Freedom Holding (NasdaqCM:FRHC) has just posted Q3 2026 results with total revenue of US$454.9 million, basic EPS of US$1.27 and net income of US$76.2 million, putting fresh numbers on the table for investors watching its margin story. Over the past few quarters, revenue has moved from US$455.0 million in Q2 2025 to US$196.2 million in Q4 2025, then back above US$400 million in each quarter of 2026 so far. Over the same period, quarterly EPS shifted from US$1.93 to a loss of US$2.39 and then to US$0.51, US$0.65 and now US$1.27. With trailing net profit margin sitting at 0.2% against a much higher figure a year ago, this latest print puts the focus squarely on how durable the current level of profitability really is.

See our full analysis for Freedom Holding.

With the numbers on the table, the next step is to set this earnings report against the main stories investors tell about Freedom Holding and see which narratives about growth, risk and margins actually hold up.

Net margin at 0.2% on US$1.49b of trailing revenue

• Over the last 12 months, Freedom Holding generated US$1.49b of revenue and US$2.7 million of net income, which works out to a net margin of 0.2% compared with 19.8% a year earlier.
• Critics highlight that this weak margin, alongside earnings declining about 8% per year over five years, makes it harder to argue for a strong bullish case, especially when quarterly net income has swung from a loss of US$142.7 million in Q4 2025 to profits of US$30.4 million, US$38.7 million and US$76.2 million across the first three quarters of 2026.
  • The bearish angle leans on that long term earnings decline and the 0.2% trailing margin to question how reliable the recent US$76.2 million profit really is as a guide for future profitability.
  • At the same time, the fact that trailing revenue is close to US$1.5b yet only produces a small profit feeds the worry that even modest cost or revenue shifts could quickly push results back into a loss.

Multi year earnings slide despite recent US$1.27 EPS

• Looking across several years, earnings have declined about 8% per year, and even on a trailing 12 month basis the company has only earned US$0.04 of EPS, versus quarterly EPS readings that ranged from a loss of US$2.39 in Q4 2025 to US$0.51, US$0.65 and now US$1.27 in the first three quarters of 2026.
• What stands out for a bearish narrative is how the trailing EPS of US$0.04 and net income of US$2.7 million sit in sharp contrast to the stronger recent quarters, so the long term trend in earnings still looks weak even though the latest quarter appears healthier.
  • Bears argue that the combination of a multi year earnings decline and a trailing profit that is only a fraction of the recent quarterly run rate makes the past year look more fragile than the latest US$1.27 EPS alone might suggest.
  • That tension between improving quarterly numbers and a soft trailing 12 month picture is exactly what prompts cautious investors to treat the recent rebound as something that still needs more time and data before it looks firmly established.

P/S of 5.1x with DCF fair value at US$57.58

• The shares trade at US$124.36, which equates to a P/S of 5.1x compared with 1.8x for peers and 3.8x for the US Capital Markets industry, while the stated DCF fair value is US$57.58 on the same stock.
• Supporters of a more bullish view sometimes point to the description of reported earnings as high quality, yet the mix of a premium 5.1x P/S multiple and a DCF fair value that is well below the current price means the numbers themselves lean more toward the bearish concern that the stock is priced richly relative to its recent profit record.
  • On one side, the premium to both peer and industry P/S levels suggests the market is comfortable paying more per dollar of revenue, even though the trailing net margin is just 0.2%.
  • On the other side, the gap between the US$124.36 share price and the US$57.58 DCF fair value is exactly the sort of thing cautious investors use to argue that any further profit softness could weigh on the valuation.

If you want to see how other investors are weighing these numbers against the story, Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Freedom Holding's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Freedom Holding pairs a 0.2% trailing net margin and a multi year earnings decline with a share price well above its stated DCF fair value.

If that fragile profitability and rich pricing make you uneasy, check out 51 high quality undervalued stocks to quickly spot companies where price and fundamentals line up more comfortably.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.