IDT (NYSE:IDT) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• IDT beat quarterly expectations, reporting adjusted EPS of $0.94 versus $0.89 expected and revenue of $315.7 million versus $308.0 million estimated.
• The company said consolidated revenue rose 5% and Adjusted EBITDA climbed 13% to $37.5 million, leading management to raise full-year FY2026 Adjusted EBITDA guidance to $150 million-$152 million.
• Growth was especially strong in NRS, net2phone, and BOSS Money, with management highlighting higher recurring revenue, improving profitability, and faster digital remittance volumes. IDT also ended the quarter with $251 million in cash and continued share repurchases and dividend payments.

IDT (NYSE:IDT - Get Free Report) issued its quarterly earnings results on Wednesday. The utilities provider reported $0.94 EPS for the quarter, beating the consensus estimate of $0.89 by $0.05, FiscalAI reports. The business had revenue of $315.71 million during the quarter, compared to the consensus estimate 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 Performance

IDT stock opened at $54.13 on Thursday. The firm has a market cap of $1.36 billion, a PE ratio of 16.60 and a beta of 0.68. The firm's 50 day moving average price is $51.46 and its two-hundred day moving average price is $50.50. IDT has a twelve month low of $45.72 and a twelve month high of $71.12.

IDT Announces Dividend

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

Insider Activity at IDT

In other news, EVP Menachem Ash sold 20,000 shares of the stock in a transaction on Tuesday, April 14th. The shares were 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 position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Marcelo Fischer sold 5,000 shares of the stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $50.50, for a total transaction of $252,500.00. Following the transaction, the chief financial officer owned 56,147 shares in the company, valued at approximately $2,835,423.50. This trade represents a 8.18% decrease in their position. The disclosure for this sale is available in the SEC filing. 25.41% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake 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 buying an additional 381 shares during the last quarter. Tudor Investment Corp ET AL boosted its holdings in IDT by 9.1% in the 4th quarter. Tudor Investment Corp ET AL now owns 16,274 shares of the utilities provider's stock valued at $833,000 after purchasing an additional 1,364 shares during the period. Public Employees Retirement System of Ohio bought a new stake in IDT in the 3rd quarter valued at $96,000. Gabelli Funds LLC bought a new stake in IDT in the 2nd quarter valued at $239,000. Finally, California State Teachers Retirement System boosted its holdings in IDT by 27.0% in the 3rd quarter. California State Teachers Retirement System now owns 19,481 shares of the utilities provider's stock valued at $1,019,000 after purchasing an additional 4,136 shares during the period. Institutional investors and hedge funds own 59.34% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Weiss Ratings restated a "hold (c+)" rating on shares of IDT in a research report on Friday, March 27th. Wall Street Zen lowered shares of IDT from a "strong-buy" rating to a "buy" rating in a research note on Sunday, May 3rd. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has an average rating of "Hold".

IDT Company Profile

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.

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