Axos Financial Q4 Results: Net Income Rises 12.9% To $124.9 Million
Axos Financial (NYSE: AX) reported Q4 FY26 net income of $124.9 million, up 12.9% from $110.7 million a year earlier. Diluted EPS rose to $2.16 from $1.92, and non-GAAP adjusted EPS increased to $2.53 from $1.94. Net interest income grew 13.5% to $317.9 million and non-interest income rose 49.9% to $61.9 million, with assets up 20.9% to $30.0 billion.
How this was made
The 30-second read
Why it matters
The key tradable takeaway is the quantified earnings build: net interest income growth and a large jump in non-interest income, partially offset by higher non-interest expenses tied to a FINRA arbitration accrual. The GAAP vs non-GAAP divergence is explicitly explained, which can drive differing investor interpretations.
Market read
This is a primary earnings disclosure with detailed line-item drivers and a one-time legal accrual that can materially affect how traders price earnings quality and forward expectations.
What to watch
Asset quality is described as strong (NPA ratio down), but the provision for credit losses increased to $17.9M, so investors may scrutinize whether credit costs are trending higher despite improved non-performing assets.
Background
Axos Financial’s fiscal Q4 ended June 30, 2026, with results spanning banking and securities segments and including acquisition contributions (Verdant Commercial Capital, Jenius Bank).
Ticker impact
Axos Financial reported Q4 FY26 net income of $124.9M (+12.9% YoY) and diluted EPS of $2.16, with net interest income up 13.5%.
Near-term bias likely positive if investors focus on adjusted EPS strength, but expect volatility around the one-time FINRA accrual and expense normalization.
The article provides multiple quantified drivers (net interest income +13.5%, non-interest income +49.9%, adjusted EPS +30.4%) and explicitly attributes a key GAAP/non-GAAP gap to a specific $21.0M FINRA arbitration accrual.
Market effects
Banking and brokerage investors may re-rate earnings quality for small-cap financials when adjusted profitability is driven by net interest income and acquisition-related income.
No explicit regional macro linkage beyond US banking operations.
Limited, as the disclosure is company-specific and not tied to global macro or cross-border events.
Counterpoint
The adjusted EPS strength may overstate underlying earnings power because non-interest expenses rose sharply due to a FINRA arbitration accrual and non-interest income includes acquisition-related lease rental income.
Key entities
- public_companyAxos Financial, Inc.
Reported Q4 FY26 net income, EPS, segment income drivers, credit loss provision, and asset quality metrics.
- subsidiaryAxos Clearing LLC
Subject of a $21.0M FINRA arbitration-related accrual referenced in non-interest expenses.
- acquired_businessVerdant Commercial Capital
Its operating lease rental income is cited as a major contributor to the non-interest income increase.
- acquired_businessJenius Bank
Its acquisition is cited as contributing to deposit growth.
