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]

Core Insights - IDT Corporation reported strong financial results for the first quarter of fiscal year 2026, with significant growth in revenue, gross profit, and Adjusted EBITDA, driven by its National Retail Solutions (NRS) and Fintech segments [4][5][7]. Financial Performance - Consolidated revenue increased by 4% year-over-year to $322.8 million, with gross profit rising by 10% to $118.2 million, resulting in a gross margin of 36.6% [7][40]. - Adjusted EBITDA grew by 26% to $37.9 million, and net income attributable to IDT increased by 30% to $22.3 million, leading to a GAAP EPS rise from $0.68 to $0.89 [7][40]. Segment Performance National Retail Solutions (NRS) - Recurring revenue for NRS increased by 22% to $35.3 million, with income from operations up by 35% to $8.9 million and Adjusted EBITDA rising by 33% to $10.3 million [7][10]. - The segment added approximately 800 net active terminals and payment processing accounts, reflecting both seasonal and non-seasonal factors [11]. - NRS launched partnerships with DoorDash and Grubhub to enhance retail delivery options, contributing to revenue growth [12]. Fintech Segment - BOSS Money digital revenue grew by 20% to $27.9 million, with total Fintech revenue increasing by 15% to $42.7 million [7][15]. - Income from operations in the Fintech segment nearly doubled year-over-year, driven by transaction growth and improved operating leverage [6][17]. - Digital channel send volume increased by 34%, indicating strong demand for BOSS Money services [16]. net2phone - Subscription revenue for net2phone rose by 10% to $23.0 million, with income from operations increasing by 94% to $1.9 million [7][18]. - The segment introduced AI solutions to enhance customer service and operational efficiency, contributing to profitability despite increased investments in AI development [19]. Traditional Communications - Revenue for the Traditional Communications segment decreased slightly by 0.5% to $219.5 million, with income from operations up by 1% to $15.8 million [7][20]. - IDT Digital Payments showed growth, with a 90% year-over-year increase in revenue from the Zendit B2B platform [21]. Cash Flow and Capital Expenditures - Net cash used in operating activities was $10.1 million, a decline from the previous year, attributed to working capital timing [24]. - Capital expenditures increased to $5.8 million from $5.3 million in the prior year [25]. Outlook - IDT maintains its FY 2026 guidance, expecting to generate Adjusted EBITDA in the range of $141-$145 million [29]. - The company declared a quarterly cash dividend of $0.06 per share, payable on December 23, 2025 [30].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Viewpoint - The Delaware Supreme Court affirmed the dismissal of all claims against IDT Corporation, indicating no harm to Straight Path Communications Inc. shareholders, thus validating IDT's position in the lawsuit [1][2]. Group 1: Legal Outcome - The Delaware Supreme Court's decision puts to rest the lawsuit against IDT, affirming the Court of Chancery's ruling that dismissed all claims [2]. - The ruling found that Straight Path's stockholders did not incur any damages, contrary to the claims made by the plaintiffs [2]. Group 2: Company Background - IDT Corporation is a global provider of fintech and communications solutions, operating through various synergistic businesses [4]. - The company’s portfolio includes National Retail Solutions, BOSS Money, net2phone, IDT Digital Payments, and IDT Global, which offer a range of services from retail solutions to international remittances and cloud communications [4]. Group 3: Historical Context - Straight Path was spun off from IDT in 2013 and was sold to Verizon Communications for $3.1 billion in 2017 [2]. - The class action suit was filed in 2017 by plaintiffs representing former stockholders of Straight Path [2].

Core Insights - net2phone has launched a HIPAA-compatible AI Agent aimed at enhancing healthcare communications and reducing administrative burdens for healthcare providers [1][2][3] Product Features - The AI Agent automates routine patient interactions, allowing healthcare providers to focus more on patient care while ensuring compliance with HIPAA privacy and security standards [3][4] - It offers capabilities such as 24/7 virtual assistance for inquiries, patient scheduling and reminders, and natural language understanding for efficient communication routing [6] Market Impact - The introduction of the AI Agent is expected to help healthcare organizations reduce operational costs and improve response times, thereby enhancing overall patient satisfaction [2][4] - The solution integrates seamlessly with existing database systems, which facilitates streamlined patient interactions [2][4] Company Background - net2phone is recognized for its innovative AI-powered communications and has established a reputation as a leader in both innovation and growth within the industry [5] - The company is a subsidiary of IDT Corporation, indicating a strong backing and potential for further development in the communications sector [5]

Core Viewpoint - IDT Corporation is set to release its financial and operational results for the first quarter of fiscal year 2026 on December 4, 2025, with an earnings conference call scheduled for the same day [1][2]. Financial Results Announcement - IDT Corporation will report its financial results for the three months ended October 31, 2025, on December 4, 2025, at approximately 4:30 PM Eastern [1]. - The earnings release will be available on the IDT investor relations website [1]. Earnings Conference Call - An earnings conference call will take place at 5:30 PM Eastern, featuring management's discussion of the results followed by a Q&A session with investors [2]. - Participants can join the call by dialing 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) with the access code 586702 [2]. Call Replay Information - A replay of the conference call will be available approximately three hours after the call concludes and will remain accessible until December 18, 2025 [3]. - To access the replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) with the replay passcode 53127 [3]. - The replay will also be available via streaming audio on the IDT investor relations website [3]. Company Overview - IDT Corporation is a global provider of fintech and communications solutions, operating through various synergistic businesses [4]. - Key business segments include National Retail Solutions (NRS), BOSS Money, net2phone, IDT Digital Payments, BOSS Revolution, IDT Global, and IDT Express, each offering unique services in retail, remittances, cloud communications, and international messaging [4].

Core Insights - National Retail Solutions (NRS) has integrated with Grubhub to enable independent retailers to offer remote ordering for delivery or in-store pick-up, enhancing their digital capabilities [1][2] Company Overview - NRS operates a leading point-of-sale (POS) terminal-based platform and digital payment processing service for independent retailers across the U.S. [3] - NRS is a subsidiary of IDT Corporation, listed on NYSE [3] Partnership Details - The integration with Grubhub allows NRS retailers, primarily neighborhood convenience stores and bodegas, to compete effectively in the digital marketplace [2] - Key advantages of the integration include streamlined operations, real-time menu and inventory syncing, reduced training requirements, centralized management, and actionable analytics [5] Operational Benefits - Grubhub orders are directly processed through the NRS POS system, simplifying workflows and reducing counter clutter [5] - Price updates and inventory changes in the NRS POS are automatically reflected on Grubhub menus, ensuring order accuracy [5] - Retailers can manage Grubhub menus and store analytics directly from their NRS POS, enhancing operational efficiency [5] Market Impact - The integration is designed to help local businesses thrive in a digital-first environment, unlocking new revenue streams without adding operational complexity [2] - NRS retailers utilizing the Grubhub integration have reported significantly increased profitability and strong returns on investment [2]

Core Insights - The average price for the top 500 items in October 2025 increased by 3.0% year-over-year, slightly up from a 2.9% increase in September 2025 [6][8] - Same-store sales rose by 5.7% year-over-year in October 2025, showing a slight decrease of 0.7% compared to September 2025 [5][6] - The NRS retail network included approximately 37,900 active terminals across about 32,900 independent retailers, primarily serving urban consumers [2][12] Sales Performance - Same-store sales increased by 5.7% year-over-year, compared to a 5.8% increase in September 2025 [5] - For the three months ending October 31, 2025, same-store sales rose by 5.8% compared to the same period a year ago [6] - Units sold increased by 1.3% year-over-year but decreased by 1.8% compared to September 2025 [6] Transaction Metrics - The number of baskets (transactions) per store increased by 0.1% year-over-year but decreased by 2.6% compared to September 2025 [6] - The NRS POS terminals processed $2.15 billion in sales during October 2025, representing a 17% year-over-year increase [12] Consumer Trends - Year-over-year growth was driven by categories such as cigarettes, prepared cocktails, smokeless tobacco, energy beverages, and wine-based cocktails [8] - The data indicates healthy consumer engagement as the holiday season approaches, with expected growth in high-velocity categories like beverages and tobacco alternatives [9]

Core Thesis - IDT Corporation has transformed from a declining telecommunications provider into a diversified business model, but faces significant headwinds across its various segments, leading to concerns about valuation risks and growth projections [2][4]. Business Transformation - IDT has diversified into areas such as POS systems, global remittances, and UCaaS, leveraging its telecommunications expertise and retail distribution network [2]. - The company has achieved strong EBITDA growth and total shareholder returns, with shares trading around 10x EBITDA and maintaining a net cash position [2]. Segment Performance - The NRS segment, which serves niche markets, is experiencing plateauing growth due to market saturation and reduced quarterly net additions [2]. - BOSS Money, the fintech remittance business, is under regulatory pressure, leading to declining transaction volumes, particularly to Mexico [3]. - The net2phone segment faces slowing seat growth and pricing pressure in a commoditized market [3]. - Traditional Communications has stabilized through cost management, but structural declines in voice traffic limit further EBITDA growth [3]. Market Challenges - Each segment (NRS, BOSS Money, net2phone, and Traditional Communications) faces structural, regulatory, or competitive challenges that could hinder future growth [4]. - The market may be underestimating these headwinds, making IDT a potential short for investors concerned about over-optimistic growth projections [4]. Historical Context - A previous bullish thesis highlighted IDT's diversification and strong operational performance, but the current bearish perspective emphasizes the challenges faced across its business segments [5].