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Sep 28, 2026, 4:31 PM ETCommunication Services

IDT Corporation — Fiscal Year 2026 Earnings Summary

IDTIDT CORP
Source

Financial Performance

  • Consolidated revenue for the fourth quarter of fiscal 2026 (4Q26) increased 7% year-over-year to $339.0 million; full-year fiscal 2026 revenue grew 5% to $1,298.0 million.
  • 4Q26 gross profit rose 18% to $134.8 million with a margin expansion of 360 basis points to 39.8%; full-year 2026 gross profit increased 11% to $496.8 million with a margin expansion of 200 basis points to 38.3%.
  • 4Q26 income from operations surged 52% to $33.2 million; full-year 2026 income from operations grew 21% to $121.2 million.
  • Net income attributable to IDT increased 29% to $21.7 million in 4Q26 and 14% to $86.6 million for full-year 2026.
  • GAAP diluted EPS increased to $0.87 in 4Q26 (from $0.67) and $3.46 for full-year 2026 (from $3.01).
  • Non-GAAP diluted EPS increased to $0.94 in 4Q26 (from $0.76) and $3.82 for full-year 2026 (from $3.19).
  • Adjusted EBITDA increased 22% to $41.2 million in 4Q26 and 17% to $154.6 million for full-year 2026.
  • Net cash provided by operating activities was $44.4 million in 4Q26 (up from $31.0 million) and $91.1 million for full-year 2026 (down from $127.1 million).
  • Adjusted net cash provided by operating activities (excluding changes in customer funds deposits) was $26.4 million in 4Q26 (down from $37.1 million) and $60.9 million for full-year 2026 (down from $107.8 million).
  • Capital expenditures were $6.0 million in 4Q26 (up from $5.3 million) and $23.1 million for full-year 2026 (up from $20.8 million).
  • The company held $271.9 million in unrestricted cash, cash equivalents, debt securities, and current equity investments as of July 31, 2026, with no outstanding debt.
  • Deferred revenue was $27.1 million as of July 31, 2026, compared to $27.7 million in the prior year period.

Guidance and Future Outlook

  • For fiscal 2027, IDT expects consolidated gross profit to grow by double digits to a range of $545 million to $555 million.
  • Fiscal 2027 Adjusted EBITDA is expected to range from $176 million to $180 million, with growth contributed by each operating segment.
  • net2phone is on track to surpass the $100 million Annual Recurring Revenue (ARR) milestone in the current quarter (4Q26) and expects continued topline expansion throughout fiscal 2027.
  • NRS is working on product initiatives to increase sales to existing retailers and attract new retailers to its network.

Business Segments and Product Lines

  • National Retail Solutions (NRS): 4Q26 revenue grew 31% to $45.0 million; full-year 2026 revenue grew 24% to $159.4 million. 4Q26 income from operations increased 105% to $12.0 million; full-year 2026 increased 42% to $39.3 million. 4Q26 Adjusted EBITDA rose 47% to $14.0 million; full-year 2026 rose 30% to $45.8 million. Retailer locations reached 35,400 at period end. Advertising and Data revenue returned to growth in 4Q26.
  • BOSS Money / Fintech Segment: 4Q26 Fintech segment revenue grew 12% to $47.1 million; full-year 2026 grew 14% to $176.0 million. BOSS Money digital revenue increased 22% in 4Q26 to $33.7 million and 21% for full-year 2026 to $119.4 million. 4Q26 Fintech Adjusted EBITDA rose 17% to $6.5 million; full-year 2026 rose 41% to $26.2 million. Remittances surpassed a 30 million annual transaction run-rate in May 2026. Digital channel transactions accounted for 88.1% of total volume in 4Q26.
  • net2phone: 4Q26 subscription revenue grew 10% to $24.5 million; full-year 2026 grew 11% to $94.9 million. 4Q26 income from operations increased 75% to $2.6 million; full-year 2026 increased 84% to $9.1 million. 4Q26 Adjusted EBITDA rose 26% to $4.4 million; full-year 2026 rose 33% to $16.1 million. Seats increased 6% to 447,000 in 4Q26.
  • Traditional Communications: 4Q26 revenue grew 2% to $222.0 million; full-year 2026 grew 1% to $865.9 million. 4Q26 Adjusted EBITDA increased 12% to $19.9 million; full-year 2026 increased 1% to $77.3 million. IDT Digital Payments launched an eSIM digital catalog targeting the travel data roaming market.

Market and Competitive Landscape

  • NRS achieved a 'Rule of 40' score of 60 in 4Q26, driven by revenue growth and Adjusted EBITDA margin.
  • The BOSS Money app received the highest average customer satisfaction score among leading digital money transfer providers in the U.S. and U.K. markets for 2026.
  • The migration of consumers to digital channels was accelerated by a federal tax on remittances imposed on retail transactions starting January 1, 2026.
  • net2phone's AI-powered solutions, including AI Agent and Coach, are driving new customer logos and sales.

Risks and Challenges

  • Adjusted net cash provided by operating activities decreased in FY 2026 primarily due to timing of working capital movements associated with settlement assets and disbursement prefunding at BOSS Money.
  • Corporate Adjusted EBITDA declined to ($3.5) million in 4Q26 from ($2.5) million in 4Q25, and to ($10.8) million for FY 2026 from ($10.7) million in FY 2025.
  • Traditional Communications segment gross profit margin decreased 80 basis points for full-year 2026.
  • The release notes that actual results may differ from forward-looking statements due to numerous factors detailed in SEC filings.

Management Commentary and Tone

  • CEO Shmuel Jonas described the fourth quarter as capping off a strong fiscal year with accelerated topline and Adjusted EBITDA growth.
  • Management highlighted that the three higher-margin growth segments (NRS, Fintech, and net2phone) increased their contributions, while Traditional Communications generated more Adjusted EBITDA in FY 2026 than in FY 2025 or 2024.
  • Management expressed confidence in the company's position with accelerating topline growth, increasing cash generation, and a debt-free balance sheet providing strategic flexibility.
  • Remarks noted that BOSS Money's digital channel send volume increased 38% year-over-year in 4Q26.

Other Key Points

  • IDT repurchased 30,752 shares of Class B common stock in 4Q26 for approximately $2.0 million; total FY 2026 repurchases were 421,938 shares for approximately $21.0 million.
  • The Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on October 14, 2026, to stockholders of record as of October 5, 2026.
  • NRS launched an integration with Uber Eats following previous partnerships with Grubhub and DoorDash.
  • BOSS Money launched money transfers via WhatsApp and deployed a digital wallet in the U.S. enabling fund loading, promotion storage, and service payments.
  • net2phone introduced an integration layer in 4Q26 allowing seamless connection with customer CRM and communications platforms without custom coding.
  • IDT Global revenue grew 10% for full-year 2026 to $231.5 million.
  • BOSS Revolution revenue decreased 15% for full-year 2026 to $180.3 million.