IDT Corp
NYSE:IDT
IDT Corp
IDT Corporation, founded in 1990, emerged at a time when the telecommunications landscape was rapidly evolving. Initially, it marked its presence as a provider of discount international long-distance phone services, catering to consumers keen on reducing the cost of international calls. This nimble beginning laid the foundation for IDT to expand and diversify its business model over the decades. The company, headquartered in Newark, New Jersey, soon ventured into various telecom and technology-related services. As the internet age flourished, IDT capitalized on VoIP (Voice over Internet Protocol) technology, allowing it to transition seamlessly into new areas of communications. The company's focus on innovation, coupled with strategic moves, including mergers and acquisitions, allowed it to stay relevant in a highly competitive market.
Today, IDT Corp operates through various segments, leveraging its expertise in telecommunications to offer a spectrum of services. Its core sectors include IDT Telecom, National Retail Solutions, and net2phone. IDT Telecom is the powerhouse, delivering international calling services, mobile top-up solutions, and payment offerings. Meanwhile, National Retail Solutions provides point-of-sale (POS) terminal systems tailored for independent retailers, allowing them to compete with larger chains by offering advanced transaction solutions. Net2phone focuses on Unified Communications-as-a-Service (UCaaS), providing businesses with robust communication systems over the internet. Through these diverse avenues, IDT generates revenue by constantly evolving its technological offerings, positioning itself as a multifaceted provider in the global communications domain.
IDT Corporation, founded in 1990, emerged at a time when the telecommunications landscape was rapidly evolving. Initially, it marked its presence as a provider of discount international long-distance phone services, catering to consumers keen on reducing the cost of international calls. This nimble beginning laid the foundation for IDT to expand and diversify its business model over the decades. The company, headquartered in Newark, New Jersey, soon ventured into various telecom and technology-related services. As the internet age flourished, IDT capitalized on VoIP (Voice over Internet Protocol) technology, allowing it to transition seamlessly into new areas of communications. The company's focus on innovation, coupled with strategic moves, including mergers and acquisitions, allowed it to stay relevant in a highly competitive market.
Today, IDT Corp operates through various segments, leveraging its expertise in telecommunications to offer a spectrum of services. Its core sectors include IDT Telecom, National Retail Solutions, and net2phone. IDT Telecom is the powerhouse, delivering international calling services, mobile top-up solutions, and payment offerings. Meanwhile, National Retail Solutions provides point-of-sale (POS) terminal systems tailored for independent retailers, allowing them to compete with larger chains by offering advanced transaction solutions. Net2phone focuses on Unified Communications-as-a-Service (UCaaS), providing businesses with robust communication systems over the internet. Through these diverse avenues, IDT generates revenue by constantly evolving its technological offerings, positioning itself as a multifaceted provider in the global communications domain.
Guidance raised: IDT raised consolidated adjusted EBITDA guidance for fiscal 2026 to $147 million–$149 million (up from $141M–$145M), a midpoint increase equal to $5 million and a 12% increase vs. fiscal 2025 actuals.
Net2phone beat: Net2phone posted a 37% year‑over‑year increase in adjusted EBITDA to $3.9 million in Q2, helped by improved gross margins, operating leverage and favorable FX.
BOSS Money migration: The new federal remittance tax accelerated customer migration from retail to digital; digital transactions rose 17% YoY and BOSS Money adjusted EBITDA grew 44% YoY.
Segment rotation: The three higher‑margin growth segments now account for 53% of consolidated adjusted EBITDA less CapEx (vs. 45% a year ago), driving record gross profit, adjusted EBITDA and adjusted EPS this quarter.
Traditional cash generator: Traditional Communications contributed $19 million of adjusted EBITDA in Q2 and adjusted EBITDA for that segment declined only 3.5% in the first six months vs. last year.
Capital returns: IDT repurchased $15 million of stock in the first six months of fiscal '26, increased the annual dividend 17% to $0.28 per share, and intends to continue opportunistic buybacks while preserving cash for M&A.
NRS dynamics: NRS recurring revenue grew YoY led by merchant services and SaaS fees, but advertising/data revenue was pressured by lower CPMs; management expects data/ads improvements as they better connect data to ads.
