Axos Financial Inc., the holding company for Axos Bank, Axos Clearing LLC, and Axos Invest, Inc., announced a significant accounting adjustment due to changes in California's fiscal year 2026 budget. The new legislation alters the apportionment of multi-state income for financial institutions, prompting Axos to remeasure its deferred tax assets and liabilities. This remeasurement has resulted in a one-time non-cash impairment totaling approximately $4 million, which the company plans to recognize in the fourth quarter of fiscal year 2025. As a result of this legislative change, Axos anticipates a reduction in its effective tax rate by about 3% for fiscal years ending June 30, 2026, and beyond.
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