IDT Corporation (IDT)
NYSE:IDT
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IDT
(NYSE:IDT)
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Rating:78Outperform
Price Target:
$56.00
▲(8.99% Upside)
Action:ReiteratedDate:04/01/26
IDT scores well primarily on strong financial health (low leverage, improving margins, solid cash generation) and a constructive earnings update (raised EBITDA guidance, strong growth-segment performance, and higher shareholder returns). These positives are tempered by only neutral technicals (negative MACD and below the 200-day average) and the ongoing risk of uneven revenue momentum and legacy business declines.
Positive Factors
Conservative balance sheet / low leverage
Exceptionally low leverage and strong ROE reduce financial risk and preserve strategic optionality. With minimal debt servicing needs the company can fund growth initiatives, pay a rising dividend, execute buybacks, and withstand cyclical shocks without needing dilution or urgent refinancing.
Negative Factors
Top-line inconsistency & legacy revenue declines
Ongoing decline in legacy calling depresses headline revenue and requires growth segments to materially outpace declines to drive consolidated top-line stability. If growth segments' investment cadence or market traction falter, the company may face prolonged revenue stagnation despite margin gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Exceptionally low leverage and strong ROE reduce financial risk and preserve strategic optionality. With minimal debt servicing needs the company can fund growth initiatives, pay a rising dividend, execute buybacks, and withstand cyclical shocks without needing dilution or urgent refinancing.
Read all positive factors
IDT (IDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.22B
Dividend Yield0.47%
Average Volume (3M)163.37K
Price to Earnings (P/E)14.6
Beta (1Y)0.75
Revenue Growth2.52%
EPS Growth10.02%
CountryUS
Employees1,820
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.00
Shares Outstanding23,501,904
10 Day Avg. Volume161,246
30 Day Avg. Volume163,368
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 Cap0.74
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit1.94
Enterprise Value/Ebitda6.80
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.76
Revenue Forecast (FY)$1.24B
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 Communicat...
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 se...
IDT Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyIDT Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone: IDT delivered record profitability metrics, raised fiscal-year adjusted EBITDA guidance, and reported strong segment-level EBITDA growth (net2phone +37% YoY; Fintech +44% YoY) alongside a favorable rotation toward higher-margin businesses (growth segments now 53% of adjusted EBITDA less CapEx). Management also increased shareholder returns (buybacks and a 17% dividend increase) and noted encouraging early traction for AI products. Headwinds include advertising CPM declines, remittance-tax-driven disruption to retail remittance revenues, some seasonal weakness in late-year transactions, higher SG&A in NRS, and ongoing top-line pressure in legacy calling revenues. Overall, the positive operational and financial momentum and the guidance raise outweigh the transitory and market-driven challenges discussed.Positive Updates
Record consolidated profitability metrics
Company reported record levels in gross profit, gross profit margin, adjusted EBITDA, adjusted EBITDA margin and non-GAAP EPS for Q2 FY2026, reflecting continued improvement in consolidated profitability.
Negative Updates
Advertising & Data revenue pressure from CPM declines
Advertising & Data results came in below expectations due to decreases in CPM rates that pressured revenues and offset gains in Merchant Services and SaaS within NRS.
Read all updates
Q2-2026 Updates
Positive
Negative
Record consolidated profitability metrics
Company reported record levels in gross profit, gross profit margin, adjusted EBITDA, adjusted EBITDA margin and non-GAAP EPS for Q2 FY2026, reflecting continued improvement in consolidated profitability.
Read all positive updates
Company Guidance
IDT raised its consolidated adjusted EBITDA guidance for fiscal 2026 to $147–$149 million (midpoint $148M), up $5 million from the prior $141–$145M range and implying roughly a 12% increase versus fiscal 2025 actuals; management also reiterated NRS is on track to deliver ~20–25% adjusted EBITDA growth for fiscal ’26, said net2phone’s Q2 adjusted EBITDA rose 37% year‑over‑year to $3.9M though its growth rate is expected to moderate in H2 as investments ramp, and highlighted BOSS Money’s digital transactions up 17% year‑over‑year with Fintech gross profit up $0.15 in Q2 and BOSS Money adjusted EBITDA up 44% year‑over‑year; they noted record levels in gross profit, gross profit margin, adjusted EBITDA, adjusted EBITDA margin and non‑GAAP EPS, that the three growth segments now contributed 53% of consolidated adjusted EBITDA less CapEx (vs. 45% a year ago), and signaled increased shareholder returns (dividend +17% to $0.28/year and ~$15M of buybacks in the first six months).IDT Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| 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
Negative
51.38
Price Trends
48.98
Negative
49.83
Negative
54.42
Negative
Market Momentum
-0.28
Negative
47.48
Neutral
72.11
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 48.72, above the 50-day MA of 48.98, and below the 200-day MA of 54.42, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 72.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $1.22B | 14.58 | 26.17% | 0.47% | 2.52% | 10.02% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $2.78B | 17.41 | -56.86% | ― | -0.97% | ― | |
52 Neutral | $1.70B | -2.42 | -86.86% | ― | -0.83% | -25.72% | |
49 Neutral | $1.70B | -2.42 | -86.86% | ― | -0.83% | -25.72% | |
47 Neutral | $1.40B | -2.78 | -10.73% | 3.03% | -18.28% | -42.53% |
* Communication Services Sector Average
IDT
IDT
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1.41
3.00%
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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.