Company: AX
Filing Date: 2025-01-28
Form Type: 10-Q
Source: 0001299709-25-000011
Chunk: 69

Company: Axos Financial, Inc.
Filing Date: 2025-01-28
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 used by other companies and are not audited. Readers should be aware of these limitations and should be cautious as to their reliance on such measures. As noted below with respect to each measure, we believe the non-GAAP financial measures disclosed in this report enhance investors’ understanding of our business and performance, and our management uses these non-GAAP 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 other costs (unusual or non-recurring charges). Adjusted EPS, a non-GAAP financial measure, 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 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 of our core business.

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

For the Three Months Ended December 31, For the Six Months Ended December 31, (Dollars in thousands, except per share data)2024202320242023Net income$104,687 $151,771 $217,027 $234,416 FDIC Loan Purchase - Gain on purchase— (92,397)— (92,397)FDIC Loan Purchase - Provision for credit losses— 4,648 — 4,648 Acquisition-related costs 1,645 2,780 4,199 5,570 Income tax effect(503)25,650 (1,255)24,811 Adjusted earnings (Non-GAAP)$105,829 $92,452 $219,971 $177,048 Average dilutive common shares outstanding58,226,006 57,932,834 58,262,923 58,930,427 Diluted EPS$1.80 $2.62 $3.72 $3.98 FDIC Loan Purchase - Gain on purchase— (1.59)— (1.57)FDIC