IDT Reports Higher Revenue and Raises Fiscal 2026 EBITDA Guidance

IDT Corporation reported record gross profit, gross-profit margin, adjusted EBITDA, adjusted-EBITDA margin, and non-GAAP earnings per share for the three months ended January 31, 2026. The results were driven by growth in the NRS, Boss Money, and Netafone segments.

NRS recurring revenue rose on higher merchant-services and SaaS fee income, while Boss Money recorded a 17 percent year-over-year increase in digital transactions.

A new federal remittance tax that took effect January 1 applies mainly to cash transactions. IDT said the tax has accelerated customer movement from lower-margin retail channels to higher-margin digital channels, with the financial effects expected to appear in the next quarter.

Netafone’s gross margins and operating leverage improved, aided by favorable foreign-exchange rates. Traditional communications contributed $19 million in adjusted EBITDA, roughly level with the prior two quarters.

Management stated that early customer feedback on its AI offerings has been positive and that a new Agentic AI product integrated with unified communications is being prepared for small and medium businesses. The board raised the annual dividend 17 percent to 28 cents per share and the company repurchased shares during the quarter.

IDT also lifted its fiscal 2026 adjusted-EBITDA guidance to a range of $147 million to $149 million.