IDT (IDT) Q3 2026 earnings summary

Executive summary

• Celebrated 25 years on NYSE and 30 years as a public company, highlighting consistent innovation and five public company spin-offs.

• Achieved record consolidated quarterly gross profit and margin, with revenue up 5% year-over-year to $315.7 million and gross profit up 9% to $122.5 million.

• Growth was driven by recurring revenue in NRS, higher digital transaction volumes in Fintech, and increased seats in net2phone, with respective income from operations up 33%, 29%, and 76%.

• Net income attributable to stockholders was $21.6 million, nearly flat from the prior year.

• Raised full-year FY 2026 Adjusted EBITDA guidance to $150–$152 million, up 15% at midpoint over FY 2025.

Financial highlights

• Consolidated revenue grew 5% year-over-year to $315.7 million for the quarter ended April 30, 2026.

• Gross profit increased 9% to $122.5 million; gross margin reached a record 38.8%, up 170 basis points.

• Income from operations rose 12% to $29.8 million; Adjusted EBITDA up 13% to $37.5 million.

• GAAP EPS increased by $0.01 to $0.87; Non-GAAP EPS rose by $0.04 to $0.94 year-over-year.

• Ended quarter with $251.4 million in cash equivalents and investments, with no outstanding debt.

Outlook and guidance

• Full-year FY 2026 Adjusted EBITDA guidance raised to $150–$152 million, reflecting 15% growth over FY 2025.

• Management expects continued growth in NRS recurring revenue and digital channel, with AI offerings anticipated to drive growth in FY 2027.

• Capital expenditures expected at $23–24 million for the twelve months ending April 2027, funded by operating cash flow and liquidity.