Axos Financial (AX) investor relations material

Executive summary

• Net income for Q1 FY2026 was $112.4 million, up from $110.7 million sequentially, with adjusted net income reaching $120.4 million and adjusted EPS of $2.07, a 5.6% year-over-year increase, driven by strong loan growth and the Verdant acquisition.

• Net loan growth totaled $1.6 billion, including $1 billion from the Verdant acquisition, which added $1.0–$1.2 billion in loans and leases and enhanced the equipment leasing business.

• Book value per share increased 17% year-over-year to $49.31, and tangible book value per share rose to $45.22.

• Total assets grew 10.7% quarter-over-quarter to $27.4 billion as of September 30, 2025.

• The company completed the Verdant Commercial Capital acquisition, contributing $72.8 million in goodwill and intangibles.

Financial highlights

• Net interest income was $291.1 million, up $11 million sequentially and 5.8% year-over-year excluding one-time items; net interest margin was 4.75%, down from 5.17% a year ago.

• Non-interest income rose 13% year-over-year to $32.3 million, driven by higher banking service fees and mortgage banking.

• Non-interest expense increased to $156.2 million, reflecting acquisition-related costs and higher salaries.

• Total on-balance sheet deposits increased 6.9% year-over-year to $22.3 billion.

• Return on average assets was 1.77–1.8%, and return on average common equity was nearly 16%.

Outlook and guidance

• Management expects continued profitable growth, with the Verdant acquisition projected to add $150–$200 million of net new loans and operating leases per quarter starting Q2 FY2026.

• Loan growth is projected in the low to mid-teens annualized for the remainder of fiscal 2026.

• Corporate tax rate expected to remain at 26–27%.

• Verdant acquisition expected to be accretive to EPS by 2–3% in fiscal 2026 and 5–6% in fiscal 2027.

• Focus remains on diversified deposit gathering and expansion in treasury management and business banking services.