IDT Stock Declines After Strong Q1 Earnings Report

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IDT Corporation reported its earnings for the quarter ended October 31, 2025, with total revenue rising 4.3% year-over-year to $322.8 million. Net income increased by 29.6% to $22.4 million, and GAAP earnings per share improved 30.9% to $0.89. Despite these gains, IDT’s shares fell 2.1% since the earnings report, contrasting with a 0.2% decline in the S&P 500 over the same period.

IDT’s Key Segments Performance

In its National Retail Solutions (NRS) segment, revenue surged 22% to $37.1 million, mainly due to increased merchant adoption. Fintech revenue also rose 15% to $42.7 million, supported by a 34% increase in digital send volume. The net2phone segment saw a revenue increase of 10% to $23 million, with a notable rise in subscription revenue driven by demand for higher-value seats.

Financial Metrics and Guidance

IDT maintained its full-year fiscal 2026 adjusted EBITDA guidance of $141 million to $145 million, projecting 7%-10% growth from fiscal 2025. Cash flow from operations was negative, influenced by working-capital timing, while capital spending rose 10.3% year-over-year to $5.8 million.

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