IDT (IDT) investor relations material

Executive summary

• Achieved record quarterly and full-year gross profit, gross margin, and Adjusted EBITDA, marking the best operational year in company history.

• All three high-margin growth segments—NRS, Fintech, and net2phone—delivered increased contributions, while Traditional Communications maintained robust cash generation and grew Adjusted EBITDA.

• Digital transformation, AI-powered solutions, and strategic product launches and partnerships enhanced customer value and drove segment performance.

Financial highlights

• Q4 revenue up 7% to $339.0M; gross profit up 18% to $134.8M (margin +360bps to 39.8%); income from operations up 52% to $33.2M; net income up 29% to $21.7M; GAAP EPS $0.87; Adjusted EBITDA up 22% to $41.2M.

• FY 2026 revenue up 5% to $1,298.0M; gross profit up 11% to $496.8M (margin +200bps to 38.3%); income from operations up 21% to $121.2M; net income up 14% to $86.6M; GAAP EPS $3.46; Adjusted EBITDA up 17% to $154.6M.

• NRS Q4 revenue up 31% to $45.0M; Adjusted EBITDA up 47% to $14.0M; FY revenue up 24% to $159.4M; Adjusted EBITDA up 30% to $45.8M.

• Fintech revenue grew 14% to $176.0M; Adjusted EBITDA up 41% to $26.2M; income from operations up 40%.

• net2phone subscription revenue up 11% to $94.9M; Adjusted EBITDA up 33% to $16.1M.

Outlook and guidance

• FY 2027 guidance: consolidated gross profit expected to grow 11% to $545–$555M; Adjusted EBITDA targeted at $176–$180M, a 15% year-over-year increase at midpoint, with all segments contributing.

• Board declared a quarterly cash dividend of $0.07 per share, payable October 14, 2026.

• Each operating segment expected to expand EBITDA contribution, with continued focus on high-margin growth.