Freedom Holding Corp. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

LEASES

LEASES

6 Months Ended

Sep. 30, 2025

At September 30, 2025, the Group was obligated under a number of noncancellable leases, predominantly operating leases of office space, which expire at various dates through 2034. The Group's primary involvement with leases is in the capacity as a lessee where a Group leases premises to support its business.

The Group determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. Operating lease liabilities and right-of-use (ROU) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that estimates the Company’s collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU asset, included in premises and equipment, also includes any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. The Company recognizes fixed lease costs on a straight-line basis throughout the lease term in the Consolidated Statement of Income. Certain of these leases also have extension or termination options,

and the Company assesses the likelihood of exercising such options. If it is reasonably certain that the Group will exercise the options to extend, then we include the impact in the measurement of our ROU assets and lease liabilities.

When readily determinable, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the rate implicit on most of the Group's leases are not readily determinable. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate.

The table below presents the lease related assets and liabilities recorded on the Company's condensed consolidated balance sheets as of September 30, 2025 and March 31, 2025:


	Classification on Balance Sheet	September 30, 2025		March 31, 2025
Assets
Operating lease assets	Right-of-use asset	$	37,103	$	39,828
Total lease assets		$	37,103	$	39,828

Liabilities
Operating lease liability	Lease liability	$	38,804	$	40,525
Total lease liability		$	38,804	$	40,525

The following table presents as of September 30, 2025, the maturities of the lease liabilities:


Leases maturing during the period ending March 31,
2026	$	8,951
2027	15,782
2028	11,876
2029	5,654
2030	3,672
Thereafter	2,077
Total payments	48,012
Less: amounts representing interest	(9,208)
Lease liability, net	$	38,804
Weighted average remaining lease term (in months)	27
Weighted average discount rate	15		%

Lease commitments for short-term operating leases as of September 30, 2025 and September 30, 2024 was approximately $1,810 and $1,368, respectively. The Group's rent expense for office space was $2,969 and for $5,658 the three and six months ended September 30, 2025 and $2,339 and $4,493 for the three and six months ended September 30, 2024, respectively.

The Group has leases that involve variable payments tied to an index, which are considered in the measurement of operating lease ROU assets and operating lease liabilities.