Axos Financial (AX) AI Stock Analysis

• Market Cap: $5.17B
• Dividend Yield: N/A
• Average Volume (3M): 372.07K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.10
• Revenue Growth: 1.66%
• EPS Growth: -9.31%
• Country: US
• Employees: 1,781
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.22
• Shares Outstanding: 56,678,250
• 10 Day Avg. Volume: 301,847
• 30 Day Avg. Volume: 372,072
• PEG Ratio: -3.72
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 9.91
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 4.22
• Enterprise Value/Ebitda: 7.82
• 1Y Price Target: $111.75
• Price Target Upside: 22.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $113.00 ▲(23.79% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

Overall score reflects solid financial performance (strong growth and profitability, tempered by margin and cash-flow/inconsistency risks), supported by bullish technicals and a relatively low P/E. Recent earnings-call guidance and sentiment add to the positive outlook, despite near-term headwinds from expenses, provisioning, and modest NIM pressure.

Positive Factors

Accretive M&A and product diversification (Verdant)

The Verdant acquisition materially expands originations, securitization capacity and fee income, providing an enduring incremental loan flow and earnings contribution. Its recurring quarterly loan additions and securitization scale support durable revenue diversification and EPS accretion over the next 2–6 months.

Strong balance-sheet capital build

A sizeable equity build improves loss-absorbing capacity and funding flexibility for a regional bank. Strong capitalization supports continued organic loan growth, underwriting flexibility and regulatory resilience, reducing structural risk from credit cycles over the medium term.

Multi-year revenue expansion and solid profitability

Sustained multi-year top-line growth combined with mid-teens returns on equity indicates durable earnings power. The company’s diversified loan mix and improving fee income support repeatable margins and cash generation across economic cycles over the coming months.

Negative Factors

NIM headwinds as one-time accretion fades

Dependence on episodic accretion and securitization impacts means core margins face modest, persistent compression as one-time items abate. Even small but steady NIM declines compress net interest income, testing mid-term margin sustainability when combined with higher funding needs.

Inconsistent cash conversion / declining FCF growth

Negative TTM free-cash-flow growth and volatile operating cash conversion reduce the predictability of internal funding for loans, buybacks or dividends. Over 2–6 months this inconsistency limits capital allocation flexibility and raises sensitivity to funding and market shocks.

Rising non-interest expenses and higher provisions

Higher operating costs from integrations and elevated provisioning tied to commercial growth pressure operating leverage. If expense growth outpaces revenue or reserves continue to rise, margin and return metrics face sustained drag over the medium term absent disciplined cost control and underwriting stability.

Axos Financial Business Overview & Revenue Model

Company Description

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through Banking Business and Securities Business segments. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate term unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text messaging banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

How the Company Makes Money

Axos Financial generates revenue through multiple channels. The primary source of income comes from net interest income, which is earned from the difference between interest earned on loans and interest paid on deposits. Additionally, the company earns non-interest income from various fees associated with banking services, including account maintenance fees, transaction fees, and service charges. Mortgage origination and servicing also contribute significantly to revenue, as Axos provides home loans and earns fees for originating and servicing these loans. Furthermore, the company engages in investment activities, which include managing investment portfolios and providing wealth management services. Strategic partnerships with fintech companies and other financial institutions enhance its distribution capabilities and customer acquisition efforts, further contributing to Axos's overall earnings.

Axos Financial Financial Statement Overview

Summary

Strong multi-year revenue expansion and solid profitability with a growing equity base support a good fundamental profile. Offsetting factors include margin compression versus prior peaks, negative TTM free-cash-flow growth and inconsistent cash conversion, plus some uncertainty from inconsistent leverage/debt datapoints.

Income Statement

Revenue has expanded strongly over the past several years (from ~$712M in 2021 to ~$1.93B in FY2025), and profitability remains solid with net margins around ~22% in FY2025 and TTM (Trailing-Twelve-Months). That said, margins have trended down from very elevated 2022–2023 levels, and the TTM revenue growth rate is notably higher than the latest annual growth rate, suggesting potential volatility in the growth profile.

Balance Sheet

The balance sheet shows consistent equity build (stockholders’ equity rising from ~$1.40B in 2021 to ~$2.68B in FY2025) and steady returns on equity in the mid-teens, supporting a healthy profitability profile for a regional bank. Leverage appears manageable on the annual figures (debt-to-equity ~0.14 in FY2025), but the TTM leverage reading is meaningfully higher (~0.48) alongside a reported zero debt figure, which creates some data inconsistency and adds uncertainty to the leverage assessment.

Cash Flow

Cash generation is generally supportive: free cash flow is substantial (about ~$436M in FY2025; ~$449M in TTM (Trailing-Twelve-Months)), and free cash flow is close to reported earnings (roughly ~0.89–0.92x in FY2025/TTM). However, free cash flow growth turned negative in TTM (down ~8.8%), and operating cash flow relative to revenue is low and has been inconsistent over time, pointing to a less stable cash conversion profile.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.00B	1.93B	1.77B	1.26B	757.91M	711.97M
Gross Profit	1.25B	1.19B	1.04B	865.93M	681.59M	609.10M
EBITDA	675.36M	642.41M	662.57M	455.13M	364.56M	336.19M
Net Income	456.63M	432.91M	450.01M	307.17M	240.72M	215.71M
Balance Sheet
Total Assets	28.20B	24.78B	22.86B	20.35B	17.46B	14.27B
Cash, Cash Equivalents and Short-Term Investments	1.07B	2.00B	2.12B	2.47B	1.47B	902.96M
Total Debt	1.12B	372.67M	415.68M	451.78M	562.74M	574.86M
Total Liabilities	25.27B	22.10B	20.56B	18.43B	15.81B	12.86B
Stockholders Equity	2.93B	2.68B	2.29B	1.92B	1.64B	1.40B
Cash Flow
Free Cash Flow	421.39M	436.12M	269.52M	166.49M	195.12M	402.14M
Operating Cash Flow	479.57M	490.33M	305.48M	196.71M	216.62M	412.58M
Investing Cash Flow	-4.94B	-1.84B	-2.59B	-2.40B	-2.78B	-866.77M
Financing Cash Flow	3.13B	1.34B	2.09B	3.01B	3.10B	-458.56M

Axos Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AX, the sentiment is Negative. The current price of 91.28 is below the 20-day moving average (MA) of 96.39, below the 50-day MA of 92.54, and above the 200-day MA of 84.19, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 25.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AX.

Axos Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AX	78 Outperform	$5.17B	11.55	16.75%	―	1.66%	-9.31%
AUB	77 Outperform	$5.48B	19.17	6.72%	3.83%	43.53%	-21.74%
ABCB	75 Outperform	$5.42B	13.29	10.53%	1.02%	2.20%	20.88%
FFIN	73 Outperform	$4.61B	18.07	13.89%	2.42%	12.90%	16.92%
HWC	73 Outperform	$5.66B	11.94	11.28%	2.74%	-0.78%	25.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FLG	54 Neutral	$5.65B	-26.61	-2.17%	0.31%	-18.33%	92.89%

Axos Financial Corporate Events

Axos Financial to Acquire Jenius Bank Consumer Deposits

On February 12, 2026, Axos Bank entered into an agreement with SMBC MANUBANK to acquire approximately $2.6 billion of U.S. consumer deposits from Jenius Bank, SMBC’s digital banking division. Under the deal, Axos will receive cash equal to the transferred deposit balances, reduced by a negotiated premium, effectively bolstering its funding base with a sizable influx of retail deposits.

The transaction remains subject to approval by the Office of the Comptroller of the Currency and is expected to close in late March or April 2026, marking a notable expansion of Axos Bank’s consumer deposit franchise. If completed, the acquisition would deepen Axos’s presence in digital consumer banking and could enhance its balance-sheet flexibility and scale relative to peers that are also competing aggressively for stable, low-cost deposits.

The most recent analyst rating on (AX) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Axos Financial stock, see the AX Stock Forecast page.

Axos Financial Highlights Strong Growth and Diversified Banking Model

On February 2, 2026, Axos Financial released an investor presentation highlighting its diversified three-division business model and strong operating performance heading into calendar 2026. The company reported that for its fiscal second quarter 2026, return on equity reached 17.44% and return on assets 1.83%, with year-over-year growth of 19% in assets, 17% in deposits, 23% in net income and 23% in diluted EPS, underscoring its position as a top performer versus a peer group of large savings banks by profitability and efficiency. Axos detailed broad-based loan growth across commercial real estate specialty, lender finance, asset-based and consumer segments, supported by a holistic, data-driven credit risk management framework, low average loan-to-value ratios—particularly in commercial real estate specialty lending—and a stable allowance for credit losses. On the funding side, Axos stressed the resilience and diversification of its deposit base, totaling $23.2 billion as of December 31, 2025, sourced from consumer direct channels, fiduciary services, specialty deposits, small business and treasury management, with approximately 85% of deposits insured or collateralized, a mix that helps support its net interest margin through varying rate cycles and reinforces its competitive standing in digital banking and securities services.

The most recent analyst rating on (AX) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Axos Financial stock, see the AX Stock Forecast page.

Axos Financial to Acquire San Diego Headquarters Complex

On December 31, 2025, Axos Bank, a subsidiary of Axos Financial, agreed to purchase a multi-building commercial office complex with associated amenities in San Diego, California, which is currently leased and offered for lease to third parties and will be managed by a professional property management firm. The bank plans to eventually use the property as its headquarters, signaling a long-term commitment to the San Diego market and a potential shift in its operational base, with the transaction expected to close in January 2026.

The most recent analyst rating on (AX) stock is a Buy with a $97.00 price target. To see the full list of analyst forecasts on Axos Financial stock, see the AX Stock Forecast page.

Axos Financial announces resignation of commercial bank president

On December 15, 2025, Axos Financial, Inc. announced that David Park had informed the company of his decision to resign from his role as President, Head of Commercial Bank at Axos Bank, its banking subsidiary, with his departure to take effect at a later date. The company stated that Park’s resignation was not the result of any disagreement relating to Axos Financial, suggesting an orderly leadership transition rather than a move prompted by internal conflict or strategic disputes.

The most recent analyst rating on (AX) stock is a Buy with a $97.00 price target. To see the full list of analyst forecasts on Axos Financial stock, see the AX Stock Forecast page.

Axos Financial Concludes Annual Stockholders Meeting

On November 13, 2025, Axos Financial, Inc. held its annual meeting of stockholders, where 87.42% of eligible shares were represented. Key outcomes included the election of Class III directors, approval of executive compensation, amendment of the Stock Incentive Plan, and ratification of BDO USA, P.C. as the independent public accounting firm for fiscal year 2026.

The most recent analyst rating on (AX) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Axos Financial stock, see the AX Stock Forecast page.