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IDT
(NYSE:IDT)
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Rating:78Outperform
Price Target:
$63.00
▲(22.62% Upside)
Action:Reiterated
Date:06/12/26
IDT scores well on financial strength (very low leverage and improved margins) and a constructive earnings outlook (raised EBITDA guidance and strong segment momentum). Technicals are supportive with price above major moving averages, while valuation is fair but not strongly discounted and the dividend yield is modest; cash-flow volatility remains the key financial watch item.
Positive Factors
Balance Sheet Strength
IDT’s exceptionally low leverage and large cash balance provide durable financial flexibility. This reduces refinancing risk, supports ongoing dividends, buybacks and tuck‑in M&A, and cushions the business during cyclical pressure, enabling multi‑quarter strategic execution.
Negative Factors
Free Cash Flow Volatility
Although FCF is positive, the large TTM decline signals earnings‑to‑cash conversion inconsistency. Volatile cash flow can constrain sustainable capital returns, marketing investment and M&A pacing, and makes multi‑quarter planning and stress absorption harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
IDT’s exceptionally low leverage and large cash balance provide durable financial flexibility. This reduces refinancing risk, supports ongoing dividends, buybacks and tuck‑in M&A, and cushions the business during cyclical pressure, enabling multi‑quarter strategic execution.
Read all positive factors
IDT Key Performance Indicators (KPIs)
Any
Revenue by Geography
Allocates revenue across geographical markets, helping investors identify key markets, potential regional headwinds, and diversification or concentration that could affect future revenue stability.
Allocates revenue across geographical markets, helping investors identify key markets, potential regional headwinds, and diversification or concentration that could affect future revenue stability.
Data provided by:
The Fly
The FlyIDT (IDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.45B
Dividend Yield0.47%
Average Volume (3M)175.34K
Price to Earnings (P/E)17.9
Beta (1Y)0.78
Revenue Growth4.24%
EPS Growth-14.30%
CountryUS
Employees1,820
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)3.26
Shares Outstanding23,294,240
10 Day Avg. Volume253,943
30 Day Avg. Volume175,338
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)4.86
Price to Sales (P/S)1.20
P/FCF Ratio13.96
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit2.09
Enterprise Value/Ebitda7.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.79
Revenue Forecast (FY)$1.27B
IDT Business Overview & Revenue Model
Company Description
IDT Corporation, established in 1990 and headquartered in Newark, New Jersey, is a global enterprise actively involved in the communications and payment sectors. The company's diverse operations are organized into three main divisions: Fintech, ne...
How the Company Makes Money
IDT makes money primarily by selling communications and fintech services through a mix of direct-to-consumer digital channels and third-party retail distribution. A core revenue stream is international calling and related services (commonly market...
IDT Earnings Call Summary
Earnings Call Date:Jun 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 01, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational wins: record gross profit and margin expansion, continued revenue and adjusted EBITDA growth, raised full-year EBITDA guidance, meaningful momentum across NRS, digital channels and net2phone (including AI traction), a strong cash position, and a small strategic tuck-in acquisition. Negatives were limited to increased competition in NRS, advertising industry headwinds, a modest decline in traditional communications revenue, and some remaining strategic uncertainty around potential net2phone monetization and BOSS Money steady-state margins. Overall the positives materially outweigh the negatives.Positive Updates
Consolidated Revenue Growth
Consolidated revenue grew 5% year-over-year to $315.7 million for the quarter.
Negative Updates
Increasing Competition in NRS
Management acknowledged growing competition in the POS/merchant space (including larger players expanding into adjacent verticals), which has affected new sign-ups despite product differentiation for convenience/liquor stores.
Read all updates
Q3-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated revenue grew 5% year-over-year to $315.7 million for the quarter.
Read all positive updates
Company Guidance
IDT raised its full‑year FY‑26 consolidated adjusted EBITDA guidance to $150–$152 million (up from the prior $147–149M range), a midpoint that implies ~15% growth versus FY‑25 adjusted EBITDA of $131.7M, driven by operating leverage in its three higher‑margin growth segments and steady cash contribution from Traditional Communications. In Q3 revenue was $315.7M (+5% YoY) with gross profit $122.5M (+9%) and a record gross margin of 38.8% (+170 bps); income from operations was $29.8M (+12%) and adjusted EBITDA for the quarter was $37.5M (+13%). The three growth segments generated $107M of revenue (34% of consolidated, up from 30%), contributed 67% of gross profit (vs. 61% a year ago) and produced $20.5M of combined adjusted EBITDA (+27% YoY), representing 55% of consolidated adjusted EBITDA (vs. 29% prior). NRS metrics included recurring revenue +22% YoY, monthly ARPU per terminal +~10%, >39,000 active POS terminals, >29,000 payment processing accounts (+14% YoY) and a Rule of 40 score of 50; digital transactions and send volume were +20% and +40% YoY respectively. Net2phone subscription revenue was +12% (total revenue +11%), seats reached 441k (+6%), gross margin expanded to 80.6% (+130 bps) and operating income surged ~76%. The balance sheet remains strong with ~$251M in cash and equivalents, the Board declared a $0.07 quarterly dividend, and the company repurchased ~84k shares for ~$4M in the quarter.IDT Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.28B | 1.23B | 1.21B | 1.24B | 1.36B | 1.45B |
| Gross Profit | 476.45M | 446.19M | 390.16M | 363.12M | 329.63M | 292.94M |
| EBITDA | 135.72M | 127.16M | 82.26M | 82.10M | 71.48M | 70.58M |
| Net Income | 81.81M | 76.09M | 64.45M | 40.49M | 27.03M | 96.47M |
Balance Sheet | ||||||
| Total Assets | 698.03M | 626.20M | 550.10M | 510.81M | 497.09M | 512.65M |
| Cash, Cash Equivalents and Short-Term Investments | 251.43M | 253.79M | 193.00M | 152.25M | 137.75M | 163.59M |
| Total Debt | 621.00K | 1.10M | 1.53M | 2.88M | 4.61M | 5.47M |
| Total Liabilities | 309.58M | 295.79M | 283.54M | 300.34M | 316.27M | 346.04M |
| Stockholders Equity | 357.89M | 305.13M | 246.18M | 193.73M | 167.62M | 164.86M |
Cash Flow | ||||||
| Free Cash Flow | 55.33M | 106.29M | 59.27M | 32.18M | 7.53M | 49.85M |
| Operating Cash Flow | 77.66M | 127.06M | 78.19M | 54.14M | 29.41M | 66.62M |
| Investing Cash Flow | -37.32M | -20.74M | -748.00K | -33.46M | -33.78M | -44.06M |
| Financing Cash Flow | -25.61M | -23.42M | -17.23M | -15.81M | -15.62M | -4.52M |
IDT Technical Analysis
Positive
51.38
Price Trends
53.56
Positive
51.44
Positive
51.58
Positive
Market Momentum
1.00
Negative
62.86
Neutral
93.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDT, the sentiment is Positive. The current price of 51.38 is below the 20-day moving average (MA) of 55.23, below the 50-day MA of 53.56, and below the 200-day MA of 51.58, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 93.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IDT.
IDT Risk Analysis
IDT disclosed 54 risk factors in its most recent earnings report. IDT reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IDT Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.45B | 17.90 | 24.73% | 0.47% | 4.24% | -14.30% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $2.76B | 14.72 | -87.55% | ― | -10.11% | ― | |
52 Neutral | $1.57B | -3.17 | -85.28% | ― | 0.01% | 38.27% | |
51 Neutral | $1.30B | -2.19 | -8.25% | 3.03% | -1.68% | -1.81% | |
49 Neutral | $1.57B | -3.17 | -85.28% | ― | 0.01% | 38.27% |
* Communication Services Sector Average
IDT
IDT
58.16
-10.51
-15.30%
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Grupo Televisa, S.A.B.
2.71
0.46
20.44%
LILA
Liberty Global LiLAC
7.84
3.56
83.01%
LILAK
Liberty LiLAC Group
7.79
3.42
78.42%
IHS
IHS Holding
8.24
1.90
29.97%
IDT Corporate Events
Executive/Board Changes
IDT Appoints William Conkling to Board, Enhancing Governance
Positive
Jun 11, 2026
On June 9, 2026, Irwin Katsof resigned from IDT Corporation’s board of directors and its committees, with the company stating that his departure did not arise from any disagreement over operations, policies, or practices. On the same day, th...
Dividends
IDT Declares Quarterly Cash Dividend, Reaffirming Shareholder Returns
Positive
May 29, 2026
On May 28, 2026, IDT Corporation announced that its board of directors declared a quarterly cash dividend of $0.07 per share, underscoring the company’s ongoing practice of returning capital to shareholders. The dividend will be paid on June...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.