Core Insights - The average price for the top 500 items in December 2025 increased by 2.3% year-over-year, a slight decrease from the 3.1% increase in November 2025 [15] - Same-store sales rose by 4.5% year-over-year in December 2025, compared to a 3.8% increase in November 2025 [5][8] - Units sold increased by 1.7% year-over-year in December 2025, while transactions per store decreased by 0.5% year-over-year [6][8] Sales Performance - Same-store sales increased by 1.2% compared to November 2025, following a decrease of 0.7% from October 2025 [6] - For the three months ending December 31, 2025, same-store sales increased by 4.2% compared to the same period a year ago [6] - The NRS POS terminals processed $2.2 billion in sales during December 2025, reflecting a 15% year-over-year increase [12] Transaction Data - Approximately 217 million transactions were processed in December 2025 across about 24,300 stores, with 266 million transactions processed in November 2025 across approximately 32,200 stores [10] - Baskets (transactions) per store decreased by 0.5% year-over-year in December 2025, and by 3.0% compared to November 2025 [6][15] Market Trends - The increase in sales was driven by larger basket sizes and strong performance in specific categories such as cigarettes, prepared cocktails, and energy drinks [8][9] - The NRS retail network included approximately 38,700 active terminals serving around 33,200 independent retailers, primarily in urban areas [2]

Revenue Growth - National Retail Solutions (NRS) revenue increased by 22.0% to $37.1 million for the three months ended October 31, 2025, compared to $30.4 million in the same period of 2024[120] - Recurring revenue for NRS grew by 22.1% to $35.3 million, driven by the expansion of the retailer network and increased adoption of premium software services[121] - Fintech segment revenue increased by 15.1% to $42.7 million, with BOSS Money revenue rising by 13.6% to $38.3 million[126] - Total revenues for the three months ended October 31, 2025, increased to $23.4 million, up 8.3% from $21.6 million in the same period of 2024[1] - Subscription revenues rose to $23.0 million, reflecting a 9.5% increase from $21.0 million year-over-year[1] - Revenues from the Traditional Communications segment slightly decreased to $219.5 million, down 0.5% from $220.5 million in the same period of 2024[1] - IDT Digital Payments revenue grew by 1.9% to $107.1 million, while BOSS Revolution revenue declined by 17.3% to $47.0 million[1] Operational Performance - Active POS terminals increased by 14.5% to 37.9 thousand, while payment processing accounts rose by 20.3% to 27.3 thousand[121] - Income from operations for the Fintech segment surged by 98.7% to $6.4 million, up from $3.2 million in the prior year[126] - Income from operations improved significantly to $1.9 million, an 88.7% increase from $1.0 million in the same quarter of 2024[1] - The gross margin percentage increased to 79.8%, up from 79.0% in the previous year[1] - Gross margin for BOSS Money improved to 59.7%, up from 58.2% in the previous year[126] Expenses and Financial Management - Selling, general and administrative expenses for NRS decreased as a percentage of revenue to 59.0% from 62.6% year-over-year[123] - Selling, general and administrative expenses as a percentage of revenues decreased to 58.6% from 60.8% year-over-year[1] - Stock-based compensation expense rose to $2.0 million from $0.9 million in the prior year, reflecting increased expenses related to long-term incentive programs[1] - Technology and development expenses for NRS increased due to ongoing investments in premium software services[124] Cash Flow and Capital Expenditures - For the three months ended October 31, 2025, net cash used in operating activities was $10.1 million, compared to a cash inflow of $0.2 million in the same period of 2024[157][158] - The company deployed $5.3 million for capital expenditures during the three months ended October 31, 2025, and anticipates total capital expenditures of $20 million to $22 million for the twelve-month period ending October 31, 2026[165] - Customer fund deposits increased by $10.2 million during the three months ended October 31, 2025, reflecting balances held on behalf of customers across various programs[161] - The company paid cash dividends of $1.5 million during the three months ended October 31, 2025, with a declared cash dividend of $0.06 per share payable on December 23, 2025[169] - The company repurchased 158,424 shares of Class B common stock for an aggregate purchase price of $7.6 million during the three months ended October 31, 2025[171] Strategic Outlook - The net2phone segment represented 7.3% of total revenues, contributing to the company's overall growth strategy[130] - The company anticipates federal cash taxes liability to approximate 21% of estimated full-year pretax income starting with fiscal 2026[164] - The company is considering strategic investments and acquisitions to expand and enter new businesses, although there is no guarantee of successful opportunities[174] International Operations - Revenues from international operations accounted for 21% of consolidated revenues for both the three months ended October 31, 2025, and 2024[175] - The value of the company's debt and equity security holdings was $35.4 million as of October 31, 2025, representing 5% of total assets[176][177]

Core Viewpoint - IDT Corporation reported solid first-quarter fiscal 2026 results, with significant year-over-year growth in revenue, income, and profitability metrics, despite a recent decline in stock performance compared to the S&P 500 Index. Financial Performance - Revenue increased by 4.3% year over year to $322.8 million from $309.6 million [2] - Income from operations rose 30.8% to $30.9 million from $23.6 million [2] - Net income attributable to IDT grew 29.6% to $22.4 million from $17.2 million [2] - GAAP earnings per share (EPS) improved 30.9% to $0.89 from $0.68 [2] - Non-GAAP diluted EPS advanced 32.4% to $0.94 from $0.71 [2] Profitability Metrics - Gross profit climbed 9.8% to $118.2 million from $107.6 million [3] - Gross margin expanded by 180 basis points to 36.6% from 34.8% [3] - Adjusted EBITDA increased by 26% to $37.9 million from $30 million [3] Segment Performance - **National Retail Solutions (NRS)**: Revenue increased 22% year over year to $37.1 million from $30.4 million, with recurring revenue reaching $35.3 million, up 22% [4] - **Fintech**: Total segment revenue grew 15% to $42.7 million from $37.1 million, with digital send volume increasing 34% year over year [5] - **net2phone**: Subscription revenue increased 10% to $23.0 million from $21 million, supported by a 7% rise in seats [6] - **Traditional Communications**: Revenue declined 0.5% to $219.5 million from $220.5 million, but income from operations increased 1% to $15.8 million [7] Key Business Metrics - Digital transactions from BOSS Money accounted for 84% of total transactions, growing 22% year over year [8] - Active POS terminals at NRS expanded by 4,800 year over year to 37,900 [4] Management Commentary - Management emphasized the importance of higher-margin growth segments (NRS, Fintech, net2phone) in enhancing consolidated profitability [10] - The CEO highlighted the rollout of premium NRS services as a driver of recurring revenue growth [10] - In Fintech, leadership expects digital outperformance to widen due to upcoming federal excise tax on cash remittances [11] Factors Influencing Performance - Higher gross profit and margin expansion attributed to a shift towards growth segments with higher margins [12] - Fintech profitability gains supported by operating leverage and lower costs [12] Cash Flow and Guidance - Cash flow from operations was negative due to working-capital timing [13] - IDT maintained its full-year fiscal 2026 adjusted EBITDA guidance of $141 million to $145 million, implying 7%-10% growth compared to fiscal 2025 [14] Other Developments - No acquisitions or restructuring actions were announced; the company repurchased 158,000 shares for $7.6 million and declared a quarterly dividend of $0.06 per share [15]

Core Insights - The average price for the top 500 items in November 2025 increased by 3.1% year-over-year, slightly up from 3.0% in October 2025 [6][9] - Same-store sales rose by 3.8% year-over-year in November 2025, but decreased by 0.7% compared to October 2025 [5][6] - The NRS retail network processed $2.07 billion in sales during November 2025, marking a 14% increase year-over-year [12] Sales Performance - Same-store sales increased by 3.8% year-over-year in November 2025, compared to a 5.7% increase in October 2025 [5] - For the three months ending November 30, 2025, same-store sales rose by 4.6% compared to the same period a year ago [6] - Units sold increased by 0.9% year-over-year in November 2025, but decreased by 0.9% compared to October 2025 [6] Transaction Metrics - The number of baskets (transactions) per store decreased by 0.9% year-over-year in November 2025 and by 3.7% compared to October 2025 [6] - The NRS network comprised approximately 38,000 active terminals across about 32,900 independent retailers, primarily serving urban consumers [2] Market Commentary - The growth in sales was attributed to strong performance in key convenience categories such as cigarettes, ready-to-drink cocktails, smokeless tobacco, and energy beverages [8] - The measure of inflation in November reached 3.1%, the highest level for the year, indicating resilience in everyday convenience spending [9]

IDT Corporation ( IDT ) posted strong Q1 FY26 results across its growth businesses, while its traditional communications segment is also showing impressive earnings stability. While management chose not to raise full year guidance, the company is on track to comfortably exceed theAn individual investor primarily focused on undercovered companies, with up to 100 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital f ...

Core Insights - IDT Corporation reported strong Q1 FY26 results, particularly in its growth businesses, while also demonstrating earnings stability in its traditional communications segment [1] - Management did not raise full year guidance, but the company is expected to comfortably exceed previous performance expectations [1] Financial Performance - The Q1 FY26 results indicate robust performance across growth sectors, contributing to overall financial health [1] - The traditional communications segment is showing impressive earnings stability, suggesting a balanced portfolio [1] Management Outlook - Despite strong results, management opted not to adjust the full year guidance, indicating a cautious approach to future projections [1] - The company is on track to exceed prior performance expectations, reflecting confidence in ongoing operations [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 4% to $323 million, driven by growth in the three segments: NRS, fintech, and net2phone, which together grew by 16% [9][10] - Consolidated gross profit rose by 10% to a record $118 million, resulting in a gross margin of 37% [9][10] - Adjusted EBITDA reached a record $37.9 million, with an adjusted EBITDA margin of 11.7%, representing a 26% year-over-year growth [10][18] - Earnings per share (EPS) increased by 31% to $0.89, while non-GAAP diluted EPS climbed by 32% to $0.94 [10] Business Line Data and Key Metrics Changes - NRS reported a 22% increase in recurring revenue, reaching $35 million, with income from operations up 35% to $9 million [12] - The fintech segment's income from operations nearly doubled, increasing by 97% to $6 million, and adjusted EBITDA climbed 87% to $7.5 million [14] - Net2phone's income from operations increased by 94% to $2 million, while adjusted EBITDA rose by 44% to $3.6 million [16] Market Data and Key Metrics Changes - Boss Money's digital channel generated 84% of transactions, with revenue growth of 20% [12] - The fintech segment is benefiting from reduced transaction costs due to AI and machine learning, enhancing profitability [14] Company Strategy and Development Direction - The company is focusing on innovation and expanding premium services, which are becoming significant growth drivers [4] - There is a strategic shift from standalone products to holistic solutions tailored to customer needs, particularly in net2phone [7][15] - The company is exploring adjacent markets for growth, including food service and international markets [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth opportunities through innovation in both current and adjacent markets [4][24] - The company is monitoring the impact of new federal excise taxes on cash remittances and its effects on retail businesses [22] - IDT is well-positioned to achieve its full-year adjusted EBITDA guidance of $141-$145 million, indicating a 7%-10% growth rate [18] Other Important Information - The Delaware Supreme Court dismissed all claims against IDT in the Straight Path Class Action suit, positively impacting the company [7] - The company repurchased $7.6 million in stock during the first quarter and plans to continue opportunistic buybacks [17][18] Q&A Session Summary Question: Any special dividend or accelerated buybacks expected in the second half of the year? - Management indicated they are not looking at large M&A opportunities currently but are considering small acquisitions and monitoring the market [22] Question: Are new payment processing accounts coming from businesses that do not require a POS? - Management confirmed that new accounts are coming from businesses that require a POS [23] Question: What adjacent markets are being considered for growth? - Management mentioned various adjacent markets, including food service and specialty businesses within the U.S. [24] Question: Will IDT expand into other countries in 2026? - Management stated that while they are exploring international expansion, it is not guaranteed for 2026 [26] Question: Can you provide insights on IDT Global's top-line revenue? - Management highlighted that IDT Global has been performing well in maximizing gross profit despite fluctuations in revenue [30]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 4% to $323 million, driven by growth in the three segments: NRS, fintech, and net2phone, which together grew by 16% [9][10] - Consolidated gross profit rose by 10% to a record $118 million, resulting in a gross margin of 37% [9][10] - Adjusted EBITDA reached a record $37.9 million, with an adjusted EBITDA margin of 11.7%, reflecting a 26% year-over-year growth [10][17] - Earnings per share (EPS) increased by 31% to $0.89, while non-GAAP diluted EPS climbed by 32% to $0.94 [10] Business Line Data and Key Metrics Changes - NRS reported a 22% increase in recurring revenue, reaching $35 million, with income from operations up 35% to $9 million [12] - The fintech segment's income from operations nearly doubled, increasing by 97% to $6 million, and adjusted EBITDA rose by 87% to $7.5 million [13] - Net2phone's revenue increased by 10% on a net reported basis, with income from operations rising 94% to $2 million [15] Market Data and Key Metrics Changes - Boss Money's digital channel generated 84% of transactions, with revenue growth of 20% [12] - NRS's merchant services revenue grew by 38%, while sales fees increased by 30%, offsetting a 15% decline in advertising and data revenue [12] Company Strategy and Development Direction - The company is focusing on holistic solutions that combine multiple offerings tailored to customer needs, particularly in the net2phone segment [6][14] - There are plans to explore adjacent markets, including food service and international markets, with potential acquisitions to accelerate growth [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth opportunities through innovation in both current and adjacent markets [4][12] - The company is monitoring the impact of new federal excise taxes on cash remittances and its effects on retail businesses [18] Other Important Information - The Delaware Supreme Court dismissed all claims against IDT in the Straight Path Class Action suit, positively impacting the company [6] - The company held $220 million in cash and equivalents as of October 31, 2025, a decrease from the previous quarter [16] Q&A Session Summary Question: Expectations for special dividends or accelerated buybacks - Management indicated they are not looking at large M&A opportunities currently but may consider small acquisitions for NRS [18] Question: Additions of net payment processing accounts - The additions are primarily from businesses that require a POS [19] Question: Adjacent markets for growth - Management mentioned several adjacent markets, including food service and various verticals within the U.S. [20] Question: Potential for expanding into other countries - There is interest in expanding internationally, with potential acquisitions being considered [21] Question: Comments on IDT Global's top-line revenue - Management highlighted the resilience of the IDT Global business, focusing on maximizing gross profit despite fluctuations in revenue [23]

Revenue Growth - Income from operations increased by 35% to $8.9 million in the NRS segment, with recurring revenue rising 22% to $35.3 million[2] - Fintech segment total revenue grew by 15% to $42.7 million, with income from operations nearly doubling, up 97% to $6.4 million[2] - net2phone subscription revenue increased by 10% to $23.0 million, contributing to a 94% rise in income from operations to $1.9 million[2] - Consolidated revenue for IDT Corporation rose by 4% to $322.8 million, with gross profit increasing by 10% to $118.2 million[2] - BOSS Money digital revenue increased by 20% to $27.9 million, with total Fintech segment revenue reaching $42.7 million[12] - NRS total revenue for 1Q26 was $37.1 million, up from $30.4 million in 1Q25, representing a growth of 22% in recurring revenue[58] - NRS total revenue for the trailing twelve months (TTM) was $135.5 million[58] Profitability - Adjusted EBITDA for IDT Corporation grew by 26% to $37.9 million, reflecting strong performance across segments[2] - Net income attributable to IDT Corporation was $22.4 million in the three months ended October 31, 2025, compared to $17.2 million in the same period last year[36] - Earnings per share attributable to IDT Corporation common stockholders was $0.89 for both basic and diluted shares in 1Q26[36] - Net income for the three months ended October 31, 2025, was $24,096,000, an increase of 30.0% compared to $18,483,000 for the same period in 2024[38] - Adjusted EBITDA for 1Q26 was $37,900,000, reflecting a 25.0% increase from $30,000,000 in 1Q25[40] - Non-GAAP net income for 1Q26 was $23.6 million, up from $18.1 million in 1Q25, indicating a year-over-year increase of about 30.4%[57] - Basic earnings per share for 1Q26 were $0.89, compared to $0.68 in 1Q25, representing a growth of approximately 30.9%[57] Cash Flow and Capital Expenditures - IDT's cash and cash equivalents totaled $220.0 million as of October 31, 2025, with current assets at $550.5 million and current liabilities at $305.4 million[19] - Net cash used in operating activities in 1Q26 was $10.1 million, a decline attributed to working capital timing[20] - Capital expenditures increased to $5.8 million in 1Q26 from $5.3 million in 1Q25[21] - Cash, cash equivalents, and restricted cash at the end of the period were $313,166,000, down from $341,832,000 at the beginning of the period, representing a decrease of 8.5%[38] - Capital expenditures for the three months ended October 31, 2025, were $5,821,000, compared to $5,278,000 in the same period of 2024, indicating an increase of 10.3%[38] - Net cash used in operating activities was $(10,140,000) for the three months ended October 31, 2025, compared to $164,000 for the same period in 2024[38] Strategic Initiatives - The company plans to introduce the first generation of the BOSS Wallet, enhancing customer engagement and rewards[6] - In 1Q26, net2phone launched its AI coaching agent, Coach, following the first sales of its AI agent[17] - The company aims to enhance transparency in financial reporting by providing non-GAAP measures that reflect core operational strengths[45] - The company revised its non-GAAP Adjusted EBITDA definition to exclude non-cash compensation expense, enhancing comparability with peers[39] Operational Metrics - The average recurring revenue per terminal in the NRS segment rose by 6% to $313, driven by increased utilization of premium services[10] - Digital channel send volume for BOSS Money increased by 34% year-over-year, indicating strong transaction growth[13] - Customer funds deposits increased to $10,608,000 in 1Q26 from $2,810,000 in 1Q25, showing significant growth[38] - The number of seats served in net2phone's cloud communications offerings is a strong indicator of top-line growth and performance[60] - BOSS Money's digital send volume is a key operational metric for evaluating the performance of the digital remittance channel[62] Shareholder Returns - IDT Corporation repurchased 158 thousand shares of common stock for $7.6 million during the quarter[2] - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on December 23, 2025[24] Performance Metrics - The 'Rule of 40' score for NRS is calculated by adding the growth rate of recurring revenue to the Adjusted EBITDA margin, indicating a balance between growth and profitability[52] - IDT's Adjusted EBITDA margin for 1Q26 was approximately 39.9%, calculated as Adjusted EBITDA divided by GAAP revenue[56] - NRS' 'Rule of 40' score was 50% for 1Q26, indicating a strong balance between growth and profitability[58] - Adjusted net cash provided by operating activities (non-GAAP) for 1Q26 was $(22.7) million, compared to $(2.6) million in 1Q25[59]