Axos Financial (NYSE:AX) Releases Earnings Results, Beats Estimates By $0.18 EPS

Axos Financial (NYSE:AX) issued its earnings results on Thursday. The company reported $2.25 EPS for the quarter, beating the consensus estimate of $2.07 by $0.18, FiscalAI reports. Axos Financial had a net margin of 22.66% and a return on equity of 17.36%. The company had revenue of $385.09 million for the quarter, compared to the consensus estimate of $345.89 million. During the same quarter in the previous year, the company earned $1.82 EPS. The firm’s revenue for the quarter was up 25.1% compared to the same quarter last year.

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

• Axos delivered strong top?line growth with $1.6 billion of net loan growth quarter?over?quarter, net interest income up ~14% LQ, diluted EPS up 23% YoY, and deposits rising to $23.2 billion (up 44% LQ).
• The Verdant acquisition meaningfully contributed to revenue this quarter — adding ~$430 million of loans/leases and ~$18.9 million of non?interest income — and management expects Verdant to drive mid?to?high end 2–3% EPS accretion in FY2026 and 5–6% in FY2027.
• While reported NIM rose to 4.94%, management’s adjusted NIM was ~4.72% and they expect a ~5–6 basis?point headwind in the March quarter plus lower ongoing FDIC accretion, indicating modest margin pressure ahead.
• Credit quality improved — non?accrual loans fell to 61 bps of loans, total non?performing assets declined, net charge?offs remained low (~4 bps of assets), and the allowance covers non?accruals by ~215.8%.
• Costs and loss reserves increased — non?interest expense rose to ~$184.6 million (including Verdant D&A and a $7 million one?time accrual) and provision for credit losses increased to $25 million driven by commercial loan growth.

Axos Financial Price Performance

Shares of NYSE AX opened at $99.15 on Friday. Axos Financial has a fifty-two week low of $54.46 and a fifty-two week high of $99.82. The stock has a market cap of $5.62 billion, a PE ratio of 12.57 and a beta of 1.26. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.12 and a current ratio of 1.12. The stock has a fifty day moving average of $88.57 and a 200-day moving average of $86.08.

Analyst Upgrades and Downgrades

AX has been the topic of several research reports. Needham & Company LLC upped their price target on Axos Financial from $107.00 to $110.00 and gave the company a “buy” rating in a research note on Friday. DA Davidson increased their price objective on Axos Financial from $107.50 to $112.00 and gave the stock a “buy” rating in a report on Friday. Jefferies Financial Group boosted their price objective on shares of Axos Financial from $110.00 to $115.00 and gave the stock a “buy” rating in a research report on Friday. Keefe, Bruyette & Woods upped their price objective on Axos Financial from $100.00 to $110.00 and gave the company a “market perform” rating in a research note on Friday. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Axos Financial in a research report on Monday, December 29th. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, Axos Financial presently has an average rating of “Moderate Buy” and an average price target of $104.50.

Insider Buying and Selling

In other news, Director Edward James Ratinoff sold 2,145 shares of the company’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $84.59, for a total transaction of $181,445.55. Following the completion of the transaction, the director directly owned 46,209 shares of the company’s stock, valued at approximately $3,908,819.31. This represents a 4.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Tamara N. Bohlig sold 2,145 shares of the firm’s stock in a transaction on Monday, December 8th. The shares were sold at an average price of $86.23, for a total value of $184,963.35. Following the transaction, the director directly owned 12,919 shares of the company’s stock, valued at $1,114,005.37. This represents a 14.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.85% of the company’s stock.

Institutional Trading of Axos Financial

Several hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada lifted its stake in Axos Financial by 0.9% in the first quarter. Royal Bank of Canada now owns 108,986 shares of the company’s stock worth $7,031,000 after purchasing an additional 1,015 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Axos Financial by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,539 shares of the company’s stock worth $2,099,000 after buying an additional 1,429 shares in the last quarter. United Services Automobile Association bought a new stake in Axos Financial during the first quarter valued at about $212,000. Cetera Investment Advisers grew its position in shares of Axos Financial by 1.8% in the 2nd quarter. Cetera Investment Advisers now owns 8,197 shares of the company’s stock worth $623,000 after buying an additional 141 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new position in shares of Axos Financial during the second quarter valued at about $6,252,000. Hedge funds and other institutional investors own 83.79% of the company’s stock.

Key Headlines Impacting Axos Financial

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

• Positive Sentiment: Q2 results beat expectations — Axos reported $2.25 EPS (vs. $2.07 consensus) and $385.1M revenue (vs. $345.9M est.), with a 22.4% net margin and solid ROE; revenue rose ~25% YoY, underscoring operating leverage. Read More.
• Positive Sentiment: Management guided to low- to mid?teens loan growth for 2026 as it integrates the Verdant acquisition, signaling an emphasis on loan book expansion as a growth driver. Read More.
• Positive Sentiment: Analyst upgrades/price-target raises: Jefferies raised its target to $115 and keeps a Buy rating (largest reported upside), Needham raised to $110 and retains Buy, and Keefe, Bruyette & Woods raised to $110 (Market Perform) — these lifts support further upside expectations. Read More.
• Neutral Sentiment: Investor materials and earnings call are available — slides, the conference-call transcript and presentation give more detail on margins, capital, and the Verdant integration for those modeling FY2026. Read More.

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.