# IDT earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/IDT) · [Earnings tab](https://www.lopjlb.com/stock/IDT?tab=earnings) Updated: 2026-09-29T10:12:05 Quarters analyzed: 8 ## Cross-quarter narrative Across 8 calls for IDT, management tone moved from +0.70 (2024 Q4) to +0.70 (2026 Q3). Latest guidance stance: raised. Latest desk line: IDT raised FY26 adjusted EBITDA guidance to $150-152M (15% YoY growth) as three higher-margin segments (NRS, FinTech, net2phone) grew 27% YoY to 55% of consolidated EBITDA; revenue up 5% to $315.7M, gross margin expanded 170bps to 38.8%; acquired OnCore Digital for NRS advertising; digital remittanc ## Latest CallCard · Q3 IDT raised FY26 adjusted EBITDA guidance to $150-152M (15% YoY growth) as three higher-margin segments (NRS, FinTech, net2phone) grew 27% YoY to 55% of consolidated EBITDA; revenue up 5% to $315.7M, gross margin expanded 170bps to 38.8%; acquired OnCore Digital for NRS advertising; digital remittanc **Guidance:** raised — Full-year FY26 consolidated adjusted EBITDA guidance raised from $147-149M to $150-152M, representing 15% growth at midpoint over FY25 ($131.7M), based on 9-month results and Q4 visibility. **Tone:** mgmt 0.7 · Q&A pressure 0.5 · divergence 0.3 Management highlights record gross profit/margin, guidance raise, strong growth in NRS/FinTech/net2phone, AI traction, and 30-year anniversary pride. ### Demand visibility Strong forward visibility cited for guidance raise; digital channel accelerating, NRS recurring revenue up 22%, net2phone seats up 6%. Management cites 'forward visibility' and 'visibility into the fourth quarter' for guidance raise. Digital transactions grew 20% YoY, send volume 40%. NRS recurring revenue grew 22% YoY, ARPU up ~10%. net2phone seats reached 441K, up 6% YoY. Traditional Communications cash generation resilient. ### Margins / costs Consolidated gross margin expanded 170bps to 38.8% record high; growth segments gross profit contribution rose to 67% from 61% YoY; Traditional Communications SG&A down $2.6M. Gross profit grew 9% to $122.5M. Growth segments (NRS, FinTech, net2phone) combined gross margin far higher than Traditional Communications, driving operating leverage. Growth segments' gross profit contribution increased to 67% from 61% YoY. Traditional Communications SG&A declined $2.6M YoY. Digital channel commands higher margins than retail channel in BOSS Money. ### Capital allocation Dividend $0.07/share declared; opportunistic share repurchases (~84K shares for $4M per CFO, ~$19M per analyst); debt-free balance sheet with $251M cash/securities; investing in growth while returning cash. Board declared quarterly cash dividend of $0.07/share. Repurchased ~84,000 shares for $4M in quarter (CFO). Analyst notes ~$19M buyback this quarter. Growing free cash flow and debt-free balance sheet enable continued investment in growth initiatives and shareholder returns. Management indicates opportunistic buyback pace tied to stock price. ### Milestones - **NRS terminal network expansion** [delivered]: Over 39,000 active POS terminals, payment processing accounts above 29,000 (up 14% YoY). - **NRS first non-North American terminal** [delivered]: First terminal deployed in Colombia; described as partner-suggested beta test. - **OnCore Digital acquisition** [delivered]: Acquired controlling stake post-quarter; platform and publisher network to integrate with NRS screen network and transaction data. - **net2phone $100M MRR milestone** [delivered]: Crossed $100 million monthly recurring revenue barrier; May was best month ever for new sales. - **Integrate by Netphone release** [delivered]: No-code integration layer enabling clients to use Netphone offerings with popular CRMs/ERPs. - **AI offerings development** [on_track]: Gaining traction; expected to become accretive growth drivers in fiscal year 2027. - **NRS Rule of 40 score** [delivered]: Score of 50 in quarter, reflecting healthy growth-profitability balance. - **Digital remittance growth** [delivered]: Digital transactions up 20% YoY, send volume up 40% YoY; market share gains after federal remittance tax implementation. ### Fears / risks - **Competition**: Increasing competition in NRS from larger players like Toast expanding into convenience stores, affecting new sign-ups. - **Advertising monetization**: NRS screen network advertising challenged by streaming services; OnCore acquisition aimed to address but execution risk remains. - **Customer acquisition cost**: BOSS Money marketing spend vs. margin sustainability; competitors spend more on marketing but management aims for opportunistic efficiency. - **Spin-off valuation uncertainty**: net2phone spin-off considered more appealing but no decision; valuation comparisons to peers create pressure. - **International expansion execution**: First non-North America terminal in Colombia; send-country expansion limited to U.S. currently; market-by-market approach adds complexity. - **Traditional Communications decline**: Segment revenue edging lower; long-term cash generation contribution will diminish as growth segments scale. - **AI monetization timeline**: AI offerings expected to become accretive only in FY2027; integration across segments still in progress. - **Digital remittance competitive intensity**: Well-funded digital competitors spending heavily on marketing; BOSS Money must win on pricing and service daily. ### Key quotes > “Based on our year-to-date performance and forward visibility, we are raising our full year FY '26 adjusted EBITDA guidance to $150 million to $152 million, representing a 15% growth at the midpoint over fiscal year 2025.” > “Our 3 growth segments contributed $107 million of revenue in the quarter, about 34% of our consolidated total, up from 30% a year ago.” > “We are gaining traction with our AI offerings and expect them to become accretive growth drivers in fiscal year 2027.” > “I definitely think that we are seeing more competition at NRS, and it's definitely affected the new sign-ups.” — Samuel Jonas > “net2phone is doing really great right now, right? They just crossed the $100 million MRR revenue barrier.” — Marcelo Fischer ## Quarter one-liners - **2026 Q3:** IDT raised FY26 adjusted EBITDA guidance to $150-152M (15% YoY growth) as three higher-margin segments (NRS, FinTech, net2phone) grew 27% YoY to 55% of consolidated EBITDA; revenue up 5% to $315.7M, gross margin expanded 170bps to 38.8%; acquired OnCore Digital for NRS advertising; digital remittanc - **2026 Q2:** IDT posted strong Q2 FY2026 results, raised FY2026 adjusted EBITDA guidance, highlighted digital growth in BOSS Money and new AI offerings, while noting advertising softness and tax‑driven channel shifts. - **2026 Q1:** IDT Q1 FY2026 posted record revenue and adjusted EBITDA, strong growth in NRS, Fintech and net2phone, resolved litigation and hinted at modest M&A and international expansion. - **2025 Q4:** IDT posted record adjusted EBITDA and modest revenue growth, highlighted strong retailer integrations and AI initiatives, but flags immigration policy, new tax, competition and cautious M&A as headwinds. - **2025 Q3:** — - **2025 Q2:** IDT posted record gross profit and adjusted EBITDA, boosted by strong NRS, BOSS Money and net2phone growth, while raising dividend and repurchases amid cautious outlook on immigration policy and international expansion. - **2025 Q1:** IDT Q1 FY25: record gross profit, margin, adj. EBITDA; NRS, BOSS Money, net2phone drive growth; on track to beat EBITDA projections; FX headwinds in LatAm, immigration policy uncertainty for BOSS Money. - **2024 Q4:** IDT posted record Q4 adjusted EBITDA, profitable growth in BOSS Money, net2phone and NRS, while outlining cost cuts and 2025 EBITDA guidance above $100 million. ## Theme arcs - **Management tone** (stable): Δ mgmt=+0.00 ## Fear persistence - **platform migration uncertainty** [resolved]: 2024 Q4 - **spin‑off conditions** [resolved]: 2024 Q4 - **traditional segment decline** [resolved]: 2024 Q4 - **competitive pressure in money transfers** [resolved]: 2024 Q4 - **new product adoption risk** [resolved]: 2024 Q4 - **cost‑cut execution risk** [resolved]: 2024 Q4 - **metaswitch end‑of‑life impact** [resolved]: 2024 Q4 - **retailer profitability concentration** [resolved]: 2024 Q4 - **immigration policy** [resolved]: 2025 Q1 - **foreign exchange** [resolved]: 2025 Q1 ## Guidance path 2024 Q4:raised → 2025 Q1:raised → 2025 Q2:maintained → 2025 Q3:vague → 2025 Q4:maintained → 2026 Q1:maintained → 2026 Q2:raised → 2026 Q3:raised --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/IDT`