Axos Financial delivered a quarter that surpassed Wall Street’s revenue and non-GAAP earnings expectations, with the market responding positively. Management credited broad-based loan growth, particularly in commercial specialty and asset-based lending, as well as the integration of Verdant Commercial Capital, for driving both top-line and profitability gains. CEO Gregory Garrabrants highlighted improved credit quality, noting, “Net charge-offs to total assets were down seven basis points linked quarter,” and emphasized the balanced growth across multiple lending channels.
Is now the time to buy AX? Find out in our full research report (it’s free for active Edge members).
Axos Financial (AX) Q2 CY2026 Highlights:
- Revenue: $379.8 million vs analyst estimates of $375.8 million (20.9% year-on-year growth, 1.1% beat)
- Adjusted EPS: $2.53 vs analyst estimates of $2.16 (17.4% beat)
- Market Capitalization: $5.89 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Axos Financial’s Q2 Earnings Call
- David Bernini (Jefferies) asked for clarification on the expected net interest margin decline and the life of the FDIC-purchased loans. CEO Gregory Garrabrants confirmed a 5 to 6 basis point decline and estimated three to four years of remaining accretion.
- Bernini (Jefferies) inquired about team lift-outs and growth strategy. Garrabrants said focus has shifted from new lift-outs to developing and maturing recently acquired teams.
- Bernini (Jefferies) questioned the pipeline for portfolio acquisitions. Garrabrants responded that organic growth remains the priority and that portfolio acquisitions are likely to remain minimal.
- Kyle Peterson (Needham & Company) sought detail on loan growth mix and whether the pipeline strength is sustainable. Garrabrants explained that growth should be more balanced across verticals, with contributions from fund finance and Verdant, while Crestle’s outsized growth this quarter is unlikely to repeat.
- Gary Tenner (D.A. Davidson) asked about Verdant’s impact on fee and expense growth. CFO Derrick Walsh noted that Verdant’s fee and depreciation run rates should remain consistent, and clarified a one-time G&A expense related to a legacy clearing matter.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will be monitoring (1) the pace and balance of loan origination growth across commercial and specialty verticals, (2) the integration of Verdant and realization of expected synergies, and (3) the impact of artificial intelligence and technology initiatives on operating expenses and efficiency. Sustained improvements in deposit mix and credit quality will also be key performance indicators.
Axos Financial currently trades at $103.78, up from $98.48 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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