IDT

Shares of IDT Corporation IDT have gained 1.2% since the company reported results for the quarter ended April 30, 2026, outperforming the S&P 500 Index, which declined 2.6% over the same period. Over the past month, IDT shares advanced 7.5%, against a 0.8% decline for the broader market. IDT delivered higher revenues and earnings in the third quarter of fiscal 2026, driven by continued growth in its higher-margin businesses. Revenues increased 4.5% year over year to $315.7 million, while gross profit rose 9.4% to a record $122.5 million. Gross margin expanded 170 basis points to 38.8% from 37.1%. Income from operations climbed 12% to $29.8 million, and GAAP earnings per share (EPS) improved to $0.87 from $0.86 a year earlier. Non-GAAP EPS increased 4.4% to $0.94 from $0.90. Adjusted EBITDA grew 13% to $37.5 million. Segment performance was led by National Retail Solutions (NRS), where revenue rose 22% and operating income increased 33%; the Fintech segment, where revenue grew 17% and operating income advanced 29%; and net2phone, which posted 11% revenue growth and a 76% increase in operating income. Traditional Communications revenue declined 1%, although adjusted EBITDA edged up 1%. Management attributed the quarter’s performance to the expanding contribution of NRS, Fintech and net2phone, which collectively accounted for 34% of consolidated revenue, up from 30% a year ago. These businesses generated 67% of consolidated gross profit compared with 61% in the prior-year period. Combined adjusted EBITDA from the three growth segments increased 27% year over year to $20.5 million. At NRS, recurring revenue increased 22% to $36 million, supported by a 31% increase in Merchant Services and Other revenue and a 17% rise in SaaS Fees. Active POS terminals reached 39,300, up 10.4%, while payment processing accounts increased 14.5% to 29,200. Revenue climbed 22% to $38 million and adjusted EBITDA rose 25% to $9.8 million. The Fintech segment benefited from strong BOSS Money performance. Total segment revenue increased 17% to $45 million, while gross profit rose 25% to $28.3 million. BOSS Money transactions increased 15% to 6.9 million, and digital channel transactions rose 20%. Digital channel revenue jumped 27% to $31 million. Digital channel send volume jumped 40%, reflecting growth in both transaction activity and average remittance amounts. Adjusted EBITDA increased 30% to $6.6 million. At net2phone, subscription revenue grew 12% to $24 million as seats served increased 6.3% to 441,000. The business benefited from growth in higher-value CCaaS seats, helping operating income rise 76% to $2.4 million and adjusted EBITDA increase 30% to $4.1 million. IDT Corporation price-consensus-eps-surprise-chart | IDT Corporation Quote NRS reported a Rule of 40 score of 50, reflecting a balance between growth and profitability. Monthly average recurring revenue per terminal increased 10% to $307. Management noted that payment processing accounts surpassed 29,000, and recurring revenue growth continued to be driven by merchant services and software fees. IDT ended the quarter with $251.4 million in cash, cash equivalents and current debt and equity securities, excluding restricted cash, and had no outstanding debt. During the quarter, IDT repurchased approximately 84,000 Class B shares for $4 million. Chief executive officer Shmuel Jonas said that growth continued to be fueled by IDT’s higher-margin businesses alongside steady cash generation from Traditional Communications. Jonas highlighted market-share gains at BOSS Money following implementation of a federal remittance tax and pointed to growing traction for net2phone’s AI offerings, which management expects to become accretive growth drivers in fiscal 2027. Management also emphasized broader adoption of AI and machine-learning tools across operations, including customer service, pricing, marketing and product development. Reflecting strong results through the first nine months of fiscal 2026 and visibility into the fiscal fourth quarter, IDT raised its full-year consolidated adjusted EBITDA guidance to a range of $150 million to $152 million from its previous outlook of $147 million to $149 million. At the midpoint, the revised forecast implies 15% growth over fiscal 2025 adjusted EBITDA of $131.7 million. Following the quarter’s close, IDT acquired an 80% controlling stake in OnCore Digital, a digital media brokerage. Management said the acquisition will allow NRS to integrate OnCore’s advertising technology, demand relationships and publisher network with its existing screen network and first-party transaction data. During the earnings call, management described the deal as a small tuck-in acquisition valued at roughly $6 million, excluding earn-outs, and said it is expected to enhance monetization of NRS advertising assets. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IDT Corporation (IDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Consolidated Revenue: Increased 5% to $315.7 million. Gross Profit: Grew 9% to $122.5 million. Gross Margin: Expanded by 170 basis points to 38.8%. Income from Operations: Increased 12% to $29.8 million. Adjusted EBITDA: Grew 13% to $37.5 million. NRS Recurring Revenue: Grew 22% year-over-year. Monthly Average Recurring Revenue per Terminal: Increased approximately 10%. Active POS Terminals: Over 39,000, up 14% year-over-year. Netphone Subscription Revenue: Up 12%. Netphone Total Revenue: Up 11%. Netphone Gross Margin: Expanded 130 basis points to 80.6%. Traditional Communications SG&A: Declined $2.6 million year-over-year. Cash and Cash Equivalents: $251 million. Quarterly Cash Dividend: $0.07 per share. Share Repurchase: Approximately 84,000 shares for $4 million. Full-Year FY26 Adjusted EBITDA Guidance: Raised to $150 million to $152 million, representing 15% growth over FY25. Warning! GuruFocus has detected 2 Warning Sign with IDT. Is IDT fairly valued? Test your thesis with our free DCF calculator. Release Date: June 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. IDT Corp (NYSE:IDT) reported a 5% increase in consolidated revenue to $315.7 million, with gross profit growing 9% to $122.5 million. The company raised its full-year FY26 adjusted EBITDA guidance to $150 million to $152 million, representing a 15% growth at the midpoint over fiscal year 2025. NRS recurring revenue grew 22% year-over-year, with monthly average recurring revenue per terminal increasing approximately 10%. Digital transactions grew 20% year-over-year, and digital send volume increased by 40%, indicating strong growth in the digital channel. IDT Corp (NYSE:IDT) ended the quarter with $251 million in cash, cash equivalents, and current debt and equity securities, maintaining a debt-free balance sheet. The Traditional Communications segment's revenue slightly declined, although it remains a reliable cash generator. Increased competition in the NRS segment has affected new sign-ups, indicating potential challenges in maintaining growth. The company is facing challenges in the advertising industry, which has been difficult due to the rise of streaming services. Despite growth, the company is cautious about expanding into new verticals, focusing instead on strengthening existing ones. IDT Corp (NYSE:IDT) is seeing more competition in the point-of-sale market, which could impact its market share and growth prospects. Q: Why did IDT choose Colombia for the first NRS terminal outside North America, and is it a beta test? A: Shmuel Jonas, CEO, explained that Colombia was chosen due to existing partnerships suggesting it as a viable option. It is not specifically a beta test but an opportunity to explore expansion. Q: How will the OnCore Digital acquisition impact NRS advertising? A: Shmuel Jonas, CEO, stated that OnCore will enhance IDT's advertising capabilities with its expertise and relationships, expecting the acquisition to be accretive. Q: Is there a possibility of spinning off net2phone given current market conditions? A: Shmuel Jonas, CEO, mentioned that while the idea is appealing, no decision has been made. He expressed confidence in net2phone's future performance and potential. Q: What are the expected EBITDA margins for BOSS Money in a steady state? A: Shmuel Jonas, CEO, and Marcelo Fischer, CFO, highlighted the focus on maintaining competitive pricing and customer retention, with Marcelo noting improved margins due to digital channel growth and operational efficiencies. Q: Can you provide details on the OnCore Digital acquisition price and valuation? A: Marcelo Fischer, CFO, disclosed that IDT acquired an 80% controlling stake in OnCore Digital for approximately $6 million, considering it a strategic and well-priced acquisition. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Consolidated growth was primarily driven by the expansion of three high-margin segments—NRS, FinTech, and net2phone—which now contribute 67% of total gross profit. The National Retail Solutions (NRS) segment achieved a Rule of 40 score of 50, balancing 22% recurring revenue growth with strong profitability through merchant services and SaaS fees. Digital channel revenue growth accelerated, with digital send volume increasing 40% year-over-year as the company gained market share following new federal remittance tax implementations. Net2phone's income from operations grew 76% as the company shifted focus toward higher-value CCaaS seats over traditional UCaaS seats, driving higher revenue per seat. Traditional Communications continues to serve as a reliable cash generator, with SG&A reductions of $2.6 million maintaining flat adjusted EBITDA despite declining legacy calling volumes. Management is aggressively integrating machine learning and AI across all segments to automate customer service, refine pricing, and accelerate product development cycles. Full-year fiscal 2026 adjusted EBITDA guidance was raised to a range of $150 million to $152 million, reflecting increased visibility and operating leverage. Management expects AI-based offerings to become accretive growth drivers starting in fiscal year 2027, with internal implementations already handling 30% of customer service calls. The acquisition of OnCore Digital is expected to be accretive, integrating first-party transaction data with a digital media brokerage to enhance the NRS retail advertising offering. NRS strategy is shifting toward strengthening product depth within existing convenience and liquor store verticals rather than aggressive expansion into new industry verticals. The company intends to maintain a consistent share buyback program, remaining opportunistic if market valuations fluctuate significantly. Gross margin reached a record quarterly high of 38.8%, a 170 basis point expansion driven by the structural shift toward digital and SaaS revenue. NRS expanded internationally for the first time with a terminal placement in Colombia, currently serving as a partner-led market test. Increased competition in the POS space, particularly from larger players like Toast, has impacted new sign-up rates at NRS, though management maintains a value-based competitive advantage. The company maintains a debt-free balance sheet with $251 million in liquid assets, supporting both growth investments and shareholder returns. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management acknowledged that a spin-off is becoming more appealing given current market valuations for peers, but expressed a desire to keep the asset closer for now. CEO Shmuel Jonas believes the business will outperform investor expectations and competitors, particularly as new AI features are integrated. Digital transactions grew 20% and May was the strongest transaction and gross profit month in the company's history. Margin expansion is being driven by a shift from retail to digital channels, better FX management, and AI-driven workflow efficiencies. Management conceded that competition has affected sign-ups but argued that NRS remains a 'purpose-built' and better-value product for its specific niche of independent retailers. The current road map focuses on deepening features for existing verticals to make the product 'impossible to compete with' in those specific markets. The $6 million valuation for an 80% stake aims to bring specialized media brokerage expertise in-house to better monetize NRS screen inventory. The move transitions a long-term partnership into a controlled entity to maximize the value of first-party retail data.

Image source: The Motley Fool. Wednesday, June 3, 2026 at 5:30 p.m. ET Chief Executive Officer — Samuel Jonas Chief Financial Officer — Marcelo Fischer Samuel Jonas: Thank you, Bill, and thanks to everyone on the call for joining us this evening. Last Friday, my father ran the opening bell at the NYSE to celebrate IDT's 25th anniversary, as a NYSE-listed company and our 30th anniversary as a public company. Over 100 employees on their own dime from all over the world made the trip into Manhattan to be part of the event. After the event, I agreed to reimburse them, but I wanted only people to come who generally wanted to be there. I'll be honest, I wasn't sure what to expect going in. And as you can tell from my notoriously short speeches, I don't really like long-winded events. But the moment we approached the exchange and my father saw the IDT sign and smiled at me, something shifted for me. The NYSE team had done something really special. They pulled together photos and documents from our past listing anniversaries, creating a time line of the people, the document, the, I don't know if history of IDT, and it was a very proud moment. What struck me most throughout the morning was the pride of being part of an organization that has stayed relevant and innovative throughout those 30 years, including the spin-off of 5 public companies and that has consistently delivered for employees and shareholders alike, although not always in a straight line. IDT's year-over-year revenue and earnings growth was again powered by the continued expansion and operating leverage of our 3 higher-margin businesses, paired with another quarter of steady cash generation from our Traditional Communications segment. Consolidated revenue grew 5% to $315.7 million. Gross profit grew 9% to $122.5 million, with gross margin expanding by 170 points to 38.8%, a record quarterly high. Income from operations grew 12% to $29.8 million and adjusted EBITDA grew 13% to $37.5 million. Based on our year-to-date performance and forward visibility, we are raising our full year FY '26 adjusted EBITDA guidance to $150 million to $152 million, representing a 15% growth at the midpoint over fiscal year 2025. NRS recurring revenue grew 22% year-over-year and monthly average recurring revenue per terminal increased approximately 10%, driven by merchant services and SaaS fees. We expect both categories to continue driving growth in the coming quarters. The terminal network now stands at over 39,000 active POS terminals and payment processing accounts are also above 29,000, up 14% year-over-year. NRS Rule of 40 score was 50 in the quarter, reflecting a healthy balance between growth and profitability. After the quarter closed, we acquired a controlling stake in OnCore Digital, a digital media brokerage. OnCore's platform, demand relationships and publisher network will be integrated with NRS' screen network and first-party transaction data to create a more competitive retail offering. Our digital channel revenue growth rate accelerated in the third quarter compared to the second quarter. Digital transactions grew 20% year-over-year and digital send volume, the actual dollars our customers are moving grew 40%. We gained market share following the implementation of the new federal remittance tax at customers but reliable, cost-effective alternatives. Netphone continued its growth trajectory with subscription revenue up 12% and total revenue up 11%. Seats served reached 441,000, up 6% year-over-year with CCaaS seats growing faster than UCaaS, driving revenue per seat higher. Gross margins expanded 130 basis points to 80.6%. Most significantly, income from operations was up 76%. We are gaining traction with our AI offerings and expect them to become accretive growth drivers in fiscal year 2027. All Netphone offerings will also benefit from the recent release of Integrate by Netphone, an integration layer that enables our clients to easily through straightforward no-code interface, use our offerings with the tools they already work with every day, such as popular CRMs and ERPs and much more. Our Traditional Communications segment continued its role as a reliable cash generator. SG&A declined $2.6 million year-over-year, as we continue to rightsize the cost structure and adjusted EBITDA was essentially flat at $19.7 million. IDT's global revenue grew 11%, partially offsetting the expected decline in BOSS Revolution calling. Across all our business segments, we are integrating machine learning and AI tools to better understand and meet the expectations of our customers, develop and provide new features faster, better and cheaper. Additionally, we are enhancing customer service refined pricing strategies, accelerating product launches, creating marketing campaigns and streamlining back-office operations, to name just a few. We expect that our AI efforts, in some cases, will serve as the basis for AI offerings that we can sell to our customers. 30 years ago, IDT was a scrapping long-distance phone company. Today, we operate a POS network serving nearly 40,000 independent retailers, a growing digital remittance business, gaining market share in real time and a cloud communications platform with AI capabilities and a traditional communication segment that continues to generate meaningful cash. Thank you all for your continued confidence in IDT. Marcelo will now walk through the financial details. Marcelo Fischer: Thank you, Shmuel. My remarks on our third quarter fiscal '26 results will focus on year-over-year comparisons in order to set aside the seasonal impacts on our business. As a reminder, our fiscal third quarter, February through April have just 89 days, roughly 3% fewer days than our other fiscal quarters. With that as context, we were very pleased with our consolidated performance. The third quarter extended the trajectory that we have been on for several years. The underlying growth dynamic at IDT remains in force. Our consolidated results increasingly reflect the growing contribution of our 3 higher-margin growth segments, NRS, FinTech and net2phone, even as our large traditional communications segment becomes relatively less impactful. That location again produced record consolidated gross profit and a record consolidated gross profit margin in the quarter. Gross profit increased 9% to $122.5 million, and our gross profit margin expanded 170 basis points to 38.8%. Let me put that rotation in number terms. Our 3 growth segments contributed $107 million of revenue in the quarter, about 34% of our consolidated total, up from 30% a year ago. Because the combined gross margin is far higher than that of traditional communications, that shift continues to generate substantial operating leverage as the revenue scales. In the third quarter, our growth businesses gross profit contribution increased to 67% from 61% a year earlier. The combined adjusted EBITDA from NRS, Fintech and net2phone grew 27% year-over-year to $20.5 million. In aggregate, our 3 growth segments generated 55% of IDT's consolidated adjusted EBITDA in the third quarter, up from 29% in the year ago quarter. Because these segments still account for only about 1/3 of our revenue, that rotation has a long way left to run. I also want to call your attention to the consistent profitability of traditional communications, which slightly increased its adjusted EBITDA contribution year-over-year this quarter, even as its revenue edged slightly lower. This segment will remain a reliable contributor to our cash generation for many years to come. On the balance sheet, we ended the quarter with $251 million in cash, cash equivalents and current debt and equity securities exclusive of restricted cash. Last week, our Board declared a quarterly cash dividend of $0.07 per share. We also continued to repurchase shares opportunistically during the quarter, repurchasing approximately 84,000 shares for $4 million. Our growing free cash flow and debt-free balance sheet let us keep investing in our growth initiatives while returning cash to stockholders, and we expect to continue doing both. In terms of our outlook, given our results through the first 9 months of the year and our visibility into the fourth quarter, we are again raising our full year fiscal '26 guidance for consolidated adjusted EBITDA from the $147 million to $149 million range, we provided last quarter to a new range of $150 million to $152 million. At the midpoint, this $3 million increase represents 15% growth over our fiscal 2025 adjusted EBITDA of $131.7 million. This latest guidance raise reflects both the increasing operating leverage we are seeing in our growth segments and the resilience of traditional communications contribution. To sum up, this was another quarter of disciplined profitable growth, and we are carrying real momentum into the close of our fiscal year. Just to finish up on a nostalgic note, as Shmuel mentioned, this year is our 30th year as a public company. So naturally, I had to take a look at IDT's first annual 10-K report from 30 years ago, 1996. That year, IDT reported revenue of $58 million and a net loss of $16 million. Today, even after spinning off 5 public companies, we are generating 22x the revenue and over $100 million more in net earnings. I am especially pleased by our performance over the past few years. In fiscal 2021, just 5 years ago, IDT reported $75 million in adjusted EBITDA. In fiscal '26, we are now on track to more than double that amount. So indeed, there was much to celebrate at the New York Stock Exchange last Friday. We are proud of all that we have accomplished and excited by the opportunities ahead. Now Shmuel and I will do our best to answer your questions. Operator, back to you for Q&A. Operator: [Operator Instructions] Our first question is from [indiscernible] Capital. Unknown Analyst: First, congratulations on the 25 years, and thank you for sharing the touching words. I'm happy you spent some money fighting people over to New Stock Exchange, knowing how tightly you manage money. So I'm glad you are celebrating how it is worth it. So the first -- that was not the only milestone this quarter. And I have a question on another milestone, which was NRS having the first terminal in non-North American country. So this year -- this quarter, sorry, Colombia was the first country where you had an NRS terminal. I'm wondering why you selected that country? And is it beta testing? How should we think about the growth of NRS in that country? Samuel Jonas: The real answer is we could have selected a bunch of different countries to have an expansion, and we have some partners there that suggested that we try it there and we decided why not. Unknown Analyst: Okay. I would like to ask another question on OnCore and the acquisition. We know that advertisement has been a challenging industry in the last few years with so many streaming services offering screen time, and you have suffered those consequences. Now with this acquisition, how should we think about advertisement in NRS? What can we expect of it? Samuel Jonas: I mean, listen, we definitely think that they are going to be a help to our advertising group. I mean they have a lot of expertise internally that we as a company didn't have. They have a lot of relationships that we as a company didn't have, and they're very good guys to work with. And we've worked with them as partners for a number of years already. So this is sort of a long-term relationship already. And we expect it to be an accretive acquisition. Okay. Unknown Analyst: In terms of net2phone, a couple of years ago, you went through the process of getting those papers ready to do the spin-off. That was canceled. Now we are in an environment where IPOs are the topic of the hour again and valuations are stretched. I'm looking at one of your peers in the segment that is growing organically less than you has literally the same amount of revenue, and they're trading at 3x sales plus. Is this enough of valuation for you to spin off netsphone or in view of the excitement that you have around the new AI offerings, you would like to keep it close to your chest for a longer time? Samuel Jonas: It's a good question. I'm not prepared to really give an answer on today's call. I mean, I would definitely say that it's becoming more appealing to possibly do something. That being said, I'm very, very confident that Netphone is going to do much better than our investors think it's going to do and much better than some of the competitors that you mentioned without mentioning. So yes. Unknown Analyst: Okay. And one last question on BOSS Money. The performance this quarter has been impressive. You are acquiring customers like -- I mean, like I haven't seen in a long time. And I'm wondering, you expanded margin despite the customer acquisition costs. If we think about BOSS Money in a steady state, what kind of EBITDA margins do you think it can produce? I mean less marketing expenses. Samuel Jonas: Yes. I don't know the answer to the question. I mean we have relatively good margins, I agree. We try to be opportunistic when we can be. And by the same token, we're very I'll say, sensitive to the fact that we want to continue to have our customers for a long time and continue to attract new customers. And to do so, you cannot have prices that aren't correct in the market. But Marcelo has a couple of things that you'd like to say about it as well. Marcelo Fischer: Okay, I mean, indeed, this was a real good quarter for us. It's kind of a continuation of what we started to see already in the beginning of the year. Our digital channel is really doing very, very strongly as you saw in the numbers. Our digital channel, as I've mentioned before, those command much higher margins than our retail channel. And that shift in channel continues, it adds to the total margin, the net margin. But the story is not just that. We're doing a better job understanding our customer, understanding how to price the service better, how to manage the FX that we go to our customers for the various corridors, like managing the entire cost structure, taking advantage of AI features to make our workflows and processes more efficient. So -- and the business, obviously, as it grows, it continues to scale quite nicely to the bottom line. I mean we put that release a few weeks ago about how modest day was a record weekend for us now that we have seen the May results, the month of May that just finished now and our first month into Q4 is our strongest transaction month ever. It's going to be our strongest gross profit month ever. And I think that's the reason. We're not just trying to grow transactions or revenue, we trying to do so, okay, with a very large focus into making that to be higher gross margin, higher gross profit. So I think we're in a real good situation, well positioned, gaining market share. And if this continues that way, obviously, we're going to continue to invest behind acquiring customers. But I do expect to see margin expansion as the year go by. Operator: Our next question comes from William Vaughan with Corient. William Vaughan: Congrats on the great quarter. Awesome anniversary as well. So once again, congratulations. I have a couple of questions. First one on the OnCore Digital acquisition. Is there any color you can give on the price paid or any multiple of whatever it is EBITDA, income from operations or anything like that? Marcelo Fischer: Yes. I mean we're going to have to put a little more detail when we file the 10-Q next week, right? But note this company is a small tuck-in acquisition. As Shmuel mentioned earlier, this is a relationship that we have had for many years. Now the company carries a lot of media for CTV or our advertising screens. We took a majority 80% controlling position in the company, valuation of about $6 million, now some earn-outs, et cetera. We believe that the price is basically an excellent price. And again, the focus is to have them be able to better monetize our screen inventory. And now that we are part of the family, we will be able to work better together to maximize that opportunity. William Vaughan: Awesome. Are there any other types of acquisitions or different places within your 3 growth businesses that you're looking and you're seeing attractive, if there are some tuck-ins or bolt-ons or other things you could do in that space, that would be attractive to you? And it could be in any one of them, NRS, BOSS Money or net2phone. Samuel Jonas: We always have our ears open, and we've done some successful acquisitions and some not as successful acquisition. So we -- and we might have dodged the bullet with some of our acquisitions, too, but it didn't happen. So I don't know. We keep our eyes open and remain cautious and prudent. William Vaughan: Okay. Staying opportunistic. So I guess just a question on net2phone AI. You brought up in the release. It seems like it's something that is gaining a lot more traction. What features of you're offerings do you find your clients are liking or excited about using the most? Samuel Jonas: It's a good question. I mean my first suggestion always is you should go and use the product yourself, become a customer. We always want more customers. And again, what I think is really exciting is really -- first of all, like for everyone, there's continuous advancements in it. And again, we use a lot of the products inside of IDT. And we're probably one of the biggest customers, we'll call it, of our own products. And I mean, already, we're handling probably 30% of our customer service calls using our own product, we'll call it. Obviously, they're not our own models, but our own products. And on chat it's, I think, above 50% at this point that's being handled by our products again. And all of those interactions are having to dip into our systems and provide real-time information to customers. It's not just like, hi how are you? Just call to say, hi, no, they want to know like I sent $200 to my brother in Mexico, and he still hasn't received it and they want to know where it is, is there an issue? When will it be available. And it's able to give as accurate answers as any one of our customer service reps would be able to give that customer. And it does it perfectly every time. And again, those same kinds of integrations are what we're providing to our customers in a way that they don't even have to be able to code anything. So I'm very excited about that. We have a premium product that we're starting for businesses so they could try it out called Flex. You can check it out on our website. Yes, I mean, I think they're doing great things, and I think it's really, really like not even early innings, it's like pre-innings, but the warm-ups are super impressive. And already, we're selling tens of thousands of dollars a month of products to customers outside of IDT, besides what we're using ourselves here. Marcelo Fischer: To see that in the numbers, right, at this point. I mean, net2phone is doing really great right now, right? They just crossed the $100 million MRR revenue barrier. So we are pleased about that. The month of May for them was the best month ever in terms of new sales. And they are going to show that the AI element is becoming a larger portion of those new sales, still small relatively, but becoming a bigger portion. So we are looking forward. Going back to the previous question about monetizing Netphone at some point. I think we are building the right assets and features to make the net2phone attractive -- a lot more attractive than people believe it is. William Vaughan: Awesome. Excited to see how that progresses over time. Switching to NRS. I know in the past, you guys have mentioned you don't see too much competition in terms of U.S. systems, in terms of single store operators for Bodegas and convenience stores. We're following other players in the space. I'm starting to see other players start to expand into different segments, specifically Toast. I was shocked to see that they're thinking about or actually starting to expand into convenience stores. And so I'll just ask the question again, are you guys seeing any more competition coming into the space in terms of point-of-sale operators and bigger players coming in? Or is it still sort of kind of not white space, but not as much competition as more from smaller guys? Samuel Jonas: I definitely think that we are seeing more competition at NRS, and it's definitely affected the new sign-ups. In terms of some of the bigger players, I mean, again, I think Toast is a great company. I must buy some for my personal portfolio as -- but in terms of like the offerings that we provide to convenience stores, liquor stores, I really think that we're a much better value and a much more purpose-built product for those markets. I mean the same way if you were starting a nice sit-down restaurant in your neighborhood, I wouldn't suggest you come to NRS to have us do your restaurant. I basically would tell you like the same thing if you were starting a convenience store, like I don't think you would be best off financially or otherwise from choosing anyone NRF. And again, it's only going to get better. In terms of our own road map for NRS, it's really going back and strengthening the product even more. We're not nearly as focused about expanding into new verticals, but more about just continuing to improve the verticals that we're in so much that nobody will be able to compete with us. William Vaughan: Okay. I think focus and solution to a specific vertical is really important in this space. So I appreciate that color. Moving to our BOSS Money. Love to see the growth, love to see the increased gross profit and the shift from retail to digital. I also saw that with a healthy investment in marketing and new customer acquisition. There are other digital players in the space I brought up before, who are growing as well. They spend a lot more in marketing. And I think -- I mean, I agree with your assessment that probably shouldn't be spending nearly as much as those players. But I guess I'm curious to hear your thoughts on maybe not spending a ton in terms of marketing, just in general customer acquisition and new customer acquisition, but let's say, for specific verticals, does it make sense to be more aggressive in verticals where you are on the precipice of high market share and gaining dominance in those verticals, specific countries? Or do you think it makes more sense to try to attack specific verticals in countries where you have a very low market share, sort of broaden the reach to more and more countries? Like how do you guys think about that dynamic? Samuel Jonas: It's a good question. I mean, again, I think we, to some degree, try to do a little bit of both, if I understand your question correctly. I wouldn't say in terms of like send countries, right now, we're really obviously only from the U.S.A. as opposed to some of our larger competitors who are really much more global in terms of send out countries. I think that over time, we would like to expand into other countries on a send-out basis as well. In terms of in terms of like our penetration into, we'll call it, countries that you send to, we definitely take a market-by-market approach to it. And we do offer better pricing, more incentives, et cetera, to customers in certain destinations than we do to others, either because there's more profitability to that country over time or because we're trying to get to a certain critical mass, we'll call it, inside of that country so that we get the benefits of being a larger player. Again, we have really good competitors in that business as well. So every day, we have to come in and win customers over with honestly pricing and great service, because if we don't do that, like we won't have a business. So that's really our main focus. And thoughtfully speaking, it seems to be working. William Vaughan: Awesome. Great color. Last question. So I was happy to see the buyback this quarter, which was about $19 million. Do you foresee a similar pace of buybacks going forward? Was this more taking advantage of maybe more attractive stock price? Or do you think based on where we are, we'll probably more or something close to it. Samuel Jonas: I mean, I have a lot of color on this 1 or 2 calls ago. So you can go back and listen to that rather than be like sort of repeating redundant information. But I mean, in general, I will continue to buy back stock. Obviously, we're opportunistic. If the price for some reason to fall a lot, like we would be buying like crazy. And if the price goes up a lot, we'll probably buy a little less. That being said, we are trying to stay on pace to continuously buy our stock, and this quarter was no exception. William Vaughan: Yes. Awesome. I mean if I'm looking at the EBITDA guide and where the business is headed on a consolidated basis, once you back out the enterprise value, we're probably trading at around 6x EBITDA, which is very, very low, at least in my opinion, in terms of where the value in the company. So love to see the buyback. I appreciate the color. Operator: As there are no more questions, this concludes our question-and-answer session and conference call. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Idt, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Idt wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!* Now, it’s worth noting Stock Advisor’s total average return is 960% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 4, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. IDT (IDT) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Record consolidated quarterly gross profit and gross profit margin Income from operations at NRS, Fintech, and net2phone segments increased by 33%, 29% and 76%, respectively FY 2026 guidance raised to $150-$152 million in Adjusted EBITDA* NEWARK, N.J., June 03, 2026 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech and communications solutions, today reported results for the third quarter of its fiscal year 2026, the three months ended April 30, 2026. 3Q26 CONSOLIDATED HIGHLIGHTS Throughout this release, unless otherwise noted, results for the third quarter of fiscal year 2026 (3Q26) are compared to the third quarter of fiscal year 2025 (3Q25). ($ in millions except for per share figures) *This release discloses certain Non-GAAP financial measures and Key Performance Metrics. 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. REMARKS BY SHMUEL JONAS, CEO “IDT’s year-over-year revenue and earnings growth was again powered by the continued expansion and operating leverage of our three high-margin businesses, paired with another quarter of steady cash generation from our Traditional Communications segment. “NRS recurring revenue increased 22% and revenue per terminal increased approximately 10% year-over-year driven by Merchant Services and SaaS Fees revenue. We expect both categories will continue driving growth in the coming quarters. After the quarter close, we acquired a controlling stake in OnCore Digital, a digital media brokerage. “At BOSS Money, our digital channel revenue growth rate accelerated sequentially as we gained market share following implementation of the new federal remittance tax. “net2phone continued its growth trajectory, helped by strong CCaaS results and ongoing U.S. and Mexico expansion. We are gaining traction with our AI offerings and expect they will become accretive growth drivers in fiscal year 2027. All net2phone offerings will also benefit from the recent release of Integrate by net2phone. Integrate is an integration layer that enables our clients to easily - through a straightforward, no-code interface - use our offerings with the tools they already work with every day including popular CRMs and ERPs. “Across our business segments, we are integrating machine learning and AI tools to better understand and meet the expectations of our customers, develop and provide new features, enhance customer service, refine pricing strategies, accelerate product and feature delivery, create marketing campaigns, and streamline back-office operations, to name just a few. We expect that our AI efforts, in some cases, will serve as the basis for AI-based offerings to our customers.” 3Q26 RESULTS BY SEGMENT National Retail Solutions (NRS) NRS Take-Aways NRS added approximately 500 net active terminals and 1,100 net payment processing accounts during 3Q26. Net active terminal additions in 3Q26 reflect the impact of seasonal churn among specialized retailers serving the year-end holidays. NRS’ ‘Rule of 40’* score was 50 in 3Q26, indicating a productive balance between growth and profitability. Following the quarter close, IDT acquired OnCore Digital. Through the acquisition, NRS will integrate OnCore’s ad tech, demand, and publisher networks with its screen network and first-party transaction data into a more unified offering. BOSS Money and Fintech Segment BOSS Money and Fintech Take-Aways: BOSS Money digital channel send volume*- the amount of principal transferred by BOSS Money customers using the BOSS Money and BOSS Revolution apps - increased by 40% in 3Q26 compared to 3Q25, reflecting increases in both transaction volume and average dollars sent per transaction. The Fintech segment’s year-over-year increases in income from operations and Adjusted EBITDA were driven by BOSS Money’s digital transaction growth, increased revenue and gross margin per digital transaction, and improved economics from other, smaller, businesses within the Fintech segment. net2phone net2phone Take-Aways: Subscription revenue increased faster than seats served, reflecting an increase in CCaaS seats, which generate higher revenue per seat than our UCaaS offerings, augmented by the positive FX impact of strengthening local currencies versus the U.S. dollar in certain Latin American markets. net2phone generated substantial year-over-year increases in income from operations and Adjusted EBITDA during 3Q26, benefitting from customer acquisition cost discipline and continued operating leverage. Traditional Communications Traditional Communications Take-Away: IDT continues to minimize Traditional Communications' overhead and improve its cost structure. This effort resulted in a $2.6 million decrease in segment SG&A in 3Q26 compared to the year ago quarter, particularly in employee compensation and legal expense. OTHER FINANCIAL RESULTS Consolidated results for all periods presented include corporate overhead. Corporate G&A expense increased 22% to $3.2 million in 3Q26 from $2.7 million in 3Q25, primarily as a result of increased stock-based compensation. As of April 30, 2026, IDT held $251.4 million in cash, cash equivalents, and current debt and equity securities, exclusive of restricted cash. Also as of April 30, 2026, current assets totaled $592.7 million and current liabilities totaled $308.0 million. IDT had no outstanding debt at quarter end. Net cash provided by operating activities in 3Q26 was $18.5 million compared to $75.7 million in 3Q25. Exclusive of changes in customer funded deposits at IDT’s Fintech segment businesses, adjusted net cash provided by operating activities* in 3Q26 was $16.0 million compared to $66.1 million in 3Q25. The decline in operating cash generation is due entirely to working capital timing, as 3Q26 ended on a Thursday which, along with Friday, is typically when cash levels are lowest because of prepaid weekend funding requirements for the BOSS Money and IDT Digital Payments businesses. Capital expenditures decreased to $5.1 million in 3Q26 from $5.4 million in 3Q25. During 3Q26, IDT repurchased approximately 84,000 shares of its Class B common stock for $4.0 million. For the nine months ended April 30, 2026, IDT repurchased approximately 391,000 shares for $19.0 million. FY 2026 FINANCIAL OUTLOOK IDT is increasing its previous FY 2026 guidance for consolidated Adjusted EBITDA from $147-$149 million to $150-$152 million. At the midpoint, the updated guidance represents an increase of 15% from FY 2025 Adjusted EBITDA of $131.7 million. Reconciliations of Adjusted EBITDA to net income and income from operations for all periods presented are included in the Non-GAAP reconciliations provided at the end of this release. DIVIDEND IDT’s Board of Directors has declared a quarterly cash dividend of $0.07 per share of IDT Class A and Class B Common stock payable on June 18, 2026 to stockholders of record as of June 9, 2026. IDT EARNINGS ANNOUNCEMENT INFORMATION This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC. IDT will host an earnings conference call beginning at 5:30 PM Eastern this evening with management’s discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-877-545-0523 (toll-free from the US) or 1-973-528-0016 (international) and provide the following access code: 181062. A replay of the conference call will be available approximately three hours after the call concludes through June 17th, 2026. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 54085. 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 and communications solutions through a portfolio of synergistic businesses: National Retail Solutions’ (NRS) point-of-sale (POS) platform enables independent retailers to process transactions and operate more effectively while providing advertisers and marketers with reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides businesses with unified communications and AI-driven workflow solutions to enhance customer experience at scale; 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 services 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 RelationsBill [email protected] Reconciliation of Non-GAAP Financial Measures for the Third Quarter Fiscal 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 3Q26, 2Q26, and 3Q25, among other quarters (b) non-GAAP earnings per diluted share (Non-GAAP EPS) for 3Q26 and 3Q25 (c) NRS’ ‘Rule of 40’ score for 3Q26 and (d) non-GAAP adjusted net cash provided by or used in operating activities for 3Q26 and 3Q25. These are non-GAAP financial measures intended to provide useful information that supplements IDT’s or the respective 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 starts with net income from operations 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 income. 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 respective 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 income (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, legal settlements, 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 respective 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 with the results of other companies. Stock-based compensation continues to be a significant expense for IDT and an important part of employees’ compensation that impacts their performance. 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 and other subscription-based 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’ recurring revenue for the relevant period compared to the corresponding year ago period to (b) NRS’ Adjusted EBITDA margin for the twelve-month period through the end of the current period. NRS’ recurring revenue is calculated by subtracting NRS’ revenue from POS terminal sales from its total GAAP revenue. 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. IDT’s Non-GAAP adjusted measure of net cash provided by operating activities is calculated by excluding the impact of changes in customer funds deposits held from net cash provided by operating activities. Customer funds deposits represent, for the most part, funds loaded by customers of the various prepaid debit card programs issued under IDT’s wholly-owned bank in Gibraltar. As such, these funds are held for customers and are not available for use by the Company. This adjusted measure of net cash provided by operating activities 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 corporate 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 NRS’ Adjusted EBITDA to the most directly comparable GAAP measure, NRS’ 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 CorporationReconciliation of Net Income to Adjusted EBITDA for the three months ended 3Q26, 2Q26, and 3Q25(unaudited) in millions. Figures may not foot or cross-foot due to rounding IDT CorporationReconciliation of Earnings Per Share (EPS) to Non-GAAP EPS for 3Q26 and 3Q25(unaudited) in millions, except for per share data. Figures may not foot due to rounding IDT CorporationNRS’ ‘Rule of 40’ ScoreFor 3Q26(unaudited) in millions. Figures may not foot due to rounding IDT Corporation Adjusted net cash provided by operating activities for 3Q26 and 3Q25(unaudited) in millions. Figures may not foot due to rounding Explanation of Key Performance Metrics net2phone 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. NRS’ Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue as defined in the Reconciliation of Non-GAAP Financial Measures by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring Revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the 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. 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. # # #

Interested in IDT Corporation? Here are five stocks we like better. IDT raised its fiscal 2026 outlook after a strong third quarter, with revenue up 5% to $315.7 million and adjusted EBITDA up 13% to $37.5 million. Gross margin hit a record 38.8%, driven by growth in NRS, Fintech and net2phone. Management lifted full-year adjusted EBITDA guidance to $150 million-$152 million from $147 million-$149 million, citing operating leverage in growth businesses and steady performance in traditional communications. The company also ended the quarter with $251 million in cash equivalents and continued returning capital via dividends and buybacks. High-margin segments are driving the mix shift, with NRS, BOSS Money digital, and net2phone all posting solid growth. NRS saw 22% recurring revenue growth, BOSS Money digital transactions rose 20%, and net2phone revenue climbed 11% while expanding margins and advancing AI offerings. IDT (NYSE:IDT) raised its full-year fiscal 2026 profit outlook after reporting higher third-quarter revenue, record gross profit and expanding margins, driven by growth in its higher-margin NRS, Fintech and net2phone segments. Chief Executive Officer Shmuel Jonas said the company’s year-over-year revenue and earnings growth was “again powered by the continued expansion and operating leverage” of those three businesses, alongside steady cash generation from its traditional communications segment. → Palantir’s Drone Tailwind Puts Its Defense AI Story Back in Focus for Investors For the three months ended April 30, 2026, consolidated revenue rose 5% year over year to $315.7 million. Gross profit increased 9% to $122.5 million, while gross margin expanded 170 basis points to 38.8%, which Jonas described as a record quarterly high. Income from operations rose 12% to $29.8 million, and adjusted EBITDA increased 13% to $37.5 million. Chief Financial Officer Marcelo Fischer said IDT’s business mix continues to shift toward higher-margin growth segments. NRS, Fintech and net2phone generated $107 million of revenue in the quarter, representing about 34% of consolidated revenue, compared with 30% a year earlier. Their gross profit contribution rose to 67% of the company total from 61% a year ago, while combined adjusted EBITDA increased 27% to $20.5 million. → Best Buy’s AI Laptop Boost Sparks Hope for a BBY Turnaround “Because these segments still account for only about one third of our revenue, that rotation has a long way left to run,” Fischer said. Management raised fiscal 2026 consolidated adjusted EBITDA guidance to a range of $150 million to $152 million, up from the prior range of $147 million to $149 million. At the midpoint, the updated forecast represents 15% growth from fiscal 2025 adjusted EBITDA of $131.7 million. → 3 Up-and-Coming Stocks That Could Be the Next NVIDIA Fischer said the increase reflects operating leverage in the growth businesses and the continued resilience of traditional communications. He also said the company ended the quarter with $251 million in cash equivalents and current debt and equity securities, excluding restricted cash. IDT’s board declared a quarterly cash dividend of $0.07 per share, and the company repurchased approximately 84,000 shares for $4 million during the quarter. Jonas said NRS recurring revenue grew 22% year over year, while monthly average recurring revenue per terminal increased about 10%, driven by merchant services and SaaS fees. The NRS network now includes more than 39,000 active point-of-sale terminals, and payment processing accounts exceeded 29,000, up 14% year over year. NRS’s Rule of 40 score was 50 in the quarter. After the quarter closed, IDT acquired a controlling stake in OnCore Digital, a digital media brokerage. Jonas said OnCore’s platform demand relationships and publisher network will be integrated with NRS’s screen network and first-party transaction data to strengthen its retail advertising offering. During the Q&A session, Fischer said IDT acquired an 80% controlling position in OnCore at a valuation of about $6 million, with an earn-out component. He described the transaction as a small tuck-in acquisition intended to help monetize NRS’s screen inventory. Asked about NRS’s first terminal outside North America, in Colombia, Fischer said the company had partners in the country who suggested testing the market there. Jonas also acknowledged that competition in point-of-sale systems has increased and has affected new sign-ups, but said NRS remains focused on improving its offering for convenience stores, liquor stores and similar verticals rather than expanding broadly into new categories. IDT’s digital remittance business also showed growth. Jonas said digital channel revenue growth accelerated compared with the second quarter. Digital transactions increased 20% year over year, and digital send volume rose 40%. Jonas said IDT gained market share following the implementation of a new federal remittance tax as customers sought reliable and cost-effective alternatives. In response to an analyst question about margins in BOSS Money, Jonas said the company tries to be opportunistic while remaining sensitive to pricing and customer retention. Fischer added that the digital channel carries higher margins than the retail channel, and that the company is improving its customer understanding, pricing, corridor management and cost structure. He said the company is also using AI tools to make workflows more efficient. Fischer noted that after a previously announced record Mother’s Day weekend, May was on track to be BOSS Money’s strongest transaction month and strongest gross profit month ever. net2phone continued to expand during the quarter, with subscription revenue up 12% and total revenue up 11%, Jonas said. Seats served reached 441,000, up 6% year over year, while contact center-as-a-service seats grew faster than new seats overall, helping drive revenue per seat higher. Gross margin expanded 130 basis points to 80.6%, and income from operations rose 76%. Jonas said net2phone is gaining traction with AI offerings, which management expects to become accretive growth drivers in fiscal 2027. He also highlighted the release of Integrate by net2phone, a no-code integration layer designed to connect net2phone offerings with tools such as CRM and ERP systems. Asked about the possibility of revisiting a net2phone spin-off, Jonas declined to provide a definitive answer but said it is “becoming more appealing to possibly do something.” He added that he believes net2phone will perform better than investors currently expect. On AI adoption, Jonas said IDT is using its own products internally, handling about 30% of customer service calls and more than 50% of chats with those tools. He said the products are also generating “tens of thousands of dollars a month” in sales to customers outside IDT, though Fischer cautioned that it is still too early for the impact to be meaningful in reported numbers. Management said traditional communications continued to provide reliable cash flow. Jonas said SG&A in the segment declined $2.6 million year over year, while adjusted EBITDA was essentially flat at $19.7 million. IDT Global revenue grew 11%, partially offsetting the expected decline in BOSS Revolution Calling. Fischer said traditional communications slightly increased its adjusted EBITDA contribution year over year despite slightly lower revenue, and he expects it to remain a reliable cash generator for years. Jonas also emphasized IDT’s broader use of machine learning and AI across business segments, including customer service, pricing, product development, marketing and back-office operations. He said some of those efforts could eventually become AI offerings that IDT can sell to customers. IDT Corporation, founded in 1990 and headquartered in Newark, New Jersey, is a diversified global provider of telecommunications and payment services. The company operates through its primary communications arm, IDT Telecom, and a digital solutions segment that encompasses cross-border money transfers and related fintech offerings. Since its inception, IDT has built an international network infrastructure to support voice and data transmission across more than 200 countries and territories. Through IDT Telecom, the company offers a suite of voice communication products, including prepaid phone cards, VoIP services, SIP trunking and operator-assisted calling. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "IDT Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

Shares of IDT Corporation IDT have lost 3.1% since the company reported its earnings for the quarter ended Jan. 31, 2026. This compares to the S&P 500 Index’s 1.7% loss over the same time frame. Over the past month, the stock gained 0.8% against the S&P 500’s 2.3% decline. For the second quarter of fiscal 2026, IDT reported revenues of $320.5 million, up 5.7% from $303.3 million in the year-ago quarter. GAAP earnings per share (EPS) rose 5% to $0.84 from $0.80 a year earlier, while non-GAAP EPS increased 19% to $1.00 from $0.84. Gross profit increased 8.2% year over year to $121.3 million from $112.1 million, with gross margin improving to 37.8% from 37%. Adjusted EBITDA rose 9% to $38 million from $34.9 million. Segment-wise, the National Retail Solutions (NRS) business generated revenues of $39.4 million, up 19% from $33 million in the prior-year period. The Fintech segment, which includes BOSS Money, recorded revenues of $41.2 million, an increase of 12% from $36.8 million a year ago. net2phone posted revenues of $23.9 million, rising 11% from $21.5 million. Traditional Communications remained the largest segment with revenues of $216.1 million, up 2% year over year from $212 million, though profitability declined within the segment. IDT’s NRS platform continued to expand its merchant network and recurring revenue base during the quarter. Active POS terminals increased 12% year over year to 38,900 from 34,800, while payment processing accounts rose 18% to 28,100 from 23,900. Total recurring revenue climbed 18% to $37.5 million from $31.6 million, supported by strong growth in merchant services revenue, which increased 32%, and SaaS fees, which rose 26%. Advertising and data revenue declined 10%, reflecting softer advertising pricing. NRS revenue growth translated into a 20% increase in gross profit to $36.3 million from $30.3 million and a 15% rise in adjusted EBITDA to $11.8 million from $10.3 million. In the Fintech segment, BOSS Money transactions increased 13% year over year to 6.4 million from $5.7 million. Digital channel transactions rose 17%, while retail channel transactions declined 4%. Total Fintech revenue grew 12% to $41.2 million from $36.8 million, with digital channel revenue increasing 14%. Gross profit in the segment rose 15% to $25 million from $21.7 million, and adjusted EBITDA jumped 44% to $5.6 million from $3.9 million, reflecting improved operating efficiencies and increased digital adoption. The net2phone unified communications business also reported growth. Total revenue increased 11% year over year to $23.9 million from $21.5 million, driven primarily by a 12% rise in subscription revenue. Seats served increased 6% to 435,000 from 410,000. Gross profit grew 13% to $19.3 million from $17 million, and income from operations surged 96% to $2.2 million from $1.1 million, reflecting operating leverage and disciplined cost management. Traditional Communications delivered revenue growth but experienced pressure on profitability. Revenue increased 2% year over year to $216.1 million from $212 million, helped by gains in IDT Digital Payments and IDT Global. However, gross profit declined 6% to $40.7 million from $43.1 million, and adjusted EBITDA fell 9% to $18.8 million from $20.6 million as a result of a mix shift toward lower-margin corridors and declines in BOSS Revolution calling revenue. IDT Corporation price-consensus-eps-surprise-chart | IDT Corporation Quote Management attributed the company’s overall performance to continued expansion in its higher-margin growth segments — NRS, Fintech and net2phone. These segments together accounted for a growing share of profitability, reflecting a broader shift in IDT’s business mix away from its legacy telecom operations. According to company leadership, these three growth segments generated 53% of consolidated adjusted EBITDA less capital expenditures in the quarter, compared with 45% in the prior-year period. Within Fintech, management highlighted the impact of a new federal remittance tax implemented on Jan. 1. The tax has accelerated migration from retail-based remittance transactions toward digital channels, which typically generate lower revenue per transaction but higher margins. Digital transaction growth at BOSS Money has already begun to reflect this shift, with management expecting the benefits to become more visible in coming quarters. In the NRS business, management noted that merchant services and SaaS revenue expansion continued to drive growth, though lower advertising CPM rates weighed on advertising revenue during the quarter. At net2phone, improving gross margins, operating leverage and favorable foreign exchange trends supported profitability gains. The company is also introducing AI-enabled communications tools to expand its offerings to small and medium-sized businesses. IDT raised its fiscal 2026 adjusted EBITDA guidance to a range of $147 million to $149 million, up from its previous forecast of $141 million to $145 million. At the midpoint, the updated outlook represents a 12% increase compared with fiscal 2025 adjusted EBITDA. Management said the improved outlook reflects stronger-than-expected performance in several segments, including net2phone and Fintech. The company also emphasized shareholder returns during the quarter. IDT repurchased approximately 149,000 shares for $7.4 million in the fiscal second quarter and has spent $15 million on share buybacks during the first half of fiscal 2026. Additionally, the board increased the annual dividend by 17% to $0.28 per share. IDT ended the quarter with $246.2 million in cash, cash equivalents, debt securities and current equity investments and reported no outstanding debt. Operating cash flow improved significantly, with net cash provided by operating activities rising to $38.3 million from $20.2 million in the year-ago quarter. During the quarter, net2phone launched a HIPAA-compatible AI-powered communications solution for healthcare providers and later introduced an additional AI-based offering targeting the hospitality industry. These product initiatives reflect IDT’s efforts to integrate AI capabilities into its communications platform as it expands its technology offerings. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IDT Corporation (IDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record quarterly gross profit, gross profit margin, Adjusted EBITDA* and Non-GAAP EPS* Income from operations at NRS, Fintech and net2phone segments increased by 12%, 32% and 96%, respectively 1H FY2026 stock repurchases totaled 308K shares for $15 million. IDT increases annual dividend 17% to $0.28 NEWARK, NJ, March 10, 2026 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech and communications solutions, today reported results for the second quarter of its fiscal year 2026, the three months ended January 31, 2026. 2Q26 CONSOLIDATED HIGHLIGHTS Throughout this release, unless otherwise noted, results for the second quarter of fiscal year 2026 (2Q26) are compared to the second quarter of fiscal year 2025 (2Q25). *This release discloses certain Non-GAAP financial measures as well as certain Key Performance Metrics. 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. REMARKS BY SHMUEL JONAS, CEO “NRS’, BOSS Money’s and net2phone’s top and bottom-line expansion drove IDT’s strong overall results again this quarter. “NRS recurring revenue grew year-over-year powered by large increases in Merchant Services and SaaS fee revenues. This quarter, we continued to make progress on initiatives to drive additional Merchant Services and SaaS growth and expand our delivery partnerships. We are also developing offerings for differentiated retailer verticals. Advertising & Data results came in lower than we expected after decreases in CPM rates pressured revenues. “At BOSS Money, our digital channel continued to outperform relative to the industry, as transactions increased 17% year-over-year. The new federal remittance tax, which applies mainly to transactions originated with cash, went into effect on January 1st. As expected, the tax implementation has accelerated customer migration from the lower-margin retail channel to the higher-margin digital channel, and you will begin to see those positive impacts next quarter. “net2phone’s bottom line continues to benefit from its strengthening gross margins and operating leverage, and this quarter we also got a boost from favorable foreign exchange rates. Looking ahead, our AI offerings are generating very positive customer reviews and increased spend. Based on these early results, we are readying a new offering — agentic AI seamlessly integrated with unified communications, with a go-to market strategy targeting both direct and channel sales to small-medium businesses. “Traditional Communications remained a strong cash generator. The segment contributed $19 million in Adjusted EBITDA during the second quarter – a decrease from the year ago quarter but approximately the same as in the prior two quarters. “Because of our recent strong financial and operational performance, growth outlook, and balance sheet, we again repurchased stock in the second quarter and our Board has increased our annual dividend by 17% to $0.28 per year.” 2Q26 RESULTS BY SEGMENT National Retail Solutions (NRS) NRS Take-Aways BOSS Money and Fintech Segment BOSS Money and Fintech Take-Aways: net2phone net2phone Take-Aways: Traditional Communications Traditional Communications Take-Aways: OTHER FINANCIAL RESULTS Consolidated results for all periods presented include corporate overhead. Corporate G&A expense decreased 7% to $2.8 million in 2Q26 from $3.0 million in 2Q25. As of January 31, 2026, IDT held $246.2 million in cash, cash equivalents, debt securities, and current equity investments, exclusive of restricted cash. Also as of January 31, 2026, current assets totaled $572.8 million and current liabilities totaled $308.4 million. IDT had no outstanding debt at the quarter end. Net cash provided by operating activities in 2Q26 was $38.3 million compared to $20.2 million in 2Q25. Exclusive of changes in customer funded deposits at IDT’s Fintech segment businesses, adjusted net cash provided by operating activities* in 2Q26 was $39.3 million compared to $7.3 million provided in 2Q25. Capital expenditures increased to $6.1 million in 2Q26 from $4.8 million in 2Q25. FY 2026 FINANCIAL OUTLOOK IDT is increasing its previous FY 2026 guidance for consolidated Adjusted EBITDA from $141-$145 million to $147-$149 million. At the midpoint, the updated guidance represents an increase of 12% from FY 2025 Adjusted EBITDA of $131.7 million. Reconciliations of Adjusted EBITDA to net income and income from operations for all periods presented are included in the Non-GAAP reconciliations provided at the end of this release. DIVIDEND The Board of Directors of IDT Corporation increased IDT’s annual dividend from $0.24 to $0.28 and declared a quarterly cash dividend of $0.07 per share of IDT Class A and Class B Common stock payable on March 31, 2026 to stockholders of record as of March 19, 2026. IDT EARNINGS ANNOUNCEMENT INFORMATION This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) 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: 838615. A replay of the conference call will be available approximately three hours after the call concludes through Tuesday, March 24, 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: 53592. 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 and communications solutions through a portfolio of synergistic businesses: National Retail Solutions’ (NRS) point-of-sale (POS) platform enables independent retailers to operate more effectively while providing advertisers and marketers with reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides businesses with unified communications, customer experience, and AI-driven workflow solutions; 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 services 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 [email protected] 973-438-3838 IDT CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS IDT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) IDT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Reconciliation of Non-GAAP Financial Measures for the Second Quarter Fiscal 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 2Q26, 1Q26, and 2Q25, among other quarters (b) non-GAAP earnings per diluted share (Non-GAAP EPS) for 2Q26 and 2Q25 (c) NRS’ ‘Rule of 40’ score for 2Q26 and (d) non-GAAP adjusted net cash provided by or used in operating activities for 2Q26 and 2Q25. 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 starts with net income from operations 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 income. 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 income (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, legal settlements, 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 gain 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 with the results of other companies. Stock-based compensation continues to be a significant expense for IDT and an important part of employees’ compensation that impacts their performance. 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’ recurring revenue for the relevant period compared to the corresponding year ago period to (b) NRS’ Adjusted EBITDA margin for the twelve-month period through the end of the current period. NRS’ recurring revenue is calculated by subtracting NRS’ revenue from POS terminal sales from its total GAAP revenue. 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. IDT’s Non-GAAP adjusted measure of net cash provided by operating activities is calculated by excluding the impact of changes in customer funds deposits held from net cash provided by operating activities. Customer funds deposits represent, for the most part, funds loaded by customers of the various prepaid debit card programs issued under IDT’s wholly-owned back in Gibraltar. As such, these funds are held for customers and are not available for use by the Company. This adjusted measure of net cash provided by operating activities 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 NRS’ Adjusted EBITDA to the most directly comparable GAAP measure, NRS’ 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 the three months ended 2Q26, 1Q26, and 2Q25 (unaudited) in millions. Figures may not foot or cross-foot due to rounding IDT Corporation Reconciliation of Earnings Per Share (EPS) to Non-GAAP EPS for 2Q26 and 2Q25 (unaudited) in millions, except for per share data. Figures may not foot due to rounding IDT Corporation NRS’ ‘Rule of 40’ Score For 2Q26 (unaudited) in millions. Figures may not foot due to rounding IDT Corporation Adjusted net cash provided by operating activities for 2Q26 and 2Q25 (unaudited) in millions. Figures may not foot due to rounding Explanation of Key Performance Metrics net2phone 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. NRS’ Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue as defined in the Reconciliation of Non-GAAP Financial Measures by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring Revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the 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 Revolutions apps to originate remittances. 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. # # #