Axos Financial Stock Earnings Reports

Axos Financial reported a strong start to fiscal 2026 (quarter ended Sept 30, 2025) driven by $1.6 billion of net loan growth (including $1.0 billion of loans/leases and $213M of operating leases from the Verdant acquisition closed 9/30/25). Key financials: net interest income $291M (quarterly linked growth), NIM 4.75% (9 bps lower QoQ; roughly flat ex-excess liquidity and FDIC accretion), net income ~$112.4M, diluted EPS $1.94 (adjusted EPS $2.06 excluding Verdant one-timers), ROAE ~16% and ROA 1.8%. Deposits ended at $22.3B (up 6.9% YoY) with a high share (94%) in demand/money market/savings. Credit metrics remained solid: nonaccrual loans fell to 0.74% of loans, net charge-offs declined, and management does not expect material losses from current nonperforming loans. The Verdant acquisition adds ~$1.2B in loans/leases, is expected to be accretive to EPS (~2–3% in FY26, 5–6% in FY27), and should contribute $150–200M of net new loans/quarter starting in the Dec quarter. Management reiterated a target for consolidated NIM ex-FDIC accretion at the high end of 4.25%–4.35%, expects loan growth in the low- to mid-teens annually for the remaining fiscal year, and remains focused on operational efficiency and AI to drive operating leverage. Capital remains ample after the Verdant transaction; management is comfortable supporting mid- to high-teens loan growth while maintaining strong profitability. Verdant-related allowances (~1.5% of acquired balances) were conservatively established at close. The company continues to pursue targeted M&A, expand custody/clearing assets (AUC/A at $43B), roll out modernized tech (Axos Professional Workstation / Axos Client Portal) and grow newer verticals (floor-plan lending) with a healthy pipeline (~$2.2B as of Oct 24, 2025).