IDT Corporation reported a record fourth quarter and fiscal 2026, with growth concentrated in gross profit, operating income and adjusted EBITDA.
For the quarter ended July 31, revenue rose 7% from a year earlier to $339.0 million. Gross profit increased 18% to $134.8 million, and gross margin widened 360 basis points to 39.8%. Income from operations climbed 52% to $33.2 million. Net income attributable to IDT rose 29% to $21.7 million, while diluted earnings per share increased to $0.87 from $0.67. Adjusted EBITDA advanced 22% to $41.2 million.
For the full year, revenue increased 5% to $1.298 billion. Gross profit grew 11% to $496.8 million, with gross margin up 200 basis points to 38.3%. Income from operations rose 21% to $121.2 million. Net income attributable to IDT increased 14% to $86.6 million, and diluted EPS rose to $3.46 from $3.01. Adjusted EBITDA climbed 17% to $154.6 million.
NRS was the fastest-growing segment in the fourth quarter. Revenue jumped 31% to $45.0 million, from $34.3 million a year earlier, while gross profit increased 40% to $42.6 million. Income from operations more than doubled to $12.0 million from $5.8 million, and adjusted EBITDA rose 47% to $14.0 million. For the year, NRS revenue advanced 24% to $159.4 million, operating income increased 42% to $39.3 million, and adjusted EBITDA climbed 30% to $45.8 million.
NRS retailer locations increased to 35,400 at July 31 from 32,700 a year earlier. Active POS terminals rose to 40,400 from 37,200, and payment processing accounts increased to 29,400 from 26,500. Average monthly gross profit per location rose 22% in the quarter to $383 from $315.
In Boss Money and fintech, quarterly revenue increased 12% to $47.1 million, with Boss Money digital revenue up 22% to $33.7 million. Total Boss Money revenue rose 11% to $42.4 million. Gross profit increased 24% to $30.9 million, and gross margin expanded to 65.6% from 59.1%. Income from operations rose 15% to $5.5 million, and adjusted EBITDA increased 17% to $6.5 million. For the year, fintech revenue climbed 14% to $176.0 million, operating income rose 40% to $21.5 million, and adjusted EBITDA increased 41% to $26.2 million.
Boss Money transactions rose to 7.5 million in the quarter from 6.6 million a year earlier. Digital transactions increased to 6.6 million from 5.5 million, and digital accounted for 88.1% of total transactions, up from 83.3%. For the year, total transactions increased to 27.4 million from 23.9 million, with digital transactions up 20% to 23.6 million.
Net2phone posted another quarter of double-digit growth. Quarterly revenue increased 9% to $24.9 million, while subscription revenue rose 10% to $24.5 million. Gross profit increased 11% to $20.2 million, and gross margin improved to 81.0% from 79.5%. Income from operations climbed 75% to $2.6 million, and adjusted EBITDA rose 26% to $4.4 million. For fiscal 2026, net2phone revenue increased 10% to $96.6 million, operating income rose to $9.1 million from $4.9 million, and adjusted EBITDA climbed 33% to $16.1 million.
Traditional communications generated $222.0 million of revenue in the quarter, up 2% from $217.4 million a year earlier. Gross profit was essentially flat at $41.1 million, while operating income increased 8% to $16.6 million. For the full year, revenue rose 1% to $865.9 million, gross profit declined 4% to $162.6 million, and operating income fell 5% to $63.4 million. Adjusted EBITDA for the segment increased 1% to $77.3 million. Today the company's shares have moved -0.43% to a price of $67.46. For the full picture, make sure to review IDT CORP's 8-K report.
