Axos Financial (BB4) Q1 2027 Earnings Report
DE:BB4 Q1 2027 EPS Results
- Actual EPS
- EUR 2.01
- Consensus EPS
- EUR 2.01
- Beat/Miss
- Missed by -EUR 0.01
- One Year Ago EPS
- EUR 1.73
DE:BB4 Q1 2027 Revenue Results
- Actual Revenue
- EUR 518.39M
- Expected Revenue
- EUR 344.74M
- Beat/Miss
- Beat by +EUR 173.65M
- YoY Revenue Growth
- +16.63%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
Axos Financial's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q1 2027 Earnings Call Audio
Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
The call was predominantly positive, with strong year-over-year growth in earnings, net interest income, non-interest income, deposits and several lending businesses; a robust pipeline; successful acquisition integration opportunities; strong capital ratios; and continued investment in AI and technology. The primary challenges were elevated charge-offs and credit provisions, near-term margin pressure from excess Capital One liquidity and deposit repricing, higher underlying expenses, loan payoffs and syndication-related balance effects, and ongoing disruption in parts of the multifamily market.
Management expects loan growth in the low to mid-teens on an annual basis in fiscal 2027 and targets low to mid-teen organic loan growth in the fiscal year ending June 30, 2027, excluding any potential acquisitions; loan growth is expected to accelerate from the Q1 2027 levels, supported by an approximately $2.8 billion pipeline comprising $782 million of single-family residential jumbo mortgage, $30 million of SFR gain on sale, $195 million of multifamily and small balance commercial, $71 million of auto and consumer, and $1.7 billion of commercial loans. Capital call balances are expected to resume growth in the December quarter, the majority of excess liquidity from the Capital One deposits is expected to be deployed by the end of calendar 2026, and approximately $700 million of deposit balances from Arc's clients held at partner banks are expected to migrate to Axos over the next few quarters. Net interest margin is expected to stay flat over the next few quarters, with the full quarter of the 25 basis point September Fed rate hike largely offset by a full quarter of excess liquidity from the Capital One deposits in the quarter ended December 31, 2026; in the March 2027 quarter and beyond, the lag in deposit repricing is expected to counter a significant component of the margin benefits from the next few potential rate hikes. The loan loss reserve is expected to remain in the 1.1% to 1.2% of total loans and leases range, personnel plus professional fees growth remains capped at 30% as a percentage of revenue growth, average expense growth is expected to remain in the $3 million to $5 million a quarter range absent any other acquisitions or onetime anomalies, and advertising and marketing expense is expected to stay elevated.
- Double-Digit Core Business GrowthManagement reported double-digit year-over-year growth in net interest income, non-interest income, ending loan and deposit balances, earnings per share and book value per share.
- Net Interest Margin ExpansionNet interest margin expanded by 10 basis points linked quarter to 4.64%. Net interest income increased 4.2% linked quarter and 13.8% year-over-year, driven primarily by the sequential improvement in net interest margin and the Verdant acquisition, respectively.
- Strong Profitability and Earnings GrowthNet income was approximately $129.6 million, up 15.4% from $112.4 million in the prior-year first quarter. Diluted earnings per share were $2.25 versus $1.94, representing a 16% year-over-year increase. Return on average assets was 1.72% and return on average common stockholders' equity was 15.66%.
- Loan Balances and Originations IncreasedEnding loan balances were $25.9 billion at September 30, up $316.6 million quarter-over-quarter. Total originations for investment, excluding single-family warehouse lending, were $5.7 billion compared with $4.2 billion in the first quarter of fiscal 2026.
- Broad-Based Lending Growth OpportunitiesLoan growth was strong in commercial real estate specialty lending, real estate lender finance, equipment finance and auto. Management said pipelines were up across several lending categories and expects annual loan growth in the low to mid-teens for fiscal 2027.
- Robust Loan PipelineThe loan pipeline was approximately $2.8 billion, consisting of $782 million of single-family residential jumbo mortgage, $30 million of SFR gain on sale, $195 million of multifamily and small balance commercial, $71 million of auto and consumer, and $1.7 billion of commercial loans.
- Capital Call Syndication Capacity ExpandedAxos syndicated approximately $290 million of capital call originations before quarter-end as it continued building capacity to agent a wider variety of deals. Excluding capital call syndications, net loan balances increased by more than $600 million during the quarter.
- Deposit Growth and Funding DiversificationEnding deposit balances increased 14% year-over-year to $25.4 billion. Demand, money market and savings accounts represented approximately 94% of total deposits and increased 14.5% year-over-year. Management described funding as diversified across consumer, small business, commercial, institutional and specialty accounts.
- Capital One Deposit Acquisition ClosedThe Capital One IRA deposit acquisition closed on September 21, adding approximately $900 million of savings deposits and $900 million of time deposits. Management expects to deploy the majority of the excess liquidity from the Capital One deposits by the end of calendar 2026.
- Additional Deposit Migration OpportunitiesAxos expects to migrate approximately $700 million of deposit balances from Arc clients held at partner banks to Axos over the next few quarters. Arc-related deposits include several hundred million dollars of zero-cost deposits, with other balances described as savings-style deposits.
- Strong Asset Quality Outside Two Isolated Charge-OffsThe FDIC purchased loan portfolio remained current. Excluding two C&I charge-offs, annualized net charge-offs to average total loans and leases were 8 basis points, compared with 9 basis points last quarter. A total of 99.2% of loans were current as of September 30, 2026.
- Improvement in Non-Performing and Classified LoansTotal non-performing assets were $157.5 million, down slightly from June 30. Loans 90 or more days past due declined 17% to 0.51% of loans, classified loans declined approximately 19% since June 30, 2026, and non-performing assets to total assets were 51 basis points, down 2 basis points from June 30 and 13 basis points from September 30, 2025.
- Strong Reserve CoverageThe allowance for credit loss covered 196% of non-accrual loans as of September 30, 2026. Management expects to maintain the loan loss reserve at 1.1% to 1.2% of total loans and leases.
- Non-Interest Income GrowthTotal non-interest income was $63.8 million, up 97% year-over-year. Banking and service fees increased to $35.2 million from $10.8 million in the year-ago quarter, with Verdant identified as the primary contributor. Prepayment penalty fees increased to $6.8 million from $0.7 million.
- Securities Business ExpansionAdvisory fee income increased approximately 10% year-over-year and contributed more than $10 million in broker-dealer fee income. Total assets under custody and administration increased $5 billion year-over-year to $48 billion, while net new assets were approximately $195 million in the quarter and $1.3 billion over the last four quarters.
- Acquisition Benefits and Cross-SellingThe Capital One and Jenius Bank deposit acquisitions added more than $4 billion of consumer deposits and 132,000 new accounts. Jenius checking-account cross-sell was described as going well. Verdant added $1.2 billion in leases and expertise across six targeted verticals, while its team also added syndication and securitization capabilities.
- Arc Technology and Banking Platform OpportunitiesManagement is integrating Arc's technology platform into Axos's banking infrastructure. Arc provides a feature-rich treasury-management platform for smaller and mid-tier clients, a debt marketplace with more than 150 participating lenders, and a brokerage model that allows Axos to receive deposits without taking the related third-party lending risk.
- Continued AI Investment and Productivity GainsAxos has invested significant time and resources in AI governance, training and deployment. Management said the speed, scale and productivity improvements from various AI projects continue to exceed expectations and described continued AI deployment across the organization.
- Capital Return and Strong Capital RatiosAxos repurchased $7 million of common stock during the quarter at an average price of $86.92 per share and an additional $7 million from October 1 through October 23. Approximately $112 million remained under the current authorization. The Tier 1 leverage ratio increased 21 basis points to 10.15%, and the total capital ratio increased 42 basis points to 14.81%.
- Planned Bitcoin and Digital-Asset CapabilitiesAxos expects to launch a Bitcoin purchase feature as an addendum to its self-directed trading account around the March 2027 timeframe, initially in beta, followed shortly afterward by a Bitcoin lending program. The feature was in testing ahead of production deployment.
DE:BB4 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2027 (Q2) | 2.12- | 1.98 | ― | ― |
| Oct 29, 2026 | 2027 (Q1) | 2.012.01 | 1.73 | 15.98% (+0.28) | |
| Jul 30, 2026 | 2026 (Q4) | 1.921.93 | 1.71 | 12.50% (+0.21) | |
| Apr 30, 2026 | 2026 (Q3) | 1.931.92 | 1.62 | 18.78% (+0.30) | |
| Feb 02, 2026 | 2026 (Q2) | 1.861.98 | 1.61 | 23.33% (+0.37) | |
| Oct 30, 2025 | 2026 (Q1) | 1.651.73 | 1.72 | 0.52% (+0.01) | |
| Jul 30, 2025 | 2025 (Q4) | 1.591.71 | 1.61 | 6.67% (+0.11) | |
| Apr 30, 2025 | 2025 (Q3) | 1.551.62 | 1.7 | -5.24% (-0.09) | |
| Jan 28, 2025 | 2025 (Q2) | 1.561.61 | 2.34 | -31.30% (-0.73) | |
| Oct 30, 2024 | 2025 (Q1) | 1.601.72 | 1.23 | 39.86% (+0.49) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.