IDT Corporation Class B (IDT) FY2026 Earnings: Revenue $1.3B (+5.4%)
IDT — FY2026 Annual Financial Report Analysis
Full Year · Fiscal year 2026 · Published by Pham Hop
IDT's fiscal 2026 revenue rose 5.4% to $1.30B and diluted EPS 15% to $3.46 as NRS, BOSS Money and net2phone overtook shrinking legacy telecom in operating profit.
Revenue
$1.3B
+5.4% YoY
Net income
$87M
+13.8% YoY
Diluted EPS
$3.46
+15.0% YoY
Operating margin
9.3%
This period vs a year ago
Same period last year
This period
Revenue▲+5.4%
≈$1.2B
$1.3B
Net income▲+13.8%
≈$76M
$87M
Diluted EPS▲+15.0%
≈$3.01
$3.46
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Overview
IDT Corporation ended its fiscal year on July 31, 2026 with revenue up 5.4% to $1.30 billion and diluted earnings per share up 15.0% to $3.46. The gap between those two growth rates is the story of the year. Most of IDT's revenue still comes from an old, low-margin business: prepaid international calling and mobile top-ups sold mainly to immigrant communities. Most of the profit growth came from three smaller, higher-margin units: a point-of-sale (POS) payments network for corner stores (NRS), a money-transfer app (BOSS Money), and a business phone and call-center software service (net2phone). In fiscal 2026 those three units together earned more operating income than the legacy telecom business for the first time in the three years the filing covers.
At a glance
$69.9M vs $63.4M: combined operating income of NRS, Fintech and net2phone versus Traditional Communications. A year earlier it was $48.1M vs $66.5M, so the growth units overtook the legacy business on profit while still bringing in only a third of revenue.
38.3% gross margin, up from 36.2%: the share of revenue left after direct costs (carrier fees, payout fees) rose because the higher-margin units grew faster; operating margin rose to 9.3% from 8.2%.
$91.1M operating cash flow vs $95.1M net income: cash generation fell from $127.1M a year earlier, mostly because $75.1M more cash was tied up in money that BOSS Money pre-sends to overseas payout partners.
What IDT actually does
IDT reports four segments. Revenue and operating income (profit from running the business, before interest and tax) for fiscal 2026:
Segment
What it is
FY2026 revenue
YoY
FY2026 operating income
FY2025 operating income
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NRS (National Retail Solutions)
POS terminals, payment processing and retail advertising for independent US/Canadian stores
$159.4M
+23.8%
$39.3M
$27.8M
Fintech
BOSS Money remittances plus small banking/e-money units
$176.0M
+13.8%
$21.5M
$15.4M
net2phone
Cloud business phone (UCaaS) and contact-center (CCaaS) software, priced per user "seat"
$96.6M
+10.0%
$9.1M
$4.9M
Traditional Communications
Mobile top-ups (IDT Digital Payments), wholesale call carrying (IDT Global), prepaid calling (BOSS Revolution)
$865.9M
+0.7%
$63.4M
$66.5M
Corporate
Head-office costs
—
—
($12.1M)
($14.2M)
Total
$1,298.0M
+5.4%
$121.2M
$100.4M
IDT owns 82.3% of NRS and 94.0% of net2phone's parent, so part of those units' profit belongs to outside shareholders (see below).
Key metrics
Metric
FY2026
FY2025
YoY Change
Revenue
$1,298.0M
$1,231.5M
+5.4%
Gross margin
38.3%
36.2%
+2.1 pts
Income from operations
$121.2M
$100.4M
+20.7%
Operating margin
9.3%
8.2%
+1.1 pts
Net income attributable to IDT
$86.6M
$76.1M
+13.8%
Diluted EPS
$3.46
$3.01
+15.0%
NRS recurring revenue
$151.9M
$122.6M
+23.9%
NRS active POS terminals (July 31)
40,400
37,200
+8.7%
BOSS Money revenue
$156.7M
$139.8M
+12.0%
net2phone seats served (July 31)
447,000
422,000
+5.9%
BOSS Revolution calling minutes
989M
1,303M
-24.1%
Operating cash flow
$91.1M
$127.1M
-28.3%
Segment by segment
NRS: more money per store, not just more stores. Recurring revenue (everything except one-time terminal sales) rose 23.9% while active terminals grew only 8.7%, so revenue per terminal did most of the work. The 10-K attributes this to more stores signing up for NRS's card processing (payment processing accounts +10.9% to 29,400), "improved payment processing economics," shoppers paying by card instead of cash, and retailers buying premium software features. The filing says net additions of terminals and payment accounts "moderated" versus fiscal 2025. Gross margin was 92.0% and operating income rose 41.6% to $39.3M, a 24.7% segment margin. NRS also bought the assets of Oncore Digital, a digital-ad brokerage, on May 1, 2026 for about $4.8M, to pair its in-store screen network with online ad demand.
Fintech: the digital channel lifts margins. BOSS Money revenue grew 12.0%, slower than the 29.1% of fiscal 2025, driven by more transfers started in the BOSS Money and BOSS Revolution apps and by higher foreign-exchange revenue on transfers to Guatemala and Mexico. Segment gross margin rose to 62.3% from 58.7% because app transfers carry higher margins than those sent through retail agents, and IDT cut the fees it pays to payout partners. The cost of going digital shows up lower down: card-processing charges and chargebacks pushed selling, general and administrative (SG&A) expense up 17.7%, to 44.3% of revenue from 42.8%. Operating income still rose 39.5% to $21.5M.
net2phone: profit nearly doubles on flat-ish costs. Revenue rose 10.0%, helped by more seats, a shift toward pricier contact-center seats, stronger Latin American currencies versus the dollar, and new AI agent products. Because SG&A fell to 58.2% of revenue from 59.6%, operating income jumped 83.9% to $9.1M. That is still under a 10% margin, so small cost changes move it a lot.
Traditional Communications: flat revenue, falling profit. Three businesses moving in different directions:
BOSS Revolution prepaid calling revenue fell 14.6% to $180.3M and minutes fell 24.1%. The 10-K blames unlimited mobile plans and free internet calling apps. This decline has been steady (revenue fell 19.8% the year before).
IDT Global wholesale revenue rose 10.5% to $231.5M on 8.7% more minutes carried, but this is low-margin traffic.
IDT Digital Payments (mobile top-ups) grew 3.1% to $429.2M.
The mix shift from high-margin retail calling to low-margin wholesale lowered gross margin to 18.8% from 19.6%. Cost cuts (SG&A down 5.4%) softened the blow, but operating income still fell 4.7% to $63.4M.
What the headline numbers hide
Cash lagged profit this year. Operating cash flow of $91.1M was 0.96x net income, versus 1.57x a year earlier. The driver is a $75.1M outflow into "settlement assets and disbursement prefunding": money owed by customers for pending transfers and cash IDT sends ahead to overseas partners so remittances can be paid out, particularly before weekends. This is working capital that grows with BOSS Money, not a loss, but it means faster remittance growth consumes cash. Partly offsetting it, customer fund deposits added $30.1M. After $23.1M of capital spending, free cash flow was about $68.0M.
A stock-compensation charge held reported profit down. Stock-based pay rose to $10.5M from $3.1M. The filing explains that a September 2025 grant of deferred stock units was expensed faster than usual (vesting starts sooner than 12 months after the grant) and valued at a higher per-share price. Excluding stock pay, operating income rose about 27%, faster than the reported 20.7%.
Lower legal costs helped the other way. "Other operating expense" fell to $0.3M from $6.3M, mainly because Straight Path class-action costs fell. The Delaware Supreme Court upheld the dismissal of that case in December 2025, so this line should stay small. That $6.0M swing was about 29% of the $20.7M operating income increase.
Tax and minority owners took more. Pre-tax income rose 22.8%, but the effective tax rate rose to 26.8% from 23.3%, and profit belonging to outside shareholders of NRS, net2phone and a payments entity rose 67.7% to $8.5M. That is why net income attributable to IDT grew only 13.8%. As NRS grows, a larger slice of its profit goes to its 17.7% outside owners.
Buybacks added about 1 point to EPS growth. IDT spent $21.0M buying back 421,938 Class B shares; diluted share count fell 1.1%.
Receivables grew much faster than sales. Gross trade receivables (money customers owe) rose 30.3% while revenue rose 5.4%. The 10-K says the largest increase was at NRS from the newly acquired Oncore ad business. At the same time the bad-debt allowance fell to 10.2% of receivables from 17.5%, partly because old net2phone balances were written off. Worth watching for whether those new receivables are collected.
No adjusted figures in the 10-K. All figures above are GAAP (standard accounting rules); the annual report does not present an "adjusted" EPS, so there is no hidden gap to reconcile here.
Takeaway: IDT's profit growth now comes almost entirely from NRS, BOSS Money and net2phone, which grew operating income 45% to $69.9M and overtook the shrinking legacy telecom business. The legacy side still produces most of the revenue and cash, and its profit fell 4.7%, so the pace of the handover decides the trend in earnings.
Outlook
The 10-K gives no revenue or earnings guidance. Its one forward figure is capital spending of $22.5M to $23.5M for the year to July 2027, roughly in line with fiscal 2026's $23.1M. The balance sheet has no debt drawn: $271.9M of cash and investments at year-end, and a TD Bank credit line extended to July 2029 with a seasonal limit of up to $50M. The quarterly dividend was raised to $0.07 in May 2026. The filing also flags that holders of NRS Class B shares can ask IDT to buy them back, up to $10M, in the 182 days after September 29, 2026. It says IDT sometimes considers spin-offs of subsidiaries, with no transaction assured.
Our read: operating income can keep growing if NRS keeps raising revenue per terminal and BOSS Money keeps moving customers onto the app. Both drivers were intact at year-end, but terminal additions are slowing and BOSS Money's growth halved to 12%. The main risks are outside IDT's control: the 10-K's risk factors note that BOSS Money, BOSS Revolution and IDT Digital Payments depend heavily on immigrant customers, which makes US immigration policy a direct business risk. BOSS Revolution's 15-20% yearly revenue decline looks structural. The first quarter of fiscal 2027 (quarter ending October 31, 2026) will show whether the growth units' profit gains outpace that decline again.