Idt Stock Earnings Reports

IDT delivered a strong Q2 FY2026 driven by growth at three higher‑margin businesses: NRS (Merchant Services and SaaS), BOSS Money (digital remittances), and net2phone (UCaaS with improving gross margins). NRS saw recurring revenue growth but advertising revenue was pressured by lower CPMs; management is pushing product and reseller initiatives and expanding merchant/sales efforts. BOSS Money experienced a meaningful shift from lower‑margin retail to higher‑margin digital transactions following the new federal remittance tax (effective Jan 1), with digital transactions up 17% year‑over‑year and improving unit economics. net2phone’s results benefited from better gross margins, operating leverage, favorable FX, and early success with AI products; management is launching an agentic AI offering integrated with unified communications. Traditional Communications remains a steady cash generator, contributing ~$19M in adjusted EBITDA this quarter. IDT increased shareholder returns: ~$15M of share repurchases in H1 and a 17% hike to the annual dividend. Management raised FY2026 consolidated adjusted EBITDA guidance to $147–$149M (midpoint representing about a $5M raise and ~12% above FY2025), and says the three growth segments now account for a higher share of free cash flow (about 53% vs. 45% a year ago). Capital allocation remains opportunistic (buybacks/dividends) while preserving cash for potential M&A. Key risks noted include advertising CPM softness and broader macro/industry uncertainties.