IDT Corporation

For the third quarter ended April 30, 2026, IDT reported consolidated revenue of $315.7 million, up 5% year over year. Gross profit increased 9% to $122.5 million, and gross margin expanded 170 basis points to 38.8%, a record quarterly high. Income from operations rose 12% to $29.8 million, and adjusted EBITDA increased 13% to $37.5 million. On a segment basis, NRS recurring revenue grew 22% year over year; Net2phone subscription revenue rose 12% and total revenue rose 11%, with gross margin at 80.6%; and traditional communications adjusted EBITDA was essentially flat at $19.7 million, with SG&A down $2.6 million year over year. On the balance sheet, IDT ended the quarter with $251 million in cash, cash equivalents and current debt and equity securities (excluding restricted cash), repurchased about 84,000 shares for $4 million, and declared a quarterly cash dividend of $0.07 per share. Management raised full-year FY26 consolidated adjusted EBITDA guidance to $150 million-$152 million, from $147 million-$149 million previously, which they said implies 15% growth at the midpoint versus FY25 adjusted EBITDA of $131.7 million.

Samuel Jonas emphasized that the quarter reflected the expanding contribution of IDT’s three higher-margin businesses, plus steady cash generation from traditional communications. He highlighted NRS’s growth, a stronger digital remittance business, continued traction in Net2phone AI offerings, and the company’s integration of machine learning and AI across operations. His tone was upbeat and proud, framing the company’s 30-year public-company history as evidence that IDT has stayed relevant and innovative.

Marcelo Fischer focused on the rotation toward higher-margin segments, saying the three growth businesses contributed $107 million of revenue, about 34% of consolidated revenue, up from 30% a year ago, and 55% of consolidated adjusted EBITDA versus 29% last year. He reiterated that gross profit hit a record $122.5 million and gross margin reached 38.8%, and he noted the company ended with $251 million in cash, cash equivalents and current debt and equity securities excluding restricted cash. He also pointed to capital returns and liquidity, including the $0.07 quarterly dividend and the repurchase of about 84,000 shares for $4 million, while reiterating confidence that free cash flow and a debt-free balance sheet support both investment and shareholder returns.

Analysts focused on NRS’s first terminal in Colombia, the OnCore Digital acquisition, potential monetization or spin-off of Net2phone, competition in NRS, BOSS Money margins, and the pace of buybacks. Management said Colombia was chosen because partners suggested it and they saw it as a sensible expansion test; OnCore was described as a small tuck-in, 80% controlling stake, valued at about $6 million, and expected to help monetize screen inventory and be accretive. On Net2phone, management said they were not ready to answer a spin-off question but felt it was becoming more appealing and said AI features were gaining traction; on competition, they acknowledged more pressure in NRS and new sign-ups being affected, but said the business remains purpose-built and should keep improving through product focus. For BOSS Money, management said the digital channel is higher margin than retail, the business is gaining share, and they expect margin expansion as the year goes by.