IDT Corp. earnings miss expectations despite revenue beat

Published 29/09/2025, 23:02
IDT Corp. earnings miss expectations despite revenue beat

Investing.com -- IDT Corporation (NYSE:IDT) shares fell by as much as 4.6% in after-hours trading Monday before flattening after the global fintech and communications provider reported fourth-quarter earnings that missed analyst expectations, despite posting revenue that exceeded forecasts.

The company reported adjusted earnings per share of $0.76 for its fiscal fourth quarter ended July 31, 2025, falling short of analyst expectations of $0.91. Revenue came in at $316.6 million, beating the consensus estimate of $310 million and representing a 3% increase compared to the same period last year.

IDT’s gross profit margin expanded by 310 basis points to 36.2%, while income from operations grew 9% to $21.9 million. However, net income attributable to IDT decreased to $16.9 million from $36.8 million in the year-ago quarter, primarily because the company had realized a $23.6 million income tax benefit in the fourth quarter of fiscal 2024.

"IDT’s fourth quarter capped off a strong fiscal year, highlighted by full-year double-digit Adjusted EBITDA expansion at each of our operating segments, combining to drive a 43% increase in consolidated Adjusted EBITDA to a record $129 million," said CEO Shmuel Jonas.

The company’s NRS segment saw recurring revenue increase 22% to $32.6 million, while BOSS Money digital revenue jumped 31% to $27.6 million. Net2phone subscription revenue grew 8% to $22.2 million.

For fiscal 2026, IDT expects to generate Adjusted EBITDA between $141 million and $145 million under its revised measurement methodology. The company also declared a quarterly cash dividend of $0.06 per share, payable on October 10, 2025, to stockholders of record as of September 30, 2025.

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