Axos Financial (NYSE:AX) Issues Quarterly Earnings Results

Axos Financial (NYSE:AX) issued its quarterly earnings data on Thursday. The company reported $1.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.13 by ($0.23), FiscalAI reports. Axos Financial had a net margin of 22.66% and a return on equity of 16.98%. The company had revenue of $392.25 million during the quarter, compared to analysts’ expectations of $372.51 million. During the same quarter in the prior year, the company earned $1.81 earnings per share.

Here are the key takeaways from Axos Financial’s conference call:

• Axos reported broad double?digit year?over?year growth across core metrics — diluted EPS +18.7%, double?digit growth in net interest income, ending loans and deposits, and >16% return on average common equity.
• Strong loan and funding momentum: ending loan balances grew ~$800M linked quarter (ex. SFR warehouse) with a target of low?to?mid?teens annual organic loan growth, and management is adding liquidity via the $2.3B Jenius deposit acquisition (closing) and a announced $3.2B Capital One IRA/CD deposit purchase.
• Net interest margin declined to 4.57% from 4.94% primarily due to FDIC?purchased loan prepayments and two fewer days in the quarter, but management expects reported NIM to be roughly flat on an organic basis (excluding an estimated ~5 bps deposit purchase premium).
• Credit stress picked up: net charge?offs rose to 31 bps (driven by a $14M charge?off on a C&I loan and a newly delinquent syndicated C&I exposure), provision expense increased to $41M including a ~$20M specific reserve, though allowance coverage remains high (ACL to non?accrual loans ~192.2%).
• Non?interest income jumped to $86M helped by Verdant fees, mortgage servicing valuation gains, rental income and a one?time $22M legal settlement, while AI and operational initiatives are starting to show modest efficiency benefits amid slightly higher non?interest expense (~$186M).

Axos Financial Stock Down 9.4%

Shares of AX stock traded down $9.11 on Friday, reaching $87.33. 833,767 shares of the company’s stock traded hands, compared to its average volume of 393,662. The company has a market capitalization of $4.95 billion, a P/E ratio of 11.06 and a beta of 1.26. Axos Financial has a 12-month low of $65.80 and a 12-month high of $101.92. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.08 and a current ratio of 1.08. The business’s 50 day moving average price is $89.89 and its two-hundred day moving average price is $88.01.

Insiders Place Their Bets

In other Axos Financial news, CEO Gregory Garrabrants sold 43,294 shares of the business’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $99.10, for a total value of $4,290,435.40. Following the completion of the sale, the chief executive officer owned 1,418,751 shares of the company’s stock, valued at $140,598,224.10. The trade was a 2.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director James John Court sold 11,163 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $101.01, for a total value of $1,127,574.63. Following the completion of the sale, the director directly owned 32,169 shares of the company’s stock, valued at $3,249,390.69. This represents a 25.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 59,303 shares of company stock valued at $5,908,474 over the last quarter. Insiders own 4.85% of the company’s stock.

Institutional Trading of Axos Financial

Institutional investors and hedge funds have recently made changes to their positions in the stock. Brown Brothers Harriman & Co. acquired a new stake in shares of Axos Financial in the third quarter worth about $29,000. Transamerica Financial Advisors LLC increased its stake in shares of Axos Financial by 163.7% in the fourth quarter. Transamerica Financial Advisors LLC now owns 443 shares of the company’s stock worth $38,000 after purchasing an additional 275 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of Axos Financial by 294.7% in the second quarter. EverSource Wealth Advisors LLC now owns 446 shares of the company’s stock worth $34,000 after purchasing an additional 333 shares during the period. NewEdge Advisors LLC increased its stake in shares of Axos Financial by 22.8% in the fourth quarter. NewEdge Advisors LLC now owns 1,105 shares of the company’s stock worth $95,000 after purchasing an additional 205 shares during the period. Finally, Advisory Services Network LLC bought a new position in shares of Axos Financial in the third quarter worth about $104,000. Institutional investors and hedge funds own 83.79% of the company’s stock.

Key Stories Impacting Axos Financial

Here are the key news stories impacting Axos Financial this week:

• Positive Sentiment: Revenue and fee income growth — Non?interest income jumped ~157.7% to ~$86M (largely from the Verdant acquisition) and net interest income rose ~11% year?over?year, lifting overall revenue above Street expectations. Axos Financial: The Digital Bank Trades At Lofty Premium
• Positive Sentiment: Rapid deposit and loan expansion and deposit deals progressing — Axos reported fast growth in loans and deposits and reiterated guidance for low? to mid?teens loan growth; large deposit transfers from Jenius (~$2.3B) and Capital One (~$3.2B) are progressing, which should support funding and margin stability. Axos projects low- to mid-teens loan growth as $2.3B Jenius and $3.2B Capital One deposit deals advance
• Neutral Sentiment: Full disclosure materials available — Management hosted an earnings call and released the slide deck and press release; listen/read for forward commentary on margins, loan mix, and integration timing for acquisitions. Axos Financial, Inc. Reports Third Quarter Fiscal Year 2026 Results
• Negative Sentiment: EPS missed consensus — The company reported adjusted EPS that came in below Street estimates (reported $1.90 vs. consensus ~$2.13), which is the primary near?term catalyst for the share weakness. Axos Financial (AX) Misses Q3 Earnings Estimates
• Negative Sentiment: Higher provision for credit losses — The quarter included a ~$41M provision tied to newly acquired assets, a near?term drag on earnings and a potential watch item for asset quality as loan growth continues. Axos Financial: The Digital Bank Trades At Lofty Premium
• Negative Sentiment: Valuation concerns — Some analysts/commentary flag that the stock may be trading at a premium to peers given recent acquisition?driven growth, which can amplify downside if integration or earnings prove uneven. Axos Financial: The Digital Bank Trades At Lofty Premium

Wall Street Analyst Weigh In

A number of research firms have commented on AX. Raymond James Financial raised Axos Financial from an “outperform” rating to a “strong-buy” rating and reduced their target price for the stock from $110.00 to $100.00 in a report on Tuesday, April 7th. Jefferies Financial Group increased their target price on Axos Financial from $110.00 to $115.00 and gave the stock a “buy” rating in a report on Friday, January 30th. Zacks Research downgraded Axos Financial from a “strong-buy” rating to a “hold” rating in a report on Wednesday, April 8th. Weiss Ratings raised Axos Financial from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, April 24th. Finally, Keefe, Bruyette & Woods raised their price target on Axos Financial from $100.00 to $110.00 and gave the stock a “market perform” rating in a report on Friday, January 30th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $109.40.

About Axos Financial

Axos Financial, Inc (NYSE: AX) is a diversified online banking and financial services holding company headquartered in San Diego, California. The firm traces its origins to 1999 with the launch of Bank of Internet USA and rebranded as Axos Financial in December 2018 to reflect an expanded suite of digital offerings. Axos Financial operates through its wholly owned subsidiary, Axos Bank, providing a technology-driven banking platform that serves both retail and commercial clients across the United States.

Through its digital banking platform, Axos Financial delivers a range of deposit products, including checking and savings accounts, money market and certificate of deposit accounts, as well as individual retirement accounts.