10-Q · April 30, 2026
Axos Financial, Inc. reported strong Q3 results for FY2026 with revenues reaching $392.2 million, surpassing estimates of $368.3 million. Net income increased to $124.7 million, or $2.15 EPS, reflecting a substantial…
Earnings analysis · 10-K
AX earnings analysis
Filed August 20, 2026 · Our reading of the company's report
The latest report
Axos delivered strong fiscal 2026 growth, with net income up to $490.4 million, diluted EPS up to $8.48 and assets up 20.9% to $30.0 billion. Growth was driven by commercial lending, deposits, Verdant equipment leasing…
Read full summary
Axos delivered strong fiscal 2026 growth, with net income up to $490.4 million, diluted EPS up to $8.48 and assets up 20.9% to $30.0 billion. Growth was driven by commercial lending, deposits, Verdant equipment leasing and sharply higher Banking Segment fee income, but profitability quality weakened as the consolidated net interest margin fell to 4.70% from 4.90%, the efficiency ratio rose to 49.49% from 46.84%, and credit provisions increased materially. The new $49 million FINRA award, concentration in commercial loans and California/New York real estate, and expanded acquisition and AI risks offset the otherwise favorable operating trajectory.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $8.48
What stood out
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Digital, Low-Cost Banking Platform Scales
Axos describes a low-cost, technology-led model built around online banking, concierge banking, lending and deposit products distributed nationally through online channels and affinity partners. The Banking Business Segment held $29.0 billion of assets at June 30, 2026, versus $24.0 billion a year earlier.
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EPS Reaccelerates Despite Higher Costs
Net income increased to $490.4 million in fiscal 2026 from $432.9 million in fiscal 2025 and $450.0 million in fiscal 2024; diluted EPS rose to $8.48 from $7.43 and $7.66, respectively. Adjusted EPS increased to $8.74 from $7.50 and $6.74.
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Commercial Lending Drives Balance-Sheet Growth
Loan growth was the main earnings engine: net loans held for investment increased to $25.6 billion from $21.0 billion, while total deposits increased to $24.6 billion from $20.8 billion. Commercial and industrial non-real-estate loans rose to $9.5 billion from $6.8 billion, and commercial real estate loans rose to $8.9 billion from $6.9 billion.
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Banking Segment Leads Profit Growth
Banking pre-tax income rose 10.5% to $697.3 million, supported by a 10.5% increase in Banking net interest income to $1.231 billion and a 223.0% increase in Banking non-interest income to $150.0 million. Consolidated non-interest income benefited from Verdant, office-complex lease income and a $22.0 million favorable legal settlement.
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Acquisitions Expand Leasing and Deposits
The Verdant acquisition expanded equipment leasing and contributed $97.5 million of net revenue and $4.1 million of net income in fiscal 2026. The company also acquired approximately $2.3 billion of Jenius consumer deposits and expects to close the previously approved acquisition of approximately $3.2 billion of Capital One IRA deposits in calendar 2026.
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Growth Investment Over Dividends
Capital deployment remained focused on growth and repurchases: Axos purchased a San Diego office complex for approximately $125 million, invested $266.4 million in premises, equipment, software and intangibles, and repurchased $22.0 million of stock, or 249,921 shares, at an average price of $87.95. No cash dividend has ever been declared or paid.
What to watch
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$49 Million FINRA Award
A FINRA arbitration panel awarded approximately $49 million against Axos Clearing on June 5, 2026. The company filed a petition to vacate the award but accrued a $21.0 million liability, creating a new, quantified legal and Securities Segment risk versus the prior-year discussion.
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Commercial Credit Losses Accelerate
Credit costs are rising as the balance sheet expands: provision for credit losses increased to $101.1 million from $55.7 million and $32.5 million in the prior two years, while net charge-offs increased to $43.3 million from $25.6 million. Commercial and industrial non-real-estate gross charge-offs were $34.6 million, and its allowance rose to $177.1 million.
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CRE and NY/California Concentration
The loan book remains concentrated in commercial and geographically exposed assets. Commercial real estate was $8.9 billion, or 34.0% of total loans, commercial and industrial non-real-estate was $9.5 billion, or 36.4%, and 37.4% of real-estate loans were secured by New York property and 33.5% by California property.
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Material Interest-Rate Sensitivity
Interest-rate exposure remains material: management models a 4.8% decline in first-12-month net interest income under a 200-basis-point rate decline and an 11.2% decline in the following 12 months. A positive cumulative repricing gap of 21.45% of interest-earning assets also makes earnings sensitive to the direction and speed of rate changes.
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AI and Cybersecurity Exposure Expands
The company added explicit risks around rapidly evolving artificial intelligence, including incorrect or biased outputs, disclosure of confidential information, intellectual-property infringement, regulatory uncertainty and AI-enabled fraud or cyberattacks. The filing states that no cybersecurity incident had materially affected Axos through June 30, 2026, but future incidents may materially affect the company.
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Verdant Integration and Control Risk
Verdant represented 6% of total assets and 7% of net revenues at June 30, 2026, but management excluded Verdant from its internal-control effectiveness assessment because the acquisition closed on September 30, 2025. The filing also records $30.8 million of contingent consideration tied to Verdant performance, creating ongoing integration, control and valuation risks.
Management's outlook
The 10-K provides no quantitative annual earnings or revenue guidance; outlook is discussed through interest-rate sensitivity, growth plans, liquidity and risk disclosures. Annual outlook was deferred to the earnings press release/call.
Earlier filings 4
10-Q · October 30, 2025
Axos reported largely stable net income for the quarter ended September 30, 2025 with net income of $112.4M (vs. $112.3M a year ago) and diluted EPS of $1.94 (vs. $1.93). Total reported revenue (interest and dividend…
10-K · August 21, 2025
Axos Financial positions itself as a technology-driven, diversified financial services company with scale in banking and custody: approximately $24.8 billion in assets and $39.4 billion of assets under…
10-Q · April 30, 2025
Axos reported total revenue (net interest income + non-interest income) of $308.837 million for the three months ended March 31, 2025, up 4.8% year-over-year. Net interest income increased to $275.464 million while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.