Freedom Holding Corp delivered a solid QQ1 2026 revenue base with meaningful top-line growth and an exceptionally strong cash-flow profile, underscoring the company’s robust liquidity position and operating resilience. Revenue came in at $524.9 million for the quarter, up 7.14% year-over-year, while gross profit reached $252.7 million (gross margin ~48.1%). Operating income was $145.4 million with an operating margin of approximately 27.7%, and net income was $30.4 million (net margin ~5.8%), translating to diluted earnings per share of $0.50-$0.51. However, net income declined sharply versus year-ago levels (YoY down ~68%) and QoQ by ~61%, driven largely by a substantial negative swing in total other income/expenses (net -$104.8 million) and ongoing interest costs (interest expense of $113.4 million). This highlights the profitability sensitivity to non-operating items and interest burden within a capital-intensive, multi-jurisdictional business model.
From a cash-flow perspective, Freedom generated operating cash flow of $480.8 million and free cash flow of $450.0 million, with a notable working-capital contribution (change in working capital +$304.4 million; accounts receivable +$456.2 million; accounts payable and other current liabilities offsetting some of that, net effect +$? in the data). Cash and short-term investments totaled about $2.71 billion at quarter-end, against total debt of $1.78 billion and net debt of roughly $1.21 billion, implying a comfortable liquidity cushion to fund growth opportunities, weather volatility, and potential deleveraging if desired.
The balance sheet shows total assets of $9.69 billion and total liabilities of $8.46 billion, with stockholders’ equity of $1.23 billion. Current assets and liabilities sit at roughly $8.48 billion and $6.67 billion, respectively, yielding a current ratio near 1.27x. Deferred revenue sits at a sizable level (~$4.55 billion), consistent with a broker-dealer/capital-markets business that collects client obligations and prepayments downstream of revenue recognition. Overall, the company demonstrates a solid liquidity position and strong operating cash generation, but profitability remains susceptible to non-operating items and financing costs. As a result, investors should weigh the stability of cash flows and balance-sheet strength against the variability of non-operating income and regulatory/commercial headwinds in cross-border markets.