Axos Financial, Inc.

Axos said fiscal Q4 2025 net interest income was $280 million, up 7.7% from $260 million a year earlier. Diluted EPS was $1.92 versus $1.81 in the March quarter; adjusted diluted EPS would have been $1.87 excluding two nonrecurring items. Net income was approximately $110.7 million versus $105.2 million in the prior quarter. Net interest margin was 4.84%, up 6 basis points sequentially from 4.78%, and book value per share rose 18% year over year. Return on average common equity was 17% and return on assets was 1.9%. Total noninterest expenses were about $151 million, up $4.4 million sequentially. Ending deposits were $20.8 billion, up 3.4% linked quarter and 7.6% year over year. The company repurchased about $31 million of stock at an average price of $59. Looking ahead, Axos expects ex-FDIC-accretion NIM to remain at or slightly above 4.25% to 4.35%, organic loan growth to come in toward the mid to high end of the single-digit to low-teens range in fiscal 26, and the corporate tax rate to be about 26% to 27% starting in the quarter ending 09/30/2025.

Gregory Garrabrants framed the quarter as strong across growth, margin, and credit, emphasizing that Axos continues to generate high returns while expanding loans and deposits. He highlighted improving pipelines, lower prepayments in commercial specialty real estate, and new business lines and teams that are contributing to growth. His tone was confident and forward-looking, with repeated emphasis on AI, technology investment, disciplined capital deployment, and M&A as ways to extend growth and efficiency.

Derrick Walsh focused on expense control, taxes, and the growth outlook. He said noninterest expenses were approximately $151 million, salaries and benefits were $74.9 million, and professional services rose to $10.4 million from $8.2 million; he also noted a floor plan team adds about $1 million of expense per quarter and September merit increases are expected to be about 4%. On taxes, he said Q4 included a $5.6 million one-time noncash deferred tax impairment, and starting in the quarter ending 09/30/2025 the corporate tax rate should be about 26% to 27%, versus prior guidance of 29% to 30%. He also said the loan pipeline was $2 billion as of 07/25/2025 and reiterated loan growth at the midpoint to high end of the high-single-digit to low-teens range over the next 12 months, excluding FDIC-related assets or acquisitions.

Analysts focused first on loan yields and NIM, and management said new-loan pricing is a bit tighter but is being partly offset by slower prepayments and funding benefits, with NIM expected to stay fairly consistent and possibly move a basis point or two either way. Questions on funding costs drew a cautious answer: management said stronger loan growth or acquisitions could create some pressure on deposit costs, though Axos 1 and other deposit-gathering businesses remain strong. On capital allocation, management said organic growth remains the priority, but M&A is increasingly in play, especially for fee-income and specialty finance businesses. Analysts also asked about crypto/stablecoins; management said the company is paying close attention and has been more open to crypto-related banking relationships, but gave no detailed public commitment on stablecoin.