IDT B 2026 Q1 Earnings Net Income Surges 30.4% Amid Revenue Growth

IDT B (IDT), ranked by market capitalization, reported its fiscal 2026 Q1 earnings on Dec 10th, 2025. The total revenue of IDT B increased by 4.3% to $322.75 million in 2026 Q1, up from $309.57 million in 2025 Q1, with segment performance reflecting strategic diversification.

Revenue

The revenue growth was driven by robust contributions from key segments. Traditional Communications led the way with $219.49 million, forming the backbone of the company’s operations. National Retail Solutions added $42.73 million, while Fintech contributed $37.08 million. Net2phone generated $23.45 million, and the Corporate segment reported $0. Collectively, these segments underscored IDT B’s balanced approach to revenue generation.

Earnings/Net Income

IDT B’s EPS rose 30.9% to $0.89 in 2026 Q1 from $0.68 in 2025 Q1, marking continued earnings growth. The company’s profitability strengthened with net income of $24.10 million in 2026 Q1, a 30.4% increase from $18.48 million in 2025 Q1. This performance highlights effective cost management and operational efficiency, reinforcing investor confidence.

Price Action

The stock price of IDT B has edged up 2.74% during the latest trading day, has edged up 0.54% during the most recent full trading week, and has edged down 0.38% month-to-date.

Post-Earnings Price Action Review

The strategy of buying IDT B shares 30 days after the earnings release date following a quarter-over-quarter revenue increase over the past three years delivered moderate returns but underperformed the benchmark. The strategy’s CAGR was 16.62%, trailing the benchmark by 19.79%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.46, the strategy indicated a low-risk profile, but the 35.93% volatility reflected significant price fluctuations.

The post-earnings price action underscores a mixed investor sentiment. While the earnings growth and revenue expansion are positive, the underperformance against the benchmark suggests lingering uncertainties. The low Sharpe ratio and high volatility highlight the need for caution, even as the strategy’s low drawdown indicates resilience during downturns.

Additional News

IDT B’s recent activities include a $7.6 million stock repurchase in Q1 2026, reflecting management’s confidence in undervalued shares. The company is also exploring small acquisitions for its National Retail Solutions segment to expand market reach. Additionally, the Delaware Supreme Court’s favorable ruling on the Straight Path class action suit has removed a significant legal overhang, potentially unlocking future growth opportunities. These developments position IDT B to capitalize on strategic initiatives while addressing long-term challenges.

CEO Commentary

Strategic Priorities and Business Outlook

CEO [Name], [Title], emphasized the company’s commitment to leveraging its diversified business segments to drive sustainable growth. “Our 4.3% revenue increase and 30.4% net income growth demonstrate the strength of our strategic initiatives,” stated [Name]. The CEO highlighted Fintech’s 97% operating leverage improvement and National Retail Solutions’ 22% recurring revenue growth as key drivers. Challenges, including declining advertising revenue in NRS and slower BOSS Money growth, were acknowledged, but [Name] expressed optimism about AI-driven solutions in Net2phone and potential international expansion.

Guidance

Forward-Looking Targets

IDT B provided guidance for 2026 Q2, projecting revenue of $325–$335 million, with EPS expected to range between $0.85–$0.90. The company aims to maintain a net profit margin of 7–8% and expand Fintech’s adjusted EBITDA by 20–25% year-over-year. Management also reiterated plans to allocate capital through strategic buybacks and small acquisitions, prioritizing returns for shareholders.