IDT Corp Reports Record Q2 Profitability, Raises Dividend 17%, and Boosts FY26 Adjusted EBITDA Guidance

summarizeSummary

IDT Corporation reported record fiscal Q2 2026 gross profit and Adjusted EBITDA, increased its quarterly dividend by 17%, and raised its full-year Adjusted EBITDA guidance, reflecting strong operational performance and a confident outlook.

check_boxKey Events

• Strong Fiscal Q2 2026 Financial Performance

  IDT Corporation reported a 6% increase in revenue to $320.5 million, an 8% rise in gross profit to $121.3 million (a record), and a 9% increase in Adjusted EBITDA to $38.0 million (a record) for the quarter ended January 31, 2026. GAAP EPS grew to $0.84 from $0.80, and Non-GAAP EPS increased to $1.00 from $0.84 year-over-year.

• 17% Dividend Increase Announced

  The Board of Directors increased the annual dividend from $0.24 to $0.28 per share, translating to a quarterly cash dividend of $0.07 per share. This marks a significant 17% increase in shareholder returns.

• FY26 Adjusted EBITDA Guidance Raised

  IDT raised its fiscal year 2026 guidance for consolidated Adjusted EBITDA from the previous range of $141-$145 million to a new range of $147-$149 million. The updated midpoint represents a 12% increase from FY 2025 Adjusted EBITDA.

• Continued Share Repurchases

  The company repurchased 149,000 shares for $7.4 million during the second fiscal quarter of 2026. For the first half of fiscal year 2026, total stock repurchases amounted to 308,000 shares for $15 million.

auto_awesomeAnalysis

IDT Corporation delivered a strong fiscal second quarter, marked by record gross profit and Adjusted EBITDA, demonstrating robust operational performance across its key segments. The company's decision to increase its annual dividend by 17% signals significant confidence in its sustained profitability and future cash flow generation. Furthermore, the upward revision of full-year Adjusted EBITDA guidance provides a strong positive outlook, suggesting continued growth and improved financial health. The ongoing share repurchase program also indicates a commitment to returning capital to shareholders. Investors should view these combined actions as a strong affirmation of management's positive long-term view and operational execution.