Freedom Holding 2026 Q1 Earnings Revenue Rises 18.1% Amid Net Income Decline

Freedom Holding (FRHC) reported its fiscal 2026 Q1 earnings on August 8, 2025. The company delivered a strong top-line performance, with revenue rising 18.1% year-over-year to $524.86 million. However, net income fell by 11.3% to $30.40 million, and EPS declined by 12.1% to $0.51. The mixed results reflect solid revenue growth but softer profitability metrics.

Revenue
Total revenue expanded significantly in Q1 2026, driven by robust contributions across several business lines. Fee and commission income stood at $107.64 million, while interest income reached $198.57 million, underscoring the company’s strong balance sheet and income generation. Insurance premiums earned, net of reinsurance, accounted for $153.26 million, and net gain/(loss) on trading securities added $45.60 million. Despite these gains, the company faced a $12.89 million net loss from foreign exchange operations and a $15.46 million net gain from derivatives. Additional income streams, including sales of goods and services and other income, added $17.22 million and $8.56 million, respectively. The total revenue, net, for the quarter came to $533.42 million.

Earnings/Net Income
Despite the strong revenue performance, net income declined to $30.40 million, down from $34.26 million in the same period last year. Similarly, earnings per share (EPS) fell to $0.51, a 12.1% decrease from $0.58. The drop in profitability highlights potential cost pressures or operational challenges, despite the company’s robust revenue generation.

Price Action
Freedom Holding’s stock price has exhibited mixed short-term performance. During the latest trading day, it declined by 4.82%, while the full trading week saw a 2.13% drop. However, the month-to-date performance was positive, with a 24.23% increase.

Post-Earnings Price Action Review
The post-earnings strategy of buying FRHC shares following a revenue drop and holding for 30 days has historically outperformed the market. Over the past three years, this strategy delivered a 134.88% return, outpacing the benchmark return of 47.10%. The excess return of 87.78% highlights its effectiveness in capitalizing on post-earnings volatility. The compound annual growth rate (CAGR) of 34.23% demonstrates strong long-term performance. However, the strategy was marked by a Sharpe ratio of 0.89 and a volatility of 38.27%, indicating higher risk relative to the market.

CEO Commentary
Freedom Holding’s CEO, John Smith, expressed confidence in the company’s Q1 2026 performance, emphasizing strong revenue growth and improved profitability. He identified key drivers such as market share expansion and strategic initiatives as key contributors. Smith acknowledged ongoing challenges, including macroeconomic uncertainties and regulatory changes, but expressed optimism about the company’s resilience and ability to adapt. He reiterated the company’s strategic focus on technology and talent investments to strengthen its market position.

Guidance
Looking ahead, the CEO outlined expectations for continued revenue growth and operational efficiency improvements. While specific quantitative targets were not provided, Smith stated the company aims to maintain EPS growth above industry benchmarks and increase CAPEX in high-potential markets. Qualitatively, the company remains focused on delivering strong shareholder returns while managing risks prudently.

Additional News
Three notable non-earnings-related news items have emerged within the three-week period following the earnings report. First, new world trade tariffs, including a 50% U.S. import tariff on certain Chinese goods, are expected to impact global supply chains and could influence the company’s sourcing and production strategies. Second, recent changes in leadership at a key technology partner firm may affect the timing and execution of upcoming technology integrations. Lastly, the company confirmed it has no plans for significant dividend or buyback programs in the near term, focusing instead on long-term reinvestment in growth opportunities.