Could not find a ticker for this position, may be a filing error
A global provider of communications, payment, and small-business software services, IDT runs consumer brands like BOSS Revolution (international calling, money transfers, and mobile top-ups) and the business phone service net2phone. It was founded in 1990 by Howard Jonas, whose name initially stood for "International Discount Telecommunications," born out of his frustration with huge phone bills from a sales office in Israel. The business famously began in a converted funeral parlor in the Bronx, and it later spun off several ventures as independent companies.
NRS and Fintech profit growth drove a 12% operating income increase, but free cash flow turned negative as working capital outlays persisted.
The mix shift toward higher-margin businesses continued to reshape earnings. rose 4.5% to $315.7 million and widened 1.7 points to 38.8%, lifting 12% to $29.8 million, as NRS and Fintech together grew revenue 19% and remained profitable. swung to a $13.4 million use, the third negative quarter in four, as BOSS Money and IDT Digital Payments needs consumed cash even while earnings improved.
Key takeaways
rose 12.0% to $29.8 million and widened 0.6 points to 9.4%, driven by profit growth in NRS and Fintech.
NRS grew 22.2% to $38.0 million, supported by a 10.4% increase in active point-of-sale terminals and higher payment processing and software revenue per terminal.
Fintech rose 16.6% to $45.0 million, with BOSS Money revenue up 15.3% on higher digital transaction volumes and foreign exchange revenue, particularly to Guatemala and Mexico.
Section summaries
Management's Discussion and Analysis
NRS and Fintech drove consolidated revenue and income growth in Q3 FY2026, while Traditional Communications revenue declined slightly.
⌄
NRS grew 22.2% to $38.0M in Q3 FY2026, driven by a 10.4% increase in active POS terminals and higher payment processing and software revenue per terminal.
Traditional Communications dipped 0.9% to $208.3 million, as a 16.1% decline in BOSS Revolution calling revenue was mostly offset by growth in IDT Digital Payments and IDT Global.
was negative $13.4 million, down from positive $70.3 million a year ago, as outflows for BOSS Money settlement and disbursement prefunding continued to consume cash.
The company held $251.4 million in cash, equivalents, and investments with no outstanding debt, and repurchased shares while maintaining a $0.06 quarterly .
What changed
The Fintech sustained profitability for an eighth consecutive quarter, confirming the structural shift flagged in earlier filings, though BOSS Money growth decelerated to 15.3% from 24.7% a year ago and 8% in the prior quarter.
NRS growth held at 22.2%, near the 21.1% rate in Q3 FY2025, suggesting the deceleration flagged in prior quarters has stabilized at this level as the terminal base matures.
Traditional Communications declined 0.9%, a slower rate than the 5.2% drop a year ago, as IDT Digital Payments and IDT Global growth nearly offset the structural decline in BOSS Revolution calling.
remained negative for the third time in four quarters, a reversal from the $70.3 million positive swing a year ago, as the BOSS Money and IDT Digital Payments outflows flagged in Q1 and Q2 did not normalize.
No update on the disposition of net2phone was provided, now over four years since the spin-off was postponed in early 2022.
What to watch
Whether returns to positive territory in Q4 as the BOSS Money and IDT Digital Payments outflows normalize, or whether the cash consumption persists into FY2027.
Whether BOSS Money growth stabilizes near the 15% rate or re-accelerates, and whether the Fintech sustains profitability as growth decelerates from the 25-39% rates of prior quarters.
Whether the Traditional Communications decline holds near the 1% rate or re-accelerates, and whether IDT Digital Payments and IDT Global can continue to offset the structural decline in BOSS Revolution calling.
Any announcement on the disposition of net2phone, given the spin-off was postponed in early 2022 and no update has been provided in over four years.
Fintech rose 16.6% to $45.0M, with BOSS Money revenue up 15.3% due to higher digital transaction volumes and foreign exchange revenue, particularly to Guatemala and Mexico.
Traditional Communications decreased 0.9% to $208.3M as a 16.1% decline in BOSS Revolution calling revenue offset growth in IDT Digital Payments and IDT Global.
Consolidated increased 12.0% to $29.8M, but attributable to IDT was flat at $21.6M due to lower other income and higher .
fell to $46.7M in the first nine months from $96.1M a year ago, largely due to increased for BOSS Money settlement and disbursement prefunding.
The company expects to fund $23-24M in over the next twelve months and has $251.4M in cash, equivalents, and investments as of April 30, 2026.
Quantitative and Qualitative Disclosures About Market Risk
Foreign Currency Risk Revenues from our international operations were 20.4% and 21.0% of our consolidated revenues in the three months ended April 30, 2026 and 2025, respectively, and 20.5% and 21.0% of our consolidated revenues in the nine months ended April 30, 2026 and 2025,…
⌄
Foreign Currency Risk
Revenues from our international operations were 20.4% and 21.0% of our consolidated revenues in the three months ended April 30, 2026 and 2025, respectively, and 20.5% and 21.0% of our consolidated revenues in the nine months ended April 30, 2026 and 2025, respectively. A significant portion of our revenues is in currencies other than the U.S. Dollar. Our foreign currency exchange risk is somewhat mitigated by our ability to offset a portion of these non-U.S. Dollar-denominated revenues with operating expenses that are paid in the same currencies. While the impact from fluctuations in foreign exchange rates affects our revenues and expenses denominated in foreign currencies, the net amount of our exposure to foreign currency exchange rate changes at the end of each reporting period is generally not material.
Investment Risk
We hold a portion of our assets in debt and equity securities, including hedge funds, for strategic and speculative purposes. At April 30, 2026 and July 31, 2025, the value of our debt and equity security holdings was an aggregate of $42.3 million and $33.9 million, respectively, which represented 6.1% and 6.0% of our total assets at April 30, 2026 and July 31, 2025, respectively. Investments in debt and equity securities carry a degree of risk and depend to a great extent on correct assessments of the future course of price movements of securities and other instruments. There can be no assurance that our investment managers will be able to accurately predict these price movements. The securities markets have in recent years been characterized by great volatility and unpredictability. Accordingly, the value of our investments may go down as well as up and we may not receive the amounts originally invested upon redemption.
Legal proceedings in which we are involved are described in Note 17 to the Consolidated Financial Statements included in Item 1 to Part I of this Quarterly Report.
⌄
Legal proceedings in which we are involved are described in Note 17 to the Consolidated Financial Statements included in Item 1 to Part I of this Quarterly Report.
AI adoption across products and operations introduces evolving strategic, legal, operational, and reputational risks.
⌄
Uncertain market acceptance of AI-driven offerings like n2p AI Agent and n2p Coach AI may limit adoption, while better-resourced competitors could outpace us in talent, data, and compute.
AI outputs that are inaccurate, biased, or harmful could trigger brand damage, user distrust, and legal liability if oversight and safeguards are inadequate.
Proliferating global AI regulations (e.g., EU frameworks, emerging U.S. rules) may raise compliance costs, constrain development, and expose us to fines or sanctions.
Dependence on third-party models, APIs, and cloud providers creates exposure to outages, cost swings, and licensing changes that could disrupt operations.
AI integration heightens cybersecurity threats such as and , and raises unresolved IP risks including copyright and patent claims.
Inconsistent AI adoption across functions or flawed data and models could reduce profitability, impair product quality, or cause compliance and security failures.