{"success":true,"data":{"pressRelease":{"id":"154603","rtpr_id":"nGNXch7FDk-20260928","ticker":"IDT","exchange":"NYSE","all_tickers":["IDT"],"title":"IDT Corporation Reports Record Fourth Quarter and Fiscal Year 2026 Results","author":"Globe Newswire","published_at":"2026-09-28T20:36:26.637Z","article_body":"Record fourth quarter Gross Profit +18%; Income from Operations +52%; Adjusted\nEBITDA(*) +22%\n\nFY 2026 Income from Operations of $121M (+21%); Adjusted EBITDA of $155M\n(+17%)\n\nNEWARK, N.J., Sept. 28, 2026 (GLOBE NEWSWIRE) --  IDT Corporation (NYSE:\nIDT), a global provider of fintech, communications, and AI-powered customer\nexperience solutions, today reported results for its fourth quarter and full\nfiscal year 2026, the three and twelve months ended July 31, 2026.\n\n4Q26 HIGHLIGHTS (**)\n* Consolidated Results * Revenue: +7% to $339.0 million;\n* Gross profit / margin: +18% to $134.8 million / +360 bps to 39.8%;\n* Income from operations: +52% to $33.2 million;\n\n* Net income attributable to IDT: +29% to $21.7 million;\n\n* GAAP EPS: Increased to $0.87 from $0.67;\n\n* Non-GAAP EPS: Increased to $0.94 from $0.76;\n\n* Adjusted EBITDA: +22% to $41.2 million.\n\n \n* Key Businesses / Segments * NRS * Revenue: +31% to $45.0 million;\n* Income from operations: +105% to $12.0 million;\n* Adjusted EBITDA: +47% to $14.0 million.\n \n* BOSS Money / Fintech segment * BOSS Money digital revenue: +22% to $33.7\nmillion;\n\n* Fintech segment revenue: +12% to $47.1 million;\n* Fintech segment income from operations: +15% to $5.5 million;\n* Fintech segment Adjusted EBITDA: +17% to $6.5 million.\n \n* net2phone * Subscription revenue: +10% to $24.5 million;\n* Income from operations: +75% to $2.6 million;\n* Adjusted EBITDA: +26% to $4.4 million.\n \n* Traditional Communications * Revenue: +2% to $222.0 million;\n* Gross profit: +0.4% to $41.1 million;\n* Income from operations: +8% to $16.6 million;\n* Adjusted EBITDA: +12% to $19.9 million.\nFY 2026 HIGHLIGHTS\n* Consolidated Results * Revenue: +5% to $1,298.0 million;\n* Gross profit / margin: +11% to $496.8 million / +200 bps to 38.3%;\n* Income from operations: +21% to $121.2 million;\n* Net income attributable to IDT: +14% to $86.6 million;\n* GAAP EPS: Increased to $3.46 from $3.01;\n* Non-GAAP EPS: Increased to $3.82 from $3.19;\n* Adjusted EBITDA: +17% to $154.6 million.\n \n* Key Businesses / Segments * NRS * Revenue: +24% to $159.4 million;\n* Income from operations: +42% to $39.3 million;\n* Adjusted EBITDA: +30% to $45.8 million.\n \n* BOSS Money / Fintech segment * BOSS Money digital revenue: +21% to $119.4\nmillion;\n* Fintech segment revenue: +14% to $176.0 million;\n* Fintech segment income from operations: +40% to $21.5 million;\n* Fintech segment Adjusted EBITDA: +41% to $26.2 million.\n \n* net2phone * Subscription revenue: +11% to $94.9 million;\n* Income from operations: +84% to $9.1 million;\n* Adjusted EBITDA: +33% to $16.1 million.\n \n* Traditional Communications * Revenue: +1% to $865.9 million;\n* Gross profit: (4)% to $162.6 million;\n* Income from operations: (5)% to $63.4 million;\n* Adjusted EBITDA: +1% to $77.3 million.\n(*)This release discloses certain Non-GAAP financial measures (Adjusted\nEBITDA, Non-GAAP EPS, NRS' ‘Rule of 40,’ and adjusted net cash provided by\noperating activities) as well as certain Key Performance Metrics (net2phone\nsubscription revenue, net2phone constant currency subscription revenue growth\nrate, NRS Average Monthly Network Gross Profit per Location, and BOSS Money\ntransactions and digital channel send volume). Please see the explanations of\nthose measures and metrics, the reasons for their inclusion and\nreconciliations of Non-GAAP measures to their closest GAAP measures at the end\nof this release.\n\n**Throughout this release, unless otherwise noted, results for the fourth\nquarter of fiscal year 2026 (4Q26) are compared to the fourth quarter of\nfiscal year 2025 (4Q25) and results for FY 2026 are compared to FY 2025. All\nearnings per share (EPS) and other ‘per share’ results are per diluted\nshare.\n\nREMARKS BY SHMUEL JONAS, CEO\n\nIDT’s fourth quarter capped off a strong fiscal year, highlighted by\naccelerated topline and Adjusted EBITDA growth. \n\nOur three higher-margin growth segments, NRS, Fintech and net2phone, each\nincreased their respective quarterly and full-year contributions, while our\nTraditional Communications segment generated more Adjusted EBITDA in fiscal\n2026 than it did in fiscal 2025 or 2024.  \n\nAt NRS, we continue to develop and deploy new, high-value functionalities for\nour retailers, such as our recent Uber Eats integration following the Grubhub\nand DoorDash partnerships we announced last year.  These advances are\nsupplementing other tailwinds driving gains in Merchant Services revenues.\n Also in the fourth quarter, Advertising and Data revenue returned to growth,\nbolstered by our recent acquisition. Taken together, these developments helped\ndrive a 47% year-over-year increase in NRS' fourth quarter Adjusted EBITDA.\nLooking ahead, we are working on several product initiatives to increase sales\nto our existing retailer base and to attract new retailers to the NRS network.\n\nOur BOSS Money remittance business shares its brand identity, distribution\nnetworks and addressable markets with our other BOSS-branded offerings. In\nrecent years, we invested heavily to build and improve our BOSS apps. That\nstrategy is paying off as BOSS Money continues to grow rapidly - thanks in\npart to the quality of our apps and our customer-centric service.\n\nAt BOSS Money, remittances surpassed a 30 million annual transaction run-rate\nfor the first time in May, thanks to strong Mother's Day results in our\ndigital channel. This channel contributed 88% of our total transaction volume\nin the fourth quarter with transactions and revenue both increasing by 20+%. \n\nWe recently launched money transfers via our WhatsApp channel, and we closed\nthe fiscal year by deploying a digital wallet here in the U.S. The wallet\nenables our customers to load funds, store promotions, and pay for services.\n In addition, the BOSS Money app is extending its geographic reach, launching\ninternationally with differentiated features by country including peer-to-peer\nremittances, a stablecoin-backed wallet with a reloadable debit card and other\nmoney management tools.  We are also launching a BOSS Money branded\nrechargeable card with credit building features. All of these developments\nmark early steps toward a broader suite of BOSS Money-branded financial\nservices and tools that we intend to offer globally. \n\nnet2phone delivered another solid quarter as we enhanced our cloud\ncommunications portfolio with both native and standalone AI solutions for\nbusinesses across the globe. Our agentic AI solutions, AI Agent and Coach,\ncombined with our new integration layer, enable customers to connect their\neveryday business applications and workflow tools with net2phone's suite of\nservices. net2phone's AI tools and applications are driving nearly every\nconversation with our clients. That process is delivering new logos and\naccelerating accretive sales.  net2phone is on track to surpass the $100\nmillion ARR milestone in the current quarter and we expect continued topline\nexpansion throughout fiscal 2027.\n\nOverall, IDT is well positioned as we begin the new fiscal year with\naccelerating topline growth, increasing cash generation, and a debt-free\nbalance sheet that affords us strategic flexibility.\n\n4Q26 AND FY 2026 RESULTS BY SEGMENT\n\nNational Retail Solutions (NRS)\n\n (Terminals, accounts and retailer locations at end of period. $ in millions, except for Average Monthly GP per Location. (*)Numbers may not foot due to rounding.) \n\n\n\n 4Q26-4Q25 FY26-FY25 \n 4Q26 3Q26 4Q25 (Δ, % Δ) FY26 FY25 (% Δ) \n \n Retailer locations 35,400 34,800 32,700 2,700 \n Active POS terminals 40,400 39,300 37,200 3,200 \n Payment processing accounts 29,400 29,200 26,500 2,900 \n \n Revenue \n Merchant Services & Other $ 28.5 $ 25.8 $ 21.8 +31 % $ 102.0 $ 76.8 +33 % \n Advertising and Data $ 10.1 $ 5.7 $ 6.8 +49 % $ 32.1 $ 31.1 +3 % \n SaaS Fees $ 4.6 $ 4.5 $ 4.1 +12 % $ 17.8 $ 14.7 +21 % \n POS Terminal Sales $ 1.8 $ 2.0 $ 1.7 +10 % $ 7.5 $ 6.2 +22 % \n Total revenue $ 45.0 $ 38.0 $ 34.3 +31 % $ 159.4 $ 128.8 +24 % \n \n Gross profit $ 42.6 $ 34.3 $ 30.5 +40 % $ 146.6 $ 116.9 +25 % \n Gross profit margin 94.8 % 90.2 % 89.0 % +580 bps 92.0 % 90.7 % +130 bps \n \n Average monthly GP per location* $ 383 $ 331 $ 315 +22 % $ 352 $ 316 +12 % \n \n SG&A $ 27.3 $ 23.4 $ 20.0 +37 % $ 96.1 $ 78.0 +23 % \n Technology and development $ 2.8 $ 2.7 $ 2.3 +25 % $ 10.8 $ 8.7 +24 % \n Income from operations $ 12.0 $ 8.2 $ 5.8 +105 % $ 39.3 $ 27.8 +42 % \n Adjusted EBITDA $ 14.0 $ 9.8 $ 9.5 +47 % $ 45.8 $ 35.4 +30 % \n CapEx $ 1.7 $ 0.8 $ 1.3 +28 % $ 5.8 $ 5.4 +8 % \n\nNRS Take-Aways:\n* Beginning in 4Q26, IDT is reporting retailer locations and average monthly\nretailer network gross profit per location (\"average monthly GP per location\")\nas its measures of the scope of the NRS retailer network and the contribution\nof the average retailer on the NRS network, respectively. Retailer locations\ninclude stores that actively utilize NRS terminals, NRS payment processing, or\nboth. Average monthly GP per location is gross profit generated within the NRS\nretailer network divided by average retailer locations. Average monthly GP per\nlocation increased 22% to $383 in 4Q26 from $315 in 4Q25, primarily reflecting\ngrowth in NRS Pay.\n\n* The strong NRS revenue increase in 4Q26 was led mainly by Merchant\nServices and Advertising and Data, and helped drive NRS' 4Q26 ‘Rule of\n40’ score to 60.\n\n* NRS recently launched a partnership with Uber Eats following successful\nintegrations with DoorDash and Grubhub. Collectively, these and other,\nsmaller, online ordering and delivery partnerships enable NRS retailers to\nbetter meet and serve their customers wherever they are while leveraging the\nscale of the NRS network to further differentiate NRS' offerings.\n\n\nBOSS Money and Fintech Segment\n\n (Transactions in millions. $ in millions except for average revenue per transaction. Numbers may not foot due to rounding.) \n\n\n\n 4Q26-4Q25 FY26-FY25 \n 4Q26 3Q26 4Q25 (% Δ) FY26 FY25 (% Δ) \n BOSS Money Transactions \n Digital channel 6.6 6.0 5.5 +20 % 23.6 19.6 +20 % \n Retail channel 0.9 0.9 1.1 (20 )% 3.8 4.2 (9 )% \n Total transactions 7.5 6.9 6.6 +14 % 27.4 23.9 +15 % \n Digital as a percentage of total 88.1 % 87.0 % 83.3 % +480 bps 86.0 % 82.0 % +400 bps \n \n Fintech Revenue \n BOSS Money \n Digital channel $ 33.7 $ 31.0 $ 27.6 +22 % $ 119.4 $ 99.0 +21 % \n Retail channel $ 8.7 $ 8.6 $ 10.6 (17 )% $ 37.3 $ 40.9 (9 )% \n Total BOSS Money $ 42.4 $ 39.7 $ 38.2 +11 % $ 156.7 $ 139.8 +12 % \n Other $ 4.6 $ 5.3 $ 3.9 +20 % $ 19.3 $ 14.8 +31 % \n Total Revenue $ 47.1 $ 45.0 $ 42.1 +12 % $ 176.0 $ 154.6 +14 % \n \n Average BOSS Money revenue per transaction* $ 5.68 $ 5.76 $ 5.81 (2 )% $ 5.72 $ 5.85 (2 )% \n \n Gross profit $ 30.9 $ 28.3 $ 24.9 +24 % $ 109.7 $ 90.7 +21 % \n Gross profit margin 65.6 % 62.8 % 59.1 % +650 bps 62.3 % 58.7 % +360 bps \n SG&A $ 22.9 $ 20.2 $ 17.8 +28 % $ 77.9 $ 66.2 +18 % \n Technology and development $ 2.5 $ 2.5 $ 2.3 +10 % $ 10.2 $ 9.1 +12 % \n Income from operations $ 5.5 $ 5.6 $ 4.8 +15 % $ 21.5 $ 15.4 +40 % \n Adjusted EBITDA $ 6.5 $ 6.6 $ 5.5 +17 % $ 26.2 $ 18.6 +41 % \n CapEx $ 1.0 $ 1.0 $ 0.8 +31 % $ 3.9 $ 3.5 +11 % \n\nBOSS Money and Fintech Take-Aways:\n\n\n* Digital transaction volume as a percentage of total transactions increased\nto 88.1% in 4Q26, reflecting BOSS Money's focused investments in digital\ncustomer acquisition programs and the industry-wide acceleration of the\nongoing migration of consumers to digital channels from retail in the wake of\na federal tax on remittances imposed on retail transactions beginning on\nJanuary 1, 2026.\n\n* Digital channel send volume - the amount of principal transferred by BOSS\nMoney customers using the BOSS Money and BOSS Revolution apps - increased by\n38% year-over-year in 4Q26 and by 35% in FY 2026, reflecting increases in both\ntransaction volumes and in average dollars sent per transaction.\n\n* The Fintech segment’s year-over-year increases in gross profit margin, 650\nbps in 4Q26 and 360 bps in FY 2026, primarily reflected the continuing\nrotation in the transaction mix to higher margin digital transactions from\nlower margin retail transactions, supplemented by the impact of increased\naverage send amounts and continuous efforts to negotiate more favorable payout\nterms.\n\n* The BOSS Money app attained the highest average customer satisfaction score\nof any of the leading digital money transfer providers serving the U.S. and\nU.K. markets as evaluated by FXC Intelligence for 2026. It was the second\nconsecutive year that the BOSS Money app has won the honor.\n\n\nnet2phone\n\n (Seats in thousands at end of period. $ in millions. Numbers may not foot due to rounding.) \n\n\n\n 4Q26-4Q25 FY26-FY25 \n 4Q26 3Q26 4Q25 (% Δ) FY26 FY25 (% Δ) \n Seats 447 441 422 +6 % \n \n Revenue \n Subscription revenue* $ 24.5 $ 24.0 $ 22.2 +10 % $ 94.9 $ 85.7 +11 % \n Other revenue $ 0.5 $ 0.4 $ 0.5 (8 )% $ 1.7 $ 2.1 (19 )% \n Total Revenue $ 24.9 $ 24.4 $ 22.8 +9 % $ 96.6 $ 87.9 +10 % \n \n Gross profit $ 20.2 $ 19.6 $ 18.1 +11 % $ 77.8 $ 69.7 +12 % \n Gross profit margin 81.0 % 80.6 % 79.5 % +140 bps 80.6 % 79.3 % +120 bps \n SG&A $ 14.4 $ 14.1 $ 13.3 +9 % $ 56.3 $ 52.4 +8 % \n Technology and development $ 3.1 $ 3.1 $ 3.0 +3 % $ 12.3 $ 11.7 +5 % \n Income from operations $ 2.6 $ 2.4 $ 1.5 +75 % $ 9.1 $ 4.9 +84 % \n Adjusted EBITDA $ 4.4 $ 4.1 $ 3.5 +26 % $ 16.1 $ 12.1 +33 % \n CapEx $ 1.6 $ 1.8 $ 1.7 (7 )% $ 6.9 $ 6.6 +4 % \n\n\n\nnet2phone Take-Aways:\n* The increases in subscription revenue(*), +10% in 4Q26 and +11% in\nFY 2026, were +7% and +8%, respectively, on a constant currency(*) basis,\nreflecting weakness in the U.S. dollar versus local currencies in certain of\nnet2phone's key markets.\n\n* The strong increases in net2phone profitability in both 4Q26 and FY 2026\nreflect the leverage of net2phone's business model and the incremental\ncontributions of its AI-powered offerings. \n\n* net2phone introduced an integration layer in 4Q26, enabling net2phone’s\nsolutions to work seamlessly with the customer’s native, mission-critical\nbusiness software without the need for developers, custom coding, or webhooks.\nBecause they securely read from, and write to, connected CRM and\ncommunications platforms, net2phone’s solutions can be synced through the\nintegration layer with customer records and accounts, while actions are\nreflected in real time in the relevant systems of record and are reviewable\nthrough an audit trail.\n\n\nTraditional Communications\n\n ($ in millions. Numbers may not foot due to rounding.) \n\n\n\n 4Q26-4Q25 FY26-FY25 \n 4Q26 3Q26 4Q25 (% Δ) FY26 FY25 (% Δ) \n Revenue \n IDT Digital Payments $ 113.9 $ 103.9 $ 107.0 +6 % $ 429.2 $ 416.3 +3 % \n IDT Global $ 56.1 $ 55.6 $ 55.9 +0.4 % $ 231.5 $ 209.6 +10 % \n BOSS Revolution $ 44.2 $ 43.4 $ 49.3 (10 )% $ 180.3 $ 211.2 (15 )% \n Other $ 7.8 $ 5.5 $ 5.3 +49 % $ 24.9 $ 23.1 +8 % \n Total Revenue $ 222.0 $ 208.3 $ 217.4 +2 % $ 865.9 $ 860.2 +1 % \n \n Gross profit $ 41.1 $ 40.3 $ 41.0 +0.4 % $ 162.6 $ 168.9 (4 )% \n Gross profit margin 18.5 % 19.4 % 18.8 % (30 )bps 18.8 % 19.6 % (80 )bps \n SG&A $ 18.3 $ 17.9 $ 19.9 (8 )% $ 75.6 $ 79.9 (5 )% \n Technology and development $ 5.6 $ 5.6 $ 5.3 +6 % $ 22.5 $ 21.5 +5 % \n Income from operations $ 16.6 $ 16.7 $ 15.4 +8 % $ 63.4 $ 66.5 (5 )% \n Adjusted EBITDA $ 19.9 $ 19.7 $ 17.8 +12 % $ 77.3 $ 76.4 +1 % \n CapEx $ 1.7 $ 1.5 $ 1.4 +22 % $ 6.3 $ 5.3 +21 % \n\n\n\nTraditional Communications Take-Aways:\n* In FY 2026, the Traditional Communications segment increased Adjusted\nEBITDA levels for the second consecutive year, underscoring the durability of\nthe segment's cash generation.\n\n* IDT Digital Payments has launched an eSIM digital catalog through its Zendit\nB2B prepaid platform and in the BOSS Revolution app, further expanding its\nlarge and diversified catalog of prepaid offerings. The eSIM catalog targets\nthe large and rapidly growing travel data roaming market, offering over 5,000\nplans in 190+ countries.\n\n\nOTHER FINANCIAL RESULTS\n\nConsolidated results for all periods presented include corporate overhead.\nCorporate Adjusted EBITDA declined to ($3.5) million\nin 4Q26 from ($2.5) million in 4Q25. In FY 2026, corporate Adjusted\nEBITDA declined to ($10.8) million from  ($10.7) million in FY 2025.\n\nAs of July 31, 2026, IDT held $271.9 million in unrestricted cash, cash\nequivalents, debt securities, and current equity investments, an increase\nof $20.5 million from the level at April 30, 2026. Also at July 31, 2026,\ncurrent assets totaled $655.4 million and current liabilities\ntotaled $351.9 million. The Company had no outstanding debt at the quarter\nend.  \n\nNet cash provided by operating activities in 4Q26 increased\nto $44.4 million from $31.0 million in 4Q25. Exclusive of changes in\ncustomer funds deposits at IDT’s Fintech segment, adjusted net cash provided\nby operating activities* in 4Q26 decreased to $26.4 million\nfrom $37.1 million in 4Q25.\n\nIn FY 2026, net cash provided by operating activities decreased\nto $91.1 million from $127.1 million in FY 2025. Exclusive of changes in\ncustomer funds deposits in IDT’s Fintech segment, adjusted net cash provided\nby operating activities in FY 2026 decreased to $60.9 million\nfrom $107.8 million in FY 2025.  The decrease primarily stemmed from the\ntiming of working capital movements associated with the daily changes in\nsettlement assets and disbursement prefunding at BOSS Money.\n\nCapital expenditures increased to $6.0 million in 4Q26 from $5.3 million\nin 4Q25. For FY 2026, capital expenditures increased to $23.1 million\nfrom $20.8 million in FY 2025.\n\nIDT repurchased 30,752 shares of its Class B common stock through open market\ntransactions during 4Q26 for approximately $2.0 million.  Open market\nrepurchases during FY 2026 totaled 421,938 shares for approximately $21.0\nmillion.\n\nFY 2027 FINANCIAL OUTLOOK\n\nFor FY 2027, IDT expects to again grow consolidated gross profit by double\ndigits, consistent with its average annual growth rate over the past several\nyears, to a range of $545 million to $555 million.\n\nBuilding on record Adjusted EBITDA of $154.6 million in FY 2026, IDT's\nfiscal 2027 guidance reflects continued, strong profitability growth, with\nAdjusted EBITDA expected to range from $176 million to $180 million, with each\noperating segment contributing to that growth.\n\nDIVIDEND\n\nIDT’s Board of Directors has declared a quarterly cash dividend of $0.07 per\nshare payable on October 14, 2026, to stockholders of record as of October 5,\n2026.\n\nIDT EARNINGS ANNOUNCEMENT INFORMATION\n\nThis release is available for download in the “Investors & Media” section\nof the IDT Corporation website (https://www.idt.net/investors-and-media) and\nhas been furnished on a current report (Form 8-K) with the SEC.\n\nIDT will host an earnings conference call beginning at 5:30 PM Eastern today\nwith management’s discussion of results followed by Q&A with investors.  To\nlisten to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free\nfrom the U.S.) or 1-973-528-0011 (international) and provide the following\naccess code: 266780.\n\nA replay of the conference call will be available approximately three hours\nafter the call concludes through October 12, 2026. To access the call replay,\ndial 1-877-481-4010 (toll-free from the U.S.) or 1-919-882-2331\n(international) and provide this replay passcode: 54497.  The replay will\nalso be accessible via streaming audio at the IDT investor relations website.\n\nABOUT IDT CORPORATION\n\nIDT Corporation (NYSE: IDT) is a global provider of fintech, communications\nand AI-powered customer experience solutions through a portfolio of\nsynergistic businesses: National Retail Solutions (NRS), through its\npoint-of-sale (POS) platform, enables independent retailers to operate more\neffectively while providing advertisers and marketers with unprecedented reach\ninto underserved consumer markets; BOSS Money facilitates innovative\ninternational remittances and fintech payments solutions; net2phone provides\nenterprises and organizations with intelligently integrated cloud\ncommunications and contact center services across channels and devices; IDT\nDigital Payments and the BOSS Revolution calling service make sharing prepaid\nproducts and services and speaking with friends and family around the world\nconvenient and reliable, and IDT Global and IDT Express enable communications\nservice providers to provision and manage international voice and SMS\nmessaging.\n\nAll statements above that are not purely about historical facts, including,\nbut not limited to, those in which we use the words “believe,”\n“anticipate,” “expect,” “plan,” “intend,” “estimate,”\n“target” and similar expressions, are forward-looking statements within\nthe meaning of the Private Securities Litigation Reform Act of 1995. While\nthese forward-looking statements represent our current judgment of what may\nhappen in the future, actual results may differ materially from the results\nexpressed or implied by these statements due to numerous important factors.\nOur filings with the SEC provide detailed information on such statements and\nrisks and should be consulted along with this release. To the extent permitted\nunder applicable law, IDT assumes no obligation to update any forward-looking\nstatements.\n\nCONTACT\n\nIDT Corporation Investor Relations\nBill Ulrey\nwilliam.ulrey@idt.net \n973-438-3838\n\n\n\n IDT CORPORATION \n \n CONSOLIDATED BALANCE SHEETS \n \n (in thousands, except per share data) \n July 31, 2026 2025 \n ASSETS \n CURRENT ASSETS: \n Cash and cash equivalents $ 220,686 $ 226,505 \n Restricted cash and cash equivalents 138,650 115,327 \n Debt securities 38,612 21,649 \n Equity investments 12,642 5,637 \n Trade accounts receivable, net of allowance for credit losses of $6,938 and $9,097 at July 31, 2026 and 2025, respectively 60,750 44,932 \n Settlement assets, net of reserve of $1,535 and $1,367 at July 31, 2026 and 2025, respectively 55,013 28,014 \n Disbursement prefunding 84,751 37,097 \n Prepaid expenses 13,395 12,440 \n Other current assets 30,867 28,702 \n TOTAL CURRENT ASSETS 655,366 520,303 \n Property, plant, and equipment, net 41,864 38,869 \n Goodwill 26,539 26,488 \n Other intangibles, net 8,762 5,056 \n Equity investments 6,068 6,658 \n Operating lease right-of-use assets 1,448 1,878 \n Deferred income tax assets, net 18,002 18,790 \n Other assets 6,208 8,161 \n TOTAL ASSETS $ 764,257 $ 626,203 \n LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY \n CURRENT LIABILITIES: \n Trade accounts payable $ 18,629 $ 19,435 \n Accrued expenses 106,434 97,295 \n Deferred revenue 27,124 27,726 \n Customer funds deposits 147,654 114,708 \n Settlement liabilities 16,988 13,922 \n Other current liabilities 35,050 19,910 \n TOTAL CURRENT LIABILITIES 351,879 292,996 \n Operating lease liabilities 817 1,103 \n Other liabilities 3,609 1,688 \n TOTAL LIABILITIES 356,305 295,787 \n Commitments and contingencies \n Redeemable noncontrolling interest 11,842 11,459 \n EQUITY: \n IDT Corporation stockholders’ equity: \n Preferred stock, $.01 par value; authorized shares—10,000; no shares issued — — \n Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2026 and 2025 33 33 \n Class B common stock, $.01 par value; authorized shares—200,000; 28,569 and 28,528 shares issued and 23,264 and 23,656 shares outstanding at July 31, 2026 and 2025, respectively 285 285 \n Additional paid-in capital 319,225 308,111 \n Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 5,305 and 4,872 shares of Class B common stock at July 31, 2026 and 2025, respectively (165,379 ) (143,853 ) \n Accumulated other comprehensive loss (14,097 ) (16,569 ) \n Retained earnings 237,253 157,124 \n Total IDT Corporation stockholders’ equity 377,320 305,131 \n Noncontrolling interests 18,790 13,826 \n TOTAL EQUITY 396,110 318,957 \n TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY $ 764,257 $ 626,203 \n\n\n\n\n\n IDT CORPORATION \n \n CONSOLIDATED STATEMENTS OF INCOME \n \n (in thousands, except per share data) \n Year ended July 31, 2026 2025 2024 \n REVENUES $ 1,297,960 $ 1,231,495 $ 1,205,778 \n Direct cost of revenues 801,172 785,300 815,621 \n GROSS PROFIT 496,788 446,195 390,157 \n OPERATING EXPENSES: \n Selling, general and administrative (i) 318,346 287,567 270,207 \n Technology and development (i) 55,743 50,964 50,554 \n Severance 1,191 898 1,698 \n Other operating expense, net 343 6,342 2,945 \n TOTAL OPERATING EXPENSES 375,623 345,771 325,404 \n Income from operations 121,165 100,424 64,753 \n Interest income, net 6,567 6,127 4,769 \n Other income (expense), ne 2,245 (713 ) (7,612 ) \n Income before income taxes 129,977 105,838 61,910 \n (Provision for) benefit from income taxes (34,883 ) (24,699 ) 6,354 \n NET INCOME 95,094 81,139 68,264 \n Net income attributable to noncontrolling interests (8,461 ) (5,045 ) (3,810 ) \n NET INCOME ATTRIBUTABLE TO IDT CORPORATION $ 86,633 $ 76,094 $ 64,454 \n \n Earnings per share attributable to IDT Corporation common stockholders: \n Basic $ 3.47 $ 3.02 $ 2.55 \n Diluted $ 3.46 $ 3.01 $ 2.54 \n \n Weighted-average number of shares used in calculation of earnings per share: \n Basic 24,995 25,188 25,241 \n Diluted 25,023 25,295 25,398 \n \n (i) Stock-based compensation included in total operating expenses $ 10,544 $ 3,074 $ 7,397 \n\n\n\n\n\n IDT CORPORATION \n \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n \n (in thousands) \n Year ended July 31, 2026 2025 2024 \n OPERATING ACTIVITIES \n Net income $ 95,094 $ 81,139 $ 68,264 \n Adjustments to reconcile net income to net cash provided by operating activities: \n Depreciation and amortization 21,400 21,008 20,351 \n Deferred income taxes 789 16,217 (10,907 ) \n Provision for credit losses and reserve for settlement assets 5,509 7,090 4,390 \n Stock-based compensation expense 10,544 3,074 7,397 \n Other 79 2,199 4,579 \n Changes in assets and liabilities: \n Trade accounts receivable (19,185 ) (5,989 ) (13,695 ) \n Prepaid expenses, other current assets, and other assets 690 4,835 5,510 \n Settlement assets and disbursement prefunding (75,087 ) (13,861 ) 8,219 \n Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities 22,680 (4,814 ) (9,081 ) \n Customer funds deposits 30,144 19,235 (1,820 ) \n Deferred revenue (1,588 ) (3,072 ) (5,016 ) \n Net cash provided by operating activities 91,069 127,061 78,191 \n INVESTING ACTIVITIES \n Capital expenditures (23,107 ) (20,770 ) (18,922 ) \n Purchase of convertible preferred stock in equity method investment — (926 ) (2,017 ) \n Payments for acquisition (1,500 ) — — \n Notes receivable from equity method investment (310 ) (1,900 ) — \n Purchase of equity investments (1,695 ) — — \n Purchases of debt securities and equity investments (64,402 ) (33,453 ) (29,921 ) \n Proceeds from maturities and sales of debt securities and equity securities 43,348 36,310 50,112 \n Net cash used in investing activities (47,666 ) (20,739 ) (748 ) \n FINANCING ACTIVITIES \n Dividends paid (6,504 ) (5,550 ) (2,536 ) \n Distributions to noncontrolling interests (2,743 ) (100 ) (112 ) \n Proceeds from borrowings under revolving credit facility 21,421 24,551 32,864 \n Repayments on borrowings under revolving credit facility (21,421 ) (24,551 ) (32,864 ) \n Purchase of restricted shares of net2phone and NRS common stock — — (4,131 ) \n Proceeds from borrowings 185 — — \n Repayments of borrowings (185 ) — — \n Proceeds from exercise of stock options 200 — 172 \n Repurchases of Class B common stock (21,526 ) (17,773 ) (10,619 ) \n Net cash used in financing activities (30,573 ) (23,423 ) (17,226 ) \n Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents 4,674 3,477 (3,584 ) \n Net increase in cash, cash equivalents, and restricted cash and cash equivalents 17,504 86,376 56,633 \n Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year 341,832 255,456 198,823 \n Cash, cash equivalents, and restricted cash and cash equivalents at end of year $ 359,336 $ 341,832 $ 255,456 \n\n\n\nReconciliation of Non-GAAP Financial Measures for the Fourth Quarter and Full\nFiscal Years 2026 and 2025\n\nIn addition to disclosing financial results that are determined in accordance\nwith generally accepted accounting principles in the United States of America\n(GAAP), IDT also disclosed (a) Adjusted EBITDA for 4Q26, 3Q26, 4Q25, and\nthe full fiscal years 2026 and 2025, (b) Non-GAAP earnings per diluted\nshare (Non-GAAP EPS) for 4Q26, 4Q25, and the full fiscal\nyears 2026 and 2025, (c) NRS’ ‘Rule of 40’ score for 4Q26, and (d)\nNon-GAAP adjusted net cash provided by operating activities for 4Q26, 4Q25,\nand the full fiscal years 2026 and 2025. These are Non-GAAP financial\nmeasures intended to provide useful information that supplements IDT’s or\nthe relevant segment’s results in accordance with GAAP. The following\nexplains these terms and their respective reconciliations to the most directly\ncomparable GAAP measures.\n\nGenerally, a Non-GAAP measure is a numerical measure of a company’s\nperformance, financial position, or cash flows that either excludes or\nincludes amounts that are not normally excluded or included in the most\ndirectly comparable measure calculated and presented in accordance with GAAP.\n\nIDT’s measure of Adjusted EBITDA on a consolidated basis starts with net\nincome attributable to IDT in accordance with GAAP  and adds severance\nexpense, stock-based compensation, and other operating expenses, and deducts\nother operating gain and income tax benefits.  IDT's measure of Adjusted\nEBITDA on a reporting segment basis starts with income from operations\n(segments) in accordance with GAAP and adds depreciation and amortization,\nseverance expense, stock-based compensation, and other operating expenses, and\ndeducts other operating income.\n\nIDT’s measure of Non-GAAP EPS is calculated by dividing Non-GAAP net income\nby the diluted weighted-average shares. IDT’s measure of Non-GAAP net income\nstarts with net income attributable to IDT in accordance with GAAP and adds\nseverance expense, stock-based compensation, and other operating expenses, and\ndeducts other operating gains and income tax benefits. The income tax effect\nof these adjustments is then deducted or added, as applicable. These additions\nand subtractions are non-cash and/or non-routine items in the relevant\nfiscal 2026 and fiscal 2025 periods.\n\nManagement believes that IDT’s Adjusted EBITDA and Non-GAAP EPS are measures\nwhich provide useful information to both management and investors by excluding\ncertain expenses and non-routine gains and losses that may not be indicative\nof IDT’s or the relevant segment’s core operating results. Management uses\nAdjusted EBITDA, among other measures, as a relevant indicator of core\noperational strengths in its financial and operational decision making. In\naddition, management uses Adjusted EBITDA and Non-GAAP EPS to evaluate\noperating performance in relation to IDT’s competitors. Disclosure of these\nfinancial measures may be useful to investors in evaluating performance and\nallow for greater transparency of the underlying supplemental information used\nby management in its financial and operational decision-making. In addition,\nIDT has historically reported similar financial measures and believes such\nmeasures are commonly used by readers of financial information in assessing\nperformance. Therefore, the inclusion of comparative numbers provides\nconsistency in financial reporting.\n\nManagement refers to Adjusted EBITDA, as well as the GAAP measures income\n(loss) from operations and net income, on a segment and/or consolidated level\nto facilitate internal and external comparisons to the segments’ and IDT’s\nhistorical operating results, in making operating decisions, for budget and\nplanning purposes, and to form the basis upon which management is compensated.\n\nWhile depreciation and amortization are considered operating costs under GAAP,\nthese expenses primarily represent the non-cash current period allocation of\ncosts associated with long-lived assets acquired or capitalized in prior\nperiods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and\namortization, is a useful indicator of its current performance.\n\nSeverance expense is excluded from the calculation of Adjusted EBITDA and\nNon-GAAP EPS. Severance expense is reflective of decisions made by management\nin each period regarding the aspects of IDT’s and its segments’ businesses\nto be focused on in light of changing market realities and other factors.\nWhile there may be similar charges in other periods, the nature and magnitude\nof these charges can fluctuate markedly and do not reflect the performance of\nIDT’s core and continuing operations.\n\nOther operating expense, net, which is a component of income (loss) from\noperations, is excluded from the calculation of Adjusted EBITDA and Non-GAAP\nEPS. Other operating expense, net, primarily includes legal fees net of\ninsurance claims related to Straight Path Communications Inc.’s\nstockholders’ class action and gains from the write-off of contingent\nconsideration liabilities. From time to time, IDT may have gains or incur\ncosts related to non-routine legal, tax, and other matters; however, these\nvarious items generally do not occur each quarter. IDT believes the gains and\nlosses from these non-routine matters are not components of IDT’s or the\nrelevant segment’s core operating results.\n\nStock-based compensation recognized by IDT and other companies may not be\ncomparable because of the variety of types of awards as well as the various\nvaluation methodologies and subjective assumptions that are permitted under\nGAAP. Stock-based compensation is excluded from IDT’s calculation of\nAdjusted EBITDA and Non-GAAP EPS because management believes this allows\ninvestors to make more meaningful comparisons of the operating results per\nshare of IDT’s core business and operating segments with the results of\nother companies. However, stock-based compensation will continue to be a\nsignificant expense for IDT for the foreseeable future and an important part\nof employees’ compensation that impacts their performance.\n\nIn 4Q25, IDT decreased its deferred income tax valuation allowance due to\nprofitability in the United Kingdom and recorded an income tax benefit of $3.3\nmillion in the quarter and FY 2025. This income tax benefit was excluded from\nIDT’s Non-GAAP EPS because it was not related to the results of IDT’s core\noperations.\n\nAdjusted EBITDA and Non-GAAP EPS should be considered in addition to, not as a\nsubstitute for, or superior to, income (loss) from operations, cash flow from\noperating activities, net income, basic and diluted earnings per share or\nother measures of liquidity and financial performance prepared in accordance\nwith GAAP. In addition, IDT’s measurements of Adjusted EBITDA and Non-GAAP\nEPS may not be comparable to similarly titled measures reported by other\ncompanies.\n\nThe ‘Rule of 40’ score is a metric used to evaluate the performance of\nSaaS providers. It postulates that a SaaS provider’s revenue growth rate\nplus its EBITDA margin should equal or exceed 40 percent. The ‘Rule of 40’\nis typically used to assess a company’s balance between growth and\nprofitability. A total of over 40 is thought to indicate a healthy combination\nof expansion and financial stability, making it a useful tool for management\nand investors to gauge the potential for long-term success and make informed\ndecisions about resource allocation and business strategy.\n\nNRS’ ‘Rule of 40’ score is computed by adding (a) the growth rate of\nNRS' revenue for the current period compared to the corresponding year ago\nperiod to (b) the Adjusted EBITDA margin for the twelve-month period through\nthe end of the current period. Adjusted EBITDA is a Non-GAAP measure as\ndiscussed above. Adjusted EBITDA margin is calculated by dividing Adjusted\nEBITDA by GAAP revenue for the relevant period.\n\nIn 3Q26 and prior quarters, NRS used recurring revenue to calculate the\nrevenue growth rate.  Recurring revenue excluded revenue from the sale of NRS\nterminals. The revised definition using total revenue captures the impact of\nterminal sales and pricing decisions, providing a measure more closely aligned\nwith NRS' underlying financial performance.\n\nIDT’s Non-GAAP adjusted measure of net cash provided by operating activities\nis calculated by excluding the impact of changes in customer deposits from net\ncash provided by operating activities. This measure provides a more meaningful\nmeasure of the cash generated by our core business operations, making it a\nmore useful tool for management and investors to evaluate the cash generation\nof our business operations, and to compare IDT’s cash generation with\ncompanies that do not have, or have different levels of, customer deposits.\nCustomer deposits are, by regulation, not available to fund IDT’s operating\nactivities.\n\nFollowing are reconciliations of Adjusted EBITDA and Non-GAAP EPS to the most\ndirectly comparable GAAP measure, which are, (a) for Adjusted EBITDA, (i)\nincome (loss) from operations for IDT’s reportable segments and (ii) net\nincome for IDT on a consolidated basis, and (b) for Non-GAAP EPS, diluted\nearnings per share. Also following is NRS’ ‘Rule of 40’ score\ncomputation including the reconciliation of Adjusted EBITDA to the most\ndirectly comparable GAAP measure, income from operations, and IDT’s Non-GAAP\nadjusted measure of net cash provided by operating activities reconciled to\nGAAP net cash provided by operating activities.\n\nIDT Corporation\nReconciliation of Net Income to Adjusted EBITDA for 4Q26, 3Q26, and 4Q25\n(unaudited) in millions. Figures may not foot or cross-foot due to rounding\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n Three Months Ended July 31, 2026 \n Net income attributable to IDT Corporation $ 21.7 \n Adjustments: \n Net income attributable to noncontrolling interests 2.7 \n Net income 24.4 \n Provision for income taxes 12.1 \n Income before income taxes 36.5 \n Interest income, net (1.7 ) \n Other income, net (1.6 ) \n Income (loss) from operations $ 33.2 $ 16.6 $ 2.6 $ 12.0 $ 5.5 $ (3.5 ) \n Depreciation and amortization 5.3 1.7 1.7 1.2 0.6 0.0 \n Stock-based compensation 1.8 0.9 - 0.3 0.3 0.3 \n Severance expense 0.7 0.6 0.0 0.0 0.1 - \n Other operating expense (gain), net 0.3 0.1 0.0 0.5 - (0.3 ) \n Adjusted EBITDA $ 41.2 $ 19.9 $ 4.4 $ 14.0 $ 6.5 $ (3.5 ) \n\n\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n Three Months Ended April 30, 2026 \n Net income attributable to IDT Corporation $ 21.6 \n Adjustments: \n Net income attributable to noncontrolling interests 2.1 \n Net income 23.7 \n Provision for income taxes 8.5 \n Income before income taxes 32.3 \n Interest income, net (1.6 ) \n Other income, net (0.9 ) \n Income (loss) from operations $ 29.8 $ 16.7 $ 2.4 $ 8.2 $ 5.6 $ (3.0 ) \n Depreciation and amortization 5.4 1.8 1.7 1.2 0.7 - \n Stock-based compensation 2.4 1.2 - 0.4 0.4 0.4 \n Severance expense 0.1 0.1 - - - - \n Other operating (gains), net (0.2 ) - - - - (0.2 ) \n Adjusted EBITDA $ 37.5 $ 19.7 $ 4.1 $ 9.8 $ 6.6 $ (2.8 ) \n\n\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n Three Months Ended July 31, 2025 \n Net income attributable to IDT Corporation $ 16.9 \n Adjustments: \n Net income attributable to noncontrolling interests 0.6 \n Net income 17.5 \n Provision for income taxes 2.9 \n Income before income taxes 20.4 \n Interest income, net (1.8 ) \n Other expense, net 3.2 \n Income (loss) from operations $ 21.9 $ 15.4 $ 1.5 $ 5.8 $ 4.8 $ (5.7 ) \n Depreciation and amortization 5.3 1.8 1.6 1.1 0.7 - \n Stock-based compensation 0.4 0.2 - 0.2 - - \n Severance expense 0.3 0.1 0.1 - - - \n Other operating expense, net 5.9 0.2 0.2 2.4 - 3.1 \n Adjusted EBITDA $ 33.8 $ 17.8 $ 3.5 $ 9.5 $ 5.5 $ (2.5 ) \n\n\n\nIDT Corporation\nReconciliation of Net Income to Adjusted EBITDA for FY 2026 and FY 2025\n(unaudited) in millions. Figures may not foot or cross-foot due to rounding\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n For the Twelve Months Ended July 31, 2026 \n Net income attributable to IDT Corporation $ 86.6 \n Adjustments: \n Net income attributable to noncontrolling interests 8.5 \n Net income 95.1 \n Provision for income taxes 34.9 \n Income before income taxes 130.0 \n Interest income, net (6.6 ) \n Other income, net (2.2 ) \n Income (loss) from operations $ 121.2 $ 63.4 $ 9.1 $ 39.3 $ 21.5 $ (12.1 ) \n Depreciation and amortization 21.4 7.0 6.8 4.8 2.8 0.0 \n Stock-based compensation 10.5 5.7 0.0 1.3 1.8 1.7 \n Severance 1.2 0.9 0.1 0.1 0.1 - \n Other operating expense (gain), net 0.3 0.2 0.0 0.4 - (0.4 ) \n Adjusted EBITDA $ 154.6 $ 77.3 $ 16.1 $ 45.8 $ 26.2 $ (10.8 ) \n\n\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n For the Twelve Months Ended July 31, 2025 \n Net income attributable to IDT Corporation $ 76.1 \n Adjustments: \n Net income attributable to noncontrolling interests 5.0 \n Net income 81.1 \n Provision for income taxes 24.7 \n Income before income taxes 105.8 \n Interest income, net (6.1 ) \n Other expense, net 0.7 \n Income (loss) from operations $ 100.4 $ 66.5 $ 4.9 $ 27.8 $ 15.4 $ (14.2 ) \n Depreciation and amortization 21.0 7.6 6.4 4.1 2.9 0.1 \n Stock-based compensation 3.1 1.4 - 1.1 0.2 0.4 \n Severance 0.9 0.7 0.1 - - - \n Other operating expense, net 6.3 0.2 0.6 2.4 - 3.1 \n Adjusted EBITDA $ 131.7 $ 76.4 $ 12.1 $ 35.4 $ 18.6 $ (10.7 ) \n\n\n\nIDT Corporation\nReconciliation of Earnings Per Share (EPS) to Non-GAAP EPS for 4Q26, 4Q25,\nFY 2026 and FY 2025\n(unaudited) in millions, except per share data. Figures may not foot due to\nrounding\n\n 4Q26 4Q25 FY26 FY25 \n \n Net income attributable to IDT Corporation $ 21.7 $ 16.9 $ 86.6 $ 76.1 \n Adjustments (add) subtract: \n Income tax benefit - 3.3 - 3.3 \n Stock-based compensation (1.8 ) (0.4 ) (10.5 ) (3.1 ) \n Severance expense (0.7 ) (0.3 ) (1.2 ) (0.9 ) \n Other operating expense, net (0.3 ) (5.9 ) (0.3 ) (6.3 ) \n Total adjustments $ (2.7 ) $ (3.3 ) $ (12.1 ) $ (7.0 ) \n Income tax effect of total adjustments (0.9 ) (0.9 ) (3.2 ) (2.3 ) \n Total adjustments, net of tax 1.8 2.4 8.9 4.7 \n Non-GAAP net income $ 23.5 $ 19.3 $ 95.5 $ 80.8 \n \n Earnings per share: \n Basic $ 0.87 $ 0.67 $ 3.47 $ 3.02 \n Total adjustments, net of tax 0.07 0.09 0.36 0.18 \n Non-GAAP - basic $ 0.95 $ 0.76 $ 3.82 $ 3.20 \n \n Weighted-average number of shares used in calculation of basic earnings per share 24.9 25.2 25.0 25.2 \n \n Diluted $ 0.87 $ 0.67 $ 3.46 $ 3.01 \n Total adjustments, net of tax 0.07 0.09 0.36 0.18 \n Non-GAAP - diluted $ 0.94 $ 0.76 $ 3.82 $ 3.19 \n \n Weighted-average number of shares used in calculation of diluted earnings per share 24.9 25.2 25.0 25.3 \n\n\n\nIDT Corporation\nNRS’ ‘Rule of 40’ Score For 4Q26\n(unaudited) in millions. Figures may not foot due to rounding to millions\n\n Trailing Twelve \n Months (TTM) \n 1Q26 2Q26 3Q26 4Q26 4Q26 \n \n Reconciliation of NRS’ Income from Operations to Adjusted EBITDA \n \n Income from operations $ 8.9 $ 10.2 $ 8.2 $ 12.0 $ 39.3 \n Depreciation and amortization 1.1 1.2 1.2 1.2 4.8 \n Stock-based compensation 0.2 0.4 0.4 0.3 1.3 \n Severance expense 0.0 0.0 0.0 0.0 0.1 \n Other operating expense, net - - (0.0 ) 0.5 0.4 \n Adjusted EBITDA $ 10.3 $ 11.8 $ 9.8 $ 14.0 $ 45.8 \n\n\n\n 4Q26 4Q25 \n \n NRS’ ‘Rule of 40’ Score \n \n NRS revenue $ 45.0 $ 34.3 \n \n Revenue growth rate 31 % \n \n \n TTM Adjusted EBITDA from above $ 45.8 \n TTM total revenue 159.4 \n TTM Adjusted EBITDA margin 29 % \n \n 'Rule of 40' 60 \n\n\n\nIDT Corporation\nAdjusted net cash provided by operating activities for 4Q26, 4Q25,\nFY 2026 and FY 2025\n(unaudited) in millions. Figures may not foot due to rounding to millions\n\n (in millions) \n Three months ended July 31, 4Q26 4Q25 \n Net cash provided by operating activities (GAAP) $ 44.4 $ 31.0 \n Changes in customer deposits (18.0 ) 6.1 \n Adjusted net cash provided by operating activities (Non-GAAP) $ 26.4 $ 37.1 \n\n\n\n (in millions) \n Full year ended July 31, FY26 FY25 \n Net cash provided by operating activities (GAAP) $ 91.1 $ 127.1 \n Changes in customer deposits (30.1 ) (19.2 ) \n Adjusted net cash provided by operating activities (Non-GAAP) $ 60.9 $ 107.8 \n\n\n\nExplanation of Key Performance Metrics\n\nnet2phone’s subscription revenue is calculated by subtracting net2phone’s\nequipment revenue and revenue generated by a legacy SIP trunking offering in\nBrazil from its revenue in accordance with GAAP. net2phone’s cloud\ncommunications and contact center offerings are priced on a per-seat basis,\nwith customers paying based on the number of users in their organization. The\nnumber of seats served and subscription revenue trends and comparisons between\nperiods are used in the analysis of net2phone’s revenues and direct cost of\nrevenues and are strong indications of the top-line growth and performance of\nthe business.\n\nConstant currency as it relates to revenue provides a framework for assessing\nnet2phone’s performance that excludes the effect of foreign currency rate\nfluctuations. To determine net2phone’s subscription revenue growth on a\nconstant currency basis, current period revenues from entities reporting in\ncurrencies other than U.S. Dollars (USD) were converted to USD at the average\nmonthly exchange rates in effect during the prior fiscal year’s comparative\nperiod instead of the average monthly exchange rates in effect during the\ncurrent period.\n\nNRS’ average monthly network gross profit per location (average monthly GP\nper location) is calculated by dividing NRS’ gross profit generated within\nits retailer network by the average number of locations with either an active\nPOS terminal, or an active payment processing account, or both, during the\nperiod. The average number of retailer locations is calculated by adding\nlocations at the beginning and end of the period and dividing by two. The\nresult is divided by three when the period is a fiscal quarter, and by twelve\nwhen the period is a fiscal year. Average monthly GP per location is useful\nfor comparisons of NRS’ gross profit and gross profit per customer to prior\nperiods and to competitors and others in the market, as well as for\nforecasting future revenue from the retailer customer base.\n\nBOSS Money Transactions are a nonfinancial metric that measures customer usage\nduring a reporting period. Average BOSS Money Revenue per Transaction measures\nthe revenue productivity of BOSS Money’s remittance business. It is\ncalculated by dividing BOSS Money revenue during the period by the number of\ntransactions. Average BOSS Money Revenue per Transaction is a key metric for\nevaluating the productivity and operational performance of the business. \n\nBOSS Money’s Digital Send Volume is the aggregate amount of principal\nremitted by BOSS Money’s digital customers – those using the BOSS Money\nand BOSS Revolution apps to originate remittances. BOSS Money's Digital Send\nVolume is a key metric for evaluating the operational performance of the\ndigital channel of the remittance business, and for comparing the performance\nof BOSS Money’s digital channel to competitors in the remittance business as\nwell as to performance to other temporal periods.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/9f1589b4-d64c-4847-a155-0a28045c6b36)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNXch7FDk-20260928","title":"IDT Corporation Reports Record Fourth Quarter and Fiscal Year 2026 Results","author":"Globe Newswire","ticker":"IDT","created":"2026-09-28T20:36:26.637Z","tickers":["IDT"],"exchange":"NYSE","article_body":"Record fourth quarter Gross Profit +18%; Income from Operations +52%; Adjusted\nEBITDA(*) +22%\n\nFY 2026 Income from Operations of $121M (+21%); Adjusted EBITDA of $155M\n(+17%)\n\nNEWARK, N.J., Sept. 28, 2026 (GLOBE NEWSWIRE) --  IDT Corporation (NYSE:\nIDT), a global provider of fintech, communications, and AI-powered customer\nexperience solutions, today reported results for its fourth quarter and full\nfiscal year 2026, the three and twelve months ended July 31, 2026.\n\n4Q26 HIGHLIGHTS (**)\n* Consolidated Results * Revenue: +7% to $339.0 million;\n* Gross profit / margin: +18% to $134.8 million / +360 bps to 39.8%;\n* Income from operations: +52% to $33.2 million;\n\n* Net income attributable to IDT: +29% to $21.7 million;\n\n* GAAP EPS: Increased to $0.87 from $0.67;\n\n* Non-GAAP EPS: Increased to $0.94 from $0.76;\n\n* Adjusted EBITDA: +22% to $41.2 million.\n\n \n* Key Businesses / Segments * NRS * Revenue: +31% to $45.0 million;\n* Income from operations: +105% to $12.0 million;\n* Adjusted EBITDA: +47% to $14.0 million.\n \n* BOSS Money / Fintech segment * BOSS Money digital revenue: +22% to $33.7\nmillion;\n\n* Fintech segment revenue: +12% to $47.1 million;\n* Fintech segment income from operations: +15% to $5.5 million;\n* Fintech segment Adjusted EBITDA: +17% to $6.5 million.\n \n* net2phone * Subscription revenue: +10% to $24.5 million;\n* Income from operations: +75% to $2.6 million;\n* Adjusted EBITDA: +26% to $4.4 million.\n \n* Traditional Communications * Revenue: +2% to $222.0 million;\n* Gross profit: +0.4% to $41.1 million;\n* Income from operations: +8% to $16.6 million;\n* Adjusted EBITDA: +12% to $19.9 million.\nFY 2026 HIGHLIGHTS\n* Consolidated Results * Revenue: +5% to $1,298.0 million;\n* Gross profit / margin: +11% to $496.8 million / +200 bps to 38.3%;\n* Income from operations: +21% to $121.2 million;\n* Net income attributable to IDT: +14% to $86.6 million;\n* GAAP EPS: Increased to $3.46 from $3.01;\n* Non-GAAP EPS: Increased to $3.82 from $3.19;\n* Adjusted EBITDA: +17% to $154.6 million.\n \n* Key Businesses / Segments * NRS * Revenue: +24% to $159.4 million;\n* Income from operations: +42% to $39.3 million;\n* Adjusted EBITDA: +30% to $45.8 million.\n \n* BOSS Money / Fintech segment * BOSS Money digital revenue: +21% to $119.4\nmillion;\n* Fintech segment revenue: +14% to $176.0 million;\n* Fintech segment income from operations: +40% to $21.5 million;\n* Fintech segment Adjusted EBITDA: +41% to $26.2 million.\n \n* net2phone * Subscription revenue: +11% to $94.9 million;\n* Income from operations: +84% to $9.1 million;\n* Adjusted EBITDA: +33% to $16.1 million.\n \n* Traditional Communications * Revenue: +1% to $865.9 million;\n* Gross profit: (4)% to $162.6 million;\n* Income from operations: (5)% to $63.4 million;\n* Adjusted EBITDA: +1% to $77.3 million.\n(*)This release discloses certain Non-GAAP financial measures (Adjusted\nEBITDA, Non-GAAP EPS, NRS' ‘Rule of 40,’ and adjusted net cash provided by\noperating activities) as well as certain Key Performance Metrics (net2phone\nsubscription revenue, net2phone constant currency subscription revenue growth\nrate, NRS Average Monthly Network Gross Profit per Location, and BOSS Money\ntransactions and digital channel send volume). Please see the explanations of\nthose measures and metrics, the reasons for their inclusion and\nreconciliations of Non-GAAP measures to their closest GAAP measures at the end\nof this release.\n\n**Throughout this release, unless otherwise noted, results for the fourth\nquarter of fiscal year 2026 (4Q26) are compared to the fourth quarter of\nfiscal year 2025 (4Q25) and results for FY 2026 are compared to FY 2025. All\nearnings per share (EPS) and other ‘per share’ results are per diluted\nshare.\n\nREMARKS BY SHMUEL JONAS, CEO\n\nIDT’s fourth quarter capped off a strong fiscal year, highlighted by\naccelerated topline and Adjusted EBITDA growth. \n\nOur three higher-margin growth segments, NRS, Fintech and net2phone, each\nincreased their respective quarterly and full-year contributions, while our\nTraditional Communications segment generated more Adjusted EBITDA in fiscal\n2026 than it did in fiscal 2025 or 2024.  \n\nAt NRS, we continue to develop and deploy new, high-value functionalities for\nour retailers, such as our recent Uber Eats integration following the Grubhub\nand DoorDash partnerships we announced last year.  These advances are\nsupplementing other tailwinds driving gains in Merchant Services revenues.\n Also in the fourth quarter, Advertising and Data revenue returned to growth,\nbolstered by our recent acquisition. Taken together, these developments helped\ndrive a 47% year-over-year increase in NRS' fourth quarter Adjusted EBITDA.\nLooking ahead, we are working on several product initiatives to increase sales\nto our existing retailer base and to attract new retailers to the NRS network.\n\nOur BOSS Money remittance business shares its brand identity, distribution\nnetworks and addressable markets with our other BOSS-branded offerings. In\nrecent years, we invested heavily to build and improve our BOSS apps. That\nstrategy is paying off as BOSS Money continues to grow rapidly - thanks in\npart to the quality of our apps and our customer-centric service.\n\nAt BOSS Money, remittances surpassed a 30 million annual transaction run-rate\nfor the first time in May, thanks to strong Mother's Day results in our\ndigital channel. This channel contributed 88% of our total transaction volume\nin the fourth quarter with transactions and revenue both increasing by 20+%. \n\nWe recently launched money transfers via our WhatsApp channel, and we closed\nthe fiscal year by deploying a digital wallet here in the U.S. The wallet\nenables our customers to load funds, store promotions, and pay for services.\n In addition, the BOSS Money app is extending its geographic reach, launching\ninternationally with differentiated features by country including peer-to-peer\nremittances, a stablecoin-backed wallet with a reloadable debit card and other\nmoney management tools.  We are also launching a BOSS Money branded\nrechargeable card with credit building features. All of these developments\nmark early steps toward a broader suite of BOSS Money-branded financial\nservices and tools that we intend to offer globally. \n\nnet2phone delivered another solid quarter as we enhanced our cloud\ncommunications portfolio with both native and standalone AI solutions for\nbusinesses across the globe. Our agentic AI solutions, AI Agent and Coach,\ncombined with our new integration layer, enable customers to connect their\neveryday business applications and workflow tools with net2phone's suite of\nservices. net2phone's AI tools and applications are driving nearly every\nconversation with our clients. That process is delivering new logos and\naccelerating accretive sales.  net2phone is on track to surpass the $100\nmillion ARR milestone in the current quarter and we expect continued topline\nexpansion throughout fiscal 2027.\n\nOverall, IDT is well positioned as we begin the new fiscal year with\naccelerating topline growth, increasing cash generation, and a debt-free\nbalance sheet that affords us strategic flexibility.\n\n4Q26 AND FY 2026 RESULTS BY SEGMENT\n\nNational Retail Solutions (NRS)\n\n (Terminals, accounts and retailer locations at end of period. $ in millions, except for Average Monthly GP per Location. (*)Numbers may not foot due to rounding.) \n\n\n\n 4Q26-4Q25 FY26-FY25 \n 4Q26 3Q26 4Q25 (Δ, % Δ) FY26 FY25 (% Δ) \n \n Retailer locations 35,400 34,800 32,700 2,700 \n Active POS terminals 40,400 39,300 37,200 3,200 \n Payment processing accounts 29,400 29,200 26,500 2,900 \n \n Revenue \n Merchant Services & Other $ 28.5 $ 25.8 $ 21.8 +31 % $ 102.0 $ 76.8 +33 % \n Advertising and Data $ 10.1 $ 5.7 $ 6.8 +49 % $ 32.1 $ 31.1 +3 % \n SaaS Fees $ 4.6 $ 4.5 $ 4.1 +12 % $ 17.8 $ 14.7 +21 % \n POS Terminal Sales $ 1.8 $ 2.0 $ 1.7 +10 % $ 7.5 $ 6.2 +22 % \n Total revenue $ 45.0 $ 38.0 $ 34.3 +31 % $ 159.4 $ 128.8 +24 % \n \n Gross profit $ 42.6 $ 34.3 $ 30.5 +40 % $ 146.6 $ 116.9 +25 % \n Gross profit margin 94.8 % 90.2 % 89.0 % +580 bps 92.0 % 90.7 % +130 bps \n \n Average monthly GP per location* $ 383 $ 331 $ 315 +22 % $ 352 $ 316 +12 % \n \n SG&A $ 27.3 $ 23.4 $ 20.0 +37 % $ 96.1 $ 78.0 +23 % \n Technology and development $ 2.8 $ 2.7 $ 2.3 +25 % $ 10.8 $ 8.7 +24 % \n Income from operations $ 12.0 $ 8.2 $ 5.8 +105 % $ 39.3 $ 27.8 +42 % \n Adjusted EBITDA $ 14.0 $ 9.8 $ 9.5 +47 % $ 45.8 $ 35.4 +30 % \n CapEx $ 1.7 $ 0.8 $ 1.3 +28 % $ 5.8 $ 5.4 +8 % \n\nNRS Take-Aways:\n* Beginning in 4Q26, IDT is reporting retailer locations and average monthly\nretailer network gross profit per location (\"average monthly GP per location\")\nas its measures of the scope of the NRS retailer network and the contribution\nof the average retailer on the NRS network, respectively. Retailer locations\ninclude stores that actively utilize NRS terminals, NRS payment processing, or\nboth. Average monthly GP per location is gross profit generated within the NRS\nretailer network divided by average retailer locations. Average monthly GP per\nlocation increased 22% to $383 in 4Q26 from $315 in 4Q25, primarily reflecting\ngrowth in NRS Pay.\n\n* The strong NRS revenue increase in 4Q26 was led mainly by Merchant\nServices and Advertising and Data, and helped drive NRS' 4Q26 ‘Rule of\n40’ score to 60.\n\n* NRS recently launched a partnership with Uber Eats following successful\nintegrations with DoorDash and Grubhub. Collectively, these and other,\nsmaller, online ordering and delivery partnerships enable NRS retailers to\nbetter meet and serve their customers wherever they are while leveraging the\nscale of the NRS network to further differentiate NRS' offerings.\n\n\nBOSS Money and Fintech Segment\n\n (Transactions in millions. $ in millions except for average revenue per transaction. Numbers may not foot due to rounding.) \n\n\n\n 4Q26-4Q25 FY26-FY25 \n 4Q26 3Q26 4Q25 (% Δ) FY26 FY25 (% Δ) \n BOSS Money Transactions \n Digital channel 6.6 6.0 5.5 +20 % 23.6 19.6 +20 % \n Retail channel 0.9 0.9 1.1 (20 )% 3.8 4.2 (9 )% \n Total transactions 7.5 6.9 6.6 +14 % 27.4 23.9 +15 % \n Digital as a percentage of total 88.1 % 87.0 % 83.3 % +480 bps 86.0 % 82.0 % +400 bps \n \n Fintech Revenue \n BOSS Money \n Digital channel $ 33.7 $ 31.0 $ 27.6 +22 % $ 119.4 $ 99.0 +21 % \n Retail channel $ 8.7 $ 8.6 $ 10.6 (17 )% $ 37.3 $ 40.9 (9 )% \n Total BOSS Money $ 42.4 $ 39.7 $ 38.2 +11 % $ 156.7 $ 139.8 +12 % \n Other $ 4.6 $ 5.3 $ 3.9 +20 % $ 19.3 $ 14.8 +31 % \n Total Revenue $ 47.1 $ 45.0 $ 42.1 +12 % $ 176.0 $ 154.6 +14 % \n \n Average BOSS Money revenue per transaction* $ 5.68 $ 5.76 $ 5.81 (2 )% $ 5.72 $ 5.85 (2 )% \n \n Gross profit $ 30.9 $ 28.3 $ 24.9 +24 % $ 109.7 $ 90.7 +21 % \n Gross profit margin 65.6 % 62.8 % 59.1 % +650 bps 62.3 % 58.7 % +360 bps \n SG&A $ 22.9 $ 20.2 $ 17.8 +28 % $ 77.9 $ 66.2 +18 % \n Technology and development $ 2.5 $ 2.5 $ 2.3 +10 % $ 10.2 $ 9.1 +12 % \n Income from operations $ 5.5 $ 5.6 $ 4.8 +15 % $ 21.5 $ 15.4 +40 % \n Adjusted EBITDA $ 6.5 $ 6.6 $ 5.5 +17 % $ 26.2 $ 18.6 +41 % \n CapEx $ 1.0 $ 1.0 $ 0.8 +31 % $ 3.9 $ 3.5 +11 % \n\nBOSS Money and Fintech Take-Aways:\n\n\n* Digital transaction volume as a percentage of total transactions increased\nto 88.1% in 4Q26, reflecting BOSS Money's focused investments in digital\ncustomer acquisition programs and the industry-wide acceleration of the\nongoing migration of consumers to digital channels from retail in the wake of\na federal tax on remittances imposed on retail transactions beginning on\nJanuary 1, 2026.\n\n* Digital channel send volume - the amount of principal transferred by BOSS\nMoney customers using the BOSS Money and BOSS Revolution apps - increased by\n38% year-over-year in 4Q26 and by 35% in FY 2026, reflecting increases in both\ntransaction volumes and in average dollars sent per transaction.\n\n* The Fintech segment’s year-over-year increases in gross profit margin, 650\nbps in 4Q26 and 360 bps in FY 2026, primarily reflected the continuing\nrotation in the transaction mix to higher margin digital transactions from\nlower margin retail transactions, supplemented by the impact of increased\naverage send amounts and continuous efforts to negotiate more favorable payout\nterms.\n\n* The BOSS Money app attained the highest average customer satisfaction score\nof any of the leading digital money transfer providers serving the U.S. and\nU.K. markets as evaluated by FXC Intelligence for 2026. It was the second\nconsecutive year that the BOSS Money app has won the honor.\n\n\nnet2phone\n\n (Seats in thousands at end of period. $ in millions. Numbers may not foot due to rounding.) \n\n\n\n 4Q26-4Q25 FY26-FY25 \n 4Q26 3Q26 4Q25 (% Δ) FY26 FY25 (% Δ) \n Seats 447 441 422 +6 % \n \n Revenue \n Subscription revenue* $ 24.5 $ 24.0 $ 22.2 +10 % $ 94.9 $ 85.7 +11 % \n Other revenue $ 0.5 $ 0.4 $ 0.5 (8 )% $ 1.7 $ 2.1 (19 )% \n Total Revenue $ 24.9 $ 24.4 $ 22.8 +9 % $ 96.6 $ 87.9 +10 % \n \n Gross profit $ 20.2 $ 19.6 $ 18.1 +11 % $ 77.8 $ 69.7 +12 % \n Gross profit margin 81.0 % 80.6 % 79.5 % +140 bps 80.6 % 79.3 % +120 bps \n SG&A $ 14.4 $ 14.1 $ 13.3 +9 % $ 56.3 $ 52.4 +8 % \n Technology and development $ 3.1 $ 3.1 $ 3.0 +3 % $ 12.3 $ 11.7 +5 % \n Income from operations $ 2.6 $ 2.4 $ 1.5 +75 % $ 9.1 $ 4.9 +84 % \n Adjusted EBITDA $ 4.4 $ 4.1 $ 3.5 +26 % $ 16.1 $ 12.1 +33 % \n CapEx $ 1.6 $ 1.8 $ 1.7 (7 )% $ 6.9 $ 6.6 +4 % \n\n\n\nnet2phone Take-Aways:\n* The increases in subscription revenue(*), +10% in 4Q26 and +11% in\nFY 2026, were +7% and +8%, respectively, on a constant currency(*) basis,\nreflecting weakness in the U.S. dollar versus local currencies in certain of\nnet2phone's key markets.\n\n* The strong increases in net2phone profitability in both 4Q26 and FY 2026\nreflect the leverage of net2phone's business model and the incremental\ncontributions of its AI-powered offerings. \n\n* net2phone introduced an integration layer in 4Q26, enabling net2phone’s\nsolutions to work seamlessly with the customer’s native, mission-critical\nbusiness software without the need for developers, custom coding, or webhooks.\nBecause they securely read from, and write to, connected CRM and\ncommunications platforms, net2phone’s solutions can be synced through the\nintegration layer with customer records and accounts, while actions are\nreflected in real time in the relevant systems of record and are reviewable\nthrough an audit trail.\n\n\nTraditional Communications\n\n ($ in millions. Numbers may not foot due to rounding.) \n\n\n\n 4Q26-4Q25 FY26-FY25 \n 4Q26 3Q26 4Q25 (% Δ) FY26 FY25 (% Δ) \n Revenue \n IDT Digital Payments $ 113.9 $ 103.9 $ 107.0 +6 % $ 429.2 $ 416.3 +3 % \n IDT Global $ 56.1 $ 55.6 $ 55.9 +0.4 % $ 231.5 $ 209.6 +10 % \n BOSS Revolution $ 44.2 $ 43.4 $ 49.3 (10 )% $ 180.3 $ 211.2 (15 )% \n Other $ 7.8 $ 5.5 $ 5.3 +49 % $ 24.9 $ 23.1 +8 % \n Total Revenue $ 222.0 $ 208.3 $ 217.4 +2 % $ 865.9 $ 860.2 +1 % \n \n Gross profit $ 41.1 $ 40.3 $ 41.0 +0.4 % $ 162.6 $ 168.9 (4 )% \n Gross profit margin 18.5 % 19.4 % 18.8 % (30 )bps 18.8 % 19.6 % (80 )bps \n SG&A $ 18.3 $ 17.9 $ 19.9 (8 )% $ 75.6 $ 79.9 (5 )% \n Technology and development $ 5.6 $ 5.6 $ 5.3 +6 % $ 22.5 $ 21.5 +5 % \n Income from operations $ 16.6 $ 16.7 $ 15.4 +8 % $ 63.4 $ 66.5 (5 )% \n Adjusted EBITDA $ 19.9 $ 19.7 $ 17.8 +12 % $ 77.3 $ 76.4 +1 % \n CapEx $ 1.7 $ 1.5 $ 1.4 +22 % $ 6.3 $ 5.3 +21 % \n\n\n\nTraditional Communications Take-Aways:\n* In FY 2026, the Traditional Communications segment increased Adjusted\nEBITDA levels for the second consecutive year, underscoring the durability of\nthe segment's cash generation.\n\n* IDT Digital Payments has launched an eSIM digital catalog through its Zendit\nB2B prepaid platform and in the BOSS Revolution app, further expanding its\nlarge and diversified catalog of prepaid offerings. The eSIM catalog targets\nthe large and rapidly growing travel data roaming market, offering over 5,000\nplans in 190+ countries.\n\n\nOTHER FINANCIAL RESULTS\n\nConsolidated results for all periods presented include corporate overhead.\nCorporate Adjusted EBITDA declined to ($3.5) million\nin 4Q26 from ($2.5) million in 4Q25. In FY 2026, corporate Adjusted\nEBITDA declined to ($10.8) million from  ($10.7) million in FY 2025.\n\nAs of July 31, 2026, IDT held $271.9 million in unrestricted cash, cash\nequivalents, debt securities, and current equity investments, an increase\nof $20.5 million from the level at April 30, 2026. Also at July 31, 2026,\ncurrent assets totaled $655.4 million and current liabilities\ntotaled $351.9 million. The Company had no outstanding debt at the quarter\nend.  \n\nNet cash provided by operating activities in 4Q26 increased\nto $44.4 million from $31.0 million in 4Q25. Exclusive of changes in\ncustomer funds deposits at IDT’s Fintech segment, adjusted net cash provided\nby operating activities* in 4Q26 decreased to $26.4 million\nfrom $37.1 million in 4Q25.\n\nIn FY 2026, net cash provided by operating activities decreased\nto $91.1 million from $127.1 million in FY 2025. Exclusive of changes in\ncustomer funds deposits in IDT’s Fintech segment, adjusted net cash provided\nby operating activities in FY 2026 decreased to $60.9 million\nfrom $107.8 million in FY 2025.  The decrease primarily stemmed from the\ntiming of working capital movements associated with the daily changes in\nsettlement assets and disbursement prefunding at BOSS Money.\n\nCapital expenditures increased to $6.0 million in 4Q26 from $5.3 million\nin 4Q25. For FY 2026, capital expenditures increased to $23.1 million\nfrom $20.8 million in FY 2025.\n\nIDT repurchased 30,752 shares of its Class B common stock through open market\ntransactions during 4Q26 for approximately $2.0 million.  Open market\nrepurchases during FY 2026 totaled 421,938 shares for approximately $21.0\nmillion.\n\nFY 2027 FINANCIAL OUTLOOK\n\nFor FY 2027, IDT expects to again grow consolidated gross profit by double\ndigits, consistent with its average annual growth rate over the past several\nyears, to a range of $545 million to $555 million.\n\nBuilding on record Adjusted EBITDA of $154.6 million in FY 2026, IDT's\nfiscal 2027 guidance reflects continued, strong profitability growth, with\nAdjusted EBITDA expected to range from $176 million to $180 million, with each\noperating segment contributing to that growth.\n\nDIVIDEND\n\nIDT’s Board of Directors has declared a quarterly cash dividend of $0.07 per\nshare payable on October 14, 2026, to stockholders of record as of October 5,\n2026.\n\nIDT EARNINGS ANNOUNCEMENT INFORMATION\n\nThis release is available for download in the “Investors & Media” section\nof the IDT Corporation website (https://www.idt.net/investors-and-media) and\nhas been furnished on a current report (Form 8-K) with the SEC.\n\nIDT will host an earnings conference call beginning at 5:30 PM Eastern today\nwith management’s discussion of results followed by Q&A with investors.  To\nlisten to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free\nfrom the U.S.) or 1-973-528-0011 (international) and provide the following\naccess code: 266780.\n\nA replay of the conference call will be available approximately three hours\nafter the call concludes through October 12, 2026. To access the call replay,\ndial 1-877-481-4010 (toll-free from the U.S.) or 1-919-882-2331\n(international) and provide this replay passcode: 54497.  The replay will\nalso be accessible via streaming audio at the IDT investor relations website.\n\nABOUT IDT CORPORATION\n\nIDT Corporation (NYSE: IDT) is a global provider of fintech, communications\nand AI-powered customer experience solutions through a portfolio of\nsynergistic businesses: National Retail Solutions (NRS), through its\npoint-of-sale (POS) platform, enables independent retailers to operate more\neffectively while providing advertisers and marketers with unprecedented reach\ninto underserved consumer markets; BOSS Money facilitates innovative\ninternational remittances and fintech payments solutions; net2phone provides\nenterprises and organizations with intelligently integrated cloud\ncommunications and contact center services across channels and devices; IDT\nDigital Payments and the BOSS Revolution calling service make sharing prepaid\nproducts and services and speaking with friends and family around the world\nconvenient and reliable, and IDT Global and IDT Express enable communications\nservice providers to provision and manage international voice and SMS\nmessaging.\n\nAll statements above that are not purely about historical facts, including,\nbut not limited to, those in which we use the words “believe,”\n“anticipate,” “expect,” “plan,” “intend,” “estimate,”\n“target” and similar expressions, are forward-looking statements within\nthe meaning of the Private Securities Litigation Reform Act of 1995. While\nthese forward-looking statements represent our current judgment of what may\nhappen in the future, actual results may differ materially from the results\nexpressed or implied by these statements due to numerous important factors.\nOur filings with the SEC provide detailed information on such statements and\nrisks and should be consulted along with this release. To the extent permitted\nunder applicable law, IDT assumes no obligation to update any forward-looking\nstatements.\n\nCONTACT\n\nIDT Corporation Investor Relations\nBill Ulrey\nwilliam.ulrey@idt.net \n973-438-3838\n\n\n\n IDT CORPORATION \n \n CONSOLIDATED BALANCE SHEETS \n \n (in thousands, except per share data) \n July 31, 2026 2025 \n ASSETS \n CURRENT ASSETS: \n Cash and cash equivalents $ 220,686 $ 226,505 \n Restricted cash and cash equivalents 138,650 115,327 \n Debt securities 38,612 21,649 \n Equity investments 12,642 5,637 \n Trade accounts receivable, net of allowance for credit losses of $6,938 and $9,097 at July 31, 2026 and 2025, respectively 60,750 44,932 \n Settlement assets, net of reserve of $1,535 and $1,367 at July 31, 2026 and 2025, respectively 55,013 28,014 \n Disbursement prefunding 84,751 37,097 \n Prepaid expenses 13,395 12,440 \n Other current assets 30,867 28,702 \n TOTAL CURRENT ASSETS 655,366 520,303 \n Property, plant, and equipment, net 41,864 38,869 \n Goodwill 26,539 26,488 \n Other intangibles, net 8,762 5,056 \n Equity investments 6,068 6,658 \n Operating lease right-of-use assets 1,448 1,878 \n Deferred income tax assets, net 18,002 18,790 \n Other assets 6,208 8,161 \n TOTAL ASSETS $ 764,257 $ 626,203 \n LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY \n CURRENT LIABILITIES: \n Trade accounts payable $ 18,629 $ 19,435 \n Accrued expenses 106,434 97,295 \n Deferred revenue 27,124 27,726 \n Customer funds deposits 147,654 114,708 \n Settlement liabilities 16,988 13,922 \n Other current liabilities 35,050 19,910 \n TOTAL CURRENT LIABILITIES 351,879 292,996 \n Operating lease liabilities 817 1,103 \n Other liabilities 3,609 1,688 \n TOTAL LIABILITIES 356,305 295,787 \n Commitments and contingencies \n Redeemable noncontrolling interest 11,842 11,459 \n EQUITY: \n IDT Corporation stockholders’ equity: \n Preferred stock, $.01 par value; authorized shares—10,000; no shares issued — — \n Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2026 and 2025 33 33 \n Class B common stock, $.01 par value; authorized shares—200,000; 28,569 and 28,528 shares issued and 23,264 and 23,656 shares outstanding at July 31, 2026 and 2025, respectively 285 285 \n Additional paid-in capital 319,225 308,111 \n Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 5,305 and 4,872 shares of Class B common stock at July 31, 2026 and 2025, respectively (165,379 ) (143,853 ) \n Accumulated other comprehensive loss (14,097 ) (16,569 ) \n Retained earnings 237,253 157,124 \n Total IDT Corporation stockholders’ equity 377,320 305,131 \n Noncontrolling interests 18,790 13,826 \n TOTAL EQUITY 396,110 318,957 \n TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY $ 764,257 $ 626,203 \n\n\n\n\n\n IDT CORPORATION \n \n CONSOLIDATED STATEMENTS OF INCOME \n \n (in thousands, except per share data) \n Year ended July 31, 2026 2025 2024 \n REVENUES $ 1,297,960 $ 1,231,495 $ 1,205,778 \n Direct cost of revenues 801,172 785,300 815,621 \n GROSS PROFIT 496,788 446,195 390,157 \n OPERATING EXPENSES: \n Selling, general and administrative (i) 318,346 287,567 270,207 \n Technology and development (i) 55,743 50,964 50,554 \n Severance 1,191 898 1,698 \n Other operating expense, net 343 6,342 2,945 \n TOTAL OPERATING EXPENSES 375,623 345,771 325,404 \n Income from operations 121,165 100,424 64,753 \n Interest income, net 6,567 6,127 4,769 \n Other income (expense), ne 2,245 (713 ) (7,612 ) \n Income before income taxes 129,977 105,838 61,910 \n (Provision for) benefit from income taxes (34,883 ) (24,699 ) 6,354 \n NET INCOME 95,094 81,139 68,264 \n Net income attributable to noncontrolling interests (8,461 ) (5,045 ) (3,810 ) \n NET INCOME ATTRIBUTABLE TO IDT CORPORATION $ 86,633 $ 76,094 $ 64,454 \n \n Earnings per share attributable to IDT Corporation common stockholders: \n Basic $ 3.47 $ 3.02 $ 2.55 \n Diluted $ 3.46 $ 3.01 $ 2.54 \n \n Weighted-average number of shares used in calculation of earnings per share: \n Basic 24,995 25,188 25,241 \n Diluted 25,023 25,295 25,398 \n \n (i) Stock-based compensation included in total operating expenses $ 10,544 $ 3,074 $ 7,397 \n\n\n\n\n\n IDT CORPORATION \n \n CONSOLIDATED STATEMENTS OF CASH FLOWS \n \n (in thousands) \n Year ended July 31, 2026 2025 2024 \n OPERATING ACTIVITIES \n Net income $ 95,094 $ 81,139 $ 68,264 \n Adjustments to reconcile net income to net cash provided by operating activities: \n Depreciation and amortization 21,400 21,008 20,351 \n Deferred income taxes 789 16,217 (10,907 ) \n Provision for credit losses and reserve for settlement assets 5,509 7,090 4,390 \n Stock-based compensation expense 10,544 3,074 7,397 \n Other 79 2,199 4,579 \n Changes in assets and liabilities: \n Trade accounts receivable (19,185 ) (5,989 ) (13,695 ) \n Prepaid expenses, other current assets, and other assets 690 4,835 5,510 \n Settlement assets and disbursement prefunding (75,087 ) (13,861 ) 8,219 \n Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities 22,680 (4,814 ) (9,081 ) \n Customer funds deposits 30,144 19,235 (1,820 ) \n Deferred revenue (1,588 ) (3,072 ) (5,016 ) \n Net cash provided by operating activities 91,069 127,061 78,191 \n INVESTING ACTIVITIES \n Capital expenditures (23,107 ) (20,770 ) (18,922 ) \n Purchase of convertible preferred stock in equity method investment — (926 ) (2,017 ) \n Payments for acquisition (1,500 ) — — \n Notes receivable from equity method investment (310 ) (1,900 ) — \n Purchase of equity investments (1,695 ) — — \n Purchases of debt securities and equity investments (64,402 ) (33,453 ) (29,921 ) \n Proceeds from maturities and sales of debt securities and equity securities 43,348 36,310 50,112 \n Net cash used in investing activities (47,666 ) (20,739 ) (748 ) \n FINANCING ACTIVITIES \n Dividends paid (6,504 ) (5,550 ) (2,536 ) \n Distributions to noncontrolling interests (2,743 ) (100 ) (112 ) \n Proceeds from borrowings under revolving credit facility 21,421 24,551 32,864 \n Repayments on borrowings under revolving credit facility (21,421 ) (24,551 ) (32,864 ) \n Purchase of restricted shares of net2phone and NRS common stock — — (4,131 ) \n Proceeds from borrowings 185 — — \n Repayments of borrowings (185 ) — — \n Proceeds from exercise of stock options 200 — 172 \n Repurchases of Class B common stock (21,526 ) (17,773 ) (10,619 ) \n Net cash used in financing activities (30,573 ) (23,423 ) (17,226 ) \n Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents 4,674 3,477 (3,584 ) \n Net increase in cash, cash equivalents, and restricted cash and cash equivalents 17,504 86,376 56,633 \n Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year 341,832 255,456 198,823 \n Cash, cash equivalents, and restricted cash and cash equivalents at end of year $ 359,336 $ 341,832 $ 255,456 \n\n\n\nReconciliation of Non-GAAP Financial Measures for the Fourth Quarter and Full\nFiscal Years 2026 and 2025\n\nIn addition to disclosing financial results that are determined in accordance\nwith generally accepted accounting principles in the United States of America\n(GAAP), IDT also disclosed (a) Adjusted EBITDA for 4Q26, 3Q26, 4Q25, and\nthe full fiscal years 2026 and 2025, (b) Non-GAAP earnings per diluted\nshare (Non-GAAP EPS) for 4Q26, 4Q25, and the full fiscal\nyears 2026 and 2025, (c) NRS’ ‘Rule of 40’ score for 4Q26, and (d)\nNon-GAAP adjusted net cash provided by operating activities for 4Q26, 4Q25,\nand the full fiscal years 2026 and 2025. These are Non-GAAP financial\nmeasures intended to provide useful information that supplements IDT’s or\nthe relevant segment’s results in accordance with GAAP. The following\nexplains these terms and their respective reconciliations to the most directly\ncomparable GAAP measures.\n\nGenerally, a Non-GAAP measure is a numerical measure of a company’s\nperformance, financial position, or cash flows that either excludes or\nincludes amounts that are not normally excluded or included in the most\ndirectly comparable measure calculated and presented in accordance with GAAP.\n\nIDT’s measure of Adjusted EBITDA on a consolidated basis starts with net\nincome attributable to IDT in accordance with GAAP  and adds severance\nexpense, stock-based compensation, and other operating expenses, and deducts\nother operating gain and income tax benefits.  IDT's measure of Adjusted\nEBITDA on a reporting segment basis starts with income from operations\n(segments) in accordance with GAAP and adds depreciation and amortization,\nseverance expense, stock-based compensation, and other operating expenses, and\ndeducts other operating income.\n\nIDT’s measure of Non-GAAP EPS is calculated by dividing Non-GAAP net income\nby the diluted weighted-average shares. IDT’s measure of Non-GAAP net income\nstarts with net income attributable to IDT in accordance with GAAP and adds\nseverance expense, stock-based compensation, and other operating expenses, and\ndeducts other operating gains and income tax benefits. The income tax effect\nof these adjustments is then deducted or added, as applicable. These additions\nand subtractions are non-cash and/or non-routine items in the relevant\nfiscal 2026 and fiscal 2025 periods.\n\nManagement believes that IDT’s Adjusted EBITDA and Non-GAAP EPS are measures\nwhich provide useful information to both management and investors by excluding\ncertain expenses and non-routine gains and losses that may not be indicative\nof IDT’s or the relevant segment’s core operating results. Management uses\nAdjusted EBITDA, among other measures, as a relevant indicator of core\noperational strengths in its financial and operational decision making. In\naddition, management uses Adjusted EBITDA and Non-GAAP EPS to evaluate\noperating performance in relation to IDT’s competitors. Disclosure of these\nfinancial measures may be useful to investors in evaluating performance and\nallow for greater transparency of the underlying supplemental information used\nby management in its financial and operational decision-making. In addition,\nIDT has historically reported similar financial measures and believes such\nmeasures are commonly used by readers of financial information in assessing\nperformance. Therefore, the inclusion of comparative numbers provides\nconsistency in financial reporting.\n\nManagement refers to Adjusted EBITDA, as well as the GAAP measures income\n(loss) from operations and net income, on a segment and/or consolidated level\nto facilitate internal and external comparisons to the segments’ and IDT’s\nhistorical operating results, in making operating decisions, for budget and\nplanning purposes, and to form the basis upon which management is compensated.\n\nWhile depreciation and amortization are considered operating costs under GAAP,\nthese expenses primarily represent the non-cash current period allocation of\ncosts associated with long-lived assets acquired or capitalized in prior\nperiods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and\namortization, is a useful indicator of its current performance.\n\nSeverance expense is excluded from the calculation of Adjusted EBITDA and\nNon-GAAP EPS. Severance expense is reflective of decisions made by management\nin each period regarding the aspects of IDT’s and its segments’ businesses\nto be focused on in light of changing market realities and other factors.\nWhile there may be similar charges in other periods, the nature and magnitude\nof these charges can fluctuate markedly and do not reflect the performance of\nIDT’s core and continuing operations.\n\nOther operating expense, net, which is a component of income (loss) from\noperations, is excluded from the calculation of Adjusted EBITDA and Non-GAAP\nEPS. Other operating expense, net, primarily includes legal fees net of\ninsurance claims related to Straight Path Communications Inc.’s\nstockholders’ class action and gains from the write-off of contingent\nconsideration liabilities. From time to time, IDT may have gains or incur\ncosts related to non-routine legal, tax, and other matters; however, these\nvarious items generally do not occur each quarter. IDT believes the gains and\nlosses from these non-routine matters are not components of IDT’s or the\nrelevant segment’s core operating results.\n\nStock-based compensation recognized by IDT and other companies may not be\ncomparable because of the variety of types of awards as well as the various\nvaluation methodologies and subjective assumptions that are permitted under\nGAAP. Stock-based compensation is excluded from IDT’s calculation of\nAdjusted EBITDA and Non-GAAP EPS because management believes this allows\ninvestors to make more meaningful comparisons of the operating results per\nshare of IDT’s core business and operating segments with the results of\nother companies. However, stock-based compensation will continue to be a\nsignificant expense for IDT for the foreseeable future and an important part\nof employees’ compensation that impacts their performance.\n\nIn 4Q25, IDT decreased its deferred income tax valuation allowance due to\nprofitability in the United Kingdom and recorded an income tax benefit of $3.3\nmillion in the quarter and FY 2025. This income tax benefit was excluded from\nIDT’s Non-GAAP EPS because it was not related to the results of IDT’s core\noperations.\n\nAdjusted EBITDA and Non-GAAP EPS should be considered in addition to, not as a\nsubstitute for, or superior to, income (loss) from operations, cash flow from\noperating activities, net income, basic and diluted earnings per share or\nother measures of liquidity and financial performance prepared in accordance\nwith GAAP. In addition, IDT’s measurements of Adjusted EBITDA and Non-GAAP\nEPS may not be comparable to similarly titled measures reported by other\ncompanies.\n\nThe ‘Rule of 40’ score is a metric used to evaluate the performance of\nSaaS providers. It postulates that a SaaS provider’s revenue growth rate\nplus its EBITDA margin should equal or exceed 40 percent. The ‘Rule of 40’\nis typically used to assess a company’s balance between growth and\nprofitability. A total of over 40 is thought to indicate a healthy combination\nof expansion and financial stability, making it a useful tool for management\nand investors to gauge the potential for long-term success and make informed\ndecisions about resource allocation and business strategy.\n\nNRS’ ‘Rule of 40’ score is computed by adding (a) the growth rate of\nNRS' revenue for the current period compared to the corresponding year ago\nperiod to (b) the Adjusted EBITDA margin for the twelve-month period through\nthe end of the current period. Adjusted EBITDA is a Non-GAAP measure as\ndiscussed above. Adjusted EBITDA margin is calculated by dividing Adjusted\nEBITDA by GAAP revenue for the relevant period.\n\nIn 3Q26 and prior quarters, NRS used recurring revenue to calculate the\nrevenue growth rate.  Recurring revenue excluded revenue from the sale of NRS\nterminals. The revised definition using total revenue captures the impact of\nterminal sales and pricing decisions, providing a measure more closely aligned\nwith NRS' underlying financial performance.\n\nIDT’s Non-GAAP adjusted measure of net cash provided by operating activities\nis calculated by excluding the impact of changes in customer deposits from net\ncash provided by operating activities. This measure provides a more meaningful\nmeasure of the cash generated by our core business operations, making it a\nmore useful tool for management and investors to evaluate the cash generation\nof our business operations, and to compare IDT’s cash generation with\ncompanies that do not have, or have different levels of, customer deposits.\nCustomer deposits are, by regulation, not available to fund IDT’s operating\nactivities.\n\nFollowing are reconciliations of Adjusted EBITDA and Non-GAAP EPS to the most\ndirectly comparable GAAP measure, which are, (a) for Adjusted EBITDA, (i)\nincome (loss) from operations for IDT’s reportable segments and (ii) net\nincome for IDT on a consolidated basis, and (b) for Non-GAAP EPS, diluted\nearnings per share. Also following is NRS’ ‘Rule of 40’ score\ncomputation including the reconciliation of Adjusted EBITDA to the most\ndirectly comparable GAAP measure, income from operations, and IDT’s Non-GAAP\nadjusted measure of net cash provided by operating activities reconciled to\nGAAP net cash provided by operating activities.\n\nIDT Corporation\nReconciliation of Net Income to Adjusted EBITDA for 4Q26, 3Q26, and 4Q25\n(unaudited) in millions. Figures may not foot or cross-foot due to rounding\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n Three Months Ended July 31, 2026 \n Net income attributable to IDT Corporation $ 21.7 \n Adjustments: \n Net income attributable to noncontrolling interests 2.7 \n Net income 24.4 \n Provision for income taxes 12.1 \n Income before income taxes 36.5 \n Interest income, net (1.7 ) \n Other income, net (1.6 ) \n Income (loss) from operations $ 33.2 $ 16.6 $ 2.6 $ 12.0 $ 5.5 $ (3.5 ) \n Depreciation and amortization 5.3 1.7 1.7 1.2 0.6 0.0 \n Stock-based compensation 1.8 0.9 - 0.3 0.3 0.3 \n Severance expense 0.7 0.6 0.0 0.0 0.1 - \n Other operating expense (gain), net 0.3 0.1 0.0 0.5 - (0.3 ) \n Adjusted EBITDA $ 41.2 $ 19.9 $ 4.4 $ 14.0 $ 6.5 $ (3.5 ) \n\n\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n Three Months Ended April 30, 2026 \n Net income attributable to IDT Corporation $ 21.6 \n Adjustments: \n Net income attributable to noncontrolling interests 2.1 \n Net income 23.7 \n Provision for income taxes 8.5 \n Income before income taxes 32.3 \n Interest income, net (1.6 ) \n Other income, net (0.9 ) \n Income (loss) from operations $ 29.8 $ 16.7 $ 2.4 $ 8.2 $ 5.6 $ (3.0 ) \n Depreciation and amortization 5.4 1.8 1.7 1.2 0.7 - \n Stock-based compensation 2.4 1.2 - 0.4 0.4 0.4 \n Severance expense 0.1 0.1 - - - - \n Other operating (gains), net (0.2 ) - - - - (0.2 ) \n Adjusted EBITDA $ 37.5 $ 19.7 $ 4.1 $ 9.8 $ 6.6 $ (2.8 ) \n\n\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n Three Months Ended July 31, 2025 \n Net income attributable to IDT Corporation $ 16.9 \n Adjustments: \n Net income attributable to noncontrolling interests 0.6 \n Net income 17.5 \n Provision for income taxes 2.9 \n Income before income taxes 20.4 \n Interest income, net (1.8 ) \n Other expense, net 3.2 \n Income (loss) from operations $ 21.9 $ 15.4 $ 1.5 $ 5.8 $ 4.8 $ (5.7 ) \n Depreciation and amortization 5.3 1.8 1.6 1.1 0.7 - \n Stock-based compensation 0.4 0.2 - 0.2 - - \n Severance expense 0.3 0.1 0.1 - - - \n Other operating expense, net 5.9 0.2 0.2 2.4 - 3.1 \n Adjusted EBITDA $ 33.8 $ 17.8 $ 3.5 $ 9.5 $ 5.5 $ (2.5 ) \n\n\n\nIDT Corporation\nReconciliation of Net Income to Adjusted EBITDA for FY 2026 and FY 2025\n(unaudited) in millions. Figures may not foot or cross-foot due to rounding\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n For the Twelve Months Ended July 31, 2026 \n Net income attributable to IDT Corporation $ 86.6 \n Adjustments: \n Net income attributable to noncontrolling interests 8.5 \n Net income 95.1 \n Provision for income taxes 34.9 \n Income before income taxes 130.0 \n Interest income, net (6.6 ) \n Other income, net (2.2 ) \n Income (loss) from operations $ 121.2 $ 63.4 $ 9.1 $ 39.3 $ 21.5 $ (12.1 ) \n Depreciation and amortization 21.4 7.0 6.8 4.8 2.8 0.0 \n Stock-based compensation 10.5 5.7 0.0 1.3 1.8 1.7 \n Severance 1.2 0.9 0.1 0.1 0.1 - \n Other operating expense (gain), net 0.3 0.2 0.0 0.4 - (0.4 ) \n Adjusted EBITDA $ 154.6 $ 77.3 $ 16.1 $ 45.8 $ 26.2 $ (10.8 ) \n\n\n\n Total IDT Traditional \n Corporation Comm. net2phone NRS Fintech Corporate \n For the Twelve Months Ended July 31, 2025 \n Net income attributable to IDT Corporation $ 76.1 \n Adjustments: \n Net income attributable to noncontrolling interests 5.0 \n Net income 81.1 \n Provision for income taxes 24.7 \n Income before income taxes 105.8 \n Interest income, net (6.1 ) \n Other expense, net 0.7 \n Income (loss) from operations $ 100.4 $ 66.5 $ 4.9 $ 27.8 $ 15.4 $ (14.2 ) \n Depreciation and amortization 21.0 7.6 6.4 4.1 2.9 0.1 \n Stock-based compensation 3.1 1.4 - 1.1 0.2 0.4 \n Severance 0.9 0.7 0.1 - - - \n Other operating expense, net 6.3 0.2 0.6 2.4 - 3.1 \n Adjusted EBITDA $ 131.7 $ 76.4 $ 12.1 $ 35.4 $ 18.6 $ (10.7 ) \n\n\n\nIDT Corporation\nReconciliation of Earnings Per Share (EPS) to Non-GAAP EPS for 4Q26, 4Q25,\nFY 2026 and FY 2025\n(unaudited) in millions, except per share data. Figures may not foot due to\nrounding\n\n 4Q26 4Q25 FY26 FY25 \n \n Net income attributable to IDT Corporation $ 21.7 $ 16.9 $ 86.6 $ 76.1 \n Adjustments (add) subtract: \n Income tax benefit - 3.3 - 3.3 \n Stock-based compensation (1.8 ) (0.4 ) (10.5 ) (3.1 ) \n Severance expense (0.7 ) (0.3 ) (1.2 ) (0.9 ) \n Other operating expense, net (0.3 ) (5.9 ) (0.3 ) (6.3 ) \n Total adjustments $ (2.7 ) $ (3.3 ) $ (12.1 ) $ (7.0 ) \n Income tax effect of total adjustments (0.9 ) (0.9 ) (3.2 ) (2.3 ) \n Total adjustments, net of tax 1.8 2.4 8.9 4.7 \n Non-GAAP net income $ 23.5 $ 19.3 $ 95.5 $ 80.8 \n \n Earnings per share: \n Basic $ 0.87 $ 0.67 $ 3.47 $ 3.02 \n Total adjustments, net of tax 0.07 0.09 0.36 0.18 \n Non-GAAP - basic $ 0.95 $ 0.76 $ 3.82 $ 3.20 \n \n Weighted-average number of shares used in calculation of basic earnings per share 24.9 25.2 25.0 25.2 \n \n Diluted $ 0.87 $ 0.67 $ 3.46 $ 3.01 \n Total adjustments, net of tax 0.07 0.09 0.36 0.18 \n Non-GAAP - diluted $ 0.94 $ 0.76 $ 3.82 $ 3.19 \n \n Weighted-average number of shares used in calculation of diluted earnings per share 24.9 25.2 25.0 25.3 \n\n\n\nIDT Corporation\nNRS’ ‘Rule of 40’ Score For 4Q26\n(unaudited) in millions. Figures may not foot due to rounding to millions\n\n Trailing Twelve \n Months (TTM) \n 1Q26 2Q26 3Q26 4Q26 4Q26 \n \n Reconciliation of NRS’ Income from Operations to Adjusted EBITDA \n \n Income from operations $ 8.9 $ 10.2 $ 8.2 $ 12.0 $ 39.3 \n Depreciation and amortization 1.1 1.2 1.2 1.2 4.8 \n Stock-based compensation 0.2 0.4 0.4 0.3 1.3 \n Severance expense 0.0 0.0 0.0 0.0 0.1 \n Other operating expense, net - - (0.0 ) 0.5 0.4 \n Adjusted EBITDA $ 10.3 $ 11.8 $ 9.8 $ 14.0 $ 45.8 \n\n\n\n 4Q26 4Q25 \n \n NRS’ ‘Rule of 40’ Score \n \n NRS revenue $ 45.0 $ 34.3 \n \n Revenue growth rate 31 % \n \n \n TTM Adjusted EBITDA from above $ 45.8 \n TTM total revenue 159.4 \n TTM Adjusted EBITDA margin 29 % \n \n 'Rule of 40' 60 \n\n\n\nIDT Corporation\nAdjusted net cash provided by operating activities for 4Q26, 4Q25,\nFY 2026 and FY 2025\n(unaudited) in millions. Figures may not foot due to rounding to millions\n\n (in millions) \n Three months ended July 31, 4Q26 4Q25 \n Net cash provided by operating activities (GAAP) $ 44.4 $ 31.0 \n Changes in customer deposits (18.0 ) 6.1 \n Adjusted net cash provided by operating activities (Non-GAAP) $ 26.4 $ 37.1 \n\n\n\n (in millions) \n Full year ended July 31, FY26 FY25 \n Net cash provided by operating activities (GAAP) $ 91.1 $ 127.1 \n Changes in customer deposits (30.1 ) (19.2 ) \n Adjusted net cash provided by operating activities (Non-GAAP) $ 60.9 $ 107.8 \n\n\n\nExplanation of Key Performance Metrics\n\nnet2phone’s subscription revenue is calculated by subtracting net2phone’s\nequipment revenue and revenue generated by a legacy SIP trunking offering in\nBrazil from its revenue in accordance with GAAP. net2phone’s cloud\ncommunications and contact center offerings are priced on a per-seat basis,\nwith customers paying based on the number of users in their organization. The\nnumber of seats served and subscription revenue trends and comparisons between\nperiods are used in the analysis of net2phone’s revenues and direct cost of\nrevenues and are strong indications of the top-line growth and performance of\nthe business.\n\nConstant currency as it relates to revenue provides a framework for assessing\nnet2phone’s performance that excludes the effect of foreign currency rate\nfluctuations. To determine net2phone’s subscription revenue growth on a\nconstant currency basis, current period revenues from entities reporting in\ncurrencies other than U.S. Dollars (USD) were converted to USD at the average\nmonthly exchange rates in effect during the prior fiscal year’s comparative\nperiod instead of the average monthly exchange rates in effect during the\ncurrent period.\n\nNRS’ average monthly network gross profit per location (average monthly GP\nper location) is calculated by dividing NRS’ gross profit generated within\nits retailer network by the average number of locations with either an active\nPOS terminal, or an active payment processing account, or both, during the\nperiod. The average number of retailer locations is calculated by adding\nlocations at the beginning and end of the period and dividing by two. The\nresult is divided by three when the period is a fiscal quarter, and by twelve\nwhen the period is a fiscal year. Average monthly GP per location is useful\nfor comparisons of NRS’ gross profit and gross profit per customer to prior\nperiods and to competitors and others in the market, as well as for\nforecasting future revenue from the retailer customer base.\n\nBOSS Money Transactions are a nonfinancial metric that measures customer usage\nduring a reporting period. Average BOSS Money Revenue per Transaction measures\nthe revenue productivity of BOSS Money’s remittance business. It is\ncalculated by dividing BOSS Money revenue during the period by the number of\ntransactions. Average BOSS Money Revenue per Transaction is a key metric for\nevaluating the productivity and operational performance of the business. \n\nBOSS Money’s Digital Send Volume is the aggregate amount of principal\nremitted by BOSS Money’s digital customers – those using the BOSS Money\nand BOSS Revolution apps to originate remittances. BOSS Money's Digital Send\nVolume is a key metric for evaluating the operational performance of the\ndigital channel of the remittance business, and for comparing the performance\nof BOSS Money’s digital channel to competitors in the remittance business as\nwell as to performance to other temporal periods.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/9f1589b4-d64c-4847-a155-0a28045c6b36)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-09-28T20:36:26.73158497Z","server_sent_at_ms":1790627786731},"received_at":"2026-09-28T20:36:27.238Z","source_url":null},"analysis":{"id":"143363","press_release_id":"154603","analysis_json":{"industry":{"label":"IT Services","sector":"Information Technology"},"redFlags":["FY26 adjusted net operating cash flow fell to $60.9M from $107.8M, driven by working-capital timing at BOSS Money","Traditional Communications gross profit declined 4% in FY26 and BOSS Revolution revenue fell 15%","FY26 stock-based compensation jumped to $10.5M from $3.1M"],"eventType":"earnings","narrative":"IDT reported record 4Q26 results with revenue up 7% to $339.0 million, gross profit up 18% to $134.8 million, and income from operations up 52% to $33.2 million; GAAP EPS rose to $0.87 from $0.67.\n\nGrowth segments led the quarter: NRS revenue rose 31% to $45.0 million with Adjusted EBITDA up 47%, BOSS Money digital revenue grew 22%, and net2phone subscription revenue climbed 10% as it approaches a $100 million ARR milestone expected this quarter.\n\nManagement guided FY27 to gross profit of $545-$555 million and Adjusted EBITDA of $176-$180 million, and declared a $0.07 per-share quarterly dividend. The company ended the year debt-free with $271.9 million in unrestricted cash and repurchased $21.0 million of Class B shares during FY26.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Record quarter with 52% operating income growth and first FY27 guidance ($176-180M EBITDA) as growth segments now drive the P&L."},"keyFigures":{"eps":0.87,"revenue":339000000,"guidance":"FY27 gross profit $545M-$555M (double-digit growth); Adjusted EBITDA $176M-$180M","revenueYoy":"7%","customDimensions":{"fy_revenue":1298000000,"fy_gaap_eps":3.46,"nrs_q4_revenue":45000000,"nrs_rule_of_40":60,"fy_non_gaap_eps":3.82,"gross_profit_q4":134800000,"non_gaap_eps_q4":0.94,"fy_buyback_value":"$21.0 million","outstanding_debt":"none","fy_buyback_shares":421938,"adjusted_ebitda_q4":41200000,"dividend_per_share":0.07,"fintech_q4_revenue":47100000,"fy_adjusted_ebitda":154600000,"nrs_q4_revenue_yoy":"31%","cash_and_investments":271900000,"gross_profit_margin_q4":"39.8%","operating_income_yoy_q4":"52%","fy_income_from_operations":121200000,"income_from_operations_q4":33200000,"fy_net_income_attributable_to_idt":86600000,"net2phone_q4_subscription_revenue":24500000}},"quotedText":"Overall, IDT is well positioned as we begin the new fiscal year with accelerating topline growth, increasing cash generation, and a debt-free balance sheet that affords us strategic flexibility.","namedEntities":{"people":[{"name":"Shmuel Jonas","role":"CEO"},{"name":"Bill Ulrey","role":"Investor Relations contact"}],"products":["BOSS Money","BOSS Revolution","NRS Pay","Zendit","AI Agent","Coach"],"companies":[{"name":"IDT Corporation","ticker":"IDT","relationship":"filer"},{"name":"National Retail Solutions (NRS)","relationship":"segment"},{"name":"net2phone","relationship":"segment"},{"name":"Uber Eats","relationship":"partner"},{"name":"DoorDash","relationship":"partner"},{"name":"Grubhub","relationship":"partner"},{"name":"FXC Intelligence","relationship":"third-party evaluator"}],"dollarAmounts":[{"amount":"$339.0 million","context":"4Q26 revenue"},{"amount":"$1,298.0 million","context":"FY26 revenue"},{"amount":"$121.2 million","context":"FY26 income from operations"},{"amount":"$154.6 million","context":"FY26 Adjusted EBITDA"},{"amount":"$271.9 million","context":"cash, cash equivalents, debt securities and current equity investments at July 31, 2026"},{"amount":"$2.0 million","context":"4Q26 open-market share repurchases"},{"amount":"$21.0 million","context":"FY26 open-market share repurchases"},{"amount":"$545 million to $555 million","context":"FY27 gross profit guidance"},{"amount":"$176 million to $180 million","context":"FY27 Adjusted EBITDA guidance"},{"amount":"$0.07 per share","context":"quarterly cash dividend"}]},"materialImpact":{"score":4,"reasoning":"Record Q4 with operating income +52%, gross profit +18%, and adjusted EBITDA +22%, plus first-time FY27 guidance and a dividend declaration. Strong beat-quality results but no consensus figures stated, so not a >10% surprise scenario."},"tickerRelevance":{"others":[],"primary":"IDT"},"globalImportance":38,"audienceRelevance":25,"eventTypeSecondary":["guidance_update","dividend"],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"record earnings + initial FY27 guidance","sectorWeight":"diversified fintech/telecom conglomerate","retailFavoriteBoost":"minimal"}},"event_type":"earnings","event_type_secondary":["guidance_update","dividend"],"sentiment":"bullish","material_impact_score":4,"narrative":"IDT reported record 4Q26 results with revenue up 7% to $339.0 million, gross profit up 18% to $134.8 million, and income from operations up 52% to $33.2 million; GAAP EPS rose to $0.87 from $0.67.\n\nGrowth segments led the quarter: NRS revenue rose 31% to $45.0 million with Adjusted EBITDA up 47%, BOSS Money digital revenue grew 22%, and net2phone subscription revenue climbed 10% as it approaches a $100 million ARR milestone expected this quarter.\n\nManagement guided FY27 to gross profit of $545-$555 million and Adjusted EBITDA of $176-$180 million, and declared a $0.07 per-share quarterly dividend. The company ended the year debt-free with $271.9 million in unrestricted cash and repurchased $21.0 million of Class B shares during FY26.","key_figures":{"eps":0.87,"revenue":339000000,"guidance":"FY27 gross profit $545M-$555M (double-digit growth); Adjusted EBITDA $176M-$180M","revenueYoy":"7%","customDimensions":{"fy_revenue":1298000000,"fy_gaap_eps":3.46,"nrs_q4_revenue":45000000,"nrs_rule_of_40":60,"fy_non_gaap_eps":3.82,"gross_profit_q4":134800000,"non_gaap_eps_q4":0.94,"fy_buyback_value":"$21.0 million","outstanding_debt":"none","fy_buyback_shares":421938,"adjusted_ebitda_q4":41200000,"dividend_per_share":0.07,"fintech_q4_revenue":47100000,"fy_adjusted_ebitda":154600000,"nrs_q4_revenue_yoy":"31%","cash_and_investments":271900000,"gross_profit_margin_q4":"39.8%","operating_income_yoy_q4":"52%","fy_income_from_operations":121200000,"income_from_operations_q4":33200000,"fy_net_income_attributable_to_idt":86600000,"net2phone_q4_subscription_revenue":24500000}},"named_entities":{"people":[{"name":"Shmuel Jonas","role":"CEO"},{"name":"Bill Ulrey","role":"Investor Relations contact"}],"products":["BOSS Money","BOSS Revolution","NRS Pay","Zendit","AI Agent","Coach"],"companies":[{"name":"IDT Corporation","ticker":"IDT","relationship":"filer"},{"name":"National Retail Solutions (NRS)","relationship":"segment"},{"name":"net2phone","relationship":"segment"},{"name":"Uber Eats","relationship":"partner"},{"name":"DoorDash","relationship":"partner"},{"name":"Grubhub","relationship":"partner"},{"name":"FXC Intelligence","relationship":"third-party evaluator"}],"dollarAmounts":[{"amount":"$339.0 million","context":"4Q26 revenue"},{"amount":"$1,298.0 million","context":"FY26 revenue"},{"amount":"$121.2 million","context":"FY26 income from operations"},{"amount":"$154.6 million","context":"FY26 Adjusted EBITDA"},{"amount":"$271.9 million","context":"cash, cash equivalents, debt securities and current equity investments at July 31, 2026"},{"amount":"$2.0 million","context":"4Q26 open-market share repurchases"},{"amount":"$21.0 million","context":"FY26 open-market share repurchases"},{"amount":"$545 million to $555 million","context":"FY27 gross profit guidance"},{"amount":"$176 million to $180 million","context":"FY27 Adjusted EBITDA guidance"},{"amount":"$0.07 per share","context":"quarterly cash dividend"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-28T20:36:36.208Z","global_importance":38,"audience_relevance":25,"importance_components":{"tickerTier":"small-cap","eventGravity":"record earnings + initial FY27 guidance","sectorWeight":"diversified fintech/telecom conglomerate","retailFavoriteBoost":"minimal"}},"durationMs":8742,"modelName":"glm-5.3-flashx"}}