IDT (NYSE:IDT) Posts Earnings Results

IDT (NYSE:IDT) released its earnings results on Tuesday. The utilities provider reported $1.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.10, FiscalAI reports. IDT had a net margin of 6.53% and a return on equity of 27.12%. The firm had revenue of $320.52 million during the quarter, compared to analyst estimates of $302.00 million.

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

• IDT raised fiscal 2026 adjusted EBITDA guidance to $147–$149 million (midpoint ≈ $5M higher, ~12% above FY25) after reporting record gross profit, adjusted EBITDA and non‑GAAP EPS in Q2.
• BOSS Money is shifting customers to higher‑margin digital, with digital transactions up 17% YoY and a remittance‑tax‑driven rotation from retail that helped drive a 44% increase in Fintech adjusted EBITDA.
• Net2Phone improved margins and is advancing AI, delivering a 37% YoY increase in adjusted EBITDA and launching an “Agentic AI” offering integrated with Unified Communications, with modest incremental H2 investment planned.
• NRS grew merchant services and SaaS recurring revenue, but advertising was pressured by lower CPMs and SG&A rose modestly from pre‑product hiring and a higher reseller mix, partially offsetting gains.
• Capital allocation prioritized returns while preserving cash: management increased the annual dividend by 17% to $0.28 and repurchased $15M of stock in the first six months of FY26, while keeping cash available for opportunistic buybacks or M&A.

IDT Price Performance

IDT stock traded down $2.70 during midday trading on Wednesday, reaching $48.95. 81,499 shares of the company traded hands, compared to its average volume of 146,920. IDT has a 12 month low of $45.35 and a 12 month high of $71.12. The business has a 50 day moving average of $49.90 and a two-hundred day moving average of $52.76. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of 15.21 and a beta of 0.76.

IDT Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Thursday, March 19th will be issued a dividend of $0.07 per share. The ex-dividend date of this dividend is Thursday, March 19th. This is a positive change from IDT’s previous quarterly dividend of $0.06. This represents a $0.28 annualized dividend and a dividend yield of 0.6%. IDT’s dividend payout ratio is presently 7.45%.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on IDT. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of IDT in a research report on Monday, December 29th. Wall Street Zen downgraded IDT from a “strong-buy” rating to a “buy” rating in a report on Saturday. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, IDT currently has an average rating of “Hold”.

Insider Buying and Selling

In other IDT news, CFO Marcelo Fischer sold 920 shares of IDT stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $52.04, for a total value of $47,876.80. Following the completion of the sale, the chief financial officer owned 55,943 shares of the company’s stock, valued at approximately $2,911,273.72. The trade was a 1.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last ninety days, insiders have sold 8,570 shares of company stock valued at $446,073. Insiders own 25.41% of the company’s stock.

Hedge Funds Weigh In On IDT

Several hedge funds and other institutional investors have recently modified their holdings of the company. Public Employees Retirement System of Ohio bought a new stake in shares of IDT in the third quarter worth $96,000. Gabelli Funds LLC purchased a new stake in IDT during the second quarter valued at $239,000. State of Tennessee Department of Treasury bought a new position in IDT in the fourth quarter valued at about $268,000. Ameriprise Financial Inc. purchased a new position in IDT in the third quarter worth about $399,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in IDT by 4.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,156 shares of the utilities provider’s stock worth $470,000 after purchasing an additional 381 shares during the last quarter. 59.34% of the stock is owned by institutional investors.

IDT News Summary

Here are the key news stories impacting IDT this week:

• Positive Sentiment: IDT reported stronger-than-expected Q2 results with record quarterly gross profit, improved gross margins and higher Adjusted EBITDA; consolidated revenue rose to $320.5M (up ~6% YoY), and management highlighted growth across NRS, BOSS Money and net2phone. IDT Q2 Press Release
• Positive Sentiment: IDT raised FY2026 adjusted EBITDA guidance to $147M–$149M (up from $141–$145M), signaling management confidence in digital and AI initiatives as key growth drivers. Guidance Raise
• Positive Sentiment: Board increased the annual dividend by 17% to $0.28 and declared a quarterly $0.07 payout (payable March 31); IDT also repurchased shares (308k for ~$15M in 1H FY26), both shareholder-friendly moves that support valuation. Dividend & Buybacks
• Neutral Sentiment: Operational momentum is visible (digital send volume, net2phone subscription growth, AI product launches), but GAAP diluted EPS came in at $0.84 (slightly below some estimates) even as non‑GAAP EPS and cash generation improved — a mixed earnings interpretation for investors. Earnings Summary
• Negative Sentiment: Certain segments showed pressure: consolidated income from operations fell ~4% YoY and Advertising & Data recurring revenue declined ~10%; Traditional Communications gross profit was down — these mix and margin pressures temper the beat/guide headlines. Segment Details
• Negative Sentiment: Insider activity shows multiple recent sales (no purchases) by several executives, which can be perceived negatively by some investors even as institutional ownership changes remain mixed. Insider & Institutional Activity

About IDT

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.