IDT (NYSE:IDT) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

IDT (NYSE:IDT) posted its quarterly earnings data on Wednesday. The utilities provider reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.05, FiscalAI reports. The company had revenue of $315.71 million for the quarter, compared to analysts’ expectations of $308.00 million. IDT had a net margin of 6.49% and a return on equity of 25.97%.

Here are the key takeaways from IDT’s conference call:

• IDT reported a solid quarter with consolidated revenue up 5% to $315.7 million, gross profit up 9% to $122.5 million, and record gross margin of 38.8%. Adjusted EBITDA rose 13% to $37.5 million, and management raised full-year FY2026 Adjusted EBITDA guidance to $150 million-$152 million.
• NRS continued strong momentum, with recurring revenue up 22% year over year and POS terminals topping 39,000 active units. Management said merchant services and SaaS fees are driving growth, while the business posted a Rule of 40 score of 50.
• net2phone showed improving profitability, with subscription revenue up 12%, total revenue up 11%, and operating income up 76%. The company highlighted traction in AI offerings, including a no-code integration layer, and said these products could become accretive growth drivers in fiscal 2027.
• BOSS Money / digital remittance accelerated, with digital transactions up 20% and digital send volume up 40% as the company gained share following a new federal remittance tax. Management also said May was off to a record start and that the digital channel carries materially higher margins than retail.
• IDT ended the quarter with $251 million in cash and cash equivalents, declared a $0.07 quarterly dividend, and repurchased about 84,000 shares for $4 million. Management reiterated it will keep returning cash while continuing to invest in growth and pursue selective tuck-in acquisitions like OnCore Digital.

IDT Stock Down 2.3%

Shares of IDT stock opened at $54.13 on Thursday. IDT has a 12-month low of $45.72 and a 12-month high of $71.12. The stock has a market cap of $1.36 billion, a P/E ratio of 16.60 and a beta of 0.68. The business’s 50 day moving average is $51.46 and its 200-day moving average is $50.50.

IDT Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Tuesday, June 9th will be paid a dividend of $0.07 per share. The ex-dividend date is Tuesday, June 9th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 0.5%. IDT’s dividend payout ratio is currently 8.59%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on IDT. Wall Street Zen lowered shares of IDT from a “strong-buy” rating to a “buy” rating in a report on Sunday, May 3rd. Weiss Ratings restated a “hold (c+)” rating on shares of IDT in a report on Friday, March 27th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat, IDT presently has a consensus rating of “Hold”.

Insider Activity

In other news, CFO Marcelo Fischer sold 5,000 shares of the business’s stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $50.50, for a total transaction of $252,500.00. Following the transaction, the chief financial officer directly owned 56,147 shares in the company, valued at $2,835,423.50. The trade was a 8.18% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Menachem Ash sold 20,000 shares of the business’s stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $51.00, for a total transaction of $1,020,000.00. Following the transaction, the executive vice president owned 32,243 shares in the company, valued at $1,644,393. This represents a 38.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 25.41% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of IDT. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in IDT by 4.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,156 shares of the utilities provider’s stock valued at $470,000 after purchasing an additional 381 shares during the period. Tudor Investment Corp ET AL increased its position in shares of IDT by 9.1% in the fourth quarter. Tudor Investment Corp ET AL now owns 16,274 shares of the utilities provider’s stock worth $833,000 after purchasing an additional 1,364 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of IDT in the third quarter worth $96,000. Gabelli Funds LLC bought a new position in shares of IDT in the second quarter worth $239,000. Finally, California State Teachers Retirement System increased its position in shares of IDT by 27.0% in the third quarter. California State Teachers Retirement System now owns 19,481 shares of the utilities provider’s stock worth $1,019,000 after purchasing an additional 4,136 shares during the period. 59.34% of the stock is currently owned by institutional investors and hedge funds.

About IDT

IDT Corporation, founded in 1990 and headquartered in Newark, New Jersey, is a diversified global provider of telecommunications and payment services. The company operates through its primary communications arm, IDT Telecom, and a digital solutions segment that encompasses cross-border money transfers and related fintech offerings. Since its inception, IDT has built an international network infrastructure to support voice and data transmission across more than 200 countries and territories.

Through IDT Telecom, the company offers a suite of voice communication products, including prepaid phone cards, VoIP services, SIP trunking and operator-assisted calling.