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Axos Financial Faces $4M Tax Asset Impairment

Story Highlights
  • California’s new budget led Axos to remeasure tax assets, causing a $4 million impairment.
  • Axos expects a 3% tax rate reduction from fiscal year 2026 onwards due to the budget change.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Axos Financial Faces $4M Tax Asset Impairment

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Axos Financial ( (AX) ) has provided an update.

On June 30, 2025, the State of California enacted a new fiscal year 2026 budget that altered the apportionment of multi-state income for financial institutions, prompting Axos Financial to remeasure its deferred tax assets and liabilities. This resulted in a one-time non-cash impairment of approximately $4 million, which will be recognized in the fourth quarter of fiscal year 2025. The change is expected to reduce the company’s effective tax rate by about 3% for fiscal years ending June 30, 2026, and beyond, potentially benefiting Axos Financial’s future financial performance.

The most recent analyst rating on (AX) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Axos Financial stock, see the AX Stock Forecast page.

Spark’s Take on AX Stock

According to Spark, TipRanks’ AI Analyst, AX is a Outperform.

Axos Financial receives a strong overall stock score due to its robust financial performance, attractive valuation, and positive corporate developments. The technical analysis indicates a positive trend, and the earnings call further supports growth prospects, despite some minor challenges. The company’s strategic initiatives and strong operational efficiency position it well for future growth.

To see Spark’s full report on AX stock, click here.

More about Axos Financial

Axos Financial, Inc., with approximately $24.0 billion in consolidated assets as of March 31, 2025, is the holding company for Axos Bank, Axos Clearing LLC, and Axos Invest, Inc. Axos Bank provides consumer and business banking products nationwide through low-cost distribution channels and affinity partners. Axos Clearing LLC offers securities clearing services, while Axos Invest, Inc. provides digital investment advisory services. The company’s stock is listed on the NYSE under the symbol ‘AX’ and is part of several financial indices.

Average Trading Volume: 374,017

Technical Sentiment Signal: Strong Buy

Current Market Cap: $4.33B

For detailed information about AX stock, go to TipRanks’ Stock Analysis page.

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