IDT (NYSE:IDT) Releases Earnings Results, Misses Expectations By $0.04 EPS

IDT (NYSE:IDT) released its quarterly earnings data on Monday. The utilities provider reported $0.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.98 by ($0.04), FiscalAI reports. The firm had revenue of $338.98 million for the quarter, compared to analysts’ expectations of $319.00 million. IDT had a return on equity of 24.90% and a net margin of 6.67%.

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

• Fiscal 2026 was a record year, with revenue up 5%, Adjusted EBITDA up 17% to $154.6 million, and record gross profit and margins. Management guided for fiscal 2027 Adjusted EBITDA of $176 million–$180 million, representing approximately 15% growth at the midpoint.
• NRS delivered strong momentum, with fourth-quarter revenue up 31% and Adjusted EBITDA up 47%. Management plans to increase sales hiring and focus on higher-volume, more profitable retailers while expanding monetization through merchant services, advertising, data, and delivery integrations.
• BOSS Money’s digital channel continued to drive Fintech growth, with fourth-quarter digital transactions up 20%, revenue up 22%, and digital send volume up 38%. Digital transactions represented 88% of total volume, helping lift Fintech gross margin to 66% and supporting significant operating leverage.
• net2phone is expected to surpass $100 million in annual recurring revenue in the current quarter, supported by AI Agent, Coach AI, and workflow integrations. Subscription revenue rose 10% in the fourth quarter, while full-year Adjusted EBITDA increased 33% to $16.1 million.
• Traditional communications remains exposed to a continuing decline in BOSS Revolution Calling revenue, which management expects to fall by double digits in fiscal 2027. Although digital migration, cost reductions, and IDT Digital Payments are expected to offset much of the profit impact, the segment’s legacy communications businesses remain a structural headwind.

IDT Stock Performance

IDT opened at $75.72 on Wednesday. The business’s 50-day simple moving average is $67.74 and its 200-day simple moving average is $58.54. IDT has a one year low of $45.72 and a one year high of $77.28. The stock has a market capitalization of $1.88 billion, a P/E ratio of 21.82 and a beta of 0.62.

IDT Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Monday, October 5th will be issued a dividend of $0.07 per share. The ex-dividend date of this dividend is Monday, October 5th. This represents a $0.28 annualized dividend and a dividend yield of 0.4%. IDT’s dividend payout ratio (DPR) is presently 8.56%.

IDT News Roundup

Here are the key news stories impacting IDT this week:

• Positive Sentiment: Strong quarterly performance: Fourth-quarter revenue rose 7% year over year to $339.0 million, exceeding the approximately $319 million consensus estimate. Gross profit increased 18% to $134.8 million, operating income jumped 52% to $33.2 million, and adjusted EBITDA rose 22% to $41.2 million. IDT Corporation Reports Record Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Raised fiscal 2027 outlook: Management expects double-digit consolidated gross-profit growth and fiscal 2027 adjusted EBITDA of $176 million to $180 million, compared with $154.6 million in fiscal 2026. The forecast suggests continued profitability growth across each operating segment. IDT lifts FY 2027 guidance after record year
• Positive Sentiment: Digital businesses are gaining momentum: National Retail Solutions revenue increased 31% and adjusted EBITDA 47% in the quarter. Fintech revenue grew 12%, helped by a shift toward higher-margin digital transactions, while net2phone subscription revenue rose 10% and adjusted EBITDA increased 26% as AI products contributed to growth.
• Positive Sentiment: Balance-sheet flexibility: IDT ended the quarter with $271.9 million in unrestricted cash, investments and debt securities, no outstanding debt, and declared a $0.07 quarterly dividend. The company also repurchased approximately $2 million of shares during the quarter.
• Neutral Sentiment: Profitability exceeded expectations, but EPS was mixed: Adjusted diluted EPS was $0.94, below the $0.98 consensus estimate, despite revenue substantially exceeding expectations. The earnings call emphasized IDT’s ongoing transition toward digital, fintech and AI-enabled services. IDT Corporation Earnings Call Signals Strong Digital Shift
• Negative Sentiment: Cash-flow quality weakened: Adjusted operating cash flow, excluding customer-fund deposits, fell to $26.4 million in the fourth quarter from $37.1 million a year earlier and declined to $60.9 million for fiscal 2026 from $107.8 million.
• Negative Sentiment: Insider selling may weigh on sentiment: Disclosed trading activity showed 12 insider sales and no insider purchases over the past six months, though institutional buying and selling activity was relatively balanced.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of IDT in a report on Tuesday, September 22nd. One investment analyst has rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has a consensus rating of “Hold”.

IDT Company Profile

IDT Corporation is a telecommunications and financial technology company that provides communications, payment and business services to consumers, small businesses and retail customers. The company operates through brands and businesses focused on international calling, mobile top-ups, money transfers, cloud communications and retail technology.

Its BOSS Revolution platform offers international calling, prepaid wireless services, mobile recharging and international money transfers, primarily serving immigrant and international communities.