Axos Financial Inc

Axos Financial reported Q2 revenues of $379.8 million, up 22.7% year on year and 1.1% above analysts' consensus estimates, in a quarter that also featured a beat of analysts' EPS estimates and a narrow beat of net interest income estimates. Across the 94 regional banks stocks tracked in the segment, revenues as a group came in line with analysts' consensus estimates, while share prices have fallen an average of 5.6% since the latest earnings results. OFG Bancorp posted the segment's best quarter, with revenues of $190.3 million, up 4.4% year on year and 3.9% above expectations, on a beat of EPS estimates and an impressive beat of net interest income estimates. Banc of California had the weakest quarter, reporting revenues of $285.7 million, up 4.7% year on year but 3.1% short of expectations, with significant misses on tangible book value per share and net interest income estimates. First Commonwealth Financial reported revenues of $139.4 million, up 6.2% year on year and 1.3% above expectations, while United Bankshares reported revenues of $321.8 million, up 5% year on year and 0.6% above expectations.

Axos Financial posted net income of approximately $1.107 billion for the quarter ended June 30, 2025, a sharp increase from $105.2 million in the prior quarter. The results included a $12 million pre-tax gain from the sale of multifamily loans and a $5.5 million one-time noncash deferred tax impairment. Excluding those items, adjusted net income was $107.7 million, or $1.87 per diluted share. Net interest margin expanded to 4.84%, and the company repurchased about $31 million of common stock during the quarter. Management expects organic loan growth toward the mid-to-high end of its single-digit to low-teens annual range in fiscal 2026.

Axos Financial reported better-than-expected revenue for the second quarter of calendar year 2026, with sales rising 20.9% year on year to $379.8 million, surpassing analyst estimates of $375.8 million. Non-GAAP earnings per share came in at $2.53, a 17.4% beat over the consensus estimate of $2.16. CEO Gregory Garrabrants attributed the outperformance to broad-based loan growth, particularly in commercial specialty and asset-based lending, as well as the integration of Verdant Commercial Capital. Net charge-offs to total assets declined seven basis points from the prior quarter, reflecting improved credit quality. Looking ahead, management projects organic loan growth of $600 million to $800 million per quarter and expects the Verdant acquisition to achieve EPS accretion at the mid to high end of initial projections.

Axos Financial projects low- to mid-teens annual organic loan growth and a fairly stable net interest margin, while the integration of Arc Technologies will increase noninterest expenses by approximately $1 million per month. President and CEO Gregory Garrabrants said pipelines are up across several lending categories, supporting the growth outlook, and noted that deposit costs should also remain fairly stable. The company closed the Jenius Bank deposit acquisition in May 2026, adding about $2.3 billion in deposits, and expects deposits from the Capital One acquisition and Arc to fund future loan growth, though the timing may temporarily push down stated net interest margin. For the fourth quarter, net income was $124.9 million, or $2.16 per diluted share, and excluding a $21 million legal accrual, net income was $141.8 million, or $2.46 per share. Noninterest expenses were $205.9 million, down $1 million linked quarter when excluding the legal accrual, and ending deposits of $24.6 billion were up 17.9% year-over-year.

Axos Financial reported quarterly earnings of $2.53 per share, beating the Zacks Consensus Estimate of $2.15 per share and marking a 17.67% earnings surprise. Revenue for the quarter ended June 2026 came in at $379.77 million, surpassing the consensus estimate by 1.91% and up from $321.45 million a year ago. The company has topped consensus EPS estimates three times in the last four quarters and has beaten revenue estimates in all four of those quarters. Shares of Axos Financial have gained about 14% year-to-date, outperforming the S&P 500's 6.9% increase. The current consensus EPS estimate for the coming quarter is $2.22 on revenues of $383.95 million, while the full fiscal year estimate stands at $9.56 per share on $1.6 billion in revenues.

StockStory identifies Axos Financial and Old Second Bancorp as bank stocks to consider, while warning against Byline Bancorp. Axos Financial posted 18.6% annual net interest income growth over five years and a 4.8% net interest margin, with earnings per share compounding at 18.1% annually. Old Second Bancorp achieved 21.5% annual revenue growth and 27.4% annual net interest income growth over five years, alongside a 4.9% net interest margin. Byline Bancorp saw 7.1% annual revenue growth over two years, below the typical banking company, with estimated net interest income growth of 3% for the next 12 months and earnings per share growth trailing revenue gains.

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Axos Financial announced that its subsidiary Axos Nevada Holding has agreed to acquire Arc Technologies, a financial technology platform. The financial details of the deal have not been disclosed. The acquisition is expected to integrate Arc's financial intelligence infrastructure and agentic finance tools with Axos' AI capabilities, helping to automate workflows and enhancing the company's ability to serve small businesses in the United States. The transaction is expected to close in July 2026.