IDT Corporation Reports Record Q1 FY2026 Consolidated Profit Driven by 97% Operational Income Surge in Fintech Segment

IDT Corporation Achieves Record Consolidated Financial Metrics in Q1 FY2026

IDT Corporation reported exceptionally strong financial results for the first quarter of fiscal year 2026, setting new quarterly records for consolidated gross profit, Adjusted EBITDA, and Adjusted EBITDA margin. The robust performance was underpinned by substantial increases in income from operations across the company’s core technology and communications segments.

The most material data point driving the quarter’s success was the near-doubling of operational income in the company’s high-growth divisions. Specifically, the Fintech segment saw its income from operations increase by a staggering 97%, while the net2phone segment reported a 94% increase in operational income. These figures highlight the successful scaling and profitability of IDT’s digital service offerings.

Segmental Operational Income Drives Profitability

The first quarter of fiscal year 2026 demonstrated significant momentum across IDT’s key business units, validating the company’s strategy of investing in high-margin, technology-driven services. The growth in operational income was broad-based:

• The Fintech segment, which includes financial services and payment solutions, delivered a 97% increase in income from operations. This nearly double-digit growth suggests strong adoption and monetization of its financial technology platforms.
• The net2phone segment, focused on cloud communications and unified communications as a service (UCaaS), saw its income from operations jump by 94%. This performance reflects the continued demand for reliable, scalable cloud-based communication tools in the enterprise market.
• The NRS (National Retail Solutions) segment, which provides point-of-sale (POS) systems and advertising platforms to independent retailers, also contributed significantly, reporting a 35% increase in income from operations.

The simultaneous, high-percentage growth in operational income across these three distinct segments—NRS, Fintech, and net2phone—is a key indicator of IDT’s overall operational efficiency and market penetration.

Record Consolidated Financial Highlights

The strong segmental performance translated directly into record consolidated financial metrics for the quarter. The company achieved:

• Record quarterly levels of consolidated gross profit.
• Record quarterly levels of Adjusted EBITDA.
• Record quarterly levels of Adjusted EBITDA margin.

The achievement of record Adjusted EBITDA and Adjusted EBITDA margin is particularly noteworthy, as Adjusted EBITDA is a crucial measure of a company’s core profitability, excluding non-cash and non-recurring items. The improvement in the margin suggests that IDT is not only growing its top line but is also successfully managing its cost structure and achieving greater economies of scale as its technology platforms expand.

The results position IDT Corporation favorably as it moves into the remainder of fiscal year 2026. The substantial increases in operational income, particularly in the Fintech and net2phone segments, suggest that the company’s strategic focus on high-growth, recurring-revenue businesses is yielding significant returns. While specific revenue figures were not detailed, the robust growth in operational income indicates that these segments are rapidly maturing into major profit drivers for the corporation.