IDT Corporation reported record first‑quarter fiscal 2026 results on December 4, 2025, with consolidated revenue up 4% year‑over‑year to $322.8 million and gross profit rising 10% to $118.2 million. GAAP earnings per share climbed to $0.89 from $0.68, while non‑GAAP EPS reached $0.94, a $0.05 beat over the consensus estimate of $0.89. Adjusted EBITDA surged 26% to $37.9 million, the highest level in the company’s history.
The growth was driven by a 35% increase in income from operations in the National Retail Solutions, Fintech, and net2phone segments. Net2phone’s AI‑powered communications platform, including new AI agents and the BOSS Wallet, contributed significantly to the mix shift toward higher‑margin services. Traditional communications revenue slipped slightly, but the segment continued to generate steady cash flow, underscoring the company’s successful transition from legacy telecom to a high‑margin fintech and SaaS platform.
Gross profit margin expanded to 36.6%, up 180 basis points from the prior year, as the higher‑margin growth segments outweighed the lower‑margin legacy business. The company maintained disciplined cost control, allowing it to preserve profitability even as it invested heavily in AI and product development. The margin expansion signals that the company’s strategic shift is translating into tangible financial benefits.
Management reiterated its full‑year guidance, maintaining an adjusted EBITDA target of $141–$145 million and confirming a debt‑free balance sheet. A quarterly dividend of $0.06 per share was declared, reinforcing the company’s commitment to shareholder returns. The guidance reflects confidence in continued demand for its fintech and SaaS offerings, while the debt‑free stance provides flexibility for future investments.
CEO Shmuel Jonas highlighted the “strong performance of the growth segments” and the “steady cash generation” from traditional communications, emphasizing the company’s operational leverage. CFO Marcelo Fischer noted that the mix shift and AI integration are key drivers of the earnings beat, and he expressed confidence in meeting the full‑year guidance. The company also acknowledged a potential federal excise tax on remittances that could impact the Fintech segment, indicating awareness of regulatory headwinds.
IDT’s record results and reaffirmed guidance reinforce its transformation narrative, demonstrating that the company’s focus on high‑margin fintech and SaaS solutions is delivering sustainable profitability. The earnings beat, margin expansion, and steady cash flow from legacy operations provide a solid foundation for future growth, positioning IDT as a compelling investment in the evolving digital‑payments and cloud‑communications landscape.
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