📊 FRHC Key Takeaways
Is Freedom Holding Corp. (FRHC) a Good Investment?
Extraordinary revenue growth of 2,148.7% masks deteriorating fundamentals, with net income flat YoY despite massive top-line expansion, indicating severe earnings quality concerns. Negative free cash flow of -$13.5M combined with a current ratio below 1.0 reveals liquidity stress and unsustainable cash burn despite $966.1M cash reserves.
Freedom Holding shows strong reported scale growth, positive operating profitability, and a well-capitalized balance sheet with minimal long-term debt. However, the quality of that growth is mixed because net income was essentially flat despite a 50x revenue jump, diluted EPS fell sharply, and liquidity/coverage metrics suggest the liability structure deserves close scrutiny. The fundamentals support continued monitoring rather than a clearly bullish or bearish stance.
Freedom Holding Corp. Key Strengths (FRHC)
- Exceptional revenue growth of 2,148.7% YoY demonstrates significant business expansion
- Minimal debt burden with only $13.4K long-term debt and high financial flexibility
- Strong absolute cash position of $966.1M providing operational buffer
- Revenue expanded dramatically while the company remained solidly profitable at both operating and net income levels
- Balance sheet leverage is very low, with negligible long-term debt relative to equity
- Operating cash flow and free cash flow were exceptionally strong, providing substantial internal financial flexibility
FRHC Stock Risks: Freedom Holding Corp. Investment Risks
- Negative free cash flow of -$13.5M with CapEx exceeding operating cash flow signals deteriorating cash generation quality
- Current ratio of 0.98x indicates liquidity stress with insufficient current assets to cover near-term obligations
- Net income growth of 0% despite 2,148.7% revenue growth raises severe earnings quality red flags and suggests non-recurring or low-margin revenue
- Net income growth was almost flat and diluted EPS declined sharply, indicating weak per-share earnings progression
- Current and quick ratios below 1.0 suggest tight short-term liquidity for a financial company with large liabilities
- Interest coverage of 0.5x and unusually high cash flow relative to earnings raise questions about earnings quality and liability-related funding dynamics
Key Metrics to Watch
- Free cash flow trend and FCF margin sustainability given negative FCF despite revenue scale
- Current ratio and working capital position indicating liquidity adequacy
- Net income margin expansion relative to revenue growth to validate earnings quality
- Diluted EPS trend versus net income growth
- Liquidity and coverage metrics, especially current ratio and interest coverage
Freedom Holding Corp. (FRHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FRHC Profit Margin, ROE & Profitability Analysis
FRHC vs Finance Sector: How Freedom Holding Corp. Compares
How Freedom Holding Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Freedom Holding Corp. Stock Overvalued? FRHC Valuation Analysis 2026
Based on fundamental analysis, Freedom Holding Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Freedom Holding Corp. Balance Sheet: FRHC Debt, Cash & Liquidity
FRHC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Freedom Holding Corp.'s revenue has grown significantly by 143% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.39 reflects profitable operations.
FRHC Revenue Growth, EPS Growth & YoY Performance
FRHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $10.8M | $76.2M | $1.25 |
| Q2 2026 | $12.0M | $38.7M | $0.63 |
| Q1 2026 | $5.2M | $30.4M | $0.50 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Freedom Holding Corp. Dividends, Buybacks & Capital Allocation
FRHC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Freedom Holding Corp. (CIK: 0000924805)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FRHC
What is the AI rating for FRHC?
Freedom Holding Corp. (FRHC) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FRHC's key strengths?
Claude: Exceptional revenue growth of 2,148.7% YoY demonstrates significant business expansion. Minimal debt burden with only $13.4K long-term debt and high financial flexibility. ChatGPT: Revenue expanded dramatically while the company remained solidly profitable at both operating and net income levels. Balance sheet leverage is very low, with negligible long-term debt relative to equity.
What are the risks of investing in FRHC?
Claude: Negative free cash flow of -$13.5M with CapEx exceeding operating cash flow signals deteriorating cash generation quality. Current ratio of 0.98x indicates liquidity stress with insufficient current assets to cover near-term obligations. ChatGPT: Net income growth was almost flat and diluted EPS declined sharply, indicating weak per-share earnings progression. Current and quick ratios below 1.0 suggest tight short-term liquidity for a financial company with large liabilities.
What is FRHC's revenue and growth?
Freedom Holding Corp. reported revenue of $2.2B.
Does FRHC pay dividends?
Freedom Holding Corp. pays dividends, with $44.8M distributed to shareholders in the trailing twelve months.
Where can I find FRHC SEC filings?
Official SEC filings for Freedom Holding Corp. (CIK: 0000924805) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FRHC's EPS?
Freedom Holding Corp. has a diluted EPS of $2.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FRHC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Freedom Holding Corp. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FRHC stock overvalued or undervalued?
Valuation metrics for FRHC: ROE of 10.3% (sector avg: 12%), net margin of 7.0% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is FRHC's AI grade for 2026?
Our dual AI analysis gives Freedom Holding Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FRHC's free cash flow?
Freedom Holding Corp.'s operating cash flow is $185.2M, with capital expenditures of $198.8M. FCF margin is -0.6%.
How does FRHC compare to other Finance stocks?
Vs Finance sector averages: Net margin 7.0% (avg: 25%), ROE 10.3% (avg: 12%), current ratio 0.98 (avg: 1.2).