Axos Financial Reports Strong Q1 Revenue Growth Despite EPS Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AX?
Source: Yahoo Finance
- Significant Revenue Growth: Axos Financial reported Q1 2026 revenue of $392.2 million, a 27% year-over-year increase that surpassed analyst expectations of $367.3 million, indicating strong momentum in loan origination.
- Profitability Under Pressure: Despite the revenue beat, the adjusted EPS of $1.90 fell short of the $2.13 consensus, leading to negative market reactions, highlighting the cost pressures associated with the Verdant Commercial Capital acquisition.
- Loan Growth Momentum: The company achieved $1.6 billion in net loan growth, driven by strong originations in commercial specialty real estate and auto lending, although declining prepayment rates in multifamily lending indicate some market challenges.
- AI Deployment Expansion: Axos Financial expanded its use of AI across risk, compliance, and operations, expecting further efficiency gains and reduced noninterest expenses, which will support future profitability growth.
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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: 96.440
Low
110.00
Averages
111.75
High
115.00
Current: 96.440
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 Reports Strong Q1 Revenue Growth Despite EPS Miss
- Significant Revenue Growth: Axos Financial reported Q1 2026 revenue of $392.2 million, a 27% year-over-year increase that surpassed analyst expectations of $367.3 million, indicating strong momentum in loan origination.
- Profitability Under Pressure: Despite the revenue beat, the adjusted EPS of $1.90 fell short of the $2.13 consensus, leading to negative market reactions, highlighting the cost pressures associated with the Verdant Commercial Capital acquisition.
- Loan Growth Momentum: The company achieved $1.6 billion in net loan growth, driven by strong originations in commercial specialty real estate and auto lending, although declining prepayment rates in multifamily lending indicate some market challenges.
- AI Deployment Expansion: Axos Financial expanded its use of AI across risk, compliance, and operations, expecting further efficiency gains and reduced noninterest expenses, which will support future profitability growth.
See More
Axos Financial Reports Strong Q3 2026 Earnings Growth
- Net Interest Income Growth: Axos Financial reported year-over-year growth in net interest income for Q3 2026, with nearly $700 million in net loan growth and approximately $800 million increase in loan balances, indicating strong performance in the lending market that is expected to enhance future profitability.
- Non-Interest Income Increase: The company achieved non-interest income of $86 million in Q3, a significant rise from $53 million in the prior quarter, and even excluding the $22 million legal settlement, a $10 million increase was realized, showcasing success in diversifying revenue streams.
- Deposit Acquisition Strategy: Axos announced the acquisition of approximately $2.3 billion in online savings deposits from Jenius Bank and $3.2 billion in IRA deposits from Capital One, with completion of deposit conversion expected next month, enhancing liquidity to support future loan growth and demonstrating proactive market expansion efforts.
- Increased Credit Loss Provisions: The provision for credit losses rose to $41 million in Q3 from $25 million in Q2, primarily due to a specific reserve of approximately $20 million for commercial and industrial loans, reflecting the company's cautious approach towards potential credit risks.
See More
Verdant Commercial Capital Receives Moody's Rating Upgrade
- Rating Upgrade: Moody's upgraded five classes of notes in Verdant Receivables 2023-1 and 2024-1, reflecting strong collateral performance and ongoing credit enhancement, indicating stability in the company's equipment finance platform.
- Specific Upgrades: In the 2023-1 transaction, Class B was upgraded to Aaa (sf), Class C to Aa1 (sf), and Class D to A3 (sf); in the 2024-1 transaction, Class B was upgraded to Aa1 (sf) and Class C to Aa3 (sf), showcasing a robust foundation for the company's asset-backed securities.
- Credit Enhancement Drivers: Moody's cited sequential pay structures, non-declining reserve accounts, and increased overcollateralization as key factors for the upgrades, with cumulative net loss expectations for both transactions reduced to 1.50%, further boosting investor confidence.
- Management Commentary: Verdant's CEO Mike Rooney stated that these upgrades underscore the strength and consistency of the vendor platform, emphasizing the company's ability to deliver high-quality assets in the equipment financing market and its commitment to long-term success.
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
Axos Financial Reports Strong Q1 Revenue Growth Despite EPS Miss
- Significant Revenue Growth: Axos Financial reported Q1 2026 revenue of $392.2 million, a 27% year-over-year increase that surpassed analyst expectations of $367.3 million, indicating strong momentum in loan origination.
- Profitability Under Pressure: Despite the revenue beat, the adjusted EPS of $1.90 fell short of the $2.13 consensus, leading to negative market reactions, highlighting the cost pressures associated with the Verdant Commercial Capital acquisition.
- Loan Growth Momentum: The company achieved $1.6 billion in net loan growth, driven by strong originations in commercial specialty real estate and auto lending, although declining prepayment rates in multifamily lending indicate some market challenges.
- AI Deployment Expansion: Axos Financial expanded its use of AI across risk, compliance, and operations, expecting further efficiency gains and reduced noninterest expenses, which will support future profitability growth.
See More
Axos Financial Reports Strong Q3 2026 Earnings Growth
- Net Interest Income Growth: Axos Financial reported year-over-year growth in net interest income for Q3 2026, with nearly $700 million in net loan growth and approximately $800 million increase in loan balances, indicating strong performance in the lending market that is expected to enhance future profitability.
- Non-Interest Income Increase: The company achieved non-interest income of $86 million in Q3, a significant rise from $53 million in the prior quarter, and even excluding the $22 million legal settlement, a $10 million increase was realized, showcasing success in diversifying revenue streams.
- Deposit Acquisition Strategy: Axos announced the acquisition of approximately $2.3 billion in online savings deposits from Jenius Bank and $3.2 billion in IRA deposits from Capital One, with completion of deposit conversion expected next month, enhancing liquidity to support future loan growth and demonstrating proactive market expansion efforts.
- Increased Credit Loss Provisions: The provision for credit losses rose to $41 million in Q3 from $25 million in Q2, primarily due to a specific reserve of approximately $20 million for commercial and industrial loans, reflecting the company's cautious approach towards potential credit risks.
See More
Verdant Commercial Capital Receives Moody's Rating Upgrade
- Rating Upgrade: Moody's upgraded five classes of notes in Verdant Receivables 2023-1 and 2024-1, reflecting strong collateral performance and ongoing credit enhancement, indicating stability in the company's equipment finance platform.
- Specific Upgrades: In the 2023-1 transaction, Class B was upgraded to Aaa (sf), Class C to Aa1 (sf), and Class D to A3 (sf); in the 2024-1 transaction, Class B was upgraded to Aa1 (sf) and Class C to Aa3 (sf), showcasing a robust foundation for the company's asset-backed securities.
- Credit Enhancement Drivers: Moody's cited sequential pay structures, non-declining reserve accounts, and increased overcollateralization as key factors for the upgrades, with cumulative net loss expectations for both transactions reduced to 1.50%, further boosting investor confidence.
- Management Commentary: Verdant's CEO Mike Rooney stated that these upgrades underscore the strength and consistency of the vendor platform, emphasizing the company's ability to deliver high-quality assets in the equipment financing market and its commitment to long-term success.
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
