Freedom Holding (FRHC) | News Based Sentiment Analysis

• On October 1, 2025, Freedom Holding Corp. shareholders overwhelmingly elected Timur Turlov and Philippe Vogeleer as Class III directors, with 42,878,028 and 43,227,975 votes in favor respectively, securing their positions until the 2028 annual meeting. This demonstrates strong shareholder confidence in the current leadership and strategic direction of the company.
• Also on October 1, 2025, shareholders approved executive compensation with 43,414,881 votes, and ratified the appointment of Deloitte LLP in Kazakhstan as the independent registered public accounting firm for the fiscal year ending March 31, 2026, with a significant 45,450,663 votes. These approvals signal support for the company’s financial oversight and governance practices.
• Freedom Holding is making a bold move to become a regional "SuperApp" by integrating banking, insurance, brokerage, telecom, and e-commerce services, with Kazakhstan serving as the initial testing ground. As of June 30, 2025, their banking division had grown to 2.93 million clients, a 16% increase from March 2025, and the entire ecosystem serves approximately 5.3 million people, representing 26.5% of Kazakhstan’s population.
• Despite a 17% revenue increase to $533.4 million for the first quarter of fiscal 2026, reported on October 1, 2025, Freedom Holding experienced a 12.28% year-over-year decrease in diluted Earnings Per Share (EPS) to $0.50, alongside a more than 19% rise in consolidated operating expenses. This suggests that while the company is growing its top line, profitability is currently under pressure.
• Freedom Holding Corp. shares declined 3.4% on October 2, 2025, closing at $166.31 after previously closing at $172.13, even though the stock has delivered a remarkable 78% return over the past year and a 228% increase since March 2021. However, the company is trading at a high Price-to-Earnings (P/E) ratio of 131.1x as of October 3, 2025, significantly exceeding the U.S. Capital Markets industry average of 26.3x.
• Institutional investor confidence appears to be growing, with Bank of America Corp DE increasing its stake by 71.8% to over 48,000 shares, and Tidal Investments LLC significantly raising its stake by 248.4% to 6,178 shares during the second quarter. These substantial increases indicate positive sentiment from key institutional players.

The Investment Story: Freedom Holding is aggressively expanding its digital ecosystem while navigating a complex financial landscape of revenue growth coupled with declining EPS and high valuation multiples. Investor confidence remains mixed, with institutional support offset by recent stock price declines.

What It Means for Investors: The company's transformation into a SuperApp presents a long-term growth opportunity, but investors should closely monitor profitability and valuation. The high P/E ratio suggests the stock may be overvalued, while institutional investment provides some stability.

Looking Ahead: Investors should watch for further developments in the SuperApp strategy, improvements in operating expense management, and any changes in analyst ratings. The company’s ability to translate revenue growth into improved earnings will be crucial.

The Bottom Line: Freedom Holding presents a high-risk, high-reward investment opportunity. While the company is making ambitious moves to build a regional digital ecosystem, investors need to carefully weigh the potential for growth against the current valuation concerns and profitability challenges.