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Freedom Holding (FRHC)

Freedom Holding Corp., a Nevada corporation, is a financial services holding company conducting retail financial brokerage, investment counseling, securities trading, investment banking and underwriting services through its subsidiaries under the name of Freedom Finance in Eurasia where it employs more than 1,500 persons. The Company is a professional participant in numerous securities exchanges including the Kazakhstan Stock Exchange, Astana International Exchange, Moscow Exchange, Saint-Petersburg Exchange,

Company profile

Ticker
FRHC
Exchange
CEO
Timur Turlov
Employees
Incorporated
Location
Fiscal year end
Former names
BMB MUNAI INC, INTERUNION FINANCIAL CORP
SEC CIK
Subsidiaries
Investment Company Freedom Finance • FFIN Bank LLC • Freedom Finance • Bank Freedom Finance • Life Insurance Company Freedom Finance • Insurance Company Freedom Finance • Freedom Finance Europe Limited • Freedom Finance Germany GmbH • Freedom Finance Technologies Ltd • UK Prime Limited ...
IRS number
300233726

FRHC stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

10 Aug 22
12 Aug 22
31 Mar 23
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Mar 22 Mar 21 Mar 20 Mar 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.28B 1.28B 1.28B 1.28B 1.28B 1.28B
Cash burn (monthly) (no burn) (no burn) (no burn) (no burn) 76.57M 42.1M
Cash used (since last report) n/a n/a n/a n/a 109.67M 60.31M
Cash remaining n/a n/a n/a n/a 1.17B 1.22B
Runway (months of cash) n/a n/a n/a n/a 15.3 29.0

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
28 Sep 21 Boris Cherdabayev Common Stock Sell Dispose S No No 62.51 6,074 379.69K 0
26 Jul 21 Boris Cherdabayev Common Stock Sell Dispose S No No 64.85 12,400 804.14K 6,074
18 May 21 Evgeny Ler Common stock Grant Acquire A No No 0 33,379 0 60,000
18 May 21 Evgeny Ler Common stock Grant Acquire A No No 0 6,621 0 26,621
18 May 21 Askar Tashtitov Common stock Grant Acquire A No No 0 46,379 0 130,200
18 May 21 Askar Tashtitov Common stock Grant Acquire A No No 0 6,621 0 83,821
1.2% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 48 58 -17.2%
Opened positions 6 13 -53.8%
Closed positions 16 13 +23.1%
Increased positions 19 21 -9.5%
Reduced positions 16 20 -20.0%
13F shares Current Prev Q Change
Total value 917.96M 1.29B -29.1%
Total shares 697.17K 966.98K -27.9%
Total puts 35.1K 83K -57.7%
Total calls 13.9K 60.9K -77.2%
Total put/call ratio 2.5 1.4 +85.3%
Largest owners Shares Value Change
BLK Blackrock 90.18K $5.37M +4.6%
Vanguard 67.73K $4.04M +30.9%
HBCYF HSBC 58.55K $3.52M -0.7%
D. E. Shaw & Co. 58.25K $3.47M +318.6%
Geode Capital Management 48.73K $2.9M +0.6%
MS Morgan Stanley 43.46K $2.59M +198.6%
Swiss National Bank 42.3K $2.52M +7.9%
GS Goldman Sachs 29.53K $1.76M -12.6%
STT State Street 28.31K $1.69M +0.2%
NTRS Northern Trust 25.04K $1.49M -2.0%
Largest transactions Shares Bought/sold Change
Valiant Capital Management 0 -227.47K EXIT
Renaissance Technologies 0 -60.62K EXIT
D. E. Shaw & Co. 58.25K +44.34K +318.6%
JPM JPMorgan Chase & Co. 4.78K -32.1K -87.0%
Citadel Advisors 4.07K -32.09K -88.8%
MS Morgan Stanley 43.46K +28.91K +198.6%
Globeflex Capital L P 20.23K +20.23K NEW
Vanguard 67.73K +15.98K +30.9%
Magnetar Financial 14.17K +14.17K NEW
Squarepoint Ops 4.98K -13.34K -72.8%

Financial report summary

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Competition
Interactive Brokers
Risks
  • The Russia/Ukraine Conflict has and may continue to have an adverse effect on our operating results.
  • We expect to experience contraction of our business operations.
  • We operate in highly regulated industries.
  • As a U.S. public company listed on Nasdaq we have substantial regulatory reporting obligations.
  • We are subject to risks related to anti-corruption laws in effect in the United States and the non-U.S. jurisdictions where we conduct business.
  • Increased competition in the markets in which we operate may result in a decrease in our market share and/or profitability.
  • Failure to meet capital adequacy and liquidity guidelines could affect the financial condition and operations of our subsidiaries.
  • We may suffer significant losses from credit exposure.
  • Our businesses have been and may in the future be adversely affected by disruptions or lack of liquidity in the credit markets, including reduced access to credit and higher costs of obtaining credit.
  • Reductions in our credit ratings or an increase in our credit spreads may adversely affect our business, liquidity and cost of funding.
  • Our investments can expose us to a significant risk of capital loss.
  • We are dependent upon our relationships with third-party U.S.-registered securities broker-dealer and clearing firms to receive and transmit securities and funds internationally.
  • We rely on our relationship with FFIN Brokerage for a significant percentage of our revenue, and as a result of the Russia/Ukraine Conflict the future prospects of FFIN Brokerage are uncertain.
  • We may suffer significant loss from changes in the KASE's requirements related to the discount coefficients on the securities in securities repurchase transactions.
  • Our measures to prevent money laundering, terrorist financing, and sanctions violations may not be completely effective.
  • We are exposed to foreign currency fluctuation risks.
  • The economies of Kazakhstan and other countries in which we operate are vulnerable to external shocks and fluctuations in the global economy.
  • Kazakhstan's economy is vulnerable to internal social/political unrest.
  • Economic and political instability in Russia could have an adverse effect on our business.
  • Global anti-offshore measures could adversely impact our business.
  • Frequent tax law changes in regions where we conduct operations could adversely affect our business and the value of investments.
  • Russian transfer pricing legislation may require pricing adjustments and impose additional tax liabilities.
  • Russian anti-offshore measures expose us to tax liability risks.
  • Uncertainties and ongoing changes in Kazakhstan's tax regime may have an adverse impact on our business.
  • Changes in regulations related to taxes on stock transfers and other financial transactions could reduce the volume of market transactions and impact our business.
  • We are in process of divesting our interest in our Russian subsidiaries and undergoing a related corporate restructuring, and the approval, completion and consequences of these plans cannot be assured.
  • As a diversified holding company with few operations of our own we are reliant on the operations of our subsidiaries to fund holding company operations.
  • As a "controlled company" under Nasdaq rules, we qualify for exemptions from certain corporate governance requirements that may adversely affect our stock price.
  • The interests of our controlling shareholder may conflict with those of other shareholders.
  • We are dependent on our executive management team, particularly Timur Turlov, and our ability to hire and retain skilled personnel.
  • We may not be able to properly manage our growth.
  • Our broker-dealer, financial services, and banking operations are highly dependent on the continued and proper functioning of our information technology systems.
  • We interact with large volumes of sensitive data that exposes us to IT breach and other data security risks and liabilities.
  • The infrastructure on which our IT systems depend is subject to events that could interrupt our ability to operate.
  • Failure of third-party systems and operations on which we rely could adversely affect our business.
  • To remain competitive, we must keep pace with rapid technological change.
  • The price of our common stock has fluctuated historically and may be volatile.
  • Future offerings of securities which would rank senior to our common stock may adversely affect the market price of our common stock.
  • We do not intend to pay dividends on our common stock for the foreseeable future and, consequently, our stockholders’ ability to achieve a return on their investment will depend on appreciation in the price of our common stock.
  • We are subject to risks of litigation, and administrative and regulatory action arising from our operating activities.
  • Extraordinary events beyond our control could negatively impact our business.
Management Discussion
  • Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
  • This discussion summarizes the significant factors affecting our consolidated operating results, financial condition, liquidity and capital resources during fiscal 2022, 2021 and 2020. All dollar amounts presented in this MD&A are presented in thousands of U.S. dollars unless the context indicates otherwise.
  • Historically, we have operated the Company as a single operating segment. With the decision to divest our Company of our Russian subsidiaries, we have elected to restructure our operations have been organized into five geographic regions: Kazakhstan, Europe, the U.S., Middle East/Caucasus and Russia. Within these regions, through our subsidiaries, we engage in a broad range of activities in the securities industry, including securities dealing, market making, retail securities brokerage, investment research, investment counseling, investment banking and underwriting services, and in Kazakhstan and Russia we have operated commercial banking services that complement our other financial services. Subsequent to our March 31, 2022, year end we concluded the acquisition of two insurance companies operating in Kazakhstan and have determined to divest our interests in Russia. For additional information see Note 1 "Description of Business" and Note 28 "Segment Information" in the Notes to our consolidated financial statements contained in Part II Item 8 and "Business" in Part I Item 1 of this annual report.

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