Axos Financial, Inc. (AX) Earnings
Axos Financial, Inc. is expected to report next earnings on October 29, 2026 (in NaN days), with a consensus EPS estimate of $2.27. AX has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +2.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $2.16 | $2.20 | +1.9% | $380M | +1.1% |
| Apr 30, 2026 | $2.13 | $1.90 | -10.8% | $392M | +5.3% |
| Jan 29, 2026 | $2.07 | $2.25 | +8.7% | $381M | +10.2% |
| Oct 30, 2025 | $1.86 | $2.07 | +11.3% | $319M | -4.9% |
| Jul 30, 2025 | $1.82 | $1.94 | +6.6% | $317M | -1.1% |
| Apr 30, 2025 | $1.74 | $1.81 | +4.0% | $305M | -0.1% |
| Jan 28, 2025 | $1.75 | $1.82 | +4.0% | $304M | +0.5% |
| Oct 30, 2024 | $1.78 | $1.93 | +8.4% | $316M | +6.0% |
| Jan 30, 2024 | $1.40 | $1.60 | +14.3% | $254M | +2.1% |
| Oct 26, 2023 | $1.36 | $1.38 | +1.6% | $242M | +0.4% |
| Jul 27, 2023 | $1.27 | $1.46 | +15.2% | $233M | +1.8% |
| Apr 27, 2023 | $1.20 | $1.32 | +10.1% | $228M | -0.3% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q4 FY2026 · July 30, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Overall Financial Performance - Generated double-digit year-over-year growth in net interest income (11.2% YoY), ending loan and deposit balances, EPS, and book value. Net loan growth was ~$700 million linked quarter. - Return on average common equity exceeded 16%, return on assets hit 1.8% for the quarter. - Net income was ~$124.7 million, up 18.5% YoY. Diluted EPS was $2.15, up 18.7% YoY from $1.81 in Q3 2025. - Net interest income (NII) was 4.57% in Q3, down from 4.94% linked quarter. Excluding FDIC-purchased loan prepayment impacts and the two fewer days in the quarter, NIM declined ~10 basis points, in line with prior guidance. - Non-interest income was $86 million, up from $53 million linked quarter and $33.4 million YoY. Excluding a $22 million one-time legal settlement, non-interest income was up ~$10 million linked quarter driven by higher mortgage banking, advisory fees, and new rental income from the purchased future headquarters building. - Non-interest expenses were $186 million, up $1.4 million linked quarter, with productivity gains from AI and operational efficiency initiatives partially offsetting higher costs. ### Balance Sheet and Funding - Ending total deposit balances were $22.4 billion, up 11.2% YoY. 97% of deposits are demand, money market, and savings accounts, which grew 13% YoY. Non-interest-bearing deposits were $3.4 billion, up $143 million linked quarter. - The firm temporarily increased FHLB advances to prepare for the upcoming Genius Bank deposit acquisition, deliberately reducing higher-cost existing savings and time deposits. ### Credit Quality - Overall credit quality remains strong, with low historic and current charge-offs. Annualized net charge-offs were 8 basis points of average loans this quarter, or 31 basis points including a $14 million write-down on a single C&I syndicated loan. - Total non-performing assets were $180.4 million (62 basis points of total assets) at quarter-end, down from 71 basis points at June 30, 2025. The allowance for credit losses equals 192.2% of non-accrual loans, indicating strong reserve coverage. - One new $33 million C&I syndicated loan became delinquent this quarter; management has taken over as agent and is actively working to resolve the exposure, with a $10 million specific reserve maintained against the remaining $17 million balance. ### Operational and Strategic Updates - Scaled AI usage across the firm: over 500 employees use AI tools for workflows, and AI now accounts for 90% of committed code, with 37% growth in AI usage since the start of 2026. AI is driving productivity gains that have reduced salaries and benefits, data processing, and G&A expenses. - The Verdant equipment leasing acquisition continues to perform well, with healthy loan growth and improving profitability, and synergies with in-house lending teams are emerging. - Two opportunistic deposit acquisitions are in progress: the $2.3 billion Genius Bank deposit acquisition received regulatory approval and is expected to close in June 2026; the $3.2 billion Capital One IRA/CD deposit acquisition had its regulatory application submitted recently, with closing expected in H2 2026. Both acquisitions provide low-cost granular digital deposits to fund future loan growth. - Management is actively evaluating a wide range of M&A opportunities to augment organic growth, including team lift-outs, fintechs, and other deposit/loan acquisitions, given favorable market dynamics.
Guidance
- Organic annual loan growth for fiscal 2026 is expected to be in the low to mid-teens, excluding the impact of future acquisitions. - Excluding the 5 basis point impact of amortization of deposit purchase premiums from recent acquisitions, management expects organic reported net interest margin to remain roughly flat going forward. - The expected annual effective tax rate is 26% to 27%, excluding one-time potential benefits from tax credits and RSU vesting. - The target loan loss reserve range is 1.3% to 1.4% of total loans and leases going forward. - Spread compression on new loans has stopped, and management does not expect further spread compression moving forward.
Segment performance
The firm does not break out formal product segment financials with absolute revenue and percentage contribution. Key segment-level performance highlights are as follows: - Lending: Total originations (excluding single-family warehouse lending) hit $5.1 billion. Strong growth was reported across Capital Calls, Real Estate Lender Finance, and Equipment Finance. Verdun (equipment leasing) contributed $200 million in new loans and operating leases, with $23.7 million in non-interest income (up from $18.9 million linked quarter). Jumbo single-family loan balances saw a slight increase, while single-family warehouse balances declined $123 million due to seasonality. Ending total loan balances grew $800 million linked quarter (excluding single-family warehouse). - Clearing and Securities: Assets under custody/administration remained flat at $44 billion, with $140 million in net new asset growth offset by first-quarter 2026 stock market declines. Advisory and broker-dealer fees increased sequentially driven by higher asset and transaction-based income. Client cash sorting deposit balances were flat quarter-over-quarter despite market volatility. - Mortgage Banking: Mortgage banking income was $3.7 million, up $2.2 million year-over-year from a favorable servicing rights fair value adjustment. - Advisory: Advisory fee income hit $9.4 million, up $1.3 million year-over-year.
Risks & headwinds
- A $33 million syndicated C&I shared national credit became delinquent in the quarter, creating credit exposure that remains unresolved as of quarter-end; resolution is expected to take several quarters. - Net interest margin has declined sequentially as market interest rates fell, and the diminishing benefit from accretion on FDIC-purchased loans removes historical margin support. - Market volatility and stock market declines pressure asset-based fee income and assets under custody/administration growth. - Integration of recent and upcoming acquisitions carries operational and execution risk, including deposit conversion and client onboarding challenges.
Analyst Q&A
Q: Why did securities balances increase this quarter, and will the securities book stay higher in the near term? /
A: Management moved ~$750 million from excess cash held at the Federal Reserve into swapped long-term Treasuries after a rare market dislocation created a 30 basis point pickup in yield relative to holding cash. The securities remain liquid and rate-beneficial after swapping, so this was a tactical opportunity to improve returns on required liquidity. /
Q: What drove the increase in the allowance for credit losses this quarter, and can you provide more detail on the delinquent C&I loan? /
A: The majority of the allowance increase came from the specific reserve for the single delinquent C&I syndicated loan, with only a minor contribution from broad economic/geopolitical factor updates to the credit model. The loan was originally underwritten by another agent that made early overly lenient concessions; Axos is now the lead agent, has placed the loan on non-accrual, and is working with the sponsor to resolve the position over the next several quarters. /
Q: What is the average cost of the Capital One deposits, and how will they impact balance sheet structure and net interest margin? /
A: The primary benefit of the Capital One and Genius Bank deposits is that they ensure the firm has enough funding to support its targeted loan growth, eliminating the need to increase deposit marketing spend or raise deposit pricing to attract new funding. Management does not expect significant net interest margin expansion from re-pricing the new deposits. There may be a modest temporary balance sheet gross-up in late 2026 to early 2027 as the deposits are integrated, but it will not be material relative to the bank's expected future size. /
Q: Where does management see the best M&A opportunities right now, and what types of deals are appealing? /
A: Management is actively pursuing a diverse pipeline of opportunities, including team lift-outs, fintech businesses with complementary strengths that need Axos' infrastructure, small and large bank acquisitions, and specialty finance teams and businesses. The firm follows a deliberate, disciplined approach, building long-term relationships with potential targets and only pursues deals that are a good strategic fit and can be digested successfully, which has led to a consistent flow of opportunistic transactions.