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IDT (IDT) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Mar 12, 2026
IDT (IDT) reported revenue of $321M for the second quarter fiscal 2026 (Q2 FY26), +6% from a year earlier and -0.7% from the quarter before. Operating margin was 8.5%, net earnings $20.9M (6.5% of revenue).
IDT, Q2 FY26: revenue $321M (+6% year over year), operating margin 8.5%, net earnings $20.9M, operating cash flow $38.3M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $321M | -0.7% | +6% |
| Gross profit | $121M | +3% | +8% |
| Operating profit | $27.2M | -12% | -4% |
| Net earnings | $20.9M | -6% | +3% |
| Operating cash flow | $38.3M | — | +90% |
| Free cash flow | $32.2M | — | +110% |
What changed
Revenue was $320.5M in Q2 FY26, up 6% year over year and down 1% from the previous quarter. Traditional Communications was the largest line at 67% of revenue. National Retail Solutions added $6.4M year over year (up 19%), 37% of the total change.
Gross margin was 37.8%, up 0.9 points from Q2 FY25. Operating profit was $27.2M, a 8.5% margin (down 0.8 points year over year). Operating profit fell $1.1M even though revenue rose $17.2M versus Q2 FY25, so costs grew faster than sales. Operating expenses grew 12% against revenue growth of 6%. The fastest-growing cost line was Other operating costs (+131%). Net earnings were $20.9M, up 3% year over year. The effective tax rate was 21.5%.
Operating cash flow was $38.3M (up 90% year over year), 168% of net income including minority interests. Non-cash charges added back $5.4M of depreciation and amortization and $4.3M of share-based compensation. Working capital and other items added $5.8M. Capital expenditures of $6.1M left free cash flow of $32.2M.
Questions
What was IDT's revenue in the second quarter fiscal 2026?
IDT (IDT) reported revenue of $321M for the second quarter fiscal 2026 (Q2 FY26), +6% from a year earlier and -0.7% from the quarter before.
Was IDT profitable in the second quarter fiscal 2026?
Operating profit was $27.2M (8.5% of revenue) and net earnings $20.9M.
Source: IDT 10-Q on SEC EDGAR.