Earnings call transcript: IDT posts record fiscal 2026, shares rise in after-hours

IDT reported record fiscal 2026 results, with revenue up 5% from the previous year and adjusted EBITDA increasing 17% to $154.6 million. The company's three high-margin growth segments - NRS, Fintech, and net2phone - accounted for 53% of consolidated adjusted EBITDA, up from 46% a year earlier. NRS delivered 31% revenue growth in the quarter, while Fintech benefited from a move to digital remittances. net2phone expanded its cloud communications business, with AI playing a larger role in customer conversations and sales.

Traditional communications, while still generating cash and improving profitability, contributed less to growth. The company ended 2026 debt-free with $272 million in unrestricted cash and liquid investments. Investors reacted positively to the news, with the stock rising 3.11% in regular trading to $69.56 and another 3.15% after hours to $71.75.

This represented a gain of about 6.36% from the previous close, bringing the stock close to its 52-week high of $72.13. Management emphasized the company's shift towards faster-growing, more profitable units, with top-line growth accelerating for two consecutive years. The company is now expected to reach gross profit of $545 million to $555 million and adjusted EBITDA of $176 million to $180 million for fiscal 2027.