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Oct 31, 2025
IDT Q1 2026 Earnings Report
IDT Corporation reported its first quarter fiscal year 2026 results.
Key Takeaways
IDT Corporation delivered consolidated revenue growth and record levels of gross profit and Adjusted EBITDA in the first quarter of fiscal year 2026. NRS led the top-line expansion, while all three growth segments reported strong bottom-line results. The Traditional Communications segment again provided steady cash generation.
Income from operations at NRS, Fintech, and net2phone segments increased by 35%, 97%, and 94%, respectively.
IDT achieved record quarterly levels of consolidated gross profit, Adjusted EBITDA, and Adjusted EBITDA margin.
NRS recurring revenue increased 22% year-over-year, driving a 35% increase in income from operations and a 33% increase in Adjusted EBITDA.
The Fintech segment's income from operations and Adjusted EBITDA nearly doubled year-over-year, aided by BOSS Money's increasing operating leverage and enhanced profitability of other, smaller Fintech initiatives.
Revenue by Segment
Forward Guidance
IDT maintains its previous FY 2026 guidance, expecting to generate Adjusted EBITDA within the range of $141-$145 million.
Positive Outlook
- Continued growth in NRS recurring revenue, driven by innovative premium services and direct channel sales.
- Accelerated digital channel performance for BOSS Money, potentially boosted by new federal excise tax on cash remittances.
- Introduction of the BOSS Wallet to enable U.S. customers to share cash and receive rewards.
- Expansion of net2phone's AI agent and Coach AI solution, enhancing customer operations and workflows.
- Increased profitability in net2phone due to operating leverage despite strategic investments in AI product development.
Challenges Ahead
- Decline in Advertising & Data revenue for NRS, reflecting industry-wide decrease in CPMs.
- Working capital timing issues leading to a decline in cash, particularly due to prepaid weekend funding requirements for BOSS Money.
- Seasonal churn of retailers impacting NRS net active terminals and payment processing accounts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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