Axos Financial Reports Strong Q2 Earnings

Highlights include robust loan growth, higher net interest income, and improving credit quality.

Jan. 30, 2026 at 6:47pm

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Axos Financial (NYSE:AX) reported outstanding financial results for the fiscal second quarter of 2026, with executives highlighting strong linked-quarter loan growth, higher net interest income and margin, improving credit indicators, and contributions from the recently acquired Verdant Commercial Capital platform. The company generated $1.6 billion in net loan growth and reported net income of $128.4 million, up from $104.7 million in the prior-year period.

Why it matters

Axos Financial's impressive quarterly performance demonstrates the company's ability to drive growth and profitability across its diversified banking and financial services platform. The strong results highlight Axos' success in expanding its commercial lending business, integrating strategic acquisitions, and maintaining solid credit quality - all of which are key factors in the company's long-term competitiveness and shareholder value creation.

The details

Axos reported a net interest margin of 4.94%, up 19 basis points from the prior quarter, though the company said the margin would have been roughly flat excluding the impact of an FDIC loan payoff and Verdant's balance-sheet securitization financing. Non-interest income increased about $21 million linked quarter, driven by higher banking service fees, broker-dealer fee income, and prepayment penalty fees. The quarter also marked the first period with contributions from the recently acquired Verdant platform. On the credit front, Axos reported improvements in non-performing metrics, with total non-accrual loans to total loans declining to 61 basis points from 74 basis points in the prior quarter.

  • Axos Financial reported results for the quarter ended December 31, 2025 (fiscal second quarter 2026).
  • The company entered January 2026 with about $800 million higher starting loan balances than the prior quarter's average and expects loan growth of about $600 million to $800 million in the current quarter.

The players

Axos Financial, Inc.

A diversified online banking and financial services holding company headquartered in San Diego, California. Axos Financial operates through its wholly owned subsidiary, Axos Bank, providing a technology-driven banking platform that serves both retail and commercial clients across the United States.

Greg Garrabrants

President and CEO of Axos Financial.

Derrick Walsh

EVP and CFO of Axos Financial.

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What they’re saying

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What’s next

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The takeaway

Axos Financial's impressive quarterly performance demonstrates the company's ability to drive growth and profitability across its diversified banking and financial services platform, highlighting its success in expanding its commercial lending business, integrating strategic acquisitions, and maintaining solid credit quality.