📊 IDT Key Takeaways
Is Idt Corp. (IDT) a Good Investment?
While IDT demonstrates exceptional revenue growth and maintains a fortress balance sheet with minimal debt and strong liquidity, the company exhibits severe operational red flags. Net income declined 6.2% despite astronomical 19,999% revenue growth, and free cash flow generation is critically weak at only 2.5% of revenue—a stark disconnect from reported profitability suggesting poor cash conversion quality and potential sustainability concerns.
IDT exhibits solid profitability with 37% gross margin, 9% operating margin, and a healthy 12.7% ROE, supported by a fortress balance sheet with substantial net cash and negligible long‑term debt. While net income dipped modestly YoY, operating earnings remain strong and liquidity is ample, positioning the company to weather volatility and fund growth. Normalizing for likely data anomalies in reported revenue growth, upside hinges on improving cash conversion and sustaining margins.
Why Buy Idt Corp. Stock? IDT Key Strengths
- Fortress balance sheet with minimal debt (0.02x D/E) and $210.2M cash position (31% of assets)
- Strong liquidity metrics with 1.86x current and quick ratios indicating solid short-term financial flexibility
- Solid gross margin of 37.2% demonstrates pricing power and cost control within operations
- Net cash balance sheet with minimal leverage
- Consistent profitability (9% operating, 6.7% net margins)
- Double‑digit ROE (12.7%) indicating efficient equity use
IDT Stock Risks: Idt Corp. Investment Risks
- Revenue growth of 19,999% accompanied by declining net income (-6.2% YoY) indicates poor operating leverage or acquisition integration issues masking underlying deterioration
- Critical cash flow weakness: Free cash flow of only $16.2M represents 37% of net income ($43.3M) and 2.5% of revenue, raising severe earnings quality concerns and sustainability questions
- Extreme growth driver unknown—such anomalous revenue expansion likely reflects significant M&A or business combination rather than organic growth, introducing execution risk in mature telecommunications sector
- Weak cash conversion and low FCF margin (2.5%)
- Potential data/period comparability issues in reported revenue growth
- Competitive pressure in telecom could compress margins
Key Metrics to Watch
- Free cash flow conversion rate relative to net income (currently concerning at 37%)
- Organic revenue growth rate after accounting for acquisition impact
- Operating margin trend and whether it stabilizes or continues deteriorating
- Free cash flow margin and OCF/Net Income conversion
- Operating margin sustainability
Idt Corp. (IDT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.5% FCF margin may limit capital allocation flexibility.
IDT Profit Margin, ROE & Profitability Analysis
IDT vs Telecom Sector: How Idt Corp. Compares
How Idt Corp. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Idt Corp. Stock Overvalued? IDT Valuation Analysis 2026
Based on fundamental analysis, Idt Corp. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Idt Corp. Balance Sheet: IDT Debt, Cash & Liquidity
IDT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Idt Corp.'s revenue has declined by 14% over the 5-year period, indicating business contraction. The most recent EPS of $1.58 reflects profitable operations.
IDT Revenue Growth, EPS Growth & YoY Performance
IDT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $303.3M | $20.3M | $0.80 |
| Q1 2026 | $309.6M | $17.2M | $0.68 |
| Q3 2025 | $299.6M | $5.6M | $0.22 |
| Q2 2025 | $296.1M | $14.4M | $0.57 |
| Q1 2025 | $301.2M | $7.7M | $0.30 |
| Q3 2024 | $299.3M | $5.6M | $0.22 |
| Q2 2024 | $296.1M | $14.4M | $0.57 |
| Q1 2024 | $301.2M | $7.7M | $0.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Idt Corp. Dividends, Buybacks & Capital Allocation
IDT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Idt Corp. (CIK: 0001005731)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IDT
What is the AI rating for IDT?
Idt Corp. (IDT) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IDT's key strengths?
Claude: Fortress balance sheet with minimal debt (0.02x D/E) and $210.2M cash position (31% of assets). Strong liquidity metrics with 1.86x current and quick ratios indicating solid short-term financial flexibility. ChatGPT: Net cash balance sheet with minimal leverage. Consistent profitability (9% operating, 6.7% net margins).
What are the risks of investing in IDT?
Claude: Revenue growth of 19,999% accompanied by declining net income (-6.2% YoY) indicates poor operating leverage or acquisition integration issues masking underlying deterioration. Critical cash flow weakness: Free cash flow of only $16.2M represents 37% of net income ($43.3M) and 2.5% of revenue, raising severe earnings quality concerns and sustainability questions. ChatGPT: Weak cash conversion and low FCF margin (2.5%). Potential data/period comparability issues in reported revenue growth.
What is IDT's revenue and growth?
Idt Corp. reported revenue of $643.3M.
Does IDT pay dividends?
Idt Corp. pays dividends, with $3.0M distributed to shareholders in the trailing twelve months.
Where can I find IDT SEC filings?
Official SEC filings for Idt Corp. (CIK: 0001005731) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IDT's EPS?
Idt Corp. has a diluted EPS of $1.72.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IDT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Idt Corp. has a HOLD rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IDT stock overvalued or undervalued?
Valuation metrics for IDT: ROE of 12.7% (sector avg: 15%), net margin of 6.7% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy IDT stock in 2026?
Our dual AI analysis gives Idt Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IDT's free cash flow?
Idt Corp.'s operating cash flow is $28.2M, with capital expenditures of $12.0M. FCF margin is 2.5%.
How does IDT compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 6.7% (avg: 14%), ROE 12.7% (avg: 15%), current ratio 1.86 (avg: 1).