Abstract

Axos Financial Inc will report fiscal Q2 2026 results on January 29, 2026 Post Market; our preview compiles last quarter’s performance, segment trends, and consensus forecasts to frame revenue, margin, net income, and adjusted EPS expectations with a focus on banking and securities operations.

Market Forecast

For the current fiscal quarter, Axos Financial Inc’s revenue is forecast at USD 345.83 million, up 13.90% year over year, with EBIT estimated at USD 171.44 million, up 10.99% year over year, and adjusted EPS projected at USD 2.01, up 14.68% year over year. Forecast detail on gross profit margin and net profit margin is not available; however, the last quarter’s net profit margin was 36.70%. The company’s main business mix is expected to remain anchored by banking revenue, with continued contributions from securities operations and limited impact from intersegment offsets. The most promising segment is banking, supported by robust loan growth and deposit franchise breadth; last quarter, banking revenue was USD 299.58 million, though year-over-year detail was not provided.

Last Quarter Review

In the previous fiscal quarter, Axos Financial Inc delivered revenue of USD 323.39 million, GAAP net profit attributable to the parent company of USD 112.00 million, a net profit margin of 36.70%, and adjusted EPS of USD 1.94; the quarter’s sequential net profit growth rate was 1.52%. A key highlight was revenue exceeding the prior consensus by USD 2.95 million, with EBIT of USD 167.14 million and adjusted EPS surpassing estimates by USD 0.06, signaling resilient profitability. Main business highlights included banking revenue of USD 299.58 million and securities revenue of USD 37.65 million, partially offset by USD 13.84 million in intersegment eliminations; year-over-year growth breakdowns for these segments were not disclosed.

Current Quarter Outlook

Banking Operations

The banking franchise is the central driver for Axos Financial Inc’s near-term earnings. With revenue estimated to rise to USD 345.83 million this quarter and adjusted EPS projected at USD 2.01, loan portfolio momentum and disciplined liability management are positioned to support net interest income. Management’s emphasis on asset-based lending with relatively low loan-to-value ratios helps temper credit costs, which sustains margin durability even as broader credit markets normalize. Deposit strategy anchored in digital origination and diversified funding sources enables stable pricing, which can mitigate spread compression if benchmark rates edge lower or deposit competition intensifies. Given the last quarter’s net profit margin at 36.70% and EBIT of USD 167.14 million, a modest uplift in operating leverage is plausible if fee income and loan growth outpace expense inflation. The quarter-on-quarter net profit uptick of 1.52% serves as a baseline for incremental margin gains if credit losses remain contained and noninterest revenue tracks upward.

Securities and Fee-Based Businesses

Axos Financial Inc’s securities operations and ancillary fee streams provide diversification and incremental growth levers. The prior quarter’s securities revenue of USD 37.65 million complemented core banking income, and the company has outlined clearing and custody as strategic vectors for expansion. These activities can enhance earnings consistency, reducing reliance on net interest spread dynamics, particularly in periods of rate transitions. Continued onboarding of clients within clearing and custody may translate into organic scale benefits, improving operating throughput and marginal profitability. If trading-related activity normalizes at healthy levels and the company maintains prudent risk controls, securities-related contributions could provide a supportive tailwind to EBIT, aiding the projected rise to USD 171.44 million this quarter.

Stock Price Drivers This Quarter

Axos Financial Inc’s stock performance into and through this earnings event is likely to hinge on three interrelated factors: revenue growth durability, net interest margin resilience, and credit quality trends. The headline revenue forecast at USD 345.83 million implies double-digit expansion, but investors will parse loan growth composition, deposit mix shifts, and rate-sensitive margin components for signals on sustainability. Margin commentary will be critical, as a stable or improving net interest margin can validate the EPS forecast of USD 2.01; conversely, signs of spread compression could cap upside. Credit metrics—nonperforming assets, net charge-off rates, and reserve movements—will be scrutinized given management’s emphasis on asset-based lending discipline; confirmation of contained losses would bolster confidence in the year-over-year EPS growth of 14.68%. Fee income trajectory, especially from clearing and custody, also matters because it diversifies earnings and can cushion margin variability. Guidance on operating expenses and technology investments will frame the operating leverage outlook relative to the expected EBIT of USD 171.44 million.

Analyst Opinions

Across recent institutional views and investor commentary, the balance of perspectives tilts positive, aligning with the double-digit year-over-year forecasts for revenue and EPS. Supportive arguments emphasize Axos Financial Inc’s disciplined credit approach, digital deposit origination, and growing fee-based contributions through securities clearing and custody, which collectively underpin the projected revenue of USD 345.83 million and adjusted EPS of USD 2.01. Bullish previews anticipate stable credit metrics and incremental operating leverage from scale effects, consistent with the prior quarter’s beat on revenue and EPS surprise of USD 0.06. The prevailing sentiment expects a constructive update on loan growth and fee income momentum, with particular attention to clearing and custody as a scalable platform that can add earnings diversity. On balance, these views frame an outlook where execution on core banking and securities initiatives supports the anticipated EBIT of USD 171.44 million and sustains double-digit year-over-year growth through fiscal Q2 2026.