IDT (IDT) Q1 2026 earnings summary

Executive summary

• Achieved record consolidated revenue, gross profit, Adjusted EBITDA, and Adjusted EBITDA margin in Q1 FY2026, with consolidated revenue up 4% year-over-year to $323 million and net income attributable up 30% to $22.4 million, driven by strong growth in NRS, Fintech, and net2phone.

• Growth segments (NRS, Fintech, net2phone) drove 19% TTM revenue growth year-over-year, now comprising 32% of total revenue.

• Traditional Communications segment provided steady cash generation, with income from operations up 1% and Adjusted EBITDA up 2% year-over-year.

• Delaware Supreme Court affirmed dismissal of all claims in the Straight Path Class Action suit, resolving a significant legal overhang.

Financial highlights

• Consolidated revenue increased 4% year-over-year to $323 million; gross profit rose 10% to $118.2 million, with gross margin improving to 36.6%.

• Adjusted EBITDA reached a record $37.9 million (up 26%), with a margin of 11.7%.

• Net income for 1Q26 was $24.1 million, with diluted EPS up 31% to $0.89 per share; non-GAAP diluted EPS up 32% to $0.94.

• EBITDA less CapEx totaled $32.1 million, a 30% year-over-year increase.

• Cash, cash equivalents, debt securities, and current equity investments totaled $220 million at quarter-end, with no outstanding debt.

Outlook and guidance

• On track to achieve full-year 2026 Adjusted EBITDA guidance of $141–$145 million, representing 7%–10% year-over-year growth, using the revised definition that excludes non-cash compensation.

• NRS recurring revenue projected to maintain a 39% CAGR through 2025, with continued expansion in terminal deployments and average monthly recurring revenue per terminal.

• Management expects cash flow from operations and current liquidity to be sufficient for working capital and capital expenditures over the next twelve months.