Freedom Holding Corp. (FRHC) Business Profile

What it does

Freedom Holding Corp. is a holding company whose subsidiaries provide brokerage, banking, insurance and other services. Its customers include individuals, businesses and financial institutions. Kazakhstan is its main operating market, and it also has subsidiaries and other operations across Europe, Asia and North America.

The company provides access to securities markets through brokerage accounts, investment research and advice, and investment banking services. Its banks offer deposits, payment cards, transfers and loans to consumers and businesses. Its insurers sell life, health and general insurance products. Freedom also operates payment processing, online ticketing, e-commerce and cloud services, and is developing telecommunications and media businesses.

Much of the offering is organized around a digital ecosystem. The Freedom SuperApp brings retail banking, payments, insurance and lifestyle services together, while Tradernet supports securities trading. Customers can use the SuperApp for activities such as managing accounts, making payments, applying for credit and accessing government services. Freedom Cloud supplies infrastructure to group companies and external clients, including businesses and government entities.

The company was founded as its current business in 2015. Its principal executive office is in New York, and Timur Turlov is its chief executive officer.

How it makes money

Freedom reports four business segments: Brokerage, Banking, Insurance and Other. It also trades securities for its own account across all four segments. Revenue includes interest income, fees and commissions, insurance revenue, trading gains and sales of goods and services.

Total revenue, net, was $2,191.3 million for fiscal 2026, compared with $2,004.2 million for fiscal 2025.

Brokerage customers can trade through online tools and retail locations. Freedom charges commissions under schedules that reflect practices in its local markets, with a substantial portion of revenue coming from transaction-based customer accounts. It also earns interest on margin loans, which allow customers to borrow against securities and cash in their accounts. Investment banking services include underwriting, capital raising and advice.

The Banking segment offers deposits, loans, payment cards, transfers and payment services. Customer lending contributes interest income, while banking services generate fees and commissions. The Insurance segment sells life and general insurance, including health, accident, motor and other coverage. Insurance revenue reflects premiums and related accounting items; claims, policyholder benefits and distribution expenses are among the associated costs.

The Other segment includes payment processing, online retail, ticketing, telecommunications and media. Sales of goods and services rose to $97.4 million for fiscal 2026 from $40.1 million for fiscal 2025, primarily reflecting expansion into telecommunications and increased customer activity and order volume at Arbuz. Freedom also records gains or losses on trading securities, derivatives and foreign exchange operations, which can change with market conditions.

Customers and how it sells

Freedom serves retail customers, businesses and financial institutions. Its banking services support both individuals and corporate customers, while its brokerage business provides trading and other services to individual and institutional clients. Its insurers serve individuals and businesses in Kazakhstan.

As of March 31, 2026, the company had 5,026,000 banking customers, 1,117,000 insurance customers and 858,000 brokerage customers. The Other segment had 1,105,000 customers. These are segment counts, not a count of distinct customers across the group.

Kazakhstan accounted for 83.9% of revenue in fiscal 2026. Armenia accounted for 8.29% and Cyprus for 7.04%. Freedom’s operating subsidiaries span Kazakhstan and other countries in Europe, Asia and North America. Its European brokerage operation serves regional and institutional customers seeking access to securities markets in the United States and Europe.

Customers can use online tools and retail locations for brokerage services. The SuperApp provides a digital channel for banking, payments, insurance and lifestyle services, while offices also support financial and non-financial services. As of March 31, 2026, Freedom had 230 offices.

Suppliers and costs

Freedom depends on third parties for parts of its brokerage and digital operations. It uses broker-dealers and clearing firms to execute trades, and its SuperApp connects to government and commercial data sources. Card and wallet transactions clear through Visa and Mastercard. The company also uses external advisers and professional services.

Its costs include interest expense, employee pay and bonuses, fees and commissions, insurance claims and policyholder benefits, technology and professional services, and general and administrative expenses. Brokerage fee and commission expenses increased by $31.5 million in fiscal 2026 as customer activity rose. In banking, payroll and bonuses increased by $28.2 million as headcount grew.

In the Other segment, fiscal 2026 cost of sales increased by $48.4 million, driven by higher sales volumes associated with telecommunications expansion and increased activity at Arbuz. Interest expense in that segment increased by $52.3 million, mainly because of higher interest expense on debt securities issued by Freedom SPC. Freedom also commits resources to compliance across its regulated businesses.

Competitive position

Freedom competes with local, regional and international financial services companies. In Kazakhstan brokerage, it names Halyk Finance, BCC Invest, Teniz Capital Investment Banking and United Group Alatau as competitors. In banking, it names Halyk Bank, Kaspi Bank and Bank CenterCredit. These banks also pursue digital ecosystem strategies.

In Kazakhstan insurance, Freedom competes with Halyk-Life, Nomad Life and European Insurance Company in life insurance, and Eurasia Insurance Company, Kommesk-Omir and Victoria Insurance Company in non-life insurance. In Europe, its brokerage competitors include eToro and Interactive Brokers. Its Kazakhstan telecommunications business faces operators including Kazakhtelecom, Tele2/Altel and Beeline Kazakhstan.

Freedom combines banking, brokerage, payments, insurance and lifestyle services across its digital platforms. Banking functions are embedded in the SuperApp and Tradernet, and its brokerage services provide access to U.S. and European markets. The company also uses customer data across its ecosystem to tailor services and screen transactions.

Our reading: The integrated platforms may help Freedom retain and cross-sell to customers, but that advantage is contested because banking rivals pursue similar digital ecosystems. Our reading: Cross-border brokerage access and local market operations provide another source of differentiation, although international rivals have scale and market access of their own.

Growth opportunities

Freedom’s growth strategy combines developing products internally with acquiring businesses that add services, technology or licenses. The company aims to build a network of banks, brokers and digital financial infrastructure connecting markets across Central Asia, the Caucasus and beyond. It also plans to use data and predictive models to tailor products and pricing across its ecosystem.

The banking customer base grew to approximately 5,026,000 as of March 31, 2026 from approximately 2,515,000 a year earlier. Brokerage accounts rose to approximately 858,000 from approximately 683,000 over the same period. In March 2026, the SuperApp had 2.59 million monthly active users, compared with 1.02 million in March 2025.

Freedom is developing telecommunications and cloud services in Kazakhstan and a media business serving Kazakhstan and the broader Central Asian region. Freedom Cloud provides infrastructure to both group companies and external clients. Freedom expects telecommunications services to be offered separately and in bundles with other digital products, subject to the necessary licenses, acquisitions or partnerships.

In March 2026, Freedom and a subsidiary agreed to purchase approximately 99.32% of Turkish Bank A.S., subject to conditions including regulatory permits. Freedom is also taking steps to establish a bank in Georgia, subject to regulatory approvals, and is seeking a brokerage license in Türkiye.

Structural risks

• Regulation and capital: Freedom operates across multiple regulated industries and jurisdictions. Noncompliance can lead to fines, sanctions or loss of licenses. Capital requirements can limit expansion and restrict transfers of funds among subsidiaries and the holding company.

• Markets and funding: Economic conditions, interest rates and securities-market volatility can affect revenue and profitability. A significant portion of trading securities and cash is subject to collateralization agreements, increasing the risk of loss if markets move against positions and potentially affecting liquidity and capital.

• Technology and data: Operations depend on functioning information systems, including systems used by firms that clear customer transactions. System failures can lead to financial loss, business disruption, customer liabilities, regulatory intervention or reputational damage.

• Geopolitical exposure: Political instability, international conflict, currency controls and changing legal regimes can affect operations. Freedom identifies the Russia-Ukraine conflict and the war involving Iran among sources of potential disruption.

• Expansion and holding-company structure: Growing the customer base and developing new businesses can increase demands on management and information systems, as well as cybersecurity exposure. The holding company relies on its subsidiaries to fund its own operations.

Bottom line

Our reading

Our reading: Freedom is a Kazakhstan-centered financial conglomerate using a shared digital platform to connect brokerage, banking, insurance and other services. Its customer reach and cross-selling opportunities sit alongside competition from other digital providers, exposure to financial markets and substantial regulatory demands. Its expansion into telecommunications and new countries adds businesses and approvals to manage while the holding company remains dependent on its subsidiaries.