IDT Corporation's fourth quarter revenue beat estimates by 6% while growth segments reached $117M

IDT Corporation reported fourth quarter fiscal 2026 revenue of $339.0 million, surpassing the $319 million estimate, though Non-GAAP EPS of $0.94 fell slightly short of the $0.98 target. Performance was driven by a 9.3% sequential expansion in the company's high-margin growth segments, which reached a combined $117 million in quarterly revenue.

Key Highlights

• National Retail Solutions (NRS) revenue grew 31% year-over-year to $45.0 million, anchored by a 22% increase in average monthly gross profit per location to $383.
• BOSS Money digital channel revenue surged 22% to $33.7 million, with digital transactions now accounting for 88.1% of the segment total as consumers migrate from retail channels.
• Consolidated gross margin expanded by 360 basis points to 39.8%, reflecting the mix shift toward higher-margin digital fintech and merchant services.
• net2phone subscription revenue increased 10% to $24.5 million, with management expecting the unit to surpass a $100 million ARR milestone in the first quarter of fiscal 2027.