has shown impressive performance, offering a compelling opportunity for investors seeking to leverage Freedom Holding's momentum after revenue declines.

CEO Commentary

Guidance

Additional News

In recent news, Freedom Holding Corp. completed the acquisition of Astel Group Ltd. for $22.6 million on April 30, 2025, marking its entry into the telecommunications market in Kazakhstan. The acquisition aligns with the company's strategy to build a comprehensive digital fintech ecosystem. Additionally, Freedom Holding Corp. announced its inclusion in the Russell 3000® Index, effective June 27, 2025, enhancing the company's visibility within the investment community. This inclusion is expected to broaden the shareholder base and elevate the company's profile among U.S. publicly traded entities.