IDT Corp
F:IDC2
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IDT Corp
F:IDC2
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IDT Corp
IDT Corp is a communications and payments company. It sells prepaid international calling, mobile top-up, voice and messaging services, and digital money transfer products. Through its network and brands, it serves consumers, small businesses, and other communications providers that need access to global telecom routes or payment rails. A big part of the business comes from charging fees and spread-based revenue on transactions. For example, it earns money when customers make calls, send money, pay bills, or use merchant services and point-of-sale tools. It also sells communications services and related software to businesses that need phone, messaging, or customer-contact systems. What makes IDT different is that it sits in several parts of the value chain at once. It is both a telecom services reseller and a financial-services provider, with a mix of consumer brands and business-facing products. That gives it multiple ways to make money from the same underlying networks and customer relationships.
IDT Corp is a communications and payments company. It sells prepaid international calling, mobile top-up, voice and messaging services, and digital money transfer products. Through its network and brands, it serves consumers, small businesses, and other communications providers that need access to global telecom routes or payment rails.
A big part of the business comes from charging fees and spread-based revenue on transactions. For example, it earns money when customers make calls, send money, pay bills, or use merchant services and point-of-sale tools. It also sells communications services and related software to businesses that need phone, messaging, or customer-contact systems.
What makes IDT different is that it sits in several parts of the value chain at once. It is both a telecom services reseller and a financial-services provider, with a mix of consumer brands and business-facing products. That gives it multiple ways to make money from the same underlying networks and customer relationships.
Record margins: IDT said consolidated revenue rose 5% to $315.7 million, while gross profit grew 9% to $122.5 million and gross margin reached a quarterly record of 38.8%.
Guidance raised: Management lifted full-year fiscal 2026 adjusted EBITDA guidance to $150 million to $152 million from $147 million to $149 million, citing stronger operating leverage and resilient traditional communications.
Growth engines: The 3 higher-margin businesses — NRS, FinTech, and net2phone — kept driving the company’s results, with their combined adjusted EBITDA up 27% to $20.5 million and their share of consolidated adjusted EBITDA rising to 55%.
BOSS Money strength: Digital remittances accelerated, with digital transactions up 20% and digital send volume up 40%; management said May was the strongest transaction month ever and the first month of Q4 should be the strongest gross profit month ever.
AI push: net2phone and IDT’s broader businesses are increasingly using AI to improve customer service and operations, and management said AI should become an accretive growth driver in fiscal 2027.
Capital returns: IDT ended the quarter with $251 million in cash and securities, paid a $0.07 quarterly dividend, and repurchased about 84,000 shares for $4 million while saying it will keep buying back stock opportunistically.
