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IDT Q4 Earnings and Revenues Rise as Margins Expand on Strong Growth
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IDT Corporation (IDT - Free Report) reported fourth-quarter fiscal 2026 revenues of $339 million, up 7% year over year. GAAP earnings per share (EPS) increased 29.9% to 87 cents from 67 cents, while non-GAAP EPS rose 23.7% to 94 cents from 76 cents. Net income attributable to IDT increased 29% to $21.7 million, and adjusted EBITDA advanced 22% to $41.2 million.
Segment-wise, NRS revenues surged 31% to $45 million, while Fintech revenues increased 12% to $47.1 million. net2phone revenues rose 9% to $24.9 million, including a 10% increase in subscription revenues to $24.5 million. Traditional Communications revenues improved 2% to $222 million.
For fiscal 2026, IDT’s revenues increased 5.4% year over year to $1.29 billion, while gross profit rose 11.3% to $496.8 million and gross margin expanded 200 basis points to 38.3%. Net income attributable to IDT grew 13.8% to $86.6 million, with GAAP EPS increasing 14.9% to $3.46 from $3.01 and non-GAAP EPS rising 19.7% to $3.82 from $3.19.
Adjusted EBITDA advanced 17% to $154.6 million, supported by higher contributions from NRS, Fintech and net2phone.
IDT's Profitability and Cash Position Improve
Fourth-quarter fiscal 2026 gross profit increased 18% to $134.8 million, while gross margin expanded 360 basis points to 39.8%. Income from operations rose 52% to $33.2 million.
NRS generated adjusted EBITDA of $14 million, up 47%, while Fintech adjusted EBITDA increased 17% to $6.5 million. net2phone's adjusted EBITDA rose 26% to $4.4 million and Traditional Communications posted a 12% increase to $19.9 million.
IDT ended July with $271.9 million in unrestricted cash, cash equivalents, debt securities and current equity investments, up $20.5 million from April 30, and had no outstanding debt. Net cash provided by operating activities in fourth-quarter fiscal 2026 increased to $44.4 million from $31 million a year earlier. However, adjusted operating cash flow, excluding changes in Fintech customer deposits, declined to $26.4 million from $37.1 million.
IDT’s Management Commentary
Management attributed IDT’s improving financial profile primarily to the rising contribution from NRS, Fintech and net2phone, its higher-margin growth businesses. These three segments accounted for 53% of consolidated adjusted EBITDA before corporate overhead in fiscal 2026, up from 46% in fiscal 2025.
In fourth-quarter fiscal 2026, NRS benefited from higher Merchant Services & Other revenues and a rebound in Advertising and Data revenues. Merchant Services & Other revenues increased 31% to $28.5 million, while Advertising and Data revenues climbed 49% to $10.1 million. Average monthly gross profit per NRS location increased 22% to $383.
In Fintech, BOSS Money's digital transactions rose 20%, while digital revenues increased 22% to $33.7 million. Digital transactions represented 88.1% of total BOSS Money transactions, up from 83.3% a year earlier.
Factors Influencing IDT’s Results
The Fintech segment's gross margin expanded 650 basis points to 65.6% in fourth-quarter fiscal 2026, reflecting a greater mix of higher-margin digital remittances, larger average send amounts and improved payout terms. Management also noted that the federal tax on cash-funded remittances has accelerated the migration from retail transactions to digital channels.
At net2phone, profitability benefited from operating leverage and contributions from AI-powered offerings. The segment ended fourth-quarter fiscal 2026 with 447,000 seats, up 6%, while management said its AI tools are contributing to customer acquisition and sales activity.
IDT’s Outlook
For fiscal 2027, IDT expects consolidated gross profit of $545 million-$555 million, representing continued double-digit growth. Adjusted EBITDA is projected to be between $176 million and $180 million compared with $154.6 million in fiscal 2026, with management expecting each operating segment to contribute to the increase.
IDT’s Other Developments
On May 1, 2026, NRS acquired certain assets and liabilities of OnCore Digital and obtained an 80% controlling interest in the newly formed NRS OnCore. The aggregate purchase consideration was approximately $4.8 million, comprising $3.3 million in cash and $1.5 million of IDT Class B common stock. The deal is intended to combine OnCore's advertising technology, demand relationships and publisher network with NRS' retail screen network and first-party transaction data.
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IDT Q4 Earnings and Revenues Rise as Margins Expand on Strong Growth
IDT Corporation (IDT - Free Report) reported fourth-quarter fiscal 2026 revenues of $339 million, up 7% year over year. GAAP earnings per share (EPS) increased 29.9% to 87 cents from 67 cents, while non-GAAP EPS rose 23.7% to 94 cents from 76 cents. Net income attributable to IDT increased 29% to $21.7 million, and adjusted EBITDA advanced 22% to $41.2 million.
Segment-wise, NRS revenues surged 31% to $45 million, while Fintech revenues increased 12% to $47.1 million. net2phone revenues rose 9% to $24.9 million, including a 10% increase in subscription revenues to $24.5 million. Traditional Communications revenues improved 2% to $222 million.
For fiscal 2026, IDT’s revenues increased 5.4% year over year to $1.29 billion, while gross profit rose 11.3% to $496.8 million and gross margin expanded 200 basis points to 38.3%. Net income attributable to IDT grew 13.8% to $86.6 million, with GAAP EPS increasing 14.9% to $3.46 from $3.01 and non-GAAP EPS rising 19.7% to $3.82 from $3.19.
Adjusted EBITDA advanced 17% to $154.6 million, supported by higher contributions from NRS, Fintech and net2phone.
IDT's Profitability and Cash Position Improve
Fourth-quarter fiscal 2026 gross profit increased 18% to $134.8 million, while gross margin expanded 360 basis points to 39.8%. Income from operations rose 52% to $33.2 million.
NRS generated adjusted EBITDA of $14 million, up 47%, while Fintech adjusted EBITDA increased 17% to $6.5 million. net2phone's adjusted EBITDA rose 26% to $4.4 million and Traditional Communications posted a 12% increase to $19.9 million.
IDT ended July with $271.9 million in unrestricted cash, cash equivalents, debt securities and current equity investments, up $20.5 million from April 30, and had no outstanding debt. Net cash provided by operating activities in fourth-quarter fiscal 2026 increased to $44.4 million from $31 million a year earlier. However, adjusted operating cash flow, excluding changes in Fintech customer deposits, declined to $26.4 million from $37.1 million.
IDT’s Management Commentary
Management attributed IDT’s improving financial profile primarily to the rising contribution from NRS, Fintech and net2phone, its higher-margin growth businesses. These three segments accounted for 53% of consolidated adjusted EBITDA before corporate overhead in fiscal 2026, up from 46% in fiscal 2025.
In fourth-quarter fiscal 2026, NRS benefited from higher Merchant Services & Other revenues and a rebound in Advertising and Data revenues. Merchant Services & Other revenues increased 31% to $28.5 million, while Advertising and Data revenues climbed 49% to $10.1 million. Average monthly gross profit per NRS location increased 22% to $383.
In Fintech, BOSS Money's digital transactions rose 20%, while digital revenues increased 22% to $33.7 million. Digital transactions represented 88.1% of total BOSS Money transactions, up from 83.3% a year earlier.
Factors Influencing IDT’s Results
The Fintech segment's gross margin expanded 650 basis points to 65.6% in fourth-quarter fiscal 2026, reflecting a greater mix of higher-margin digital remittances, larger average send amounts and improved payout terms. Management also noted that the federal tax on cash-funded remittances has accelerated the migration from retail transactions to digital channels.
At net2phone, profitability benefited from operating leverage and contributions from AI-powered offerings. The segment ended fourth-quarter fiscal 2026 with 447,000 seats, up 6%, while management said its AI tools are contributing to customer acquisition and sales activity.
IDT’s Outlook
For fiscal 2027, IDT expects consolidated gross profit of $545 million-$555 million, representing continued double-digit growth. Adjusted EBITDA is projected to be between $176 million and $180 million compared with $154.6 million in fiscal 2026, with management expecting each operating segment to contribute to the increase.
IDT’s Other Developments
On May 1, 2026, NRS acquired certain assets and liabilities of OnCore Digital and obtained an 80% controlling interest in the newly formed NRS OnCore. The aggregate purchase consideration was approximately $4.8 million, comprising $3.3 million in cash and $1.5 million of IDT Class B common stock. The deal is intended to combine OnCore's advertising technology, demand relationships and publisher network with NRS' retail screen network and first-party transaction data.