Validea Motley Fool Strategy Daily Upgrade Report - 6/14/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 14 2025
0mins
Should l Buy FRHC?
Source: NASDAQ.COM
Validea's Small-Cap Growth Investor Model: The model, based on Motley Fool's strategy, upgraded Freedom Holding Corp (FRHC) from 65% to 72%, indicating improved fundamentals and valuation for this mid-cap growth stock in the Investment Services industry.
Company Overview: Freedom Holding Corp operates through four segments—Brokerage, Banking, Insurance, and Other—providing a range of financial services including securities brokerage, investment banking, and digital financial solutions.
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Analyst Views on FRHC
About FRHC
Freedom Holding Corp. is a holding company. The Company, through its subsidiaries, provides services, including securities brokerage, securities dealing for customers and for its own account, market making activities, investment research, investment counseling, investment banking services, retail and commercial banking, insurance products, payment services, and information processing services. The Company operates through four segments: Brokerage, Banking, Insurance, and Other. Its Brokerage segment primarily focuses on retail brokerage and investment banking. Its Banking segment encompasses lending, deposit services, payment card services, money transfers, and correspondent accounts, supporting both individual and corporate clients with digital financial solutions. Its Insurance segment offers life and general insurance services. Its Other segment includes payment processing services, online ticket sales, and new business areas including telecommunications and media services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Freedom Holding Corp Reports Strong Financial Growth
- Significant Asset Growth: As of December 31, 2025, Freedom Holding Corp's total assets reached $12.38 billion, a 25% increase from $9.91 billion at the end of the previous fiscal year, indicating successful expansion of the company's investment portfolio and increased client balances in brokerage accounts, thereby enhancing financial stability.
- Strong Cash Flow Performance: During the nine months ending December 2025, net cash provided by operating activities totaled $1.73 billion, primarily driven by growth in customer funds and a reduction in margin-related balances, demonstrating effective liquidity management by the company.
- Diversified Revenue Streams: Total revenue for the third quarter of 2025 was $628.6 million, with total revenue for the nine-month period amounting to $1.69 billion, sourced from interest income, brokerage and commission revenues, and insurance premiums, reflecting the company's stability amid fluctuating market conditions.
- Customer Base Expansion: The number of banking customers increased from 2.5 million to 4.5 million, while brokerage customers grew by over 20%, supported by expanded digital offerings and the development of the financial ecosystem, indicating the company's sustained competitiveness and customer appeal in the market.
See More
Freedom Holding Corp Reports Strong Financial Growth
- Significant Asset Growth: As of December 31, 2025, Freedom Holding Corp's total assets reached $12.38 billion, a 25% increase year-over-year, primarily driven by the expansion of the company's investment portfolio and increased client balances in brokerage accounts, thereby enhancing financial stability.
- Strong Cash Flow Performance: For Q3 FY2026, the company reported a net income of $76.2 million with diluted earnings per share of $1.25, indicating sustained profitability under a diversified revenue model, which is expected to further enhance shareholder returns.
- Customer Base Expansion: During the reporting period, the number of banking customers surged from 2.5 million to 4.5 million, an 80% increase, while the brokerage customer base grew by over 20%, demonstrating the company's success in digital service offerings and financial ecosystem development.
- Global Technology Partnerships: Freedom Holding Corp's collaborations with global tech giants like NVIDIA, Amazon, and Microsoft have propelled its SuperApp to become the most downloaded application in Kazakhstan, with plans for expansion into additional markets to strengthen competitive positioning.
See More
Freedom Holding Reports Q3 Earnings Highlights
- Earnings Per Share: Freedom Holding reported a GAAP EPS of $1.25 for Q3, indicating stability in profitability despite a year-over-year decline, reflecting the company's resilience amid market fluctuations.
- Revenue Decline: The company's revenue for the third quarter was $628.62 million, down 5.4% year-over-year, which may raise investor concerns about future growth, particularly in a competitive environment.
- Customer Growth: As of December 31, 2025, brokerage customers totaled 828,000, an increase of 145,000 over the past nine months, demonstrating the company's success in attracting new clients and enhancing its market share.
- Banking Customer Increase: The number of banking customers rose to 4.5 million, an increase of 2 million, indicating significant success in the company's expansion strategy within the financial services sector, further solidifying its position in the industry.
See More
Freedom Holding Corp. Reports Decline in Q3 Earnings
- Earnings Decline: Freedom Holding Corp. reported a net income of $76.24 million for Q3, translating to an EPS of $1.25, which is a decrease from $78.28 million and $1.29 per share in the same period last year, indicating a weakening in profitability.
- Revenue Drop: The company's revenue fell by 5.4% to $628.62 million from $664.58 million year-over-year, reflecting a decline in market demand and increased competition.
- Financial Comparison: The drop in both EPS and total revenue compared to last year suggests that the company is facing challenges in the current economic environment, potentially necessitating strategic adjustments to regain growth.
- Market Reaction: Despite the earnings and revenue decline, market expectations for the company's future remain to be seen, as investors may evaluate its response strategies and outlook moving forward.
See More
Freedom Holding Reports Q3 Financial Results
- Financial Highlights: Freedom Holding reported a GAAP EPS of $1.25 for Q3, with revenue of $628.62 million reflecting a 5.4% year-over-year decline, indicating pressure on the company amidst competitive market conditions.
- Revenue Decline Factors: The revenue drop is primarily attributed to market volatility and reduced trading activity among clients, which could negatively impact the company's future growth potential.
- Investor Perspective: Analysts suggest that despite the current underperformance, the dip in Freedom Holding's stock price may present a buying opportunity for investors, particularly as the market recovers.
- Competitive Analysis: A comparison with Kaspi reveals that Freedom Holding lags in terms of valuation multiples and network effects, indicating a need for strategic measures to enhance its market positioning and attract more investors.
See More
Freedom Holding Corp. Reports Q3 FY2026 Financial Results
- Revenue Overview: For the third quarter ended December 31, 2025, Freedom Holding Corp. reported net revenue of $628.6 million, down from $664.6 million year-over-year, primarily due to decreased insurance premium income and lower trading securities gains, indicating challenges in diversifying revenue streams.
- Customer Growth: As of December 31, 2025, the company had 828,000 brokerage customers, an increase of 145,000 over the past nine months, and banking customers rose to 4.5 million, demonstrating ongoing efforts to expand its customer base and enhance market competitiveness.
- Foreign Exchange Gains: The net gain from foreign exchange operations for the third quarter was $45.8 million, significantly up from $3.9 million in the same period last year, primarily driven by gains from currency revaluation, showcasing effective strategies in the forex market.
- Expense Control: Total expenses for the third quarter were approximately $534.7 million, down from $566.3 million year-over-year, reflecting effective cost management in payroll, administrative expenses, and professional services, despite an overall decline in revenue.
See More
Freedom Holding Corp Reports Strong Financial Growth
- Significant Asset Growth: As of December 31, 2025, Freedom Holding Corp's total assets reached $12.38 billion, a 25% increase from $9.91 billion at the end of the previous fiscal year, indicating successful expansion of the company's investment portfolio and increased client balances in brokerage accounts, thereby enhancing financial stability.
- Strong Cash Flow Performance: During the nine months ending December 2025, net cash provided by operating activities totaled $1.73 billion, primarily driven by growth in customer funds and a reduction in margin-related balances, demonstrating effective liquidity management by the company.
- Diversified Revenue Streams: Total revenue for the third quarter of 2025 was $628.6 million, with total revenue for the nine-month period amounting to $1.69 billion, sourced from interest income, brokerage and commission revenues, and insurance premiums, reflecting the company's stability amid fluctuating market conditions.
- Customer Base Expansion: The number of banking customers increased from 2.5 million to 4.5 million, while brokerage customers grew by over 20%, supported by expanded digital offerings and the development of the financial ecosystem, indicating the company's sustained competitiveness and customer appeal in the market.
See More
Freedom Holding Corp Reports Strong Financial Growth
- Significant Asset Growth: As of December 31, 2025, Freedom Holding Corp's total assets reached $12.38 billion, a 25% increase year-over-year, primarily driven by the expansion of the company's investment portfolio and increased client balances in brokerage accounts, thereby enhancing financial stability.
- Strong Cash Flow Performance: For Q3 FY2026, the company reported a net income of $76.2 million with diluted earnings per share of $1.25, indicating sustained profitability under a diversified revenue model, which is expected to further enhance shareholder returns.
- Customer Base Expansion: During the reporting period, the number of banking customers surged from 2.5 million to 4.5 million, an 80% increase, while the brokerage customer base grew by over 20%, demonstrating the company's success in digital service offerings and financial ecosystem development.
- Global Technology Partnerships: Freedom Holding Corp's collaborations with global tech giants like NVIDIA, Amazon, and Microsoft have propelled its SuperApp to become the most downloaded application in Kazakhstan, with plans for expansion into additional markets to strengthen competitive positioning.
See More
Freedom Holding Reports Q3 Earnings Highlights
- Earnings Per Share: Freedom Holding reported a GAAP EPS of $1.25 for Q3, indicating stability in profitability despite a year-over-year decline, reflecting the company's resilience amid market fluctuations.
- Revenue Decline: The company's revenue for the third quarter was $628.62 million, down 5.4% year-over-year, which may raise investor concerns about future growth, particularly in a competitive environment.
- Customer Growth: As of December 31, 2025, brokerage customers totaled 828,000, an increase of 145,000 over the past nine months, demonstrating the company's success in attracting new clients and enhancing its market share.
- Banking Customer Increase: The number of banking customers rose to 4.5 million, an increase of 2 million, indicating significant success in the company's expansion strategy within the financial services sector, further solidifying its position in the industry.
See More
Freedom Holding Corp. Reports Decline in Q3 Earnings
- Earnings Decline: Freedom Holding Corp. reported a net income of $76.24 million for Q3, translating to an EPS of $1.25, which is a decrease from $78.28 million and $1.29 per share in the same period last year, indicating a weakening in profitability.
- Revenue Drop: The company's revenue fell by 5.4% to $628.62 million from $664.58 million year-over-year, reflecting a decline in market demand and increased competition.
- Financial Comparison: The drop in both EPS and total revenue compared to last year suggests that the company is facing challenges in the current economic environment, potentially necessitating strategic adjustments to regain growth.
- Market Reaction: Despite the earnings and revenue decline, market expectations for the company's future remain to be seen, as investors may evaluate its response strategies and outlook moving forward.
See More
Freedom Holding Reports Q3 Financial Results
- Financial Highlights: Freedom Holding reported a GAAP EPS of $1.25 for Q3, with revenue of $628.62 million reflecting a 5.4% year-over-year decline, indicating pressure on the company amidst competitive market conditions.
- Revenue Decline Factors: The revenue drop is primarily attributed to market volatility and reduced trading activity among clients, which could negatively impact the company's future growth potential.
- Investor Perspective: Analysts suggest that despite the current underperformance, the dip in Freedom Holding's stock price may present a buying opportunity for investors, particularly as the market recovers.
- Competitive Analysis: A comparison with Kaspi reveals that Freedom Holding lags in terms of valuation multiples and network effects, indicating a need for strategic measures to enhance its market positioning and attract more investors.
See More
Freedom Holding Corp. Reports Q3 FY2026 Financial Results
- Revenue Overview: For the third quarter ended December 31, 2025, Freedom Holding Corp. reported net revenue of $628.6 million, down from $664.6 million year-over-year, primarily due to decreased insurance premium income and lower trading securities gains, indicating challenges in diversifying revenue streams.
- Customer Growth: As of December 31, 2025, the company had 828,000 brokerage customers, an increase of 145,000 over the past nine months, and banking customers rose to 4.5 million, demonstrating ongoing efforts to expand its customer base and enhance market competitiveness.
- Foreign Exchange Gains: The net gain from foreign exchange operations for the third quarter was $45.8 million, significantly up from $3.9 million in the same period last year, primarily driven by gains from currency revaluation, showcasing effective strategies in the forex market.
- Expense Control: Total expenses for the third quarter were approximately $534.7 million, down from $566.3 million year-over-year, reflecting effective cost management in payroll, administrative expenses, and professional services, despite an overall decline in revenue.
See More
