IDT (IDT) Financials

IDT’s recent results show improving revenue, margins and operating cash flow. In Q4 2026, revenue rose to $339.0 million, up 7.4% from Q3 2026 and 7.1% from Q4 2025. Gross profit increased to $134.8 million, producing a gross margin of approximately 39.8%, while operating income climbed to $33.2 million, or roughly 9.8% of revenue.

Profitability has improved materially over the longer-term period provided. Quarterly revenue increased from approximately $299.3 million in Q3 2023 to $339.0 million in Q4 2026. Over the same comparison, operating income rose from $10.4 million to $33.2 million. However, Q4 2026 diluted EPS of $0.86 was slightly below the $0.89 reported in Q1 2026, reflecting a higher tax expense and noncontrolling interests despite stronger operating income.

Cash generation recovered strongly during the latest quarter. Operating cash flow increased to $44.4 million in Q4 2026 from $18.5 million in Q3 and $31.0 million in Q4 2025. The improvement was supported by a $12.1 million benefit from changes in operating assets and liabilities. For the four quarters of fiscal 2026 supplied, operating cash flow totaled approximately $91.1 million, although quarterly working-capital swings make the trend uneven.

IDT also maintained a liquid balance sheet. As of April 30, 2026, the company had $215.0 million of cash, $128.4 million of restricted cash and $36.5 million of short-term investments. Total current assets of $592.7 million compared with current liabilities of $308.0 million, implying a current ratio of approximately 1.9. Total assets and common equity also increased from the prior year’s comparable period, although the company carries significant customer deposits and accrued liabilities.

• Revenue momentum improved: Q4 2026 revenue reached $339.0 million, the highest quarterly level in the supplied data and more than 13% above Q3 2023.
• Operating margins expanded: Q4 2026 operating income of $33.2 million was up from $21.9 million in Q4 2025, while the operating margin improved to approximately 9.8% from 6.9%.
• Gross profit growth outpaced revenue growth: Q4 gross profit rose to $134.8 million, and the gross margin was approximately 39.8%, above the roughly 36.2% reported in Q4 2025.
• Operating cash flow strengthened: Cash flow from operations reached $44.4 million in Q4 2026, more than twice Q3’s $18.5 million.
• Liquidity remains substantial: Cash, restricted cash and short-term investments totaled approximately $379.8 million as of April 30, 2026, providing flexibility for investment, dividends and repurchases.
• Shareholder returns continued: IDT paid $4.4 million in dividends and repurchased approximately $2.0 million of common stock in Q4 2026.
• Investment activity is significant: Q4 2026 included $21.4 million of investment purchases and $8.7 million of sales or maturities, suggesting that reported cash balances can be affected by portfolio management rather than operating performance alone.
• Working capital is volatile: Changes in operating assets and liabilities ranged from a $63.7 million use of cash in Q3 2026 to a $12.1 million source in Q4, which can make quarterly cash flow results uneven.
• EPS has not increased in line with operating income: Diluted EPS was $0.86 in Q4 2026 versus $0.87 in Q3 and Q1 2026, partly because income taxes rose to $12.1 million and $2.7 million of earnings was attributable to noncontrolling interests.
• Cash was directed toward substantial investing and financing outflows: Q4 2026 investing activities used $20.6 million, while dividends, share repurchases and debt repayment produced a further $6.5 million financing outflow.

Overall, the statements point to a stronger operating business than IDT had in the earlier periods provided, with higher revenue, improved gross profitability and a recent rebound in cash generation. Investors should continue monitoring whether the margin gains persist, whether working-capital benefits reverse, and how much of the company’s reported liquidity is restricted or tied to customer-related obligations.