Press Release: IDT Corporation Reports Record Fourth Quarter and Fiscal Year 2026 Results

Dow Jones
Sep 29

Record fourth quarter Gross Profit +18%; Income from Operations +52%; Adjusted EBITDA(*) +22%

FY 2026 Income from Operations of $121M (+21%); Adjusted EBITDA of $155M (+17%)

NEWARK, N.J., Sept. 28, 2026 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech, communications, and AI-powered customer experience solutions, today reported results for its fourth quarter and full fiscal year 2026, the three and twelve months ended July 31, 2026.

4Q26 HIGHLIGHTS (**)

   -- Consolidated Results 
 
          -- Revenue: +7% to $339.0 million; 
 
          -- Gross profit / margin: +18% to $134.8 million / +360 bps to 39.8%; 
 
          -- Income from operations: +52% to $33.2 million; 
 
          -- Net income attributable to IDT: +29% to $21.7 million; 
 
          -- GAAP EPS: Increased to $0.87 from $0.67; 
 
          -- Non-GAAP EPS: Increased to $0.94 from $0.76; 
 
          -- Adjusted EBITDA: +22% to $41.2 million. 
 
   -- Key Businesses / Segments 
 
          -- NRS 
 
                 -- Revenue: +31% to $45.0 million; 
 
                 -- Income from operations: +105% to $12.0 million; 
 
                 -- Adjusted EBITDA: +47% to $14.0 million. 
 
          -- BOSS Money / Fintech segment 
 
                 -- BOSS Money digital revenue: +22% to $33.7 million; 
 
                 -- Fintech segment revenue: +12% to $47.1 million; 
 
                 -- Fintech segment income from operations: +15% to $5.5 
                    million; 
 
                 -- Fintech segment Adjusted EBITDA: +17% to $6.5 million. 
 
          -- net2phone 
 
                 -- Subscription revenue: +10% to $24.5 million; 
 
                 -- Income from operations: +75% to $2.6 million; 
 
                 -- Adjusted EBITDA: +26% to $4.4 million. 
 
          -- Traditional Communications 
 
                 -- Revenue: +2% to $222.0 million; 
 
                 -- Gross profit: +0.4% to $41.1 million; 
 
                 -- Income from operations: +8% to $16.6 million; 
 
                 -- Adjusted EBITDA: +12% to $19.9 million. 

FY 2026 HIGHLIGHTS

   -- Consolidated Results 
 
          -- Revenue: +5% to $1,298.0 million; 
 
          -- Gross profit / margin: +11% to $496.8 million / +200 bps to 38.3%; 
 
          -- Income from operations: +21% to $121.2 million; 
 
          -- Net income attributable to IDT: +14% to $86.6 million; 
 
          -- GAAP EPS: Increased to $3.46 from $3.01; 
 
          -- Non-GAAP EPS: Increased to $3.82 from $3.19; 
 
          -- Adjusted EBITDA: +17% to $154.6 million. 
 
   -- Key Businesses / Segments 
 
          -- NRS 
 
                 -- Revenue: +24% to $159.4 million; 
 
                 -- Income from operations: +42% to $39.3 million; 
 
                 -- Adjusted EBITDA: +30% to $45.8 million. 
 
          -- BOSS Money / Fintech segment 
 
                 -- BOSS Money digital revenue: +21% to $119.4 million; 
 
                 -- Fintech segment revenue: +14% to $176.0 million; 
 
                 -- Fintech segment income from operations: +40% to $21.5 
                    million; 
 
                 -- Fintech segment Adjusted EBITDA: +41% to $26.2 million. 
 
          -- net2phone 
 
                 -- Subscription revenue: +11% to $94.9 million; 
 
                 -- Income from operations: +84% to $9.1 million; 
 
                 -- Adjusted EBITDA: +33% to $16.1 million. 
 
          -- Traditional Communications 
 
                 -- Revenue: +1% to $865.9 million; 
 
                 -- Gross profit: (4)% to $162.6 million; 
 
                 -- Income from operations: (5)% to $63.4 million; 
 
                 -- Adjusted EBITDA: +1% to $77.3 million. 

(*) This release discloses certain Non-GAAP financial measures (Adjusted EBITDA, Non-GAAP EPS, NRS' 'Rule of 40,' and adjusted net cash provided by operating activities) as well as certain Key Performance Metrics (net2phone subscription revenue, net2phone constant currency subscription revenue growth rate, NRS Average Monthly Network Gross Profit per Location, and BOSS Money transactions and digital channel send volume). Please see the explanations of those measures and metrics, the reasons for their inclusion and reconciliations of Non-GAAP measures to their closest GAAP measures at the end of this release.

**Throughout this release, unless otherwise noted, results for the fourth quarter of fiscal year 2026 (4Q26) are compared to the fourth quarter of fiscal year 2025 (4Q25) and results for FY 2026 are compared to FY 2025. All earnings per share (EPS) and other 'per share' results are per diluted share.

REMARKS BY SHMUEL JONAS, CEO

IDT's fourth quarter capped off a strong fiscal year, highlighted by accelerated topline and Adjusted EBITDA growth.

Our three higher-margin growth segments, NRS, Fintech and net2phone, each increased their respective quarterly and full-year contributions, while our Traditional Communications segment generated more Adjusted EBITDA in fiscal 2026 than it did in fiscal 2025 or 2024.

At NRS, we continue to develop and deploy new, high-value functionalities for our retailers, such as our recent Uber Eats integration following the Grubhub and DoorDash partnerships we announced last year. These advances are supplementing other tailwinds driving gains in Merchant Services revenues. Also in the fourth quarter, Advertising and Data revenue returned to growth, bolstered by our recent acquisition. Taken together, these developments helped drive a 47% year-over-year increase in NRS' fourth quarter Adjusted EBITDA. Looking ahead, we are working on several product initiatives to increase sales to our existing retailer base and to attract new retailers to the NRS network.

Our BOSS Money remittance business shares its brand identity, distribution networks and addressable markets with our other BOSS-branded offerings. In recent years, we invested heavily to build and improve our BOSS apps. That strategy is paying off as BOSS Money continues to grow rapidly - thanks in part to the quality of our apps and our customer-centric service.

At BOSS Money, remittances surpassed a 30 million annual transaction run-rate for the first time in May, thanks to strong Mother's Day results in our digital channel. This channel contributed 88% of our total transaction volume in the fourth quarter with transactions and revenue both increasing by 20+%.

We recently launched money transfers via our WhatsApp channel, and we closed the fiscal year by deploying a digital wallet here in the U.S. The wallet enables our customers to load funds, store promotions, and pay for services. In addition, the BOSS Money app is extending its geographic reach, launching internationally with differentiated features by country including peer-to-peer remittances, a stablecoin-backed wallet with a reloadable debit card and other money management tools. We are also launching a BOSS Money branded rechargeable card with credit building features. All of these developments mark early steps toward a broader suite of BOSS Money-branded financial services and tools that we intend to offer globally.

net2phone delivered another solid quarter as we enhanced our cloud communications portfolio with both native and standalone AI solutions for businesses across the globe. Our agentic AI solutions, AI Agent and Coach, combined with our new integration layer, enable customers to connect their everyday business applications and workflow tools with net2phone's suite of services. net2phone's AI tools and applications are driving nearly every conversation with our clients. That process is delivering new logos and accelerating accretive sales. net2phone is on track to surpass the $100 million ARR milestone in the current quarter and we expect continued topline expansion throughout fiscal 2027.

Overall, IDT is well positioned as we begin the new fiscal year with accelerating topline growth, increasing cash generation, and a debt-free balance sheet that affords us strategic flexibility.

4Q26 AND FY 2026 RESULTS BY SEGMENT

National Retail Solutions (NRS)

 
(Terminals, accounts and retailer locations at end 
 of period. $ in millions, except for Average Monthly 
 GP per Location.(*) Numbers may not foot due to rounding.) 
 
 
                                                      4Q26-4Q25                                 FY26-FY25 
                                                      (<DELTA>, 
                                                          % 
                4Q26         3Q26         4Q25         <DELTA>)         FY26        FY25       (% <DELTA>) 
               -------      -------      -------      ----------       ------      ------      ----------- 
 
Retailer 
 locations      35,400       34,800       32,700           2,700 
Active POS 
 terminals      40,400       39,300       37,200           3,200 
Payment 
 processing 
 accounts       29,400       29,200       26,500           2,900 
 
Revenue 
Merchant 
 Services & 
 Other         $  28.5      $  25.8      $  21.8             +31%      $102.0      $ 76.8              +33% 
Advertising 
 and Data      $  10.1      $   5.7      $   6.8             +49%      $ 32.1      $ 31.1               +3% 
SaaS Fees      $   4.6      $   4.5      $   4.1             +12%      $ 17.8      $ 14.7              +21% 
POS Terminal 
 Sales         $   1.8      $   2.0      $   1.7             +10%      $  7.5      $  6.2              +22% 
Total revenue  $  45.0      $  38.0      $  34.3             +31%      $159.4      $128.8              +24% 
 
Gross profit   $  42.6      $  34.3      $  30.5             +40%      $146.6      $116.9              +25% 
Gross profit 
 margin           94.8%        90.2%        89.0%           +580  bps    92.0%       90.7%            +130  bps 
 
Average 
 monthly GP 
 per 
 location*     $   383      $   331      $   315             +22%      $  352      $  316              +12% 
 
SG&A           $  27.3      $  23.4      $  20.0             +37%      $ 96.1      $ 78.0              +23% 
Technology 
 and 
 development   $   2.8      $   2.7      $   2.3             +25%      $ 10.8      $  8.7              +24% 
Income from 
 operations    $  12.0      $   8.2      $   5.8            +105%      $ 39.3      $ 27.8              +42% 
Adjusted 
 EBITDA        $  14.0      $   9.8      $   9.5             +47%      $ 45.8      $ 35.4              +30% 
CapEx          $   1.7      $   0.8      $   1.3             +28%      $  5.8      $  5.4               +8% 
 

NRS Take-Aways:

   -- Beginning in 4Q26, IDT is reporting retailer locations and average 
      monthly retailer network gross profit per location ("average monthly GP 
      per location") as its measures of the scope of the NRS retailer network 
      and the contribution of the average retailer on the NRS network, 
      respectively. Retailer locations include stores that actively utilize NRS 
      terminals, NRS payment processing, or both. Average monthly GP per 
      location is gross profit generated within the NRS retailer network 
      divided by average retailer locations. Average monthly GP per location 
      increased 22% to $383 in 4Q26 from $315 in 4Q25, primarily reflecting 
      growth in NRS Pay. 
 
   -- The strong NRS revenue increase in 4Q26 was led mainly by Merchant 
      Services and Advertising and Data, and helped drive NRS' 4Q26 'Rule of 
      40' score to 60. 
 
   -- NRS recently launched a partnership with Uber Eats following successful 
      integrations with DoorDash and Grubhub. Collectively, these and other, 
      smaller, online ordering and delivery partnerships enable NRS retailers 
      to better meet and serve their customers wherever they are while 
      leveraging the scale of the NRS network to further differentiate NRS' 
      offerings. 

BOSS Money and Fintech Segment

 
(Transactions in millions. $ in millions except for 
 average revenue per transaction. Numbers may not foot 
 due to rounding.) 
 
 
                                                  4Q26-4Q25                                 FY26-FY25 
                4Q26       3Q26       4Q25       (% <DELTA>)        FY26        FY25       (% <DELTA>) 
                -----      -----      -----      -----------       ------      ------      ----------- 
BOSS Money 
 Transactions 
Digital 
 channel          6.6        6.0        5.5              +20%        23.6        19.6              +20% 
Retail channel    0.9        0.9        1.1              (20)%        3.8         4.2               (9)% 
Total 
 transactions     7.5        6.9        6.6              +14%        27.4        23.9              +15% 
Digital as a 
 percentage of 
 total           88.1%      87.0%      83.3%            +480  bps    86.0%       82.0%            +400  bps 
 
Fintech 
 Revenue 
BOSS Money 
Digital 
 channel        $33.7      $31.0      $27.6              +22%      $119.4      $ 99.0              +21% 
Retail channel  $ 8.7      $ 8.6      $10.6              (17)%     $ 37.3      $ 40.9               (9)% 
Total BOSS 
 Money          $42.4      $39.7      $38.2              +11%      $156.7      $139.8              +12% 
Other           $ 4.6      $ 5.3      $ 3.9              +20%      $ 19.3      $ 14.8              +31% 
Total Revenue   $47.1      $45.0      $42.1              +12%      $176.0      $154.6              +14% 
 
Average BOSS 
 Money revenue 
 per 
 transaction*   $5.68      $5.76      $5.81               (2)%     $ 5.72      $ 5.85               (2)% 
 
Gross profit    $30.9      $28.3      $24.9              +24%      $109.7      $ 90.7              +21% 
Gross profit 
 margin          65.6%      62.8%      59.1%            +650  bps    62.3%       58.7%            +360  bps 
SG&A            $22.9      $20.2      $17.8              +28%      $ 77.9      $ 66.2              +18% 
Technology and 
 development    $ 2.5      $ 2.5      $ 2.3              +10%      $ 10.2      $  9.1              +12% 
Income from 
 operations     $ 5.5      $ 5.6      $ 4.8              +15%      $ 21.5      $ 15.4              +40% 
Adjusted 
 EBITDA         $ 6.5      $ 6.6      $ 5.5              +17%      $ 26.2      $ 18.6              +41% 
CapEx           $ 1.0      $ 1.0      $ 0.8              +31%      $  3.9      $  3.5              +11% 
 

BOSS Money and Fintech Take-Aways:

   -- Digital transaction volume as a percentage of total transactions 
      increased to 88.1% in 4Q26, reflecting BOSS Money's focused investments 
      in digital customer acquisition programs and the industry-wide 
      acceleration of the ongoing migration of consumers to digital channels 
      from retail in the wake of a federal tax on remittances imposed on retail 
      transactions beginning on January 1, 2026. 
 
   -- Digital channel send volume - the amount of principal transferred by BOSS 
      Money customers using the BOSS Money and BOSS Revolution apps - increased 
      by 38% year-over-year in 4Q26 and by 35% in FY 2026, reflecting increases 
      in both transaction volumes and in average dollars sent per transaction. 
 
   -- The Fintech segment's year-over-year increases in gross profit margin, 
      650 bps in 4Q26 and 360 bps in FY 2026, primarily reflected the 
      continuing rotation in the transaction mix to higher margin digital 
      transactions from lower margin retail transactions, supplemented by the 
      impact of increased average send amounts and continuous efforts to 
      negotiate more favorable payout terms. 
 
   -- The BOSS Money app attained the highest average customer satisfaction 
      score of any of the leading digital money transfer providers serving the 
      U.S. and U.K. markets as evaluated by FXC Intelligence for 2026. It was 
      the second consecutive year that the BOSS Money app has won the honor. 

net2phone

 
(Seats in thousands at end of period. $ in millions. 
 Numbers may not foot due to rounding.) 
 
 
                                                  4Q26-4Q25                               FY26-FY25 
                4Q26       3Q26       4Q25       (% <DELTA>)       FY26       FY25       (% <DELTA>) 
                -----      -----      -----      -----------       -----      -----      ----------- 
Seats             447        441        422               +6% 
 
Revenue 
Subscription 
 revenue*       $24.5      $24.0      $22.2              +10%      $94.9      $85.7              +11% 
Other revenue   $ 0.5      $ 0.4      $ 0.5               (8)%     $ 1.7      $ 2.1              (19)% 
Total Revenue   $24.9      $24.4      $22.8               +9%      $96.6      $87.9              +10% 
 
Gross profit    $20.2      $19.6      $18.1              +11%      $77.8      $69.7              +12% 
Gross profit 
 margin          81.0%      80.6%      79.5%            +140  bps   80.6%      79.3%            +120  bps 
SG&A            $14.4      $14.1      $13.3               +9%      $56.3      $52.4               +8% 
Technology and 
 development    $ 3.1      $ 3.1      $ 3.0               +3%      $12.3      $11.7               +5% 
Income from 
 operations     $ 2.6      $ 2.4      $ 1.5              +75%      $ 9.1      $ 4.9              +84% 
Adjusted 
 EBITDA         $ 4.4      $ 4.1      $ 3.5              +26%      $16.1      $12.1              +33% 
CapEx           $ 1.6      $ 1.8      $ 1.7               (7)%     $ 6.9      $ 6.6               +4% 
 

net2phone Take-Aways:

   -- The increases in subscription revenue*, +10% in 4Q26 and +11% in FY 2026, 
      were +7% and +8%, respectively, on a constant currency* basis, reflecting 
      weakness in the U.S. dollar versus local currencies in certain of 
      net2phone's key markets. 
 
   -- The strong increases in net2phone profitability in both 4Q26 and FY 2026 
      reflect the leverage of net2phone's business model and the incremental 
      contributions of its AI-powered offerings. 
 
   -- net2phone introduced an integration layer in 4Q26, enabling net2phone's 
      solutions to work seamlessly with the customer's native, mission-critical 
      business software without the need for developers, custom coding, or 
      webhooks. Because they securely read from, and write to, connected CRM 
      and communications platforms, net2phone's solutions can be synced through 
      the integration layer with customer records and accounts, while actions 
      are reflected in real time in the relevant systems of record and are 
      reviewable through an audit trail. 

Traditional Communications

 
($ in millions. Numbers may not foot due to rounding.) 
 
 
                                                    4Q26-4Q25                                  FY26-FY25 
                4Q26        3Q26        4Q25       (% <DELTA>)         FY26        FY25       (% <DELTA>) 
               ------      ------      ------      -----------        ------      ------      ----------- 
Revenue 
IDT Digital 
 Payments      $113.9      $103.9      $107.0               +6%       $429.2      $416.3               +3% 
IDT Global     $ 56.1      $ 55.6      $ 55.9             +0.4%       $231.5      $209.6              +10% 
BOSS 
 Revolution    $ 44.2      $ 43.4      $ 49.3              (10)%      $180.3      $211.2              (15)% 
Other          $  7.8      $  5.5      $  5.3              +49%       $ 24.9      $ 23.1               +8% 
Total Revenue  $222.0      $208.3      $217.4               +2%       $865.9      $860.2               +1% 
 
Gross profit   $ 41.1      $ 40.3      $ 41.0             +0.4%       $162.6      $168.9               (4)% 
Gross profit 
 margin          18.5%       19.4%       18.8%             (30  )bps    18.8%       19.6%             (80  )bps 
SG&A           $ 18.3      $ 17.9      $ 19.9               (8)%      $ 75.6      $ 79.9               (5)% 
Technology 
 and 
 development   $  5.6      $  5.6      $  5.3               +6%       $ 22.5      $ 21.5               +5% 
Income from 
 operations    $ 16.6      $ 16.7      $ 15.4               +8%       $ 63.4      $ 66.5               (5)% 
Adjusted 
 EBITDA        $ 19.9      $ 19.7      $ 17.8              +12%       $ 77.3      $ 76.4               +1% 
CapEx          $  1.7      $  1.5      $  1.4              +22%       $  6.3      $  5.3              +21% 
 

Traditional Communications Take-Aways:

   -- In FY 2026, the Traditional Communications segment increased Adjusted 
      EBITDA levels for the second consecutive year, underscoring the 
      durability of the segment's cash generation. 
 
   -- IDT Digital Payments has launched an eSIM digital catalog through its 
      Zendit B2B prepaid platform and in the BOSS Revolution app, further 
      expanding its large and diversified catalog of prepaid offerings. The 
      eSIM catalog targets the large and rapidly growing travel data roaming 
      market, offering over 5,000 plans in 190+ countries. 

OTHER FINANCIAL RESULTS

Consolidated results for all periods presented include corporate overhead. Corporate Adjusted EBITDA declined to ($3.5) million in 4Q26 from ($2.5) million in 4Q25. In FY 2026, corporate Adjusted EBITDA declined to ($10.8) million from ($10.7) million in FY 2025.

As of July 31, 2026, IDT held $271.9 million in unrestricted cash, cash equivalents, debt securities, and current equity investments, an increase of $20.5 million from the level at April 30, 2026. Also at July 31, 2026, current assets totaled $655.4 million and current liabilities totaled $351.9 million. The Company had no outstanding debt at the quarter end.

Net cash provided by operating activities in 4Q26 increased to $44.4 million from $31.0 million in 4Q25. Exclusive of changes in customer funds deposits at IDT's Fintech segment, adjusted net cash provided by operating activities* in 4Q26 decreased to $26.4 million from $37.1 million in 4Q25.

In FY 2026, net cash provided by operating activities decreased to $91.1 million from $127.1 million in FY 2025. Exclusive of changes in customer funds deposits in IDT's Fintech segment, adjusted net cash provided by operating activities in FY 2026 decreased to $60.9 million from $107.8 million in FY 2025. The decrease primarily stemmed from the timing of working capital movements associated with the daily changes in settlement assets and disbursement prefunding at BOSS Money.

Capital expenditures increased to $6.0 million in 4Q26 from $5.3 million in 4Q25. For FY 2026, capital expenditures increased to $23.1 million from $20.8 million in FY 2025.

IDT repurchased 30,752 shares of its Class B common stock through open market transactions during 4Q26 for approximately $2.0 million. Open market repurchases during FY 2026 totaled 421,938 shares for approximately $21.0 million.

FY 2027 FINANCIAL OUTLOOK

For FY 2027, IDT expects to again grow consolidated gross profit by double digits, consistent with its average annual growth rate over the past several years, to a range of $545 million to $555 million.

Building on record Adjusted EBITDA of $154.6 million in FY 2026, IDT's fiscal 2027 guidance reflects continued, strong profitability growth, with Adjusted EBITDA expected to range from $176 million to $180 million, with each operating segment contributing to that growth.

DIVIDEND

IDT's Board of Directors has declared a quarterly cash dividend of $0.07 per share payable on October 14, 2026, to stockholders of record as of October 5, 2026.

IDT EARNINGS ANNOUNCEMENT INFORMATION

This release is available for download in the "Investors & Media" section of the IDT Corporation website with the SEC.

IDT will host an earnings conference call beginning at 5:30 PM Eastern today with management's discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the U.S.) or 1-973-528-0011 (international) and provide the following access code: 266780.

A replay of the conference call will be available approximately three hours after the call concludes through October 12, 2026. To access the call replay, dial 1-877-481-4010 (toll-free from the U.S.) or 1-919-882-2331 (international) and provide this replay passcode: 54497. The replay will also be accessible via streaming audio at the IDT investor relations website.

ABOUT IDT CORPORATION

IDT Corporation (NYSE: IDT) is a global provider of fintech, communications and AI-powered customer experience solutions through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable, and IDT Global and IDT Express enable communications service providers to provision and manage international voice and SMS messaging.

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe, " "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.

CONTACT

IDT Corporation Investor Relations

Bill Ulrey

william.ulrey@idt.net

973-438-3838

 
                         IDT CORPORATION 
 
                   CONSOLIDATED BALANCE SHEETS 
 
(in thousands, except per share data) 
July 31,                                      2026        2025 
-----------------------------------------   ---------   --------- 
ASSETS 
CURRENT ASSETS: 
     Cash and cash equivalents              $ 220,686   $ 226,505 
     Restricted cash and cash equivalents     138,650     115,327 
     Debt securities                           38,612      21,649 
     Equity investments                        12,642       5,637 
     Trade accounts receivable, net of 
      allowance for credit losses of 
      $6,938 and $9,097 at July 31, 2026 
      and 2025, respectively                   60,750      44,932 
     Settlement assets, net of reserve of 
      $1,535 and $1,367 at July 31, 2026 
      and 2025, respectively                   55,013      28,014 
     Disbursement prefunding                   84,751      37,097 
     Prepaid expenses                          13,395      12,440 
     Other current assets                      30,867      28,702 
                                             --------    -------- 
TOTAL CURRENT ASSETS                          655,366     520,303 
Property, plant, and equipment, net            41,864      38,869 
Goodwill                                       26,539      26,488 
Other intangibles, net                          8,762       5,056 
Equity investments                              6,068       6,658 
Operating lease right-of-use assets             1,448       1,878 
Deferred income tax assets, net                18,002      18,790 
Other assets                                    6,208       8,161 
                                             --------    -------- 
TOTAL ASSETS                                $ 764,257   $ 626,203 
                                             --------    -------- 
LIABILITIES, REDEEMABLE NONCONTROLLING 
 INTEREST, AND EQUITY 
CURRENT LIABILITIES: 
     Trade accounts payable                 $  18,629   $  19,435 
     Accrued expenses                         106,434      97,295 
     Deferred revenue                          27,124      27,726 
     Customer funds deposits                  147,654     114,708 
     Settlement liabilities                    16,988      13,922 
     Other current liabilities                 35,050      19,910 
                                             --------    -------- 
TOTAL CURRENT LIABILITIES                     351,879     292,996 
Operating lease liabilities                       817       1,103 
Other liabilities                               3,609       1,688 
                                             --------    -------- 
TOTAL LIABILITIES                             356,305     295,787 
Commitments and contingencies 
Redeemable noncontrolling interest             11,842      11,459 
EQUITY: 
  IDT Corporation stockholders' equity: 
     Preferred stock, $.01 par value; 
     authorized shares--10,000; no shares 
     issued                                        --          -- 
     Class A common stock, $.01 par value; 
      authorized shares--35,000; 3,272 
      shares issued and 1,574 shares 
      outstanding at July 31, 2026 and 
      2025                                         33          33 
     Class B common stock, $.01 par value; 
      authorized shares--200,000; 28,569 
      and 28,528 shares issued and 23,264 
      and 23,656 shares outstanding at 
      July 31, 2026 and 2025, 
      respectively                                285         285 
     Additional paid-in capital               319,225     308,111 
     Treasury stock, at cost, consisting 
      of 1,698 and 1,698 shares of Class A 
      common stock and 5,305 and 4,872 
      shares of Class B common stock at 
      July 31, 2026 and 2025, 
      respectively                           (165,379)   (143,853) 
     Accumulated other comprehensive loss     (14,097)    (16,569) 
     Retained earnings                        237,253     157,124 
                                             --------    -------- 
  Total IDT Corporation stockholders' 
   equity                                     377,320     305,131 
  Noncontrolling interests                     18,790      13,826 
                                             --------    -------- 
TOTAL EQUITY                                  396,110     318,957 
                                             --------    -------- 
TOTAL LIABILITIES, REDEEMABLE 
 NONCONTROLLING INTEREST, AND EQUITY        $ 764,257   $ 626,203 
                                             --------    -------- 
 
 
                      IDT CORPORATION 
 
             CONSOLIDATED STATEMENTS OF INCOME 
 
(in thousands, except 
 per share data) 
Year ended July 31,       2026         2025         2024 
--------------------   ----------   ----------   ---------- 
REVENUES               $1,297,960   $1,231,495   $1,205,778 
Direct cost of 
 revenues                 801,172      785,300      815,621 
                        ---------    ---------    --------- 
GROSS PROFIT              496,788      446,195      390,157 
OPERATING EXPENSES: 
Selling, general and 
 administrative (i)       318,346      287,567      270,207 
Technology and 
 development (i)           55,743       50,964       50,554 
Severance                   1,191          898        1,698 
Other operating 
 expense, net                 343        6,342        2,945 
                        ---------    ---------    --------- 
TOTAL OPERATING 
 EXPENSES                 375,623      345,771      325,404 
                        ---------    ---------    --------- 
Income from 
 operations               121,165      100,424       64,753 
Interest income, net        6,567        6,127        4,769 
Other income 
 (expense), ne              2,245         (713)      (7,612) 
                        ---------    ---------    --------- 
Income before income 
 taxes                    129,977      105,838       61,910 
(Provision for) 
 benefit from income 
 taxes                    (34,883)     (24,699)       6,354 
                        ---------    ---------    --------- 
NET INCOME                 95,094       81,139       68,264 
Net income 
 attributable to 
 noncontrolling 
 interests                 (8,461)      (5,045)      (3,810) 
                        ---------    ---------    --------- 
NET INCOME 
 ATTRIBUTABLE TO IDT 
 CORPORATION           $   86,633   $   76,094   $   64,454 
                        ---------    ---------    --------- 
 
Earnings per share 
 attributable to IDT 
 Corporation common 
 stockholders: 
Basic                  $     3.47   $     3.02   $     2.55 
                        ---------    ---------    --------- 
Diluted                $     3.46   $     3.01   $     2.54 
                        ---------    ---------    --------- 
 
Weighted-average 
 number of shares 
 used in calculation 
 of earnings per 
 share: 
Basic                      24,995       25,188       25,241 
                        ---------    ---------    --------- 
Diluted                    25,023       25,295       25,398 
                        ---------    ---------    --------- 
 
(i) Stock-based 
 compensation 
 included in total 
 operating expenses    $   10,544   $    3,074   $    7,397 
                        ---------    ---------    --------- 
 
 
                      IDT CORPORATION 
 
           CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
(in thousands) 
Year ended July 31,            2026       2025       2024 
--------------------------   --------   --------   -------- 
OPERATING ACTIVITIES 
Net income                   $ 95,094   $ 81,139   $ 68,264 
Adjustments to reconcile 
 net income to net cash 
 provided by operating 
 activities: 
Depreciation and 
 amortization                  21,400     21,008     20,351 
Deferred income taxes             789     16,217    (10,907) 
Provision for credit losses 
 and reserve for settlement 
 assets                         5,509      7,090      4,390 
Stock-based compensation 
 expense                       10,544      3,074      7,397 
Other                              79      2,199      4,579 
Changes in assets and 
 liabilities: 
Trade accounts receivable     (19,185)    (5,989)   (13,695) 
Prepaid expenses, other 
 current assets, and other 
 assets                           690      4,835      5,510 
Settlement assets and 
 disbursement prefunding      (75,087)   (13,861)     8,219 
Trade accounts payable, 
 accrued expenses, 
 settlement liabilities, 
 other current liabilities, 
 and other liabilities         22,680     (4,814)    (9,081) 
Customer funds deposits        30,144     19,235     (1,820) 
Deferred revenue               (1,588)    (3,072)    (5,016) 
                              -------    -------    ------- 
Net cash provided by 
 operating activities          91,069    127,061     78,191 
INVESTING ACTIVITIES 
Capital expenditures          (23,107)   (20,770)   (18,922) 
Purchase of convertible 
 preferred stock in equity 
 method investment                 --       (926)    (2,017) 
Payments for acquisition       (1,500)        --         -- 
Notes receivable from 
 equity method investment        (310)    (1,900)        -- 
Purchase of equity 
 investments                   (1,695)        --         -- 
Purchases of debt 
 securities and equity 
 investments                  (64,402)   (33,453)   (29,921) 
Proceeds from maturities 
 and sales of debt 
 securities and equity 
 securities                    43,348     36,310     50,112 
                              -------    -------    ------- 
Net cash used in investing 
 activities                   (47,666)   (20,739)      (748) 
FINANCING ACTIVITIES 
Dividends paid                 (6,504)    (5,550)    (2,536) 
Distributions to 
 noncontrolling interests      (2,743)      (100)      (112) 
Proceeds from borrowings 
 under revolving credit 
 facility                      21,421     24,551     32,864 
Repayments on borrowings 
 under revolving credit 
 facility                     (21,421)   (24,551)   (32,864) 
Purchase of restricted 
 shares of net2phone and 
 NRS common stock                  --         --     (4,131) 
Proceeds from borrowings          185         --         -- 
Repayments of borrowings         (185)        --         -- 
Proceeds from exercise of 
 stock options                    200         --        172 
Repurchases of Class B 
 common stock                 (21,526)   (17,773)   (10,619) 
                              -------    -------    ------- 
Net cash used in financing 
 activities                   (30,573)   (23,423)   (17,226) 
Effect of exchange rate 
 changes on cash, cash 
 equivalents, and 
 restricted cash and cash 
 equivalents                    4,674      3,477     (3,584) 
                              -------    -------    ------- 
Net increase in cash, cash 
 equivalents, and 
 restricted cash and cash 
 equivalents                   17,504     86,376     56,633 
Cash, cash equivalents, and 
 restricted cash and cash 
 equivalents at beginning 
 of year                      341,832    255,456    198,823 
                              -------    -------    ------- 
Cash, cash equivalents, and 
 restricted cash and cash 
 equivalents at end of 
 year                        $359,336   $341,832   $255,456 
                              -------    -------    ------- 
 

Reconciliation of Non-GAAP Financial Measures for the Fourth Quarter and Full Fiscal Years 2026 and 2025

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed (a) Adjusted EBITDA for 4Q26, 3Q26, 4Q25, and the full fiscal years 2026 and 2025, (b) Non-GAAP earnings per diluted share (Non-GAAP EPS) for 4Q26, 4Q25, and the full fiscal years 2026 and 2025, (c) NRS' 'Rule of 40' score for 4Q26, and (d) Non-GAAP adjusted net cash provided by operating activities for 4Q26, 4Q25, and the full fiscal years 2026 and 2025. These are Non-GAAP financial measures intended to provide useful information that supplements IDT's or the relevant segment's results in accordance with GAAP. The following explains these terms and their respective reconciliations to the most directly comparable GAAP measures.

Generally, a Non-GAAP measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

IDT's measure of Adjusted EBITDA on a consolidated basis starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expenses, and deducts other operating gain and income tax benefits. IDT's measure of Adjusted EBITDA on a reporting segment basis starts with income from operations (segments) in accordance with GAAP and adds depreciation and amortization, severance expense, stock-based compensation, and other operating expenses, and deducts other operating income.

IDT's measure of Non-GAAP EPS is calculated by dividing Non-GAAP net income by the diluted weighted-average shares. IDT's measure of Non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expenses, and deducts other operating gains and income tax benefits. The income tax effect of these adjustments is then deducted or added, as applicable. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2026 and fiscal 2025 periods.

Management believes that IDT's Adjusted EBITDA and Non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT's or the relevant segment's core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and Non-GAAP EPS to evaluate operating performance in relation to IDT's competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allow for greater transparency of the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance. Therefore, the inclusion of comparative numbers provides consistency in financial reporting.

Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments' and IDT's historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT's Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.

Severance expense is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT's and its segments' businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT's core and continuing operations.

Other operating expense, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Other operating expense, net, primarily includes legal fees net of insurance claims related to Straight Path Communications Inc.'s stockholders' class action and gains from the write-off of contingent consideration liabilities. From time to time, IDT may have gains or incur costs related to non-routine legal, tax, and other matters; however, these various items generally do not occur each quarter. IDT believes the gains and losses from these non-routine matters are not components of IDT's or the relevant segment's core operating results.

Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT's calculation of Adjusted EBITDA and Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT's core business and operating segments with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees' compensation that impacts their performance.

In 4Q25, IDT decreased its deferred income tax valuation allowance due to profitability in the United Kingdom and recorded an income tax benefit of $3.3 million in the quarter and FY 2025. This income tax benefit was excluded from IDT's Non-GAAP EPS because it was not related to the results of IDT's core operations.

Adjusted EBITDA and Non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT's measurements of Adjusted EBITDA and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

The 'Rule of 40' score is a metric used to evaluate the performance of SaaS providers. It postulates that a SaaS provider's revenue growth rate plus its EBITDA margin should equal or exceed 40 percent. The 'Rule of 40' is typically used to assess a company's balance between growth and profitability. A total of over 40 is thought to indicate a healthy combination of expansion and financial stability, making it a useful tool for management and investors to gauge the potential for long-term success and make informed decisions about resource allocation and business strategy.

NRS' 'Rule of 40' score is computed by adding (a) the growth rate of NRS' revenue for the current period compared to the corresponding year ago period to (b) the Adjusted EBITDA margin for the twelve-month period through the end of the current period. Adjusted EBITDA is a Non-GAAP measure as discussed above. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by GAAP revenue for the relevant period.

In 3Q26 and prior quarters, NRS used recurring revenue to calculate the revenue growth rate. Recurring revenue excluded revenue from the sale of NRS terminals. The revised definition using total revenue captures the impact of terminal sales and pricing decisions, providing a measure more closely aligned with NRS' underlying financial performance.

IDT's Non-GAAP adjusted measure of net cash provided by operating activities is calculated by excluding the impact of changes in customer deposits from net cash provided by operating activities. This measure provides a more meaningful measure of the cash generated by our core business operations, making it a more useful tool for management and investors to evaluate the cash generation of our business operations, and to compare IDT's cash generation with companies that do not have, or have different levels of, customer deposits. Customer deposits are, by regulation, not available to fund IDT's operating activities.

Following are reconciliations of Adjusted EBITDA and Non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, (i) income (loss) from operations for IDT's reportable segments and (ii) net income for IDT on a consolidated basis, and (b) for Non-GAAP EPS, diluted earnings per share. Also following is NRS' 'Rule of 40' score computation including the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, income from operations, and IDT's Non-GAAP adjusted measure of net cash provided by operating activities reconciled to GAAP net cash provided by operating activities.

IDT Corporation

Reconciliation of Net Income to Adjusted EBITDA for 4Q26, 3Q26, and 4Q25

(unaudited) in millions. Figures may not foot or cross-foot due to rounding

 
                      Total IDT      Traditional 
                     Corporation        Comm.       net2phone    NRS    Fintech    Corporate 
                    -------------   -------------  -----------  -----  ---------  ----------- 
Three Months 
Ended July 31, 
2026 
Net income 
 attributable to 
 IDT Corporation      $      21.7 
Adjustments: 
  Net income 
   attributable to 
   noncontrolling 
   interests                  2.7 
                    ---  -------- 
Net income                   24.4 
  Provision for 
   income taxes              12.1 
                    ---  -------- 
Income before 
 income taxes                36.5 
  Interest income, 
   net                       (1.7) 
  Other income, 
   net                       (1.6) 
                    ---  --------       ---------  ---  ------   ----      -----  ---  ------ 
Income (loss) from 
 operations           $      33.2    $       16.6    $     2.6  $12.0   $    5.5    $    (3.5) 
  Depreciation and 
   amortization               5.3             1.7          1.7    1.2        0.6          0.0 
  Stock-based 
   compensation               1.8             0.9            -    0.3        0.3          0.3 
  Severance 
   expense                    0.7             0.6          0.0    0.0        0.1            - 
  Other operating 
   expense (gain), 
   net                        0.3             0.1          0.0    0.5          -         (0.3) 
                    ---  --------       ---------  ---  ------   ----      -----  ---  ------ 
Adjusted EBITDA       $      41.2    $       19.9    $     4.4  $14.0   $    6.5    $    (3.5) 
                    ---  --------       ---------  ---  ------   ----      -----  ---  ------ 
 
 
                      Total IDT      Traditional 
                     Corporation        Comm.       net2phone   NRS    Fintech    Corporate 
                    -------------   -------------  -----------  ----  ---------  ----------- 
Three Months 
Ended April 30, 
2026 
Net income 
 attributable to 
 IDT Corporation      $      21.6 
Adjustments: 
  Net income 
   attributable to 
   noncontrolling 
   interests                  2.1 
                    ---  -------- 
Net income                   23.7 
  Provision for 
   income taxes               8.5 
                    ---  -------- 
Income before 
 income taxes                32.3 
  Interest income, 
   net                       (1.6) 
  Other income, 
   net                       (0.9) 
                    ---  --------       ---------  ---  ------   ---      -----  ---  ------ 
Income (loss) from 
 operations           $      29.8    $       16.7    $     2.4  $8.2   $    5.6    $    (3.0) 
  Depreciation and 
   amortization               5.4             1.8          1.7   1.2        0.7            - 
  Stock-based 
   compensation               2.4             1.2            -   0.4        0.4          0.4 
  Severance 
   expense                    0.1             0.1            -     -          -            - 
  Other operating 
   (gains), net              (0.2)              -            -     -          -         (0.2) 
                    ---  --------       ---------  ---  ------   ---      -----  ---  ------ 
Adjusted EBITDA       $      37.5    $       19.7    $     4.1  $9.8   $    6.6    $    (2.8) 
                    ---  --------       ---------  ---  ------   ---      -----  ---  ------ 
 
 
                      Total IDT      Traditional 
                     Corporation        Comm.       net2phone   NRS    Fintech    Corporate 
                    -------------   -------------  -----------  ----  ---------  ----------- 
Three Months 
Ended July 31, 
2025 
Net income 
 attributable to 
 IDT Corporation      $      16.9 
Adjustments: 
  Net income 
   attributable to 
   noncontrolling 
   interests                  0.6 
                    ---  -------- 
Net income                   17.5 
  Provision for 
   income taxes               2.9 
                    ---  -------- 
Income before 
 income taxes                20.4 
  Interest income, 
   net                       (1.8) 
  Other expense, 
   net                        3.2 
                    ---  --------       ---------  ---  ------   ---      -----  ---  ------ 
Income (loss) from 
 operations           $      21.9    $       15.4    $     1.5  $5.8   $    4.8    $    (5.7) 
  Depreciation and 
   amortization               5.3             1.8          1.6   1.1        0.7            - 
  Stock-based 
   compensation               0.4             0.2            -   0.2          -            - 
  Severance 
   expense                    0.3             0.1          0.1     -          -            - 
  Other operating 
   expense, net               5.9             0.2          0.2   2.4          -          3.1 
                    ---  --------       ---------  ---  ------   ---      -----  ---  ------ 
Adjusted EBITDA       $      33.8    $       17.8    $     3.5  $9.5   $    5.5    $    (2.5) 
                    ---  --------       ---------  ---  ------   ---      -----  ---  ------ 
 

IDT Corporation

Reconciliation of Net Income to Adjusted EBITDA for FY 2026 and FY 2025

(unaudited) in millions. Figures may not foot or cross-foot due to rounding

 
                      Total IDT      Traditional 
                     Corporation        Comm.       net2phone    NRS    Fintech    Corporate 
                    -------------   -------------  -----------  -----  ---------  ----------- 
For the Twelve 
Months Ended July 
31, 2026 
Net income 
 attributable to 
 IDT Corporation      $      86.6 
Adjustments: 
  Net income 
   attributable to 
   noncontrolling 
   interests                  8.5 
                    ---  -------- 
Net income                   95.1 
  Provision for 
   income taxes              34.9 
                    ---  -------- 
Income before 
 income taxes               130.0 
  Interest income, 
   net                       (6.6) 
  Other income, 
   net                       (2.2) 
                    ---  --------       ---------  ---  ------   ----      -----      ------- 
Income (loss) from 
 operations           $     121.2    $       63.4    $     9.1  $39.3   $   21.5   $    (12.1) 
  Depreciation and 
   amortization              21.4             7.0          6.8    4.8        2.8          0.0 
  Stock-based 
   compensation              10.5             5.7          0.0    1.3        1.8          1.7 
  Severance                   1.2             0.9          0.1    0.1        0.1            - 
  Other operating 
   expense (gain), 
   net                        0.3             0.2          0.0    0.4          -         (0.4) 
                    ---  --------       ---------  ---  ------   ----      -----      ------- 
Adjusted EBITDA       $     154.6    $       77.3    $    16.1  $45.8   $   26.2   $    (10.8) 
                    ---  --------       ---------  ---  ------   ----      -----      ------- 
 
 
                    Total IDT      Traditional 
                   Corporation        Comm.       net2phone    NRS    Fintech    Corporate 
                  -------------   -------------  -----------  -----  ---------  ----------- 
For the Twelve 
Months Ended 
July 31, 2025 
Net income 
 attributable to 
 IDT 
 Corporation        $      76.1 
Adjustments: 
Net income 
 attributable to 
 noncontrolling 
 interests                  5.0 
                  ---  -------- 
Net income                 81.1 
  Provision for 
   income taxes            24.7 
                  ---  -------- 
Income before 
 income taxes             105.8 
  Interest 
   income, net             (6.1) 
  Other expense, 
   net                      0.7 
                  ---  --------       ---------  ---  ------   ----      -----      ------- 
Income (loss) 
 from 
 operations         $     100.4    $       66.5    $     4.9  $27.8   $   15.4   $    (14.2) 
  Depreciation 
   and 
   amortization            21.0             7.6          6.4    4.1        2.9          0.1 
  Stock-based 
   compensation             3.1             1.4            -    1.1        0.2          0.4 
  Severance                 0.9             0.7          0.1      -          -            - 
  Other 
   operating 
   expense, net             6.3             0.2          0.6    2.4          -          3.1 
                  ---  --------       ---------  ---  ------   ----      -----      ------- 
Adjusted EBITDA     $     131.7    $       76.4    $    12.1  $35.4   $   18.6   $    (10.7) 
                  ---  --------       ---------  ---  ------   ----      -----      ------- 
 

IDT Corporation

Reconciliation of Earnings Per Share (EPS) to Non-GAAP EPS for 4Q26, 4Q25, FY 2026 and FY 2025

(unaudited) in millions, except per share data. Figures may not foot due to rounding

 
                       4Q26    4Q25     FY26    FY25 
                       -----   -----   ------   ----- 
 
Net income 
 attributable to IDT 
 Corporation           $21.7   $16.9   $ 86.6   $76.1 
Adjustments (add) 
subtract: 
  Income tax benefit       -     3.3        -     3.3 
  Stock-based 
   compensation         (1.8)   (0.4)   (10.5)   (3.1) 
  Severance expense     (0.7)   (0.3)    (1.2)   (0.9) 
  Other operating 
   expense, net         (0.3)   (5.9)    (0.3)   (6.3) 
                        ----    ----    -----    ---- 
Total adjustments      $(2.7)  $(3.3)  $(12.1)  $(7.0) 
  Income tax effect 
   of total 
   adjustments          (0.9)   (0.9)    (3.2)   (2.3) 
Total adjustments, 
 net of tax              1.8     2.4      8.9     4.7 
                        ----    ----    -----    ---- 
Non-GAAP net income    $23.5   $19.3   $ 95.5   $80.8 
                        ----    ----    -----    ---- 
 
Earnings per share: 
Basic                  $0.87   $0.67   $ 3.47   $3.02 
Total adjustments, 
 net of tax             0.07    0.09     0.36    0.18 
                        ----    ----    -----    ---- 
Non-GAAP - basic       $0.95   $0.76   $ 3.82   $3.20 
                        ----    ----    -----    ---- 
 
Weighted-average 
 number of shares 
 used in calculation 
 of basic earnings 
 per share              24.9    25.2     25.0    25.2 
                        ----    ----    -----    ---- 
 
Diluted                $0.87   $0.67   $ 3.46   $3.01 
Total adjustments, 
 net of tax             0.07    0.09     0.36    0.18 
                        ----    ----    -----    ---- 
Non-GAAP - diluted     $0.94   $0.76   $ 3.82   $3.19 
                        ----    ----    -----    ---- 
 
Weighted-average 
 number of shares 
 used in calculation 
 of diluted earnings 
 per share              24.9    25.2     25.0    25.3 
                        ----    ----    -----    ---- 
 

IDT Corporation

NRS' 'Rule of 40' Score For 4Q26

(unaudited) in millions. Figures may not foot due to rounding to millions

 
                                               Trailing 
                                                Twelve 
                                                Months 
                                                 (TTM) 
                  1Q26   2Q26   3Q26    4Q26     4Q26 
                  -----  -----  -----   -----  --------- 
 
Reconciliation 
of NRS' Income 
from Operations 
to Adjusted 
EBITDA 
 
Income from 
 operations       $ 8.9  $10.2  $ 8.2   $12.0  $    39.3 
Depreciation and 
 amortization       1.1    1.2    1.2     1.2        4.8 
Stock-based 
 compensation       0.2    0.4    0.4     0.3        1.3 
Severance 
 expense            0.0    0.0    0.0     0.0        0.1 
Other operating 
 expense, net         -      -   (0.0)    0.5        0.4 
                   ----   ----   ----    ----   -------- 
Adjusted EBITDA   $10.3  $11.8  $ 9.8   $14.0  $    45.8 
                   ----   ----   ----    ----   -------- 
 
 
                                   4Q26       4Q25 
                                  ------      ----- 
 
NRS' 'Rule of 40' Score 
 
NRS revenue                       $ 45.0      $34.3 
 
Revenue growth rate                   31% 
 
 
TTM Adjusted EBITDA from above    $ 45.8 
TTM total revenue                  159.4 
                                   ----- 
TTM Adjusted EBITDA margin            29% 
                                   ----- 
 
'Rule of 40'                          60 
 

IDT Corporation

Adjusted net cash provided by operating activities for 4Q26, 4Q25, FY 2026 and FY 2025

(unaudited) in millions. Figures may not foot due to rounding to millions

 
(in millions) 
Three months ended July 31,                          4Q26    4Q25 
-------------------------------------------------   ------   ----- 
Net cash provided by operating activities (GAAP)    $ 44.4   $31.0 
Changes in customer deposits                         (18.0)    6.1 
Adjusted net cash provided by operating activities 
 (Non-GAAP)                                         $ 26.4   $37.1 
 
 
(in millions) 
Full year ended July 31,                           FY26     FY25 
-----------------------------------------------   ------   ------ 
Net cash provided by operating activities (GAAP)  $ 91.1   $127.1 
Changes in customer deposits                       (30.1)   (19.2) 
Adjusted net cash provided by operating 
 activities (Non-GAAP)                            $ 60.9   $107.8 
 

Explanation of Key Performance Metrics

net2phone's subscription revenue is calculated by subtracting net2phone's equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil from its revenue in accordance with GAAP. net2phone's cloud communications and contact center offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone's revenues and direct cost of revenues and are strong indications of the top-line growth and performance of the business.

Constant currency as it relates to revenue provides a framework for assessing net2phone's performance that excludes the effect of foreign currency rate fluctuations. To determine net2phone's subscription revenue growth on a constant currency basis, current period revenues from entities reporting in currencies other than U.S. Dollars (USD) were converted to USD at the average monthly exchange rates in effect during the prior fiscal year's comparative period instead of the average monthly exchange rates in effect during the current period.

NRS' average monthly network gross profit per location (average monthly GP per location) is calculated by dividing NRS' gross profit generated within its retailer network by the average number of locations with either an active POS terminal, or an active payment processing account, or both, during the period. The average number of retailer locations is calculated by adding locations at the beginning and end of the period and dividing by two. The result is divided by three when the period is a fiscal quarter, and by twelve when the period is a fiscal year. Average monthly GP per location is useful for comparisons of NRS' gross profit and gross profit per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the retailer customer base.

BOSS Money Transactions are a nonfinancial metric that measures customer usage during a reporting period. Average BOSS Money Revenue per Transaction measures the revenue productivity of BOSS Money's remittance business. It is calculated by dividing BOSS Money revenue during the period by the number of transactions. Average BOSS Money Revenue per Transaction is a key metric for evaluating the productivity and operational performance of the business.

BOSS Money's Digital Send Volume is the aggregate amount of principal remitted by BOSS Money's digital customers -- those using the BOSS Money and BOSS Revolution apps to originate remittances. BOSS Money's Digital Send Volume is a key metric for evaluating the operational performance of the digital channel of the remittance business, and for comparing the performance of BOSS Money's digital channel to competitors in the remittance business as well as to performance to other temporal periods.

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