LEASES

At March 31, 2026, 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 lease 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 assess 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 right-of-use 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 consolidated balance sheets as of March 31, 2026 and March 31, 2025:


	Classification on Balance Sheet	March 31, 2026		March 31, 2025
Assets
Operating lease assets	Right-of-use assets	$	47,579	$	39,828
Total lease assets		$	47,579	$	39,828

Liabilities
Operating lease liability	Lease liability	$	48,843	$	40,525
Total lease liability		$	48,843	$	40,525

The following table presents as of March 31, 2026, the annual maturities of the lease liabilities:


Leases maturing during twelve months ended March 31,
2027	$	21,053
2028	17,784
2029	10,289
2030	6,320
2031	3,159
Thereafter	3,354
Total payments	61,959
Less: amounts representing interest	(13,116)
Lease liability, net	$	48,843
Weighted average remaining lease term (in months)	29
Weighted average discount rate	14		%

Lease commitments for short-term operating leases as of March 31, 2026 and March 31, 2025 was approximately $4,975 and $2,299, respectively. The Group's rent expense for office space was $12,912 for the year ended March 31, 2026 and $7,764 for the year ended March 31, 2025.

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

Historical Timeline

Fiscal Year	Filed
2026	Jun 1, 2026	Showing above
2025	Jun 13, 2025

2024	Jun 14, 2024

2023	Aug 4, 2023

2022	May 31, 2022

2020	Jul 14, 2020

2017	Jun 30, 2017

2016	Jul 14, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Freedom Holding Corp. Leases Disclosure

Historical Timeline

About Leases Disclosures

Other Available Disclosures