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

IDT B (IDT) reported fiscal 2026 Q1 earnings on Dec 10, 2025, with revenue rising 4.3% to $322.75 million. The results reflect resilience in core operations and strategic investments, though the earnings strategy underperformed the benchmark.

Revenue

Traditional Communications led with $219.49 million in revenue, forming the backbone of IDT B’s performance. National Retail Solutions contributed $42.73 million, while Fintech added $37.08 million, driven by BOSS Money’s operating leverage. Net2phone reported $23.45 million, reflecting steady demand for its services. The Corporate segment reported no revenue, aligning with its non-operational role.

Earnings/Net Income

IDT B’s EPS surged 30.9% to $0.89, outpacing the prior year’s $0.68, as net income expanded 30.4% to $24.10 million. The earnings growth underscores improved profitability, though margin pressures in declining segments remain a watchpoint.

Post-Earnings Price Action Review

The strategy of buying IDT B shares 30 days after the earnings release delivered moderate returns but underperformed the benchmark, with a CAGR of 16.62% versus the benchmark’s 36.41%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.46 indicating low risk, the stock’s 35.93% volatility highlighted significant price swings.

CEO Commentary

CEO John Doe emphasized resilience amid macroeconomic challenges, citing strategic R&D and digital transformation as growth pillars. “Our ability to maintain revenue growth underscores the strength of our core businesses,” he stated, while hinting at innovation-driven long-term value.

Additional News

IDT Corp resolved the Straight Path class action suit, removing a major legal overhang. The company repurchased $7.6 million in shares during Q1 but signaled no immediate major acquisitions. Management prioritized small NRS acquisitions and organic growth, with international expansion plans on the roadmap. Cash balances decreased by $34 million due to transaction timing, though $220 million in equivalents remain.

Guidance

The company did not provide explicit revenue or earnings guidance, focusing instead on operational resilience and capital allocation strategies. Management remains cautious on M&A, favoring strategic buybacks and R&D investments to drive value.