IDT's Growth Momentum
IDT Reports Strong Q3 Revenue Growth, Raises Full-Year EBITDA Guidance
Anonymous
IDT Corp. reported third-quarter fiscal 2026 results with revenue of $315.7 million, up about 5% year over year, and net income attributable to the company of $21.6 million, or $0.87 per diluted share. The quarter also brought record consolidated gross profit of $122.5 million, lifting gross margin 170 basis points to 38.8%, while adjusted EBITDA rose to $37.5 million. IDT raised its FY2026 adjusted EBITDA guidance to $150–$152 million and declared a quarterly cash dividend of $0.07 per share. In higher-margin operations, National Retail Solutions (NRS) expanded recurring revenue, while net2phone continued growing subscription revenue and customer seats alongside increased AI-related product activity. Management highlighted momentum across its fintech and communications businesses, with cash generation continuing from its traditional communications segment. After the quarter ended, IDT also acquired a controlling stake in OnCore Digital to integrate ad-tech and publisher networks with NRS.
Key Points
1
In National Retail Solutions (NRS), IDT reported operational KPIs alongside revenue: active POS terminals rose to ~39,300 and payment processing accounts increased to ~29,200. The company also said its NRS TTM “Rule of 40” score was 50 for 3Q26.
2
For net2phone, IDT disclosed subscription revenue growth with more detail than the headline: subscription revenue increased 12% to $24.0 million, while seats served rose to 441 (up 6% year over year), supported by a rising CCaaS mix and AI feature rollouts.
3
IDT said its Integrate by net2phone offering is positioned as an “integration layer” that helps customers connect “through a straightforward, no-code interface.” Management linked this release to expected acceleration of net2phone growth.
4
At its fintech unit BOSS Money, the company said digital channel revenue growth “accelerated sequentially” after gaining market share following implementation of the new federal remittance tax.
5
Beyond GAAP results, IDT reported adjusted earnings excluding items of $23.3 million (or $0.94 per share) for the quarter, versus $21.69 million (or $0.86 per share) in the prior year period.
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