IDT Q4 adjusted EBITDA rises on NRS segment gains

Overview

• Fintech and communications provider's Q4 revenue rose 7% yr/yr

• Q4 adjusted EPS increased yr/yr

• Q4 adjusted EBITDA grew 22% to $41.2 mln, driven by segment gains

Outlook

• IDT expects FY 2027 gross profit between $545 mln and $555 mln

• Company sees FY 2027 Adjusted EBITDA of $176 mln to $180 mln

• IDT expects continued topline expansion throughout FY 2027

Result Drivers

• NRS PARTNERSHIPS AND ACQUISITION - Co said new partnerships with Uber Eats, DoorDash, and Grubhub, plus a recent acquisition, drove NRS segment gains

• DIGITAL TRANSACTION GROWTH - Co said BOSS Money segment benefited from increased digital transaction volume and new product launches

• AI-POWERED OFFERINGS - net2phone segment profitability improved due to new AI-powered solutions and integration layer

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for IDT Corporation is $75.00, about 7.8% above its September 28 closing price of $69.56

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)