Income from operations at NRS, Fintech, and net2phone segments increased by 33%, 29% and 76%, respectively
FY 2026 guidance raised to $150-$152 million in Adjusted EBITDA*
NEWARK, N.J., June 03, 2026 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE:IDT), a global provider of fintech and communications solutions, today reported results for the third quarter of its fiscal year 2026, the three months ended April 30, 2026.
3Q26 CONSOLIDATED HIGHLIGHTS
Throughout this release, unless otherwise noted, results for the third quarter of fiscal year 2026 (3Q26) are compared to the third quarter of fiscal year 2025 (3Q25).
($ in millions except for per share figures)
Revenue
+5% to $315.7 from $302.0
Gross Profit
+9% to $122.5 from $112.0
Gross Profit Margin
+170 bps to 38.8% from 37.1%
Income from Operations
+12% to $29.8 from $26.6
GAAP EPS
+$0.01 to $0.87 from $0.86
Non-GAAP EPS*
+$0.04 to $0.94 from $0.90
Adjusted EBITDA
+13% to $37.5 from $33.1
*This release discloses certain Non-GAAP financial measures and Key Performance Metrics. Please see the explanations of those measures and metrics, the reasons for their inclusion, and reconciliations of non-GAAP measures to their closest GAAP measures, at the end of this release.
REMARKS BY SHMUEL JONAS, CEO
"IDT's year-over-year revenue and earnings growth was again powered by the continued expansion and operating leverage of our three high-margin businesses, paired with another quarter of steady cash generation from our Traditional Communications segment.
"NRS recurring revenue increased 22% and revenue per terminal increased approximately 10% year-over-year driven by Merchant Services and SaaS Fees revenue. We expect both categories will continue driving growth in the coming quarters. After the quarter close, we acquired a controlling stake in OnCore Digital, a digital media brokerage.
"At BOSS Money, our digital channel revenue growth rate accelerated sequentially as we gained market share following implementation of the new federal remittance tax.
"net2phone continued its growth trajectory, helped by strong CCaaS results and ongoing U.S. and Mexico expansion. We are gaining traction with our AI offerings and expect they will become accretive growth drivers in fiscal year 2027. All net2phone offerings will also benefit from the recent release of Integrate by net2phone. Integrate is an integration layer that enables our clients to easily - through a straightforward, no-code interface - use our offerings with the tools they already work with every day including popular CRMs and ERPs.
"Across our business segments, we are integrating machine learning and AI tools to better understand and meet the expectations of our customers, develop and provide new features, enhance customer service, refine pricing strategies, accelerate product and feature delivery, create marketing campaigns, and streamline back-office operations, to name just a few. We expect that our AI efforts, in some cases, will serve as the basis for AI-based offerings to our customers."
3Q26 RESULTS BY SEGMENT
National Retail Solutions (NRS)
($ in millions except recurring revenue per terminal. Numbers may not foot due to rounding.)
3Q26
2Q26
3Q25
3Q26-3Q25 (%, ∆)
Terminals and payment processing accounts
Active POS terminals
39,300
38,900
35,600
+10
%
Payment processing accounts
29,200
28,100
25,500
+14
%
Recurring revenue*
Merchant Services & Other
$
25.8
$
24.0
$
19.7
+31
%
Advertising & Data
$
5.7
$
9.0
$
5.9
(3
)%
SaaS Fees
$
4.5
$
4.4
$
3.9
+17
%
Total recurring revenue
$
36.0
$
37.5
$
29.4
+22
%
POS Terminal Sales
$
2.0
$
1.9
$
1.7
+16
%
Total revenue
$
38.0
$
39.4
$
31.1
+22
%
Monthly average recurring revenue per terminal*
$
307
$
325
$
279
+10
%
Gross profit
$
34.3
$
36.3
$
28.4
+21
%
Gross profit margin
90.2
%
92.2
%
91.3
%
(110
) bps
SG&A
$
23.4
$
23.5
$
20.0
+17
%
Technology & development
$
2.7
$
2.5
$
2.3
+21
%
Income from operations
$
8.2
$
10.2
$
6.2
+33
%
Adjusted EBITDA
$
9.8
$
11.8
$
7.8
+25
%
CapEx
$
0.8
$
1.7
$
1.9
(59
)%
NRS Take-Aways
NRS added approximately 500 net active terminals and 1,100 net payment processing accounts during 3Q26. Net active terminal additions in 3Q26 reflect the impact of seasonal churn among specialized retailers serving the year-end holidays.
NRS' ‘Rule of 40'* score was 50 in 3Q26, indicating a productive balance between growth and profitability.
Following the quarter close, IDT acquired OnCore Digital. Through the acquisition, NRS will integrate OnCore's ad tech, demand, and publisher networks with its screen network and first-party transaction data into a more unified offering.
BOSS Money and Fintech Segment
($ in millions except for average revenue per transaction. Numbers may not foot due to rounding.)
3Q26
2Q26
3Q25
3Q26-3Q25 (%, ∆)
BOSS Money transactions*
6.9
6.4
6.0
+15
%
Digital channel
6.0
5.5
5.0
+20
%
Retail channel
0.9
1.0
1.0
(14
)%
Fintech segment revenue
BOSS Money
$
39.7
$
36.3
$
34.4
+15
%
Digital channel
$
31.0
$
26.8
$
24.5
+27
%
Retail channel
$
8.6
$
9.5
$
9.9
(13
)%
Other
$
5.3
$
4.9
$
4.2
+27
%
Total Fintech segment revenue
$
45.0
$
41.2
$
38.6
+17
%
Average BOSS Money revenue per transaction*
$
5.76
$
5.63
$
5.74
+0
%
Fintech segment
Gross profit
$
28.3
$
25.0
$
22.6
+25
%
Gross profit margin
62.8
%
60.6
%
58.5
%
+430
bps
SG&A
$
20.2
$
18.2
$
16.0
+26
%
Technology & development
$
2.5
$
2.7
$
2.2
+15
%
Income from operations
$
5.6
$
4.1
$
4.3
+29
%
Adjusted EBITDA
$
6.6
$
5.6
$
5.1
+30
%
CapEx
$
1.0
$
1.1
$
0.8
+20
%
BOSS Money and Fintech Take-Aways:
BOSS Money digital channel send volume*- the amount of principal transferred by BOSS Money customers using the BOSS Money and BOSS Revolution apps - increased by 40% in 3Q26 compared to 3Q25, reflecting increases in both transaction volume and average dollars sent per transaction.
The Fintech segment's year-over-year increases in income from operations and Adjusted EBITDA were driven by BOSS Money's digital transaction growth, increased revenue and gross margin per digital transaction, and improved economics from other, smaller, businesses within the Fintech segment.
net2phone
($ in millions. Numbers may not foot due to rounding.)
3Q26
2Q26
3Q25
3Q26-3Q25 (%, ∆)
Seats
441
435
415
+6
%
Revenue
Subscription revenue*
$
24.0
$
23.4
$
21.5
+12
%
Other
$
0.4
$
0.4
$
0.5
(14
)%
Total revenue
$
24.4
$
23.9
$
22.0
+11
%
Gross profit
$
19.6
$
19.3
$
17.5
+12
%
Gross profit margin
80.6
%
80.7
%
79.6
%
+130
bps
SG&A
$
14.1
$
13.9
$
13.0
+9
%
Technology & development
$
3.1
$
3.1
$
2.9
+5
%
Income from operations
$
2.4
$
2.2
$
1.4
+76
%
Adjusted EBITDA
$
4.1
$
3.9
$
3.2
+30
%
CapEx
$
1.8
$
1.7
$
1.4
+30
%
net2phone Take-Aways:
Subscription revenue increased faster than seats served, reflecting an increase in CCaaS seats, which generate higher revenue per seat than our UCaaS offerings, augmented by the positive FX impact of strengthening local currencies versus the U.S. dollar in certain Latin American markets.
net2phone generated substantial year-over-year increases in income from operations and Adjusted EBITDA during 3Q26, benefitting from customer acquisition cost discipline and continued operating leverage.
Traditional Communications
($ in millions. Numbers may not foot due to rounding.)
3Q26
2Q26
3Q25
3Q26-3Q25(%, ∆)
Revenue
IDT Digital Payments
$
103.9
$
104.4
$
102.6
+1
%
IDT Global
$
55.6
$
60.2
$
50.0
+11
%
BOSS Revolution
$
43.4
$
45.7
$
51.7
(16
)%
Other revenue
$
5.5
$
5.8
$
5.8
(6
)%
Total revenue
$
208.3
$
216.1
$
210.2
(1
)%
Gross profit
$
40.3
$
40.7
$
43.4
(7
)%
Gross profit margin
19.4
%
18.9
%
20.7
%
(130
) bps
SG&A
$
17.9
$
20.3
$
20.5
(13
)%
Technology & development
$
5.6
$
5.8
$
5.4
+4
%
Income from operations
$
16.7
$
14.3
$
17.3
(4
)%
Adjusted EBITDA
$
19.7
$
18.8
$
19.6
+1
%
CapEx
$
1.5
$
1.6
$
1.3
+17
%
Traditional Communications Take-Away:
IDT continues to minimize Traditional Communications' overhead and improve its cost structure. This effort resulted in a $2.6 million decrease in segment SG&A in 3Q26 compared to the year ago quarter, particularly in employee compensation and legal expense.
OTHER FINANCIAL RESULTS
Consolidated results for all periods presented include corporate overhead. Corporate G&A expense increased 22% to $3.2 million in 3Q26 from $2.7 million in 3Q25, primarily as a result of increased stock-based compensation.
As of April 30, 2026, IDT held $251.4 million in cash, cash equivalents, and current debt and equity securities, exclusive of restricted cash. Also as of April 30, 2026, current assets totaled $592.7 million and current liabilities totaled $308.0 million. IDT had no outstanding debt at quarter end.
Net cash provided by operating activities in 3Q26 was $18.5 million compared to $75.7 million in 3Q25. Exclusive of changes in customer funded deposits at IDT's Fintech segment businesses, adjusted net cash provided by operating activities* in 3Q26 was $16.0 million compared to $66.1 million in 3Q25. The decline in operating cash generation is due entirely to working capital timing, as 3Q26 ended on a Thursday which, along with Friday, is typically when cash levels are lowest because of prepaid weekend funding requirements for the BOSS Money and IDT Digital Payments businesses.
Capital expenditures decreased to $5.1 million in 3Q26 from $5.4 million in 3Q25.
During 3Q26, IDT repurchased approximately 84,000 shares of its Class B common stock for $4.0 million. For the nine months ended April 30, 2026, IDT repurchased approximately 391,000 shares for $19.0 million.
FY 2026 FINANCIAL OUTLOOK
IDT is increasing its previous FY 2026 guidance for consolidated Adjusted EBITDA from $147-$149 million to $150-$152 million. At the midpoint, the updated guidance represents an increase of 15% from FY 2025 Adjusted EBITDA of $131.7 million.
Reconciliations of Adjusted EBITDA to net income and income from operations for all periods presented are included in the Non-GAAP reconciliations provided at the end of this release.
DIVIDEND
IDT's Board of Directors has declared a quarterly cash dividend of $0.07 per share of IDT Class A and Class B Common stock payable on June 18, 2026 to stockholders of record as of June 9, 2026.
IDT EARNINGS ANNOUNCEMENT INFORMATION
This release is available for download in the "Investors & Media" section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.
IDT will host an earnings conference call beginning at 5:30 PM Eastern this evening with management's discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-877-545-0523 (toll-free from the US) or 1-973-528-0016 (international) and provide the following access code: 181062.
A replay of the conference call will be available approximately three hours after the call concludes through June 17th, 2026. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 54085. The replay will also be accessible via streaming audio at the IDT investor relations website.
ABOUT IDT CORPORATION
IDT Corporation (NYSE:IDT) is a global provider of fintech and communications solutions through a portfolio of synergistic businesses: National Retail Solutions' (NRS) point-of-sale (POS) platform enables independent retailers to process transactions and operate more effectively while providing advertisers and marketers with reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides businesses with unified communications and AI-driven workflow solutions to enhance customer experience at scale; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
CONTACT
IDT Corporation Investor RelationsBill Ulrey[email protected]973-438-3838
IDT CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
April 30, 2026
July 31, 2025
(in thousands, except per share data)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
214,957
$
226,505
Restricted cash and cash equivalents
128,385
115,327
Debt securities
26,557
21,649
Equity investments
9,913
5,637
Trade accounts receivable, net of allowance for credit losses of $8,039 at April 30, 2026 and $9,097 at July 31, 2025
41,750
44,932
Settlement assets, net of reserve of $1,816 at April 30, 2026 and $1,367 at July 31, 2025
35,033
28,014
Disbursement prefunding
96,396
37,097
Prepaid expenses
8,889
12,440
Other current assets
30,829
28,702
Total current assets
592,709
520,303
Property, plant, and equipment, net
41,010
38,869
Goodwill
26,600
