Axos Financial’s third quarter results for 2026 showed strong revenue and earnings growth, but the market responded negatively, reflecting investor caution about the sustainability of recent momentum. Management attributed the results to robust loan growth across multiple business lines, particularly in capital call, real estate lender finance, and equipment finance. CEO Gregory Garrabrants pointed to a deliberate strategy to reduce higher-cost deposits and temporarily increase Federal Home Loan Bank advances as the company prepared for the incoming Jenius Bank deposit acquisition. He also noted, “We continue to generate high returns as evidenced by the over 16% return on average common equity and 1.8% return on assets.”

Is now the time to buy AX? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our top 5 analyst questions from Axos Financial’s Q3 earnings call

• Kyle Peterson (Needham & Company) asked about the impact of increased securities balances and liquidity management ahead of the Jenius acquisition; CFO Derrick Walsh explained this was a response to market dislocation, with a move into treasuries to optimize liquidity and yield.
• Peterson (Needham & Company) followed up on capital call loan growth sustainability; CEO Gregory Garrabrants said growth was driven by new clients rather than larger drawdowns, and noted future growth may normalize but remain solid.
• Gary Tenner (D.A. Davidson) questioned the increase in loan loss reserves and credit quality; Walsh confirmed the primary driver was a specific nonaccrual C&I loan, with broader economic factors having a lesser impact.
• Kelly Motta (KBW) inquired about the effect of deposit acquisitions on funding costs and net interest margin; Garrabrants and Walsh clarified that while the new deposits provide funding flexibility, they do not expect significant NIM expansion from repricing existing deposits.
• Liam Coohill (Raymond James) asked about cross-sell opportunities with Capital One clients; Garrabrants responded that there are no restrictions on offering additional securities products and sees potential for these retirement accounts to transition into full banking relationships over time.

Catalysts in upcoming quarters

Looking ahead, the StockStory team will be monitoring (1) the integration and client retention rates following the onboarding of Jenius Bank and Capital One deposits, (2) the pace and sustainability of loan growth across diversified lending verticals, and (3) the scalability of AI-driven operational improvements. Progress on cross-selling new products to acquired clients and execution on strategic M&A opportunities will also be key indicators of business momentum.

Axos Financial currently trades at $90.42, down from $92.55 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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