Freedom Holding Corp. (NASDAQ: FRHC)

Freedom Holding Corp. ("FRHC") is a diversified financial services group that democratizes access to global capital markets through an integrated digital ecosystem. The company operates across brokerage, banking, insurance, and ancillary services, including payment processing, telecommunications, and media, primarily serving retail and institutional clients in Kazakhstan, Europe, Central Asia, and the United States. FRHC’s mission centers on leveraging technology to provide seamless, cross-border financial solutions, combining advanced digital infrastructure with user-friendly platforms to address the needs of emerging and developed markets alike.

FRHC generates revenue through transaction-based commissions, interest income, insurance premiums, and fees from banking services. Its brokerage segment earns commissions from securities trading, margin lending, and investment banking activities, including underwriting and advisory services. The banking segment derives income from lending, deposit services, payment card fees, and money transfers, while the insurance segment profits from life and general insurance premiums. Ancillary revenue streams include payment processing, e-commerce, and ticketing services, alongside proprietary securities trading across all segments. The company’s digital-first approach ensures recurring engagement from its expanding customer base, which spans retail investors, small and medium-sized enterprises (SMEs), and corporate clients.

The company operates through the following segments:

• Brokerage: This segment provides retail and institutional brokerage services, including securities trading, margin lending, and investment banking. It offers access to global exchanges such as the NYSE, Nasdaq, and Kazakhstan Stock Exchange (KASE), alongside research, advisory, and underwriting services. FRHC’s brokerage operations span Kazakhstan, Europe, the United States, and Central Asia, with a focus on cross-border investment facilitation and digital trading platforms like Tradernet.

• Banking: This segment encompasses retail and commercial banking services, including deposits, multi-currency payment cards, consumer and SME loans, and payment solutions. Freedom Bank Kazakhstan JSC, the segment’s flagship entity, ranks among Kazakhstan’s top eight banks by assets and serves over 2.5 million customers. The bank integrates with FRHC’s broader ecosystem, offering seamless transitions between banking, brokerage, and insurance services through the Freedom SuperApp.

• Insurance: This segment offers life and general insurance products through subsidiaries Freedom Life and Freedom Insurance. Products include life, health, accident, and property insurance, distributed via digital channels for rapid onboarding. Freedom Life holds a 25% market share in Kazakhstan’s life insurance sector, while Freedom Insurance leads in online general insurance distribution.

• Other: This segment includes payment processing, e-commerce, ticketing, telecommunications, and media services. Revenue is driven by payment solutions, online ticket sales, and developmental ventures in telecommunications (Freedom Telecom) and streaming (Freedom Media). The segment also engages in proprietary securities trading.

FRHC holds a leading position in Kazakhstan’s financial services industry, competing with established players like Halyk Bank, Kaspi Bank, and BCC Invest. Its competitive advantages stem from its digital-first ecosystem, cross-border market access, and integration of brokerage, banking, and insurance services under a single platform. In Kazakhstan, Freedom Bank KZ differentiates itself through investment-driven banking and seamless digital experiences, while its brokerage segment stands out for providing retail investors with direct access to U. S. and European exchanges. In Europe, FRHC competes with digital brokers like eToro and Interactive Brokers but carves a niche through curated research and access to pre-IPO markets. In the U. S., it faces boutique investment banks such as Needham & Company but leverages its emerging market expertise and cross-border capital-raising capabilities. The company’s expansion into telecommunications and media further diversifies its revenue streams, positioning it as a regional digital ecosystem leader.

FRHC serves a diverse customer base, including over 2.5 million banking customers, 1.2 million insurance policyholders, and 683,000 brokerage accounts as of March 31, 2025. Its clients range from retail investors and SMEs to corporate entities, with a strong presence in Kazakhstan, Europe, and Central Asia. The company’s digital platforms, such as the Freedom SuperApp and Tradernet, cater to tech-savvy users seeking integrated financial solutions, while its physical network of 202 offices supports complex transactions and customer service. Institutional clients include financial institutions and corporations accessing capital markets, investment banking, and advisory services.