IDT (IDT) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly gross profit, gross profit margin, adjusted EBITDA, and non-GAAP EPS in 2Q26 compared to 2Q25, with revenue for the quarter at $320.5 million, up 6% year-over-year.

• Growth was driven by recurring revenue in NRS, digital transaction volume in Fintech, and increased seats in net2phone.

• BOSS Money digital transactions rose 17% year-over-year, benefiting from a shift due to a new federal remittance tax.

• Net2Phone achieved higher gross margins and operating leverage, aided by favorable FX rates and AI solution launches.

• Traditional Communications remained the largest segment by revenue and a strong cash generator, though adjusted EBITDA declined year-over-year.

Financial highlights

• Gross profit for the quarter was $121.3 million, up 8.2% year-over-year; gross profit margin improved to 37.8%.

• Adjusted EBITDA increased 9% to $38.0 million; non-GAAP EPS rose to $1.00 from $0.84.

• Net income attributable to shareholders was $20.9 million, up 3.1% year-over-year.

• $15 million in stock repurchases and a 17% increase in annual dividend to $0.28 per year.

• Cash and equivalents totaled $246.2 million at quarter-end; no outstanding debt.

Outlook and guidance

• FY26 adjusted EBITDA guidance raised to $147–$149 million, a 12% increase over FY25 actuals.

• Management expects cash flow from operations and current liquidity to be sufficient for working capital and capital expenditures through January 2027.

• Capital expenditures for the next twelve months projected at $22–23 million.

• NRS adjusted EBITDA on track for 20%-25% growth for fiscal 2026.

• Net2Phone adjusted EBITDA grew 37% year-over-year to $3.9 million in Q2; growth rate expected to moderate in the second half due to increased investment.