IDT Corporation (IDT) Q4 2026 Financial Results Summary
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IDT Corporation (IDT) Q4 2026: Record Growth Across Segments — Strongly Positive
IDT Corporation (NYSE: IDT) reported a record fourth quarter for fiscal year 2026, with revenue growing by $22.0 million or +7% year-over-year to $339.0 million. This growth was driven by significant increases in gross profit, income from operations, and adjusted EBITDA, indicating a robust performance across its key business segments.
Key Financial Metrics
- Revenue: $339.0 million (+7% YoY)
- Gross Profit: $134.8 million (+18% YoY)
- Income from Operations: $33.2 million (+52% YoY)
- Net Income Attributable to IDT: $21.7 million (+29% YoY)
- GAAP EPS: Increased to $0.87 from $0.67
- Non-GAAP EPS: Increased to $0.94 from $0.76
- Adjusted EBITDA: $41.2 million (+22% YoY)
Analyst Opinion
This quarter is a strong positive for shareholders, showcasing IDT's ability to drive growth across its segments, particularly in higher-margin areas like National Retail Solutions (NRS) and fintech. The substantial increases in income from operations and adjusted EBITDA reflect effective cost management and operational efficiency. The company’s strategic investments in technology and customer experience are paying off, as evidenced by the growth in digital transactions and customer satisfaction scores.
Segment Performance Highlights
- National Retail Solutions (NRS):
- Revenue: $45.0 million (+31% YoY)
- Income from Operations: $12.0 million (+105% YoY)
- Adjusted EBITDA: $14.0 million (+47% YoY)
- BOSS Money / Fintech Segment:
- BOSS Money Digital Revenue: $33.7 million (+22% YoY)
- Fintech Segment Revenue: $47.1 million (+12% YoY)
- Fintech Segment Income from Operations: $5.5 million (+15% YoY)
- net2phone:
- Subscription Revenue: $24.5 million (+10% YoY)
- Income from Operations: $2.6 million (+75% YoY)
- Adjusted EBITDA: $4.4 million (+26% YoY)
- Traditional Communications:
- Revenue: $222.0 million (+2% YoY)
- Income from Operations: $16.6 million (+8% YoY)
Capital Management and Shareholder Returns
IDT's 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. Additionally, the company repurchased 30,752 shares of its Class B common stock for approximately $2.0 million during the fourth quarter, totaling 421,938 shares repurchased for approximately $21.0 million in FY 2026. This demonstrates IDT's commitment to returning value to shareholders while maintaining a strong balance sheet with no outstanding debt.
Guidance and Future Catalysts
Looking ahead, IDT expects to continue its growth trajectory in FY 2027, projecting consolidated gross profit to grow by double digits, targeting a range of $545 million to $555 million. Adjusted EBITDA is expected to range from $176 million to $180 million, with contributions from all operating segments. Investors should watch for continued expansion in digital channels and the rollout of new fintech products, particularly as IDT leverages its technological advancements to capture market share in the growing digital payments space.
In summary, IDT Corporation's fourth quarter results reflect a strong operational performance and strategic positioning for future growth, making it an attractive prospect for investors looking for exposure in the fintech and communications sectors.
IDT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
Note: All amounts are in thousands.
| Year ended | July 31, 2026 | 2025 | 2024 |
|---|---|---|---|
| REVENUES | $ 1,297,960 | $ 1,231,495 | $ 1,205,778 |
| Direct cost of revenues | 801,172 | 785,300 | 815,621 |
| GROSS PROFIT | 496,788 | 446,195 | 390,157 |
| OPERATING EXPENSES: | |||
| Selling, general and administrative | 318,346 | 287,567 | 270,207 |
| Technology and development | 55,743 | 50,964 | 50,554 |
| Severance | 1,191 | 898 | 1,698 |
| Other operating expense, net | 343 | 6,342 | 2,945 |
| TOTAL OPERATING EXPENSES | 375,623 | 345,771 | 325,404 |
| Income from operations | 121,165 | 100,424 | 64,753 |
| Interest income, net | 6,567 | 6,127 | 4,769 |
| Other income (expense), net | 2,245 | (713) | (7,612) |
| Income before income taxes | 129,977 | 105,838 | 61,910 |
| (Provision for) benefit from income taxes | (34,883) | (24,699) | 6,354 |
| NET INCOME | 95,094 | 81,139 | 68,264 |
| Net income attributable to noncontrolling interests | (8,461) | (5,045) | (3,810) |
| NET INCOME ATTRIBUTABLE TO IDT CORPORATION | $ 86,633 | $ 76,094 | $ 64,454 |
| Earnings per share attributable to IDT Corporation common stockholders | |||
| Basic | $ 3.47 | $ 3.02 | $ 2.55 |
| Diluted | $ 3.46 | $ 3.01 | $ 2.54 |
| Weighted average shares used in calculation of earnings per share: | |||
| Basic | 24,995 | 25,188 | 25,241 |
| Diluted | 25,023 | 25,295 | 25,398 |
| (i) Stock-based compensation included in total operating expenses | $ 10,544 | $ 3,074 | $ 7,397 |
IDT CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
Note: All amounts are in thousands.
| July 31, 2026 | July 31, 2025 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 220,686 | $ 226,505 |
| Restricted cash and cash equivalents | 138,650 | 115,327 |
| Debt securities | 38,612 | 21,649 |
| Equity investments | 12,642 | 5,637 |
| Trade accounts receivable, net of allowance for credit losses of $6,938 and $9,097 at July 31, 2026 and 2025, respectively | 60,750 | 44,932 |
| Settlement assets, net of reserve of $1,535 and $1,367 at July 31, 2026 and 2025, respectively | 55,013 | 28,014 |
| Disbursement prefunding | 84,751 | 37,097 |
| Prepaid expenses | 13,395 | 12,440 |
| Other current assets | 30,867 | 28,702 |
| TOTAL CURRENT ASSETS | 655,366 | 520,303 |
| Property, plant, and equipment, net | 41,864 | 38,869 |
| Goodwill | 26,539 | 26,488 |
| Other intangibles, net | 8,762 | 5,056 |
| Equity investments | 6,068 | 6,658 |
| Operating lease right-of-use assets | 1,448 | 1,878 |
| Deferred income tax assets, net | 18,002 | 18,790 |
| Other assets | 6,208 | 8,161 |
| TOTAL ASSETS | $ 764,257 | $ 626,203 |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY | ||
| CURRENT LIABILITIES: | ||
| Trade accounts payable | $ 18,629 | $ 19,435 |
| Accrued expenses | 106,434 | 97,295 |
| Deferred revenue | 27,124 | 27,726 |
| Customer funds deposits | 147,654 | 114,708 |
| Settlement liabilities | 16,988 | 13,922 |
| Other current liabilities | 35,050 | 19,910 |
| TOTAL CURRENT LIABILITIES | 351,879 | 292,996 |
| Operating lease liabilities | 817 | 1,103 |
| Other liabilities | 3,609 | 1,688 |
| TOTAL LIABILITIES | 356,305 | 295,787 |
| Commitments and contingencies | ||
| Redeemable noncontrolling interest | 11,842 | 11,459 |
| EQUITY: | ||
| IDT Corporation stockholders’ equity: | ||
| Preferred stock, $.01 par value; authorized shares—10,000; no shares issued | — | — |
| Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2026 and 2025 | 33 | 33 |
| Class B common stock, $.01 par value; authorized shares—200,000; 28,569 and 28,528 shares issued and 23,264 and 23,656 shares outstanding at July 31, 2026 and 2025, respectively | 285 | 285 |
| Additional paid-in capital | 319,225 | 308,111 |
| Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 5,305 and 4,872 shares of Class B common stock at July 31, 2026 and 2025, respectively | (165,379) | (143,853) |
| Accumulated other comprehensive loss | (14,097) | (16,569) |
| Retained earnings | 237,253 | 157,124 |
| Total IDT Corporation stockholders’ equity | 377,320 | 305,131 |
| Noncontrolling interests | 18,790 | 13,826 |
| TOTAL EQUITY | 396,110 | 318,957 |
| TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY | $ 764,257 | $ 626,203 |
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