Axos Financial (AX) Q3 2025 earnings summary

Executive summary

• Net income for Q3 FY2025 was $105.2M ($1.81 per diluted share), down from $110.7M ($1.91) in Q3 2024; book value per share increased 19% year-over-year to $45.79.

• Adjusted EPS (Non-GAAP) was $1.81, flat sequentially and down from $1.94 year-over-year.

• Total assets reached $24.0B at March 31, 2025, up 4.9% since June 30, 2024, driven by loan growth.

• Credit quality improved, with non-performing and non-accrual loans declining both absolutely and as a percentage of assets.

• Repurchased $28M of common stock in Q3 and an additional $30M in April 2025.

Financial highlights

• Net interest income for Q3 FY2025 was $275.5M, up 5.3% year-over-year; net interest margin was 4.78%, down 5-9 bps year-over-year.

• Non-interest income was $33.4M, up 0.6% year-over-year, driven by higher banking and service fees.

• Non-interest expense was $146.3M, up $13.0M year-over-year, mainly due to higher salaries, technology, and regulatory fees.

• Provision for credit losses rose to $14.5M from $6.0M year-over-year, reflecting loan growth and macroeconomic factors.

• Total deposits reached $20.1B, up 5.4% year-over-year.

Outlook and guidance

• Management expects continued profitable growth, focus on asset-based lending, lender finance, and equipment leasing.

• Expect consolidated net interest margin (ex-FDIC accretion) to remain at the high end of the 4.25%-4.35% target range.

• 61% of fixed and hybrid rate loan balances will reprice within 3 years, and 90% within 5 years.

• Corporate tax rate expected to be 29%-30%, with potential for a 3% reduction if California tax law changes.

• Credit quality expected to remain stable, with ongoing capital deployment and share repurchases.