IDT (NYSE:IDT) Posts Earnings Results, Beats Estimates By $0.10 EPS

IDT (NYSE:IDT) posted its quarterly earnings data on Tuesday. The utilities provider reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.90 by $0.10, FiscalAI reports. The company had revenue of $320.52 million for the quarter, compared to the consensus estimate of $302.00 million. IDT had a net margin of 6.53% and a return on equity of 27.12%.

Here are the key takeaways from IDT’s conference call:

• IDT raised fiscal 2026 adjusted EBITDA guidance to $147–$149 million (midpoint ≈ $5M higher, ~12% above FY25) after reporting record gross profit, adjusted EBITDA and non‑GAAP EPS in Q2.
• BOSS Money is shifting customers to higher‑margin digital, with digital transactions up 17% YoY and a remittance‑tax‑driven rotation from retail that helped drive a 44% increase in Fintech adjusted EBITDA.
• Net2Phone improved margins and is advancing AI, delivering a 37% YoY increase in adjusted EBITDA and launching an “Agentic AI” offering integrated with Unified Communications, with modest incremental H2 investment planned.
• NRS grew merchant services and SaaS recurring revenue, but advertising was pressured by lower CPMs and SG&A rose modestly from pre‑product hiring and a higher reseller mix, partially offsetting gains.
• Capital allocation prioritized returns while preserving cash: management increased the annual dividend by 17% to $0.28 and repurchased $15M of stock in the first six months of FY26, while keeping cash available for opportunistic buybacks or M&A.

IDT Trading Down 5.2%

IDT traded down $2.70 on Wednesday, hitting $48.95. 81,499 shares of the company’s stock traded hands, compared to its average volume of 146,920. The company’s 50 day simple moving average is $49.90 and its 200-day simple moving average is $52.76. IDT has a one year low of $45.35 and a one year high of $71.12. The firm has a market cap of $1.23 billion, a price-to-earnings ratio of 15.21 and a beta of 0.76.

IDT Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Thursday, March 19th will be paid a dividend of $0.07 per share. This is a boost from IDT’s previous quarterly dividend of $0.06. The ex-dividend date of this dividend is Thursday, March 19th. This represents a $0.28 annualized dividend and a yield of 0.6%. IDT’s dividend payout ratio is 7.45%.

Insiders Place Their Bets

In other IDT news, CFO Marcelo Fischer sold 7,009 shares of the stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $52.03, for a total transaction of $364,678.27. Following the completion of the sale, the chief financial officer directly owned 56,863 shares of the company’s stock, valued at $2,958,581.89. This trade represents a 10.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In the last ninety days, insiders sold 8,570 shares of company stock valued at $446,073. Corporate insiders own 25.41% of the company’s stock.

Hedge Funds Weigh In On IDT

Hedge funds and other institutional investors have recently modified their holdings of the stock. State of Tennessee Department of Treasury bought a new stake in IDT in the 4th quarter valued at $268,000. Tudor Investment Corp ET AL boosted its holdings in shares of IDT by 9.1% during the 4th quarter. Tudor Investment Corp ET AL now owns 16,274 shares of the utilities provider’s stock valued at $833,000 after purchasing an additional 1,364 shares during the last quarter. Public Employees Retirement System of Ohio boosted its holdings in shares of IDT by 447.8% during the 4th quarter. Public Employees Retirement System of Ohio now owns 10,080 shares of the utilities provider’s stock valued at $516,000 after purchasing an additional 8,240 shares during the last quarter. CSM Advisors LLC grew its position in shares of IDT by 107.4% during the fourth quarter. CSM Advisors LLC now owns 103,950 shares of the utilities provider’s stock valued at $5,321,000 after purchasing an additional 53,835 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of IDT by 22.1% in the fourth quarter. Geode Capital Management LLC now owns 559,849 shares of the utilities provider’s stock worth $28,675,000 after purchasing an additional 101,268 shares during the last quarter. Institutional investors own 59.34% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on IDT. Wall Street Zen downgraded shares of IDT from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Weiss Ratings reissued a “hold (c+)” rating on shares of IDT in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of “Hold”.

More IDT News

Here are the key news stories impacting IDT this week:

• Positive Sentiment: IDT reported stronger-than-expected Q2 results with record quarterly gross profit, improved gross margins and higher Adjusted EBITDA; consolidated revenue rose to $320.5M (up ~6% YoY), and management highlighted growth across NRS, BOSS Money and net2phone. IDT Q2 Press Release
• Positive Sentiment: IDT raised FY2026 adjusted EBITDA guidance to $147M–$149M (up from $141–$145M), signaling management confidence in digital and AI initiatives as key growth drivers. Guidance Raise
• Positive Sentiment: Board increased the annual dividend by 17% to $0.28 and declared a quarterly $0.07 payout (payable March 31); IDT also repurchased shares (308k for ~$15M in 1H FY26), both shareholder-friendly moves that support valuation. Dividend & Buybacks
• Neutral Sentiment: Operational momentum is visible (digital send volume, net2phone subscription growth, AI product launches), but GAAP diluted EPS came in at $0.84 (slightly below some estimates) even as non‑GAAP EPS and cash generation improved — a mixed earnings interpretation for investors. Earnings Summary
• Negative Sentiment: Certain segments showed pressure: consolidated income from operations fell ~4% YoY and Advertising & Data recurring revenue declined ~10%; Traditional Communications gross profit was down — these mix and margin pressures temper the beat/guide headlines. Segment Details
• Negative Sentiment: Insider activity shows multiple recent sales (no purchases) by several executives, which can be perceived negatively by some investors even as institutional ownership changes remain mixed. Insider & Institutional Activity

About IDT

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.