Axos Financial, Inc. (AX) Q1 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
0mins
Should l Buy AX?
Source: SeekingAlpha
Net Loan Growth $1.6 billion net loan growth linked quarter, including $1 billion of loans and leases and on-balance sheet securitizations acquired in the Verdant acquisition. This growth was driven by the acquisition and operational performance.
Net Interest Income $291 million for the 3 months ended September 30, 2025, increasing by approximately $11 million linked quarter or 15.6% annualized. Year-over-year, excluding a one-time benefit of $17 million in the prior year, net interest income was up $16 million or 5.8%. Growth was attributed to balanced growth across single-family mortgage warehouse, commercial specialty real estate, and auto lending.
Net Interest Margin 4.75% for the quarter ended September 30, 2025, down 9 basis points from 4.84% in the prior quarter. The decline was due to holding excess liquidity and the issuance of subordinated debt.
Noninterest Income Increased by approximately 13% year-over-year due to higher banking service fees, mortgage banking income, and prepayment penalty fees.
Total Deposits $22.3 billion, up 6.9% linked quarter and 11.5% year-over-year. Growth was supported by a diverse and granular deposit base across consumer and commercial banking and securities businesses.
Net Income Approximately $112.4 million for the quarter ended September 30, 2025, up from $110.7 million in the prior quarter. Adjusted net income was $119 million, a 7.3% increase from the linked quarter and almost 30% annually.
Diluted EPS $1.94 for the quarter ended September 30, 2025, compared to $1.92 in the prior quarter. Adjusted EPS was $2.06, reflecting a 7.3% increase from the linked quarter and almost 30% annually.
Total Originations for Investment Over $4.2 billion for the 3 months ended September 30, 2025, representing an increase of 11% linked quarter or 44% annualized. Growth was driven by commercial real estate specialty lending, auto lending, and single-family warehouse.
Average Loan Yields 7.99% for the 3 months ended September 30, 2025, in line with the prior quarter. Non-purchased loans had yields of 7.66%, while purchased loans had yields of 15.81%.
Nonperforming Assets Represented 64 basis points of total assets, down from 71 basis points in the prior quarter. Declines were seen in multifamily and commercial mortgages, partially offset by increases in single-family mortgages.
Net Charge-Offs Down 5 basis points linked quarter and 6 basis points year-over-year to 11 basis points for the 3 months ended September 30, 2025. This reflects low historical and current net charge-offs.
Assets Under Custody or Administration Increased from $39.4 billion at June 30, 2025, to $43 billion at September 30, 2025. Net new assets for the custody business were $1.1 billion in the September quarter.
Noninterest Expenses Approximately $156 million for the 3 months ended September 30, 2025, up by $5.6 million from the prior quarter. Excluding $1.3 million of deal-related expenses, the increase was $4.3 million, driven by salaries, benefits, and data processing expenses.
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Analyst Views on AX
Wall Street analysts forecast AX stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 82.880
Low
110.00
Averages
111.75
High
115.00
Current: 82.880
Low
110.00
Averages
111.75
High
115.00
About AX
Axos Financial Inc. is the holding company for Axos Bank (the Bank), Axos Clearing LLC and Axos Invest, Inc. The Bank provides consumer and commercial banking products through its digital online and mobile banking platforms. Its segments include Banking Business and Securities Business. The Banking Business Segment includes a broad range of banking services, including online banking, concierge banking, and mortgage, vehicle and unsecured lending through online, low-cost distribution channels to serve the needs of consumers and small businesses nationally. In addition, the Banking Business Segment focuses on depositing products nationwide to industry verticals. The Securities Business Segment includes the clearing broker-dealer, registered investment advisor custody business, and introducing broker-dealer lines of businesses. These lines of business offer products independently to their own customers as well as to Banking Business Segment clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Axos Financial Rated as Undervalued Growth Stock
- Buy Rating Reaffirmed: On March 9, DA Davidson reiterated a Buy rating on Axos Financial (NYSE:AX) with a $112 price target, reflecting strong confidence in its prospects as an internet bank, which is expected to drive stock price appreciation and attract more investor interest.
- Branchless Structure Advantage: Axos Financial's branchless structure enhances its cost advantage, enabling it to offer higher deposit rates, thereby attracting more customers and improving profitability, further solidifying its competitive position in the digital banking sector.
- Financial Performance Exceeds Expectations: Axos Financial reported earnings per share of $2.25 for Q2 FY2026, surpassing the expected $2.07, with revenues of $385.1 million compared to the anticipated $347.25 million, demonstrating the effectiveness of its unique business model and strong market demand.
- Tech-Driven Financial Services: As a technology-driven financial services holding company, Axos Financial offers high-yield checking/savings accounts, commercial banking, and automated investing, fully leveraging its digital-first, branchless banking model to meet the needs of individuals and businesses nationwide.
See More
Axos Financial to Host Q3 FY2026 Earnings Call
- Earnings Call Announcement: Axos Financial will host a conference call on April 30, 2026, at 5 PM ET to discuss its Q3 FY2026 financial results, with earnings expected to be released shortly before the call, enhancing investor transparency.
- Asset Overview: As of December 31, 2025, Axos Financial reported approximately $28.2 billion in consolidated assets, indicating a solid foundation in the financial services sector that supports its future growth strategy.
- Clearing Services Capacity: Axos Clearing LLC managed approximately $44.4 billion in assets as of December 31, 2025, providing comprehensive securities clearing services that strengthen its market position among introducing broker-dealers and registered investment advisors.
- Investor Relations Access: Interested parties can access the conference call via Axos Financial's website or by dialing 877-407-8293, ensuring broad dissemination of information and high investor engagement.
See More
Verdant Secures $1.07B Funding, Acquired by Axos Bank
- Funding Achievement: Verdant Commercial Capital achieved $1.07 billion in funding volume in 2025, marking a 40% year-over-year growth and the first time surpassing $1 billion in annual originations, indicating strong growth potential in the equipment finance sector.
- Portfolio Expansion: The company's managed portfolio grew by 41% to $1.7 billion, reflecting Verdant's successful financing of essential business equipment through partnerships with top-tier vendors and OEMs, further solidifying its market position.
- Acquisition Integration: Verdant was acquired by Axos Bank at the end of 2025, combining its equipment financing expertise with Axos' digital banking model, enhancing funding capacity and broadening access to commercial banking services, which is expected to accelerate future growth.
- Strategic Development: Since its founding in 2017, Verdant has originated over $4 billion in total financing, demonstrating its ability to scale effectively while maintaining its founding values, and will continue to attract top industry talent to drive business growth.
See More
PMC FIG Opportunities Sells Shares of Axos Financial
- Share Reduction Details: On February 17, 2026, PMC FIG Opportunities sold 33,048 shares of Axos Financial, with an estimated transaction value of $2.72 million, reducing its stake from 5.1% to 0.89% of total assets under management.
- Stock Performance: As of Monday, Axos Financial shares were priced at $89.47, reflecting a 34% increase over the past year, significantly outperforming the S&P 500's 16% rise during the same period, indicating enhanced market competitiveness.
- Financial Metrics: Axos Financial reported a net income of $128.4 million for the December quarter, with net interest income rising 18.4% year-over-year to $331.7 million, showcasing robust growth in loans and deposits.
- Investor Outlook: The share reduction suggests a cautious approach to risk management by PMC FIG Opportunities, while the fundamental strength of Axos Financial remains intact, making it a potential focus for long-term investors looking for growth opportunities.
See More
PMC FIG Opportunities Sells Shares of Axos Financial
- Transaction Overview: PMC FIG Opportunities sold 33,048 shares of Axos Financial in Q4 2026, with an estimated transaction value of $2.72 million, reflecting the fund's risk management strategy regarding this stock.
- Position Value Decline: The quarter-end value of Axos Financial's position decreased by $2.79 million, indicating the dual impact of stock price fluctuations and the share sale, resulting in its allocation dropping to 0.89% of the fund's AUM.
- Financial Performance Insight: Despite the reduction, Axos Financial reported net income of $128.4 million for the December quarter, a 22.6% increase year-over-year, demonstrating its continued strength in loan and deposit growth.
- Market Competitiveness: Axos Financial maintains competitiveness in the evolving financial services sector through its digital platform and efficient operations, even though it did not make the Motley Fool's list of top recommended stocks.
See More
Axos Bank Partners with Priority Rollfi to Enhance Digital Banking
- Partnership Announcement: Axos Bank has formed a new partnership with Priority Rollfi, selected through a competitive RFP process to provide embedded and white-label payroll and benefits technology infrastructure to enhance Axos's business banking platform.
- Technology Integration: By integrating Rollfi's modular API-based technology, Axos Bank will automate payroll processing, streamline tax compliance, and deliver connected employee benefits management, significantly improving client financial operations.
- Commitment to Digital Innovation: Recognized as one of the nation's most technology-forward financial institutions, Axos Bank's partnership underscores its ongoing commitment to digital innovation, aiming to provide modern, integrated solutions for commercial banking clients.
- Enhanced Market Competitiveness: Rollfi's technology infrastructure will enable Axos Bank to optimize client service and maintain flexibility, while fast deployment and full regulatory coverage will enhance its competitiveness in the financial services market.
See More
Axos Financial Rated as Undervalued Growth Stock
- Buy Rating Reaffirmed: On March 9, DA Davidson reiterated a Buy rating on Axos Financial (NYSE:AX) with a $112 price target, reflecting strong confidence in its prospects as an internet bank, which is expected to drive stock price appreciation and attract more investor interest.
- Branchless Structure Advantage: Axos Financial's branchless structure enhances its cost advantage, enabling it to offer higher deposit rates, thereby attracting more customers and improving profitability, further solidifying its competitive position in the digital banking sector.
- Financial Performance Exceeds Expectations: Axos Financial reported earnings per share of $2.25 for Q2 FY2026, surpassing the expected $2.07, with revenues of $385.1 million compared to the anticipated $347.25 million, demonstrating the effectiveness of its unique business model and strong market demand.
- Tech-Driven Financial Services: As a technology-driven financial services holding company, Axos Financial offers high-yield checking/savings accounts, commercial banking, and automated investing, fully leveraging its digital-first, branchless banking model to meet the needs of individuals and businesses nationwide.
See More
Axos Financial to Host Q3 FY2026 Earnings Call
- Earnings Call Announcement: Axos Financial will host a conference call on April 30, 2026, at 5 PM ET to discuss its Q3 FY2026 financial results, with earnings expected to be released shortly before the call, enhancing investor transparency.
- Asset Overview: As of December 31, 2025, Axos Financial reported approximately $28.2 billion in consolidated assets, indicating a solid foundation in the financial services sector that supports its future growth strategy.
- Clearing Services Capacity: Axos Clearing LLC managed approximately $44.4 billion in assets as of December 31, 2025, providing comprehensive securities clearing services that strengthen its market position among introducing broker-dealers and registered investment advisors.
- Investor Relations Access: Interested parties can access the conference call via Axos Financial's website or by dialing 877-407-8293, ensuring broad dissemination of information and high investor engagement.
See More
Verdant Secures $1.07B Funding, Acquired by Axos Bank
- Funding Achievement: Verdant Commercial Capital achieved $1.07 billion in funding volume in 2025, marking a 40% year-over-year growth and the first time surpassing $1 billion in annual originations, indicating strong growth potential in the equipment finance sector.
- Portfolio Expansion: The company's managed portfolio grew by 41% to $1.7 billion, reflecting Verdant's successful financing of essential business equipment through partnerships with top-tier vendors and OEMs, further solidifying its market position.
- Acquisition Integration: Verdant was acquired by Axos Bank at the end of 2025, combining its equipment financing expertise with Axos' digital banking model, enhancing funding capacity and broadening access to commercial banking services, which is expected to accelerate future growth.
- Strategic Development: Since its founding in 2017, Verdant has originated over $4 billion in total financing, demonstrating its ability to scale effectively while maintaining its founding values, and will continue to attract top industry talent to drive business growth.
See More
PMC FIG Opportunities Sells Shares of Axos Financial
- Share Reduction Details: On February 17, 2026, PMC FIG Opportunities sold 33,048 shares of Axos Financial, with an estimated transaction value of $2.72 million, reducing its stake from 5.1% to 0.89% of total assets under management.
- Stock Performance: As of Monday, Axos Financial shares were priced at $89.47, reflecting a 34% increase over the past year, significantly outperforming the S&P 500's 16% rise during the same period, indicating enhanced market competitiveness.
- Financial Metrics: Axos Financial reported a net income of $128.4 million for the December quarter, with net interest income rising 18.4% year-over-year to $331.7 million, showcasing robust growth in loans and deposits.
- Investor Outlook: The share reduction suggests a cautious approach to risk management by PMC FIG Opportunities, while the fundamental strength of Axos Financial remains intact, making it a potential focus for long-term investors looking for growth opportunities.
See More
PMC FIG Opportunities Sells Shares of Axos Financial
- Transaction Overview: PMC FIG Opportunities sold 33,048 shares of Axos Financial in Q4 2026, with an estimated transaction value of $2.72 million, reflecting the fund's risk management strategy regarding this stock.
- Position Value Decline: The quarter-end value of Axos Financial's position decreased by $2.79 million, indicating the dual impact of stock price fluctuations and the share sale, resulting in its allocation dropping to 0.89% of the fund's AUM.
- Financial Performance Insight: Despite the reduction, Axos Financial reported net income of $128.4 million for the December quarter, a 22.6% increase year-over-year, demonstrating its continued strength in loan and deposit growth.
- Market Competitiveness: Axos Financial maintains competitiveness in the evolving financial services sector through its digital platform and efficient operations, even though it did not make the Motley Fool's list of top recommended stocks.
See More
Axos Bank Partners with Priority Rollfi to Enhance Digital Banking
- Partnership Announcement: Axos Bank has formed a new partnership with Priority Rollfi, selected through a competitive RFP process to provide embedded and white-label payroll and benefits technology infrastructure to enhance Axos's business banking platform.
- Technology Integration: By integrating Rollfi's modular API-based technology, Axos Bank will automate payroll processing, streamline tax compliance, and deliver connected employee benefits management, significantly improving client financial operations.
- Commitment to Digital Innovation: Recognized as one of the nation's most technology-forward financial institutions, Axos Bank's partnership underscores its ongoing commitment to digital innovation, aiming to provide modern, integrated solutions for commercial banking clients.
- Enhanced Market Competitiveness: Rollfi's technology infrastructure will enable Axos Bank to optimize client service and maintain flexibility, while fast deployment and full regulatory coverage will enhance its competitiveness in the financial services market.
See More
