EarningsQ4 2026 Earnings Report
DE:IDC2 Q4 2026 EPS Results
Actual EPS€0.83
Consensus EPS€0.86
Beat/MissMissed by -€0.04
One Year Ago EPS€0.67
DE:IDC2 Q4 2026 Revenue Results
Actual Revenue€299.05M
Expected Revenue€281.42M
Beat/MissBeat by +€17.63M
YoY Revenue Growth+7.07%
Earnings Announcement Details
QuarterQ4 2026
Date09/28/2026
TimeAfter Close
Conference CallMonday, September 28, 2026
DE:IDC2 Upcoming Earnings
IDT's next earnings date is estimated for December 7, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
DE:IDC2 Q4 2026 Earnings Call
0:00 / 0:00
Q4 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with record fiscal-year and quarterly results, accelerating revenue and adjusted EBITDA growth, improving contributions from higher-margin businesses, strong digital and AI momentum, a debt-free balance sheet and double-digit fiscal 2027 guidance. The main challenges were declines in retail-originated remittance revenue, Traditional Communications gross profit and BOSS Revolution PIN-less revenue, along with the qualification that some quarterly results benefited from one-time or comparative-period items.Company Guidance
Record Fiscal Year and Fourth Quarter
Management described fiscal 2026 as the best year in IDT's operational history and said the fourth quarter was the company's strongest quarter. IDT generated record quarterly and full-year gross profit, gross profit margin and adjusted EBITDA.
Accelerating Consolidated Growth
Fourth-quarter revenue increased 7% year over year, while full-year revenue increased 5%, accelerating from 2% growth in fiscal 2025. Management said this represented two consecutive years of accelerating top-line growth while expanding gross margin.
Adjusted EBITDA Exceeded Guidance
Full-year adjusted EBITDA increased 17% to $154.6 million, exceeding the revised guidance range of $150 million to $152 million provided with the Q3 results.
Higher-Margin Businesses Increased Contribution
NRS, Fintech and net2phone increased their quarterly and full-year contributions. In fiscal 2026, these three segments increased aggregate adjusted EBITDA contribution by $22 million to 53% of consolidated adjusted EBITDA, excluding corporate overhead, compared with 46% in fiscal 2025, while generating one-third of consolidated revenue.
NRS Revenue and Adjusted EBITDA Growth
NRS fourth-quarter revenue increased 31% to $45 million. Merchant Services revenue increased 31% to $28.5 million, advertising and data revenue increased 49% to $10 million, and adjusted EBITDA increased 47% year over year, with an adjusted EBITDA margin of 31%.
NRS Product Expansion and Retailer Monetization
NRS deployed an Uber Eats integration following its Grubhub and DoorDash partnerships, and management said these advances are supplementing other tailwinds driving merchant services revenue. Advertising and data revenue returned to growth, bolstered by a recent acquisition. NRS is also pursuing product initiatives to increase sales to existing retailers and attract new retailers.
NRS Operating Metrics Improved
NRS's Rule of 40 score increased to 60 from 49 in the fourth quarter of fiscal 2025, and income from operations more than doubled to $12 million. Beginning this quarter, the company is reporting retailer locations and average monthly gross profit per location, replacing monthly average recurring revenue per terminal as a key performance indicator.
NRS Plans Increased Sales Investment
Management said it intends to invest more in NRS sales growth, hire quite a lot of salespeople during fiscal 2027 and focus on higher-volume, higher-quality stores that can use more of NRS's services.
BOSS Money Digital Growth
BOSS Money surpassed a $30 million annual transaction run rate for the first time in May, supported in part by strong Mother's Day digital-channel results. Digital transactions and revenue both increased by more than 20% in the fourth quarter, with the digital channel representing 88% of total BOSS Money transaction volume.
BOSS Money Higher Digital Send Volumes
Digital-channel transactions increased 20% in the fourth quarter, revenue increased 22%, and digital send volume increased 38% as customers sent more money per transaction.
BOSS Money Product and Geographic Expansion
BOSS Money launched transfers through WhatsApp, deployed a digital wallet in the U.S. and expanded its app internationally with country-specific features, including peer-to-peer remittances, a stablecoin-backed wallet with a reloadable debit card and other money-management tools. The company is also launching a BOSS Money-branded rechargeable card with credit-building features.
Fintech Profitability Improvement
Fintech gross profit margin expanded by 650 basis points year over year to 66%, mainly reflecting the shift to digital, higher average send amounts and better pricing terms from payout partners. Fiscal 2026 Fintech revenue grew 14% to $176 million, income from operations grew 40% and adjusted EBITDA grew 41%, supported by AI-driven process automation and contributions from smaller businesses including IDT Financial Services.
Net2phone AI Adoption and ARR Milestone
Net2phone enhanced its cloud communications portfolio with native and stand-alone AI solutions, including AI Agent and Coach, together with a new integration layer. Its AI tools are driving nearly every client conversation, generating new logos and accelerating accretive sales. Net2phone is on track to surpass $100 million in ARR in the current quarter.
Net2phone Full-Year Operating Leverage
Net2phone full-year subscription revenue increased 10% to $94.6 million, income from operations increased 84% to $9.1 million, and adjusted EBITDA increased 33% to $16.1 million. Adjusted EBITDA margin increased to approximately 17% even as the company invested in AI capabilities. Fourth-quarter subscription revenue increased 10% year over year, or 7% on a constant-currency basis, and seats increased 6% to 447,000.
Net2phone CCaaS Growth and Internal AI Usage
Net2phone's CCaaS business grew revenue by 24%. IDT said more than 70% of communications in its own customer service and other company areas are being handled by AI in some form, with some interactions handled from start to finish and others involving an agent.
Traditional Communications EBITDA Resilience
Traditional Communications grew both revenue and adjusted EBITDA in fiscal 2026 and increased adjusted EBITDA for the second consecutive year. Full-year adjusted EBITDA increased 1% to $77 million as SG&A expense declined nearly 6% compared with fiscal 2025. Management expects the segment to remain a reliable contributor to cash generation for many years.
Digital Migration Supporting Traditional Segment Margins
Management said the shift from retail-first to digital-first customers has improved margins. Digital payments growth is expected to continue offsetting declines on the international long-distance side, while subscription plans and other higher-margin elements reduce the bottom-line impact of the declining BOSS Revolution PIN-less business.
Strong Balance Sheet and Share Repurchases
IDT ended fiscal 2026 with $272 million in unrestricted cash and liquid investments and no debt. The company repurchased approximately 31,000 shares in the fourth quarter and approximately 422,000 shares for $21 million during fiscal 2026.
Positive Fiscal 2027 Outlook
IDT expects consolidated gross profit of $545 million to $555 million in fiscal 2027, representing an 11% increase at the midpoint, and adjusted EBITDA of $176 million to $180 million, representing a 15% increase year over year at the midpoint. Management expects each operating segment to expand its contribution.
Mexico Remittance Market Share Increased
Management said BOSS Money's market share in Mexico, the largest U.S. remittance corridor, increased from a little less than 2% a year ago to a little less than 3%, and identified continued market-share growth in Mexico as an opportunity.
DE:IDC2 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed