Company: AX
Filing Date: 2025-08-21
Form Type: 10-K
Source: 0001299709-25-000125
Chunk: 127

Company: Axos Financial, Inc.
Filing Date: 2025-08-21
Form: 10-K
Item: Item 7
Chunk 127
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, and our management uses these measures when it internally evaluates the performance of our business and makes operating decisions. However, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.

We define “adjusted earnings,” a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related items (including amortization of intangible assets related to acquisitions and certain gains and provisions resulting from the Company’s FDIC Loan Purchase), and other costs (unusual or non-recurring charges). Adjusted earnings per diluted common share (“adjusted EPS”) is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and 

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adjusted EPS provide useful information about the Company’s operating performance. We believe excluding the non-recurring acquisition-related costs, and other costs provides investors with an alternative understanding our core business.

Below is a reconciliation of net income and diluted EPS, the nearest comparable GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP): 

For Fiscal Year Ended June 30,(Dollars in thousands, except per share amounts)202520242023Net income$432,908 $450,008 $307,165 FDIC Loan Purchase - Gain on purchase— (92,397)— FDIC Loan Purchase - Provision for credit losses— 4,648 — Acquisition-related costs 7,408 10,843 10,948 Other costs1(1,878)— 16,000 Income tax effect(1,627)22,446 (7,776)Adjusted earnings (Non-GAAP)436,811 395,548 326,337 Average dilutive common shares outstanding58,241,42158,725,63660,566,854Diluted EPS$7.43 $7.66 $5.07 FDIC Loan Purchase - Gain on purchase— (1.57)— FDIC Loan Purchase - Provision for credit losses— 0.08 — Acquisition-related costs0.13 0.18 0.18 Other costs1(0.03)— 0.27 Income tax effect$(0.03)$0.39 $(0.13)Adjusted EPS (Non-GAAP)$7.50 $6.74 $5.39 

1Other costs for the fiscal year