10-Q · June 9, 2026
IDT Corporation's Q3 2026 results show a positive trajectory with revenue of $315.7 million, up 4.6% from the prior quarter and exceeding estimates. Diluted EPS also improved to $0.94, surpassing analyst expectations,…
Earnings analysis · 10-K
IDT earnings analysis
Filed September 29, 2026 · Our reading of the company's report
The latest report
IDT delivered strong fiscal 2026 operating momentum, with revenue up 5.4%, operating income up 20.7% to $121.2 million, and diluted EPS rising to $3.46. Growth is increasingly concentrated in higher-margin NRS, Fintech…
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IDT delivered strong fiscal 2026 operating momentum, with revenue up 5.4%, operating income up 20.7% to $121.2 million, and diluted EPS rising to $3.46. Growth is increasingly concentrated in higher-margin NRS, Fintech and net2phone businesses, whose combined revenue share rose to 33.3% from 30.2% two years earlier, while Traditional Communications remains profitable but structurally pressured by BOSS Revolution declines. The principal offsets are weaker operating cash conversion, continued legacy-communications erosion, and newly elevated execution risks around AI, immigration policy and the OnCore acquisition.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.46
What stood out
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Revenue and margins continued to expand
Fiscal 2026 revenue increased to $1,298.0 million from $1,231.5 million in fiscal 2025 and $1,205.8 million in fiscal 2024. Gross margin expanded to 38.3% from 36.2% and 32.4%, while operating margin increased to 9.3% from 8.2% and 5.4%.
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Three-year EPS growth accelerated
Net income attributable to IDT rose to $86.6 million from $76.1 million in fiscal 2025 and $64.5 million in fiscal 2024; diluted EPS increased to $3.46 from $3.01 and $2.54.
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NRS scaled its recurring platform
NRS was the fastest-growing segment: revenue rose 23.8% to $159.4 million, operating income increased 41.6% to $39.3 million, active POS terminals reached 40.4 thousand, and payment-processing accounts reached 29.4 thousand.
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Digital fintech mix improved margins
Fintech revenue increased 13.8% to $176.0 million and operating income rose 39.5% to $21.5 million. Gross margin improved to 62.3% from 58.7%, driven by growth in higher-margin digital BOSS Money transactions.
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AI communications roadmap gained traction
net2phone revenue grew 10.0% to $96.6 million and operating income increased 83.9% to $9.1 million. The company launched net2phone AI Agent and Coach during fiscal 2026, while higher-margin CCaaS growth supported a gross margin increase to 80.6%.
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Buybacks, dividends and targeted M&A
Capital returns increased: IDT repurchased 421,938 Class B shares for $21.0 million versus $10.1 million in fiscal 2025, paid $6.5 million in dividends, and increased the quarterly dividend to $0.07 per share in May 2026. It also acquired an 80% interest in OnCore Digital for approximately $4.9 million of total acquisition-date consideration.
What to watch
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AI execution and regulatory risk increased
AI became an increasingly significant component of the growth strategy, but the filing states that demand for net2phone AI Agent and Coach remains uncertain. AI-related development can also increase energy costs, while reliance on third-party models, APIs, datasets and cloud providers creates exposure to outages, cost volatility and licensing changes.
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Immigration policy threatens core demand
The filing newly highlights materially increased U.S. immigration enforcement beginning in 2025, including termination of Temporary Protected Status for nationals of numerous countries, curtailed admission programs and reduced southern-border entries. Management warns that a smaller or less economically active immigrant population could reduce BOSS Money transaction volumes, revenue and profitability.
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OnCore integration and advertising risk
NRS acquired an 80% controlling interest in OnCore Digital during fiscal 2026 for approximately $4.9 million of acquisition-date consideration, including $3.3 million in cash and $1.5 million in IDT stock. The company must integrate OnCore's advertising technology, demand relationships and publisher network, but warns that expected revenue, margin and strategic benefits may not materialize.
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Remittance growth consumes working capital
Operating cash flow declined to $91.1 million from $127.1 million in fiscal 2025, primarily as settlement assets and disbursement prefunding increased by $75.1 million. BOSS Money's weekly prefunding cycle is a significant working-capital use and can materially affect reported cash balances.
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Legacy calling business continues to erode
Traditional Communications remains 66.7% of consolidated revenue, but BOSS Revolution revenue fell 14.6% to $180.3 million and minutes of use declined 24.1% to 1,303 million. Management attributes the decline to unlimited calling plans and free over-the-top voice and messaging services.
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Investment and contingent funding exposure
At July 31, 2026, cash, cash equivalents, debt securities and current equity investments totaled $271.9 million, including $57.3 million of debt and equity securities subject to market volatility. The company also had $2.2 million of principal outstanding under MarketSpark lending arrangements and a potential NRS redemption obligation of up to $10 million.
Management's outlook
The 10-K does not provide annual revenue or EPS guidance. Management anticipates fiscal 2027 capital expenditures of $22.5 million to $23.5 million. The FY2027 gross-profit and Adjusted EBITDA outlook was provided in the accompanying earnings release rather than this filing.
Earlier filings 4
10-Q · March 12, 2026
IDT's Q2 2026 results showed robust performance with revenue of $320.5 million, surpassing estimates by 6.1%, and EPS of $1.00, beating expectations by 11.1%. The segments of NRS and net2phone exhibited strong growth,…
10-Q · December 10, 2025
IDT Corporation reported strong Q1 2026 results, with revenues increasing by 2.0% quarter-over-quarter to $322.8 million and EPS growth to $0.94, surpassing estimates by 6.8%. The firm’s revenue growth was driven by…
10-K · September 29, 2025
IDT Corporation's 10-K report for the fiscal year ending July 31, 2025, shows a strong performance with a notable revenue increase to $1.231 billion, driven primarily by growth in the Fintech and NRS segments, despite…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.