Axos Financial (AX) Q4 2025 Earnings Call Transcript
Axos Financial (AX) reported Q4 ended June 30, 2025 net loan growth of $856 million and net interest margin of 4.84%. Net interest income rose to $280 million and net income was $110.7 million. Deposits were $20.8 billion. Adjusted diluted EPS was $1.87. Management projected mid-to-high single digits to low teens loan growth for fiscal 2026 and cited a 26% to 27% future tax rate.
How this was made
The 30-second read
Why it matters
For trading, the most actionable elements are the disclosed NIM (4.84%), net loan growth ($856M), credit metrics (nonaccrual ratio 0.79%), capital return via repurchases ($31M at ~$59), and a specific future tax-rate reduction (26% to 27% starting September 2025 quarter). These can affect near-term earnings power assumptions and margin sensitivity views.
Market read
The call updates traders on profitability drivers (NIM, net interest income), credit stability, and a concrete tax-rate tailwind for fiscal 2026, with an explicit caution on potential funding-cost pressure.
What to watch
Adjusted EPS differs from reported EPS due to gains and tax impairment items; traders may want to focus on core earnings quality and whether the custody cash-sorting momentum is sustainable.
Background
This is a transcript-style summary of Axos Financial’s Q4 and fiscal 2025 earnings call, covering results for the quarter ended June 30, 2025 and management outlook items for fiscal 2026.
Ticker impact
Axos Financial reported Q4 FY2025 results and disclosed NIM of 4.84%, net loan growth of $856M, and adjusted diluted EPS of $1.87.
Moderately positive bias for AX as management highlights stable credit, rising book value, and a tax-rate tailwind, though margin risk is flagged if funding costs rise with faster loan growth.
Key disclosed datapoints include NIM expansion, nonaccrual ratio at 0.79%, net income drivers, and a specific future tax-rate reduction starting in the September 2025 quarter. The main offset is management’s stated risk that accelerated loan growth could lift funding costs and pressure margins.
Market effects
Provides read-through on bank funding-cost sensitivity and how FDIC purchase-pool accretion is supporting NIM, relevant for regional bank margin models.
Limited direct regional impact; California tax methodology change is company-specific but may be a minor signal for other CA-exposed banks.
Low global relevance; primarily US regional bank fundamentals and tax-rate mechanics.
Counterpoint
The headline strength in NIM and book value could be partially offset by sensitivity to funding costs if loan growth runs ahead of targets, as management explicitly warned.
Key entities
- companyAxos Financial
US regional bank reporting Q4 FY2025 results and providing fiscal 2026 outlook, including NIM, credit quality, and a California tax-rate methodology change.
- executiveGregory Garrabrants
CEO who discussed AI initiatives to bend the cost curve and margin risk if loan growth accelerates.
- executiveDerrick Walsh
CFO who covered financial and operational metrics including deposits, expenses, and loan yields.
