Axos Financial Q4 Results: Net Income Rises 12.9% To $124.9 Million

Axos Financial, Inc. (NYSE: AX) reported net income of $124.9 million for the fourth fiscal quarter ended June 30, 2026, marking a 12.9% increase from the $110.7 million recorded in the same period last year. Diluted earnings per share (EPS) rose to $2.16 from $1.92, while non-GAAP adjusted EPS climbed to $2.53 from $1.94. The results reflect robust performance across its banking and securities segments, bolstered by double-digit growth in both net interest and non-interest income.

The primary driver of profitability was a 13.5% surge in net interest income to $317.9 million, up from $280.2 million in the prior year quarter. This growth was fueled by higher interest income on loans, partially offset by increased interest expense on advances from the Federal Home Loan Bank and secured financings. Non-interest income also expanded significantly, rising 49.9% to $61.9 million, largely due to operating lease rental income from the Verdant Commercial Capital acquisition and higher prepayment penalty income.

Financial Performance Highlights

Metric	Q4 FY26	Q4 FY25	Change
Net Interest Income	$317.9 million	$280.2 million	13.5%
Non-Interest Income	$61.9 million	$41.3 million	49.9%
Net Income	$124.9 million	$110.7 million	12.9%
Diluted EPS	$2.16	$1.92	12.5%
Adjusted EPS (Non-GAAP)	$2.53	$1.94	30.4%

Non-interest expenses increased to $205.9 million from $150.7 million, primarily due to a $21.0 million accrual related to a FINRA arbitration matter in Axos Clearing LLC, alongside increased depreciation and amortization from acquisitions. Excluding this legal accrual, non-interest expenses were down approximately $1.0 million compared to the prior quarter. The provision for credit losses stood at $17.9 million, driven by loan growth and specific reserves on individually assessed loans.

Balance Sheet and Asset Quality

Total assets reached $30.0 billion at June 30, 2026, an increase of 20.9% year-over-year. Ending net loan balances totaled $25.6 billion, reflecting a net change in loans of $637.9 million for the quarter. Total deposits grew 17.9% to $24.6 billion, including approximately $2.3 billion from the Jenius Bank acquisition closed in May 2026. Assets under custody at Axos Clearing LLC increased to $47.8 billion from $39.4 billion a year earlier.

Asset quality remained strong, with non-performing assets to total assets declining to 0.53% from 0.71%. The allowance for credit losses to total non-accrual loans stood at 221%, indicating a well-reserved position relative to low credit losses. Book value per share increased 17.6% to $55.81, while tangible book value per common share rose to $50.96.

What the Numbers Show

The divergence between GAAP and non-GAAP metrics highlights the impact of one-time items on reported earnings. While GAAP net income grew 12.9%, adjusted earnings surged 30.7% to $146.2 million. This gap is primarily attributable to the $21.0 million FINRA arbitration accrual in the current quarter and the absence of a $12.0 million gain on a loan sale that boosted the prior year’s results. Despite the volatility in non-interest income components, the core banking engine demonstrated resilience through consistent loan growth and stable net interest margins.

Greg Garrabrants, President and Chief Executive Officer of Axos Financial, stated, "We ended our fiscal 2026 with solid results... Our net interest margin remains best-in-class, fueled by solid loan growth across consumer and commercial lending categories." Derrick Walsh, Chief Financial Officer, added that the company continues to manage non-interest expenses while investing in businesses and technologies. A conference call to discuss these results is scheduled for July 30, 2026.