IDT (IDT) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: 0.47%
• Average Volume (3M): 144.66K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.73
• Revenue Growth: 2.52%
• EPS Growth: 10.02%
• Country: US
• Employees: 1,820
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 1.00
• Shares Outstanding: 23,499,022
• 10 Day Avg. Volume: 139,397
• 30 Day Avg. Volume: 144,660
• PEG Ratio: 1.06
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 13.96
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: 6.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.76
• Revenue Forecast (FY): $1.24B

• Rating: 81 Outperform
• Price Target: $60.00 ▲(16.78% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is driven primarily by strong financial quality (low leverage, solid profitability and cash generation) and a positive earnings update with improving performance in growth segments and supportive full-year EBITDA guidance. Valuation is also notably favorable given the low P/E and dividend yield. The main offsets are only moderate technical strength (still below the 200-day moving average) and the business’s historically inconsistent revenue growth.

Positive Factors

Balance sheet strength

Near-zero leverage and a sizable equity base materially reduce financial risk and provide durable optionality: the company can fund operations, invest in growth, or return capital without debt constraints, improving resilience through economic cycles and strategic flexibility.

Cash generation and FCF conversion

Consistent operating cash flow and high free cash flow conversion support sustainable reinvestment, dividend capacity, and bolt-on M&A. Strong cash generation underpins longer-term margin stability and funds growth-segment investments without needing external financing.

Growth-segment momentum

Segment-level expansion (merchant services, fintech, CPaaS) is shifting revenue mix toward higher-growth, higher-margin businesses, increasing recurring revenue and expanding adjusted EBITDA contribution. This structural shift improves longer-term revenue quality and profitability potential.

Negative Factors

Inconsistent revenue growth

Multi-year top-line volatility reduces visibility into future sales and makes planning for capacity, marketing, and R&D harder. Persistent inconsistency can impair investor confidence, complicate long-term margin expansion, and increases reliance on a few high-growth segments to sustain consolidated growth.

Quarterly decline in cash holdings

A meaningful quarterly reduction in cash and investments erodes the liquidity cushion that underpins the company’s low-debt strategy. If cash declines persist, management may need to rein in investments, slow buybacks, or access external capital, reducing strategic flexibility over months.

Regulatory excise tax risk for remittances

A new excise tax on cash-funded remittances creates structural headwinds for cash-heavy customer segments, potentially reducing volumes or forcing pricing adjustments. While product workarounds exist, compliance costs and consumer behavior shifts could pressure the remittance margin pool over the medium term.

IDT Business Overview & Revenue Model

Company Description

IDT Corporation operates in the communications and payment industries in the United States and internationally. The company operates through three segments: Fintech; net2phone-UCaaS (Unified Communications as a Service); and Traditional Communications. The Fintech segment offers international money remittance and related value/payment transfer services under the BOSS Revolution brand name; national retail solutions, such as point of sale network providing payment processing, digital advertising, transaction data, and ancillary services under the NRS brand name. The net2phone-UCaaS segment provides net2phone-UCaaS, a cloud communications service for businesses; and cable telephony services under the net2phone brand name. The Traditional Communications segment, which include Mobile Top-Up, that enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts; BOSS Revolution Calling, an international long-distance calling service; Carrier Services, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and net2phone-Platform Services, which offer telephony services to cable operators and others, as well as smaller communications and payments offerings. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey.

How the Company Makes Money

IDT primarily makes money by selling prepaid and pay-as-you-go communications and payment-related services, and recognizing revenue based on usage, transaction activity, and service fees. A key revenue stream is international voice calling: IDT sells calling products (often prepaid) and routes calls over its telecom network and through interconnect relationships with other carriers; it earns the spread between what it charges end customers (or distributors/retailers) and its underlying network and carrier termination costs. Another core revenue stream is international mobile top-up and related prepaid services: through its payments/top-up platforms, IDT facilitates airtime reloads and other prepaid transactions for customers (often via agents, retailers, and distributors) and earns commissions, transaction fees, or margins on the value of top-up sold, net of amounts remitted to mobile network operators and other counterparties. Across these offerings, distribution partners (such as retailers, agents, and other channel partners) can be important to customer acquisition and transaction volume; revenue is driven by call minutes, top-up volume, pricing, and the company’s ability to manage carrier costs and platform operating expenses.

IDT Financial Statement Overview

Summary

Strong overall fundamentals led by an exceptionally conservative balance sheet (near-zero leverage, strong ROE) and solid cash generation (operating cash flow and free cash flow exceeding net income). Profitability is healthy (37% gross margin; improved multi-year), but inconsistent historical revenue growth and some variability in free cash flow keep the score below the top tier.

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability with ~37% gross margin and ~9% net margin, and operating profit remains healthy (EBIT margin ~6.7%). Revenue is slightly higher versus the last annual period, and profitability has improved meaningfully compared with earlier years (2022–2024). The key weakness is that revenue growth has been inconsistent over the multi-year period (declines in several prior years), suggesting top-line stability is not yet fully proven.

Balance Sheet

The balance sheet is a clear strength: leverage is extremely low (TTM debt-to-equity ~0.00) with a sizable equity base relative to assets. Returns on shareholders’ equity are strong (TTM ROE ~27%), indicating effective capital use. The main watch-out is that strong ROE can fluctuate with earnings volatility, but overall financial risk from debt appears minimal.

Cash Flow

Cash generation is strong, with TTM operating cash flow (~$135M) exceeding net income (~$112M) and free cash flow also robust (~$112M). Free cash flow conversion is solid (free cash flow is ~83% of net income), supporting reinvestment and flexibility. The weakness is variability across years (notably weaker free cash flow in 2022), indicating cash flow can be uneven despite the current healthy run-rate.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	1.26B	1.23B	1.21B	1.24B	1.36B	1.45B
Gross Profit	465.91M	446.19M	390.16M	363.12M	329.63M	292.94M
EBITDA	132.84M	127.16M	82.26M	82.10M	71.48M	70.58M
Net Income	81.89M	76.09M	64.45M	40.49M	27.03M	96.47M
Balance Sheet
Total Assets	678.29M	626.20M	550.10M	510.81M	497.09M	512.65M
Cash, Cash Equivalents and Short-Term Investments	336.93M	253.79M	193.00M	152.25M	137.75M	163.59M
Total Debt	753.00K	1.95M	1.53M	2.88M	4.61M	5.47M
Total Liabilities	310.09M	295.79M	283.54M	300.34M	316.27M	346.04M
Stockholders Equity	339.74M	305.13M	246.18M	193.73M	167.62M	164.86M
Cash Flow
Free Cash Flow	112.28M	106.29M	59.27M	32.18M	7.53M	49.85M
Operating Cash Flow	134.92M	127.06M	78.19M	54.14M	29.41M	66.62M
Investing Cash Flow	-32.15M	-20.74M	-748.00K	-33.46M	-33.78M	-44.06M
Financing Cash Flow	-27.34M	-23.42M	-17.23M	-15.81M	-15.62M	-4.52M

IDT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDT, the sentiment is Negative. The current price of 51.38 is above the 20-day moving average (MA) of 50.15, above the 50-day MA of 49.95, and below the 200-day MA of 55.68, indicating a bearish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 50.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IDT.

IDT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	81 Outperform	$1.25B	14.58	27.44%	0.47%	2.52%	10.02%
IHS	63 Neutral	$2.71B	3.87	-153.61%	―	-0.97%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TV	56 Neutral	$1.40B	-3.46	-10.73%	3.03%	-18.28%	-42.53%
LILAK	51 Neutral	$1.49B	-2.42	-79.15%	―	-0.83%	-25.72%
LILA	49 Neutral	$1.49B	-2.42	-86.86%	―	-0.83%	-25.72%

IDT Corporate Events

IDT Stockholders Approve Equity Incentive Plan Amendment

IDT Corporation held its 2025 Annual Meeting of Stockholders on December 11, 2025. During the meeting, stockholders voted to elect nominees to the Board of Directors for a one-year term and approved an amendment to the 2024 Equity Incentive Plan, which increases the number of shares of Class B common stock available for awards by 175,000.

The most recent analyst rating on (IDT) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on IDT stock, see the IDT Stock Forecast page.