IDT Corporation Reports Record Fourth Quarter and Fiscal Year 2026 Results
IDT CORP (IDT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 IDT Corporation Reports Record Fourth Quarter and Fiscal Year 2026 Results Record fourth quarter Gross Profit +18% ; Income from Operations +52% ; Adjusted EBITDA * +22% FY 2026 Income from Operations of $121M (+21%); Adjusted EBITDA of $155M (+17%) NEWARK, NJ — Sept
How this was made
The 30-second read
Why it matters
The earnings release shows double‑digit growth in adjusted EBITDA and a solid increase in net income, indicating strong operational performance.
Market read
The fresh earnings data offers a clear trading catalyst for IDT and may influence related fintech stocks.
What to watch
Potential headwinds from rising competition in AI‑driven communications and regulatory scrutiny of fintech services.
Record fourth quarter gross profit increased 18%, income from operations increased 52%, and Adjusted EBITDA increased 22%; FY 2026 income from operations was $121M and Adjusted EBITDA was $155M.
Fourth-quarter revenue, gross profit, operating income, net income attributable to IDT, GAAP EPS, Non-GAAP EPS and Adjusted EBITDA all increased year over year. NRS, Fintech and net2phone expanded revenue and profitability, while FY 2027 guidance calls for double-digit consolidated gross-profit growth and Adjusted EBITDA of $176 million to $180 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 4Q26 revenueGAAP | $339M | – | +7% |
| 4Q26 gross profitGAAP | $134.8M | – | +18% |
| 4Q26 gross profit marginGAAP | 39.8% | – | +360 bps |
| 4Q26 income from operationsGAAP | $33.2M | – | +52% |
| 4Q26 net income attributable to IDT CorporationGAAP | $21.7M | – | +29% |
| 4Q26 diluted EPSGAAP | $0.87 | – | Increased to $0.87 from $0.67 |
| 4Q26 Non-GAAP diluted EPSnon-GAAP | $0.94 | – | Increased to $0.94 from $0.76 |
| 4Q26 Adjusted EBITDAnon-GAAP | $41.2M | – | +22% |
| FY 2026 revenueGAAP | $1.30B | – | +5% |
| FY 2026 gross profitGAAP | $496.8M | – | +11% |
| FY 2026 gross profit marginGAAP | 38.3% | – | +200 bps |
| FY 2026 income from operationsGAAP | $121.2M | – | +21% |
| FY 2026 net income attributable to IDT CorporationGAAP | $86.6M | – | +14% |
| FY 2026 diluted EPSGAAP | $3.46 | – | Increased to $3.46 from $3.01 |
| FY 2026 Non-GAAP diluted EPSnon-GAAP | $3.82 | – | Increased to $3.82 from $3.19 |
| FY 2026 Adjusted EBITDAnon-GAAP | $154.6M | – | +17% |
| 4Q26 net cash provided by operating activitiesGAAP | $44.4M | – | increased to $44.4 million from $31.0 million |
| 4Q26 adjusted net cash provided by operating activitiesnon-GAAP | $26.4M | – | decreased to $26.4 million from $37.1 million |
| FY 2026 net cash provided by operating activitiesGAAP | $91.1M | – | decreased to $91.1 million from $127.1 million |
| FY 2026 adjusted net cash provided by operating activitiesnon-GAAP | $60.9M | – | decreased to $60.9 million from $107.8 million |
| 4Q26 capital expendituresGAAP | $6M | – | increased to $6.0 million from $5.3 million |
| FY 2026 capital expendituresGAAP | $23.1M | – | increased to $23.1 million from $20.8 million |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| National Retail Solutions (NRS), 4Q26Merchant Services & Other revenue increased +31% to $28.5 million and Advertising and Data revenue increased +49% to $10.1 million. | $45M | – | +31% |
| National Retail Solutions (NRS), FY 2026Merchant Services & Other revenue increased +33% to $102.0 million; NRS Adjusted EBITDA increased +30% to $45.8 million. | $159.4M | – | +24% |
| BOSS Money and Fintech, 4Q26Digital-channel BOSS Money revenue increased +22% to $33.7 million, while retail-channel revenue decreased (17)% to $8.7 million. | $47.1M | – | +12% |
| BOSS Money and Fintech, FY 2026Digital-channel BOSS Money revenue increased +21% to $119.4 million and Fintech Adjusted EBITDA increased +41% to $26.2 million. | $176M | – | +14% |
| net2phone, 4Q26Subscription revenue increased +10% to $24.5 million; seats increased +6% to 447. | $24.9M | – | +9% |
| net2phone, FY 2026Subscription revenue increased +11% to $94.9 million and Adjusted EBITDA increased +33% to $16.1 million. | $96.6M | – | +10% |
| Traditional Communications, 4Q26IDT Digital Payments revenue increased +6% to $113.9 million, while BOSS Revolution revenue decreased (10)% to $44.2 million. | $222M | – | +2% |
| Traditional Communications, FY 2026IDT Global revenue increased +10% to $231.5 million, while BOSS Revolution revenue decreased (15)% to $180.3 million. | $865.9M | – | +1% |
FY 2027 outlook
- NoteConsolidated gross profit: $545 million to $555 million
- NoteAdjusted EBITDA: $176 million to $180 million
Capital returns
- IDT repurchased 30,752 shares of its Class B common stock through open market transactions during 4Q26 for approximately $2.0 million.
- Open market repurchases during FY 2026 totaled 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.
- Dividends paid were $6,504 in FY 2026, compared with $5,550 in FY 2025.
What drove it
- NRS fourth-quarter gross profit increased +40% to $42.6 million and gross profit margin increased +580 bps to 94.8%.
- NRS average monthly GP per location increased +22% to $383 in 4Q26 from $315 in 4Q25, primarily reflecting growth in NRS Pay.
- BOSS Money digital transactions increased +20% to 6.6 million and digital channel represented 88.1% of total transactions in 4Q26.
- Fintech gross profit margin increased +650 bps to 65.6% in 4Q26, primarily reflecting rotation to higher-margin digital transactions, increased average send amounts, and more favorable payout terms.
- net2phone subscription revenue increased +10% in 4Q26 and +11% in FY 2026, with constant-currency growth of +7% and +8%, respectively.
- Traditional Communications FY 2026 Adjusted EBITDA increased +1% to $77.3 million for the second consecutive year.
Concerns
- Traditional Communications FY 2026 gross profit decreased (4)% to $162.6 million, gross profit margin decreased (80) bps to 18.8%, and income from operations decreased (5)% to $63.4 million.
- BOSS Money retail-channel transactions decreased (20)% to 0.9 million in 4Q26 and retail-channel revenue decreased (17)% to $8.7 million.
- BOSS Revolution revenue decreased (10)% to $44.2 million in 4Q26 and decreased (15)% to $180.3 million in FY 2026.
- FY 2026 adjusted net cash provided by operating activities decreased to $60.9 million from $107.8 million, primarily due to the 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 in FY 2026 from ($10.7) million in FY 2025.
What to watch
- Delivery against FY 2027 consolidated gross-profit guidance of $545 million to $555 million and Adjusted EBITDA guidance of $176 million to $180 million.
- NRS merchant-services growth, Advertising and Data revenue, retailer locations, and average monthly GP per location.
- The pace of digital-channel mix expansion at BOSS Money and its impact on Fintech gross profit margin.
- net2phone's progress toward surpassing the $100 million ARR milestone in the current quarter.
- Traditional Communications gross profit and operating-income trends, particularly BOSS Revolution revenue.
Balance sheet and cash flow
- As of July 31, 2026, IDT held $271.9 million in unrestricted cash, cash equivalents, debt securities, and current equity investments, an increase of $20.5 million from April 30, 2026.
- Cash and cash equivalents were $220,686 at July 31, 2026, compared with $226,505 at July 31, 2025.
- Total current assets were $655.4 million and total current liabilities were $351.9 million at July 31, 2026.
- The Company had no outstanding debt at the quarter end.
- FY 2026 net cash provided by operating activities was $91.1 million, compared with $127.1 million in FY 2025.
- FY 2026 capital expenditures were $23.1 million, compared with $20.8 million in FY 2025.
Analysis
IDT closed FY 2026 with accelerating fourth-quarter profitability. Fourth-quarter revenue increased +7% to $339.0 million, while gross profit increased +18% to $134.8 million and gross margin increased +360 bps to 39.8%. Income from operations increased +52% to $33.2 million, net income attributable to IDT increased +29% to $21.7 million, and Adjusted EBITDA increased +22% to $41.2 million. FY 2026 revenue increased +5% to $1,298.0 million, with gross profit up +11% to $496.8 million and income from operations up +21% to $121.2 million.
The higher-margin growth businesses drove the result. NRS fourth-quarter revenue increased +31% to $45.0 million, gross profit increased +40% to $42.6 million, and Adjusted EBITDA increased +47% to $14.0 million. Merchant Services and Advertising and Data led NRS growth, while average monthly GP per location increased +22% to $383. Fintech fourth-quarter revenue rose +12% to $47.1 million and Adjusted EBITDA rose +17% to $6.5 million as BOSS Money's digital revenue increased +22% to $33.7 million. The digital channel represented 88.1% of total BOSS Money transaction volume, supporting a +650 bps expansion in Fintech gross profit margin.
net2phone added another growth and margin contribution. Fourth-quarter subscription revenue increased +10% to $24.5 million, seats increased +6% to 447, income from operations increased +75% to $2.6 million, and Adjusted EBITDA increased +26% to $4.4 million. The company attributed profitability growth to operating leverage and incremental contributions from AI-powered offerings. It also said net2phone is on track to surpass the $100 million ARR milestone in the current quarter.
Traditional Communications remained a large revenue contributor but presented the main offset to the growth segments. Fourth-quarter revenue increased +2% to $222.0 million and Adjusted EBITDA increased +12% to $19.9 million, but FY 2026 gross profit decreased (4)% to $162.6 million, operating income decreased (5)% to $63.4 million, and BOSS Revolution FY revenue decreased (15)% to $180.3 million. The segment nevertheless increased FY Adjusted EBITDA +1% to $77.3 million, which management described as its second consecutive year of increased Adjusted EBITDA.
Cash generation was mixed. Fourth-quarter GAAP operating cash flow increased to $44.4 million from $31.0 million, but adjusted operating cash flow decreased to $26.4 million from $37.1 million. FY 2026 GAAP operating cash flow decreased to $91.1 million from $127.1 million and adjusted operating cash flow decreased to $60.9 million from $107.8 million, primarily from settlement-asset and disbursement-prefunding working-capital movements at BOSS Money. IDT ended July 31, 2026 with $271.9 million in unrestricted cash, cash equivalents, debt securities, and current equity investments and no outstanding debt. It repurchased approximately $21.0 million of Class B common stock in FY 2026 and declared a $0.07 per-share quarterly dividend.
FY 2027 guidance calls for consolidated gross profit of $545 million to $555 million and Adjusted EBITDA of $176 million to $180 million. Management expects each operating segment to contribute to Adjusted EBITDA growth. The guide places emphasis on continued NRS, Fintech and net2phone expansion alongside the durability of Traditional Communications cash generation.
Management, verbatim
IDT’s fourth quarter capped off a strong fiscal year, highlighted by accelerated topline and Adjusted EBITDA growth.
Shmuel Jonas, CEO
At BOSS Money, remittances surpassed a 30 million annual transaction run-rate for the first time in May, thanks to strong Mother's Day results in our digital channel.
Shmuel Jonas, CEO
Overall, IDT is well positioned as we begin the new fiscal year with accelerating topline growth, increasing cash generation, and a debt-free balance sheet that affords us strategic flexibility.
Shmuel Jonas, CEO
Not in the filing
stated, not guessed- FY 2027 revenue guidance
- FY 2027 gross-margin guidance
- FY 2027 operating-expense guidance
- FY 2027 tax-rate guidance
- Free cash flow
- Quarterly operating-expense line items
- Quarterly consolidated cash and debt comparison to the prior-year quarter
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
IDT Corp is a global provider of fintech, communications, and AI‑powered customer experience solutions, listed on NYSE under ticker IDT.
Ticker impact
IDT Corp filed its 8‑K reporting record Q4 and FY 2026 results with revenue up 7% YoY and GAAP EPS rising to $0.87.
likely upside as the market prices in the earnings beat and improved profitability.
The filing provides fresh, material financial data that were not public before, indicating accelerating growth across all segments.
Market effects
Fintech and communications sectors may see a lift as IDT's growth validates demand for AI‑powered customer experience solutions.
U.S. small‑cap tech stocks could benefit from the positive earnings surprise.
Limited to investors tracking U.S. fintech and telecom equities.
Counterpoint
If the market has already priced in the earnings beat, the stock could face short‑cover pull‑back.
Key entities
- CEOShmuel Jonas
Provided commentary on the results and future outlook.
