Axos Financial Hits $24.8B Assets, Bolstered by Tech-Driven Growth

TL;DR

**Axos is a digital banking powerhouse expanding aggressively, making it a strong buy for growth-oriented investors.**

AI Summary

Axos Financial, Inc. (AX) reported a robust fiscal year ended June 30, 2025, with approximately $24.8 billion in assets and $39.4 billion in assets under custody and/or administration at Axos Clearing LLC. The company operates through two primary segments: Banking Business and Securities Business. The Banking segment offers diverse loan products including single-family, multifamily, commercial real estate, commercial & industrial, auto, and consumer loans, alongside a variety of deposit products sourced from commercial and consumer channels. The Securities segment, through Axos Clearing, Axos Advisor Services (AAS), and Axos Invest, Inc., provides securities custody, clearing, stock lending, margin lending, and digital investment management services. Axos emphasizes its technology-driven, client-centric model, aiming for secure and scalable financial solutions. The company's loan underwriting process is governed by its Bank's Board of Directors and Credit Committee, focusing on creditworthiness, collateral value, and cash flow, with specific policies for each loan type. Axos also manages an available-for-sale securities portfolio for liquidity and interest rate risk management, primarily investing in agency mortgage-backed obligations and senior tranches of non-agency asset-backed obligations.

Why It Matters

Axos Financial's strong asset growth to $24.8 billion and $39.4 billion in assets under custody highlights its expanding footprint in the digital banking and financial services sector, posing a competitive challenge to traditional institutions. For investors, this indicates a company with increasing scale and diversified revenue streams from both banking and securities. Employees benefit from a growing, technology-focused firm, while customers gain access to a broader suite of digital-first financial products. The company's emphasis on technology and diverse loan and deposit channels positions it to capture market share in an evolving financial landscape, impacting the broader market by driving innovation in financial service delivery.

Risk Assessment

Risk Level: medium — Axos Financial faces medium risk due to its exposure to interest rate fluctuations and general economic conditions, as highlighted in its 'Risk Factor Summary.' The company's significant real estate loan portfolio, including multifamily and commercial mortgages, makes it vulnerable to 'changes in real estate values' and 'possible defaults on our multifamily residential loans.' Additionally, its reliance on 'third-party service providers for core banking and securities transactions technology' introduces operational and cybersecurity risks, despite its technology-driven model.

Analyst Insight

Investors should consider Axos Financial's diversified business model and technology-driven approach as potential long-term growth drivers. Monitor interest rate trends and real estate market conditions, as these are key sensitivities for its loan portfolio. Evaluate the company's ability to manage its growth and integrate new technologies effectively to sustain its competitive edge.

Financial Highlights

debt To Equity

Not Disclosed

revenue

Not Disclosed

operating Margin

Not Disclosed

total Assets

$24.8B

total Debt

Not Disclosed

net Income

Not Disclosed

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

Not Disclosed

revenue Growth

Not Disclosed

Revenue Breakdown

Key Numbers

• $24.8B — Total Assets (as of June 30, 2025, indicating significant growth)
• $39.4B — Assets Under Custody and/or Administration (at Axos Clearing LLC, demonstrating substantial client assets)
• $69.85 — Common Stock Closing Price (on December 31, 2024, used for market value calculation)
• $2,569,884,738 — Aggregate Market Value of Non-Affiliate Common Equity (as of December 31, 2024, reflecting market capitalization)
• 56,486,144 — Shares of Common Stock Outstanding (as of August 8, 2025, indicating share count)

Key Players & Entities

• Axos Financial, Inc. (company) — registrant
• AX (company) — ticker symbol
• Axos Bank (company) — consolidated subsidiary
• Axos Clearing LLC (company) — securities clearing and custody provider
• Axos Advisor Services (company) — securities services provider
• Axos Invest, Inc. (company) — digital investment management provider
• New York Stock Exchange (regulator) — exchange where common stock is listed
• Russell 2000 Index (company) — market index component
• S&P SmallCap 600 Index (company) — market index component
• Securities and Exchange Commission (regulator) — filing oversight

FAQ

Risk Factors

• Interest Rate Sensitivity [high — financial]: The company's profitability is sensitive to changes in interest rates. Fluctuations in interest rates can impact net interest income, the value of investment securities, and the cost of funding. For example, a significant increase in interest rates could reduce the value of the company's available-for-sale securities portfolio, which primarily consists of agency mortgage-backed obligations.
• Technology and Cybersecurity Risks [high — operational]: As a technology-driven financial services company, Axos is exposed to risks related to its IT infrastructure and cybersecurity. Breaches or failures in its systems could lead to financial losses, reputational damage, and regulatory penalties. The company relies heavily on its digital platforms for banking and investment services.
• Regulatory Compliance [high — regulatory]: Axos operates in a highly regulated industry and is subject to various federal and state laws and regulations. Changes in regulations or failure to comply could result in significant fines, sanctions, or restrictions on business activities. The company's banking operations are overseen by multiple regulatory bodies.
• Economic Downturns [medium — market]: The company's financial performance is linked to the overall health of the economy. Economic downturns can lead to increased loan delinquencies and defaults, reduced demand for financial products, and a decline in asset values. The company's loan portfolio includes commercial real estate and commercial & industrial loans, which are sensitive to economic conditions.
• Credit Risk [high — financial]: The company faces credit risk from its loan portfolio. Deterioration in the creditworthiness of borrowers or the value of collateral could lead to loan losses. The loan underwriting process, governed by the Bank's Board of Directors and Credit Committee, focuses on creditworthiness, collateral value, and cash flow, but adverse economic conditions can still impact loan performance.
• Dependence on Key Personnel [medium — operational]: The success of Axos Financial is dependent on the continued service and performance of its key executive officers and other personnel. The loss of key individuals could disrupt business operations and strategic initiatives.
• Competition [medium — market]: The financial services industry is highly competitive. Axos faces competition from traditional banks, credit unions, and other financial technology companies. Intense competition could affect market share, pricing, and profitability.
• Litigation Risk [low — legal]: As a financial institution, Axos is subject to the risk of litigation from customers, regulators, and other parties. Adverse legal judgments or settlements could result in significant financial costs and reputational damage.

Industry Context

Axos Financial operates in the highly competitive and rapidly evolving financial services industry. The sector is characterized by increasing digitalization, a focus on client-centric technology solutions, and a dynamic regulatory environment. Traditional banks, fintech startups, and specialized service providers all vie for market share, driving innovation in product offerings and service delivery.

Regulatory Implications

As a diversified financial services company, Axos is subject to extensive regulatory oversight from federal and state agencies. Compliance with banking regulations, securities laws, and data privacy rules is paramount. Changes in these regulations, or any instances of non-compliance, could lead to significant financial penalties, operational restrictions, and reputational damage.

What Investors Should Do

1. Monitor interest rate sensitivity and its impact on net interest margin and investment portfolio valuation.
2. Assess the company's cybersecurity posture and resilience given its technology-driven model.
3. Evaluate the growth and diversification of both the Banking and Securities segments.
4. Review loan portfolio quality and credit risk management practices, especially in commercial real estate and C&I lending.

Glossary

Axos Clearing LLC

A subsidiary of Axos Financial that provides clearing, custody, and related services for independent registered investment advisors and introducing broker dealers. (Key component of the Securities Business Segment, handling substantial client assets and generating fee income.)

RIAs (Independent Registered Investment Advisors)

Financial professionals who provide investment advice and manage client portfolios, often using clearing and custody services from firms like Axos Clearing. (A primary client base for the Securities Business Segment, driving revenue through custody and advisory services.)

IBDs (Introducing Broker Dealers)

Firms that engage in the securities business but do not hold customer funds or securities; they introduce their clients to a clearing firm. (Another key client segment for Axos Clearing, contributing to revenue through clearing, stock lending, and margin lending.)

Available-for-Sale Securities

Investments that are not classified as held-to-maturity or trading securities. Their unrealized gains and losses are reported in other comprehensive income. (Used by Axos Bank for liquidity and interest rate risk management, primarily consisting of agency mortgage-backed obligations.)

Agency Mortgage-Backed Obligations

Securities backed by mortgages that are guaranteed by government-sponsored enterprises like Fannie Mae or Freddie Mac. (A significant component of Axos's investment portfolio, impacting interest rate risk and liquidity management.)

Non-Agency Asset-Backed Obligations

Securities backed by pools of assets (e.g., auto loans, credit card receivables) that are not guaranteed by government agencies. (Part of the investment portfolio, offering diversification but potentially carrying different risk profiles than agency MBS.)

Net Interest Income

The difference between the interest income generated by a financial institution's interest-earning assets and the interest expense paid on its interest-bearing liabilities. (A primary driver of profitability for the Banking Business Segment, directly impacted by interest rate fluctuations.)

Non-Interest Income

Revenue generated from sources other than net interest income, such as fees for services, trading gains, and other charges. (An important component of Axos's overall revenue, particularly from its banking and securities services.)

Year-Over-Year Comparison

The provided 10-K filing does not contain comparative data from the previous fiscal year, making a direct comparison of key metrics like revenue growth, margin changes, or the emergence of new risks impossible. However, the initial summary indicates substantial growth in total assets to $24.8 billion and assets under custody to $39.4 billion, suggesting positive momentum from the prior period.

Key Financial Figures

• $69.85 — stock on the New York Stock Exchange of $69.85 on December 31, 2024 was $ 2,569,884,73
• $24.8 billion — ial services company with approximately $24.8 billion in assets and approximately $39.4 billi
• $39.4 billion — 4.8 billion in assets and approximately $39.4 billion of assets under custody and/or administ

Filing Documents

• ax-20250630.htm (10-K) — 4318KB
• ex2112025063010-kexhibitq4.htm (EX-21.1) — 12KB
• ex2312025063010-kexhibitq4.htm (EX-23.1) — 2KB
• ex3112025063010-kexhibitq4.htm (EX-31.1) — 11KB
• ex3122025063010-kexhibitq4.htm (EX-31.2) — 11KB
• ex3212025063010-kexhibitq4.htm (EX-32.1) — 6KB
• ex3222025063010-kexhibitq4.htm (EX-32.2) — 6KB
• ax-20250630_g1.jpg (GRAPHIC) — 121KB
• 0001299709-25-000125.txt ( ) — 22248KB
• ax-20250630.xsd (EX-101.SCH) — 103KB
• ax-20250630_cal.xml (EX-101.CAL) — 221KB
• ax-20250630_def.xml (EX-101.DEF) — 578KB
• ax-20250630_lab.xml (EX-101.LAB) — 1322KB
• ax-20250630_pre.xml (EX-101.PRE) — 990KB
• ax-20250630_htm.xml (XML) — 4852KB

Risk Factors

Item 1A. Risk Factors 12

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 29

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 29

Legal Proceedings

Item 3. Legal Proceedings 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30 PART II 31

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31

[Reserved]

Item 6. [Reserved] 33

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 51

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 55

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 55

Controls and Procedures

Item 9A. Controls and Procedures 55

Other Information

Item 9B. Other Information 57

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 57 PART III 57

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 57

Executive Compensation

Item 11. Executive Compensation 57

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 58

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 58 PART IV 59

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 59

Form 10-K Summary

Item 16. Form 10-K Summary 61

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS References in this Annual Report on Form 10-K (this "report") to the "Company," "us," "we," "our," "Axos Financial," or "Axos" are all to Axos Financial, Inc. and its subsidiaries on a consolidated basis. References in this report to "Axos Bank," the "Bank," or "our bank" are to Axos Bank, one of our consolidated subsidiaries. This report may contain various forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward-looking statements can be identified by the use of terminology such as "estimate," "project," "anticipate," "expect," "intend," "believe," "will," or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy that involve risks and uncertainties. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond the control of Axos or the Bank, which could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. These and other risks, uncertainties and contingencies are described in this report, including under "Item 1A. Risk Factors", and the Company's other reports filed with the Securities and Exchange Commission (the "SEC") from time to time. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this report. All forward-looking statements are qualified in their entirety by this cautionary statement, and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All written and oral forward-looking

BUSINESS

ITEM 1. BUSINESS Overview Our Company is a technology-driven, diversified financial services company with approximately $24.8 billion in assets and approximately $39.4 billion of assets under custody and/or administration at Axos Clearing LLC ("Axos Clearing"). Our client-centric, technology-enabled services model provides secure and scalable banking, clearing and custody, and investment advisory solutions to retail and business customers. Axos Bank (the "Bank") provides consumer and commercial banking products and services through its digital online and mobile banking platforms, low-cost distribution channels and affinity partners. Our Bank offers deposit and lending products to customers nationwide including consumer and business checking, savings and time deposit accounts and single family and multifamily residential mortgages, commercial real estate mortgages and loans, fund and lender finance loans, asset-based loans, auto loans, retail and floor plan marine loans and other consumer loans. Our Bank generates non-interest income from consumer and business products and services, including fees from loans originated for sale, deposit account service fees, prepayment fees, loan servicing fees, as well as technology and payment transaction processing fees. We offer securities products and services to independent registered investment advisors ("RIAs") and introducing broker dealers ("IBDs") through Axos Clearing and Axos Advisor Services ("AAS") and direct-to-consumer securities trading and digital investment management products through Axos Invest, Inc. ("Axos Invest"). AAS and Axos Clearing generate interest and asset- and transaction-based fee income by providing comprehensive securities custody services to RIAs and clearing, stock lending, and margin lending services to IBDs respectively. Axos Invest generates fee income from self-directed securities trading and digital wealth management services. Our common stock is listed on the New York Stock Exchange under

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View this 10-K filing on SEC EDGAR