Digital banking company Axos Financial (NYSE: AX) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 25.1% year on year to $385.1 million. Its non-GAAP profit of $2.25 per share was 8.5% above analysts’ consensus estimates.

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“Strong net interest income growth and a solid net interest margin resulted in a 23.3% year-over-year increase in our diluted earnings per share this quarter,” stated Greg Garrabrants, President and Chief Executive Officer of Axos.

Company Overview

Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, Axos Financial grew its revenue at an impressive 15.5% compounded annual growth rate. Its growth surpassed the average banking company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Axos Financial’s annualized revenue growth of 17.3% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Axos Financial reported robust year-on-year revenue growth of 25.1%, and its $385.1 million of revenue topped Wall Street estimates by 12%.

Net interest income made up 87.2% of the company’s total revenue during the last five years, meaning Axos Financial barely relies on non-interest income to drive its overall growth.

While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.

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Tangible Book Value Per Share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

Axos Financial’s TBVPS grew at an incredible 19.3% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 18.7% annually from $33.95 to $47.79 per share.

Over the next 12 months, Consensus estimates call for Axos Financial’s TBVPS to grow by 17.4% to $56.12, solid growth rate.

Key Takeaways from Axos Financial’s Q4 Results

We were impressed by how significantly Axos Financial blew past analysts’ net interest income expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 1.4% to $96.03 immediately following the results.

Sure, Axos Financial had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).