IDT Corporation

IDT reported Q4 revenue up 7% year over year and full-year revenue up 5%. Consolidated gross profit and gross margin reached record quarterly and full-year levels, and fiscal 2026 adjusted EBITDA rose 17% to $154.6 million, above prior guidance of $150 million to $152 million. NRS Q4 revenue increased 31% to $45 million, with Merchant Services revenue up 31% to $28.5 million and advertising and data revenue up 49% to $10 million; NRS adjusted EBITDA increased 47% and its adjusted EBITDA margin was 31%. Fintech revenue grew 14% to $176 million for the year, while net2phone full-year subscription revenue grew 10% to $94.6 million. Traditional Communications full-year gross profit was $163 million, down 4%, and adjusted EBITDA increased 1% to $77 million. For fiscal 2027, management guided to consolidated gross profit of $545 million to $555 million and adjusted EBITDA of $176 million to $180 million.

Shmuel Jonas framed the quarter as the capstone to a strong year and emphasized that IDT’s growth is increasingly coming from its higher-margin businesses. He highlighted product expansion at NRS, the rapid shift of BOSS Money toward digital, and AI-led momentum at net2phone, saying those initiatives are opening up new revenue and efficiency opportunities. His tone was upbeat and confident, with repeated references to momentum, strategic flexibility, and a debt-free balance sheet.

Marcelo Fischer said fiscal 2026 was the best year in IDT’s operating history, with record quarterly and full-year gross profit, gross margin and adjusted EBITDA. He pointed to the mix shift toward NRS, Fintech and net2phone, which contributed 53% of consolidated adjusted EBITDA versus 46% in fiscal 2025 while generating only one-third of revenue. He also noted $272 million in unrestricted cash and liquid investments, no debt, and about 422,000 shares repurchased for $21 million during fiscal 2026. For fiscal 2027, he guided to gross profit of $545 million to $555 million and adjusted EBITDA of $176 million to $180 million, assuming continued growth in each operating segment.

Analysts focused on what is driving next-year EBITDA growth by segment, and management said NRS should continue to grow revenue around the 20% to 25% range while EBITDA grows at a higher rate, Fintech should benefit from scale and process efficiencies, net2phone will likely show only modest EBITDA growth as it reinvests in AI, and Traditional Communications should remain a positive EBITDA contributor. Questions also centered on net2phone’s AI traction, where Shmuel Jonas said roughly 70%-plus of communications are being handled by AI in some way at IDT, calling it a major efficiency driver. On NRS, management said store selection is increasingly focused on higher-volume, higher-value locations and that new stores are often attracted by the breadth and pricing of services rather than replacing a weak POS system. On BOSS Money, management said the remittance tax and digital migration are helping the business, and Fischer cited Mexico as an example where share rose from a little less than 2% to a little less than 3%.