Axos Financial, Inc. Reports Third Quarter Fiscal Year 2026 Results

Axos Financial, Inc. Reports Third Quarter Fiscal Year 2026 Results LAS VEGAS--( BUSINESS WIRE)--Axos Financial, Inc. (NYSE: AX) (“Axos” or the “Company”) today announced unaudited financial results for the third fiscal quarter ended March 31, 2026. Net income was $124.7 million and diluted earnings per share (“EPS”) was $2.15 for the quarter ended March 31, 2026. Net income for the quarter ended March 31, 2025 was $105.2 million and diluted EPS was $1.81.

Third Quarter Fiscal 2026 Financial Summary

Three Months Ended

March 31,

(Dollars in thousands, except per share data)

2026

2025

% Change

Net interest income

306,261

275,464

11.2

Non-interest income

85,988

33,373

157.7

Net income

124,677

105,206

18.5

Adjusted earnings (Non-GAAP) 1

110,224

105,011

5.0

Diluted EPS

2.15

1.81

18.8

Adjusted EPS (Non-GAAP) 1

1.90

1.81

5.0

1 See “Use of Non-GAAP Financial Measures”

“Strong loan growth and good expense discipline resulted in double digit year-over-year increases in net interest income and diluted EPS,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Excluding the interest income impact of the FDIC-purchased loans and two fewer days in the quarter ended March 31, 2026, net interest income increased by $5.7 million linked quarter. Non-interest expense rose modestly by 0.7% linked quarter benefiting from lower salaries and benefits expenses and operational efficiencies across the enterprise. We deliberately reduced our higher-cost savings and time deposits in anticipation of the Jenius Bank deposit acquisition closing expected in the June quarter. The acquisition allows us to optimize our funding and prepare for additional organic loan growth.”

“Our real estate loans and structured credits continue to perform well, with very low levels of non-performers and net charge-offs,” said Derrick Walsh, Chief Financial Officer of Axos. “Excluding a specific loan loss reserve in the quarter on one C&I credit, our provision for credit losses was $21.4 million, down from $25.0 million in the quarter ended December 31, 2025. We remain well reserved relative to our low level of credit losses, as reflected in our allowance for credit losses to total non-accrual loans of 195.2% at March 31, 2026.”

Other Highlights

Third Quarter Fiscal 2026 Income Statement Summary

Net income was $124.7 million and diluted EPS was $2.15 for the three months ended March 31, 2026, compared to net income of $105.2 million and diluted EPS of $1.81 for the three months ended March 31, 2025. Net interest income increased $30.8 million or 11.2% for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to an increase in interest income earned on loans, partially offset by a decrease on interest income on deposits in other financial institutions and an increase in interest expense on secured financings and other borrowings, as well as an increase in interest expense on advances from the Federal Home Loan Bank (“FHLB”).

The provision for credit losses was $41.0 million for the three months ended March 31, 2026, compared to $14.5 million for the three months ended March 31, 2025. The provision for credit losses for the three months ended March 31, 2026, was primarily driven by loan growth, an increase in specific reserves on individually assessed loans and changes to the quantitative inputs to the allowance for credit losses model.

Non-interest income increased to $86.0 million for the three months ended March 31, 2026, compared to $33.4 million for the three months ended March 31, 2025. The increase was primarily due to a favorable legal settlement and operating lease rental and other income from the Verdant acquisition.

Non-interest expense, comprised of various operating expenses, increased $39.7 million to $186.0 million for the three months ended March 31, 2026, from $146.3 million for the three months ended March 31, 2025. The change was primarily due to increased depreciation and amortization, mainly attributable to the Verdant acquisition, an increase in general and administrative expense, and an increase in salaries and related costs.

Balance Sheet Summary

Axos’ total assets increased by $4.5 billion, or 18.0%, to $29.2 billion, at March 31, 2026, from $24.8 billion at June 30, 2025, primarily attributable to an increase in loans and securities available-for-sale, partially offset by lower cash and cash equivalents. Total liabilities increased by $4.1 billion, or 18.5%, to $26.2 billion at March 31, 2026, from $22.1 billion at June 30, 2025, primarily attributable to higher advances from the FHLB and higher deposit balances, as well as secured financings assumed as part of the Verdant acquisition. Stockholders’ equity increased $384.5 million, or 14.3%, to $3.1 billion at March 31, 2026 from $2.7 billion at June 30, 2025, primarily due to net income of $365.4 million.

Conference Call

A conference call and webcast will be held on Thursday, April 30, 2026, at 5:00 PM Eastern / 2:00 PM Pacific. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial: 877-407-8293. The conference call will be webcast live, and both the webcast and the earnings supplement may be accessed at Axos’ website, investors.axosfinancial.com. For those unable to listen to the live broadcast, a replay will be available until May 30, 2026 at Axos’ website and telephonically by dialing toll-free number 877-660-6853, passcode 13759673.

About Axos Financial, Inc. and Subsidiaries

Axos Financial, Inc., with approximately $29.2 billion in consolidated assets as of March 31, 2026, is the holding company for Axos Bank, Axos Clearing LLC and Axos Invest, Inc. Axos Bank provides consumer and business banking products nationwide through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division Axos Advisor Services), with approximately $44.0 billion of assets under custody and/or administration as of March 31, 2026, and Axos Invest, Inc., provide comprehensive securities clearing services to introducing broker-dealers and registered investment advisor correspondents, and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index and the S&P SmallCap 600® Index, among other indices. For more information on Axos Financial, Inc., please visit http://investors.axosfinancial.com.

Segment Reporting

The Company operates through two segments: the Banking Business Segment and the Securities Business Segment. In order to reconcile the two segments to the consolidated totals, the Company includes corporate activities and intercompany eliminations. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business Segment and non-interest expense incurred by the Banking Business Segment for cash sorting fees related to deposits sourced from Securities Business Segment customers.

The following tables present the operating results of the segments:

For the Three Months Ended March 31, 2026

(Dollars in thousands)

Banking

Business Segment

Securities

Business Segment

Corporate/Eliminations

Axos

Consolidated

Net interest income

303,445

7,860

(5,044

)

306,261

Provision for credit losses

41,000

—

41,000

Non-interest income

64,090

30,529

(8,631

)

85,988

Non-interest expense

152,677

29,516

3,760

185,953

Income before income taxes

173,858

8,873

(17,435

)

165,296

For the Three Months Ended March 31, 2025

(Dollars in thousands)

Banking

Business Segment

Securities

Business Segment

Corporate/Eliminations

Axos

Consolidated

Net interest income

272,260

6,942

(3,738

)

275,464

Provision for credit losses

14,500

—

14,500

Non-interest income

12,666

30,611

(9,904

)

33,373

Non-interest expense

118,325

28,416

(480

)

146,261

Income before income taxes

152,101

9,137

(13,162

)

148,076

For the Nine Months Ended March 31, 2026

(Dollars in thousands)

Banking

Business Segment

Securities

Business Segment

Corporate/Eliminations

Axos

Consolidated

Net interest income

919,144

24,696

(14,820

)

929,020

Provision for credit losses

83,255

—

83,255

Non-interest income

109,277

90,157

(27,728

)

171,706

Non-interest expense

430,707

87,985

8,081

526,773

Income before income taxes

514,459

26,868

(50,629

)

490,698

For the Nine Months Ended March 31, 2025

(Dollars in thousands)

Banking

Business Segment

Securities

Business Segment

Corporate/Eliminations

Axos

Consolidated

Net interest income

837,472

21,216

(11,077

)

847,611

Provision for credit losses

40,748

—

40,748

Non-interest income

24,204

89,517

(23,940

)

89,781

Non-interest expense

351,176

84,685

3,185

439,046

Income before income taxes

469,752

26,048

(38,202

)

457,598

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), this release includes non-GAAP financial measures such as adjusted earnings, adjusted earnings per diluted common share, and tangible book value per common share. Non-GAAP financial measures have inherent limitations, may not be comparable to similarly titled measures used by other companies and are not audited. Readers should be aware of these limitations and should be cautious as to their reliance on such measures. Although we believe the non-GAAP financial measures disclosed in this release enhance investors’ understanding of our business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.

We define “adjusted earnings”, a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related items (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). Adjusted EPS, a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about Axos’ operating performance. We believe excluding the non-recurring acquisition-related costs and other costs provides investors with an alternative understanding of Axos’ core business.

Below is a reconciliation of net income, the nearest comparable GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:

For the Three Months Ended March 31,

For the Nine Months Ended March 31,

(Dollars in thousands, except per share data)

2026

2025

2026

2025

Net income

124,677

105,206

365,426

322,233

Favorable legal settlement 1

(22,000

)

—

(22,000

)

—

Acquisition-related costs 2

2,834

1,604

8,194

5,804

Other costs 3

—

(1,879

)

—

(1,879

)

Verdant acquisition - Provision for credit losses

—

7,765

—

Income tax effect

4,713

1,542

(1,161

)

Adjusted earnings (Non-GAAP)

110,224

105,011

360,927

324,997

Average dilutive common shares outstanding

58,073,257

58,174,696

57,774,407

58,027,880

Diluted EPS

2.15

1.81

6.33

5.55

Favorable legal settlement 1

(0.38

)

—

(0.38

)

—

Acquisition-related costs 2

0.05

0.03

0.14

0.10

Other costs 3

—

(0.03

)

—

(0.03

)

Verdant acquisition - Provision for credit losses

—

0.13

—

Income tax effect

0.08

—

0.03

(0.02

)

Adjusted EPS (Non-GAAP)

1.90

1.81

6.25

5.60

1 Favorable legal settlement reflects the recognition of a legal settlement in the Company’s favor reached in March 2026.

2 Acquisition-related costs includes amortization of intangible assets, and for the nine months ended March 31, 2026, also includes $1.3 million of acquisition-related costs associated with the Verdant acquisition.

3 Other costs primarily reflects the payment of a legal judgment at an amount less than previously accrued.

We define “tangible book value”, a non-GAAP financial measure, as book value adjusted for goodwill and other intangible assets. Tangible book value is calculated using common stockholders’ equity minus servicing rights, goodwill and other intangible assets. Tangible book value per common share is calculated by dividing tangible book value by the common shares outstanding at the end of the period. We believe tangible book value per common share is useful in evaluating the Company’s capital strength, financial condition, and ability to manage potential losses.

Below is a reconciliation of total stockholders’ equity, the nearest comparable GAAP measure, to tangible book value per common share (non-GAAP) as of the dates indicated:

(Dollars in thousands, except per share amounts)

March 31,

2026

June 30,

2025

March 31,

2025

Common stockholders’ equity

3,065,183

2,680,677

2,603,900

Less: servicing rights, carried at fair value

26,299

27,218

27,585

Less: goodwill and other intangible assets—net

211,046

134,502

135,966

Tangible common stockholders’ equity (Non-GAAP)

2,827,838

2,518,957

2,440,349

Common shares outstanding at end of period

56,882,190

56,483,617

56,865,524

Book value per common share

53.89

47.46

45.79

Less: servicing rights, carried at fair value per common share

0.46

0.48

0.49

Less: goodwill and other intangible assets—net per common share

3.71

2.38

2.39

Tangible book value per common share (Non-GAAP)

49.72

44.60

42.91

Forward-Looking Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to Axos’ financial prospects and other projections of its performance and asset quality, Axos’ deposit balances and capital ratios, Axos’ ability to continue to grow profitably and increase its business, Axos’ ability to continue to diversify its lending and deposit franchises, the anticipated timing and financial performance of other offerings, initiatives, and acquisitions, expectations of the environment in which Axos operates and projections of future performance. These forward-looking statements are made on the basis of the views and assumptions of management regarding future events and performance as of the date of this press release. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation Axos’ ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, monetary policy, inflation, tariffs, government regulation, general economic conditions, changes in the competitive marketplace, conditions in the real estate markets in which we operate, risks associated with credit quality, our ability to attract and retain deposits and access other sources of liquidity, and the outcome and effects of litigation and other factors beyond our control. These and other risks and uncertainties detailed in Axos’ periodic reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2025, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Axos undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements made in connection with this press release, which are attributable to us or persons acting on Axos’ behalf are expressly qualified in their entirety by the foregoing information.

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands)

March 31,

2026

June 30,

2025

March 31,

2025

Selected Balance Sheet Data:

Total assets

29,248,986

24,783,078

23,981,154

Loans—net of allowance for credit losses

24,957,536

21,049,610

20,193,630

Loans held for sale, carried at fair value

23,964

10,012

15,644

Allowance for credit losses

346,702

290,049

279,950

Trading securities

444

649

346

Available-for-sale securities

801,439

66,008

79,958

Securities borrowed

133,015

139,396

91,915

Customer, broker-dealer and clearing receivables

333,699

252,720

300,907

Total deposits

22,388,135

20,829,543

20,136,714

Advances from the Federal Home Loan Bank

1,805,000

60,000

Secured financings

634,452

—

Borrowings, subordinated notes and debentures

378,065

312,671

377,427

Securities loaned

148,668

139,426

111,094

Customer, broker-dealer and clearing payables

338,592

350,606

314,399

Total stockholders’ equity

3,065,183

2,680,677

2,603,900

Common shares outstanding at end of period

56,882,190

56,483,617

56,865,524

Common shares issued at end of period

71,724,042

71,101,642

70,813,637

Per Common Share Data:

Book value per common share

53.89

47.46

45.79

Tangible book value per common share (Non-GAAP) 1

49.71

44.60

42.91

Capital Ratios:

Equity to assets at end of period

10.48

10.82

10.86

Axos Financial, Inc.:

Tier 1 leverage (to adjusted average assets)

10.17

10.73

10.45

Common equity tier 1 capital (to risk-weighted assets)

11.65

12.52

12.39

Tier 1 capital (to risk-weighted assets)

11.65

12.52

12.39

Total capital (to risk-weighted assets)

14.32

15.28

15.21

Axos Bank:

Tier 1 leverage (to adjusted average assets)

9.39

10.23

10.14

Common equity tier 1 capital (to risk-weighted assets)

10.90

12.42

12.31

Tier 1 capital (to risk-weighted assets)

10.90

12.42

12.31

Total capital (to risk-weighted assets)

12.13

13.70

13.49

Axos Clearing LLC:

Net capital

103,752

86,996

79,264

Excess capital

97,249

81,834

73,172

Net capital as a percentage of aggregate debit items

31.91

33.71

26.02

Net capital in excess of 5% aggregate debit items

87,495

74,091

64,035

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands, except per share data)

As of or for the

Three Months Ended

As of or for the

Nine Months Ended

March 31,

(Dollars in thousands, except per share data)

2026

2025

2026

2025

Selected Income Statement Data:

Interest and dividend income

478,241

432,722

1,457,822

1,373,052

Interest expense

171,980

157,258

528,802

525,441

Net interest income

306,261

275,464

929,020

847,611

Provision for credit losses

41,000

14,500

83,255

40,748

Net interest income, after provision for credit losses

265,261

260,964

845,765

806,863

Non-interest income

85,988

33,373

171,706

89,781

Non-interest expense

185,953

146,261

526,773

439,046

Income before income taxes

165,296

148,076

490,698

457,598

Income tax expense

40,619

42,870

125,272

135,365

Net income

124,677

105,206

365,426

322,233

Weighted average number of common shares outstanding:

Basic

56,724,054

57,029,078

56,586,710

57,019,301

Diluted

58,073,257

58,174,696

57,774,407

58,027,880

Per Common Share Data:

Net income:

Basic

2.20

1.84

6.46

5.65

Diluted

2.15

1.81

6.33

5.55

Adjusted earnings per common share (Non-GAAP) 1

1.90

1.81

6.25

5.60

Performance Ratios and Other Data:

Growth in loans held for investment, net

684,984

706,903

3,907,926

962,245

Loan originations for sale

70,080

20,962

178,211

157,358

Return on average assets

1.77

1.79

1.81

Return on average common stockholders’ equity

16.26

16.44

16.54

17.47

Interest rate spread 2

3.88

3.91

3.99

3.98

Net interest margin 3

4.57

4.78

4.76

4.93

Net interest margin 3 – Banking Business Segment

4.62

4.83

4.81

4.97

Efficiency ratio 4

47.41

47.36

47.86

46.84

Efficiency ratio 4 – Banking Business Segment

41.54

41.53

41.88

40.75

Asset Quality Ratios:

Net annualized charge-offs to average loans

0.31

0.09

0.16

0.12

Non-accrual loans to total loans

0.71

0.89

0.71

0.89

Non-performing assets to total assets

0.62

0.79

0.62

0.79

Allowance for credit losses - loans to total loans held for investment

1.37

Allowance for credit losses - loans to non-accrual loans 5

192.15

151.28

192.15

151.28

See “Use of Non-GAAP Financial Measures.”

Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities.

Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income.

The increase in the Allowance for credit losses - loans to nonaccrual loans is primarily attributable to the increase in the allowance for credit losses, including the impact of the Verdant acquisition.