IDT Q3 Revenue Up 5%, Margin Expands 170 bps, EBITDA Guidance Raised to $150–152 M
IDT•IDT reported Q3 revenue of $315.7 million, up 5%, and record gross profit of $122.5 million with margin expanding 170 basis points to 38.8%. Income from operations rose 33% at NRS, 29% in Fintech and 76% at net2phone, and management raised FY2026 adjusted EBITDA guidance to $150–$152 million.
1. Q3 Consolidated Results
IDT’s third quarter revenue increased 5% year-over-year to $315.7 million, driving gross profit up 9% to $122.5 million. Gross margin widened 170 basis points to 38.8%, income from operations rose to $29.8 million and adjusted EBITDA reached $37.5 million, while GAAP EPS climbed to $0.87.
2. NRS Segment Performance
National Retail Solutions added 1,700 net new accounts and grew active POS terminals 10% to 39,300. Recurring revenue jumped 22% to $36.0 million, POS terminal sales rose 16% and segment income from operations surged 33% to $8.2 million on a 21% gross profit increase.
3. Fintech and net2phone Growth
BOSS Money processed 6.9 million transactions, up 15%, with digital channel revenue up 27% to $31.0 million. net2phone delivered a 76% boost in operating income, driven by CCaaS strength, U.S. and Mexico expansion and emerging AI integration across its communications offerings.
4. Guidance Raise and Acquisition
Management raised full-year adjusted EBITDA guidance to $150–$152 million, reflecting strong cash generation across segments. After quarter-end, IDT acquired a controlling stake in OnCore Digital to integrate its ad tech and publisher networks with NRS’s transaction data.
