The EPS miss vs consensus may create near-term pressure, but the strong revenue beat, accelerating operating leverage, and above-consensus FY2027 guidance (Adjusted EBITDA $176-180M) provide a positive narrative. Watch for Q1 FY2027 results to confirm net2phone crossing $100M ARR and continued NRS momentum.
Price Chart
Executive Summary
IDT reported Q4 FY2026 Non-GAAP EPS of $0.94, a 4.1% miss vs the $0.98 consensus, but revenue of $339.0M beat the $319.0M estimate by 6.3%. The quarter was characterized by strong operating leverage: gross profit +18%, income from operations +52%, and Adjusted EBITDA +22%, driven by 31% revenue growth at NRS and 12% at Fintech. The company also issued FY2027 guidance for double-digit gross profit growth ($545M-$555M) and Adjusted EBITDA of $176M-$180M, representing 14-16% growth from FY2026's record $154.6M.
Key Financial Metrics
Key Facts
- Q4 FY2026 Non-GAAP EPS $0.94 vs consensus $0.98 (miss of 4.1%)
- Q4 revenue $339.0M vs consensus $319.0M (beat of 6.3%)
- Q4 GAAP EPS $0.87 vs $0.67 YoY (+30%)
- Q4 revenue +7% YoY; gross profit +18% to $134.8M; gross margin +360bps to 39.8%
- Q4 income from operations +52% to $33.2M; Adjusted EBITDA +22% to $41.2M
- NRS revenue +31% to $45.0M; income from operations +105% to $12.0M
- Fintech segment revenue +12% to $47.1M; BOSS Money digital revenue +22% to $33.7M
- net2phone subscription revenue +10% to $24.5M; income from operations +75% to $2.6M
- FY2027 guidance: gross profit $545M-$555M (double-digit growth); Adjusted EBITDA $176M-$180M (14-16% growth)
- No outstanding debt; cash & equivalents $271.9M; quarterly dividend $0.07/share declared
- Repurchased 30,752 Class B shares for ~$2.0M in Q4; 421,938 shares for ~$21.0M in FY2026
Financial Impact
Revenue beat of ~$20M vs consensus; EPS miss of $0.04; FY2027 guidance implies ~14-16% Adjusted EBITDA growth to $176-180M
Risk Factors
- EPS miss of 4.1% vs consensus could weigh on near-term sentiment
- Traditional Communications segment revenue growth is tepid (+2% Q4, +1% FY) and gross profit declined 4% in FY2026
- Adjusted net cash from operations declined to $60.9M in FY2026 from $107.8M in FY2025 due to working capital timing at BOSS Money
- BOSS Money retail channel revenue declined 17% in Q4 and 9% in FY2026 due to federal tax on retail remittances
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3370284 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | DEF 14A | $82.47 | awaiting T+1 | — | $80.57 (−2.30%) |
Oct 19, 2026 7d ago | Insider Cluster | $84.46 $82.94 | ▲ +1.80% | ▲ +2.33% | $80.57 (+4.61%) |
Oct 16, 2026 11d ago | Insider Cluster | $81.82 $84.46 | ▲ +3.23% | ▲ +2.89% | $80.57 (−1.53%) |
Oct 13, 2026 13d ago | 144 | $81.08 $82.24 | ▲ +1.43% | ▲ +1.15% | $80.57 (−0.63%) |
Oct 7, 2026 19d ago | 144 | $80.65 $81.49 | ▲ +1.04% | ▲ +0.44% | $80.57 (−0.10%) |
Oct 5, 2026 21d ago | Insider Cluster | $80.08 $80.31 | ▲ +0.29% | ▼ −0.26% | $80.57 (+0.61%) |
Sep 28, 2026 28d ago | Press Release | $75.56 $79.97 | ▲ +5.84% | ▲ +6.04% | $80.57 (+6.63%) |
Sep 3, 2026 7w ago | Press Release | $68.73 $68.83 | ▲ +0.15% | ▲ +0.53% | $80.57 (+17.23%) |
Aug 24, 2026 9w ago | Press Release | $69.38 $69.10 | ▼ −0.40% | ▼ −0.43% | $80.57 (+16.13%) |
Jul 21, 2026 13w ago | Insider Cluster | $63.35 $64.21 | ▲ +1.36% | ▲ +1.47% | $80.57 (+27.18%) |
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