Core Viewpoint - IDT Corporation's shares have sharply declined following the release of its Q4 FY25 results, yet they remain up 38% over the past year, indicating strong growth in the company's underlying businesses [1] Financial Performance - The decline in IDT's share price occurred after the Q4 FY25 results were released after market close on Monday [1] - Despite the recent drop, the company's shares have shown a significant increase of 38% over the past year, reflecting robust growth in its core operations [1]

Core Viewpoint - IDT Corporation's shares have sharply declined following the release of its Q4 FY25 results, yet they remain up 38% over the past year, indicating strong growth in the company's underlying businesses [1] Financial Performance - The decline in IDT's share price occurred after the Q4 FY25 results were released after market close on Monday [1] - Despite the recent drop, the company's shares have shown a significant increase of 38% over the past year, reflecting robust growth in its core operations [1]

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

Financial Data and Key Metrics Changes - IDT reported a 43% increase in consolidated adjusted EBITDA to a record $129 million for the fiscal year 2025, with full-year adjusted EBITDA totaling $128.7 million, surpassing the updated guidance of $126 million [4][11][26] - Consolidated revenue increased by 2% for fiscal 2025, marking the first full-year increase since 2021, with Q4 revenue up by 3% [12][11] - Consolidated income from operations increased by 9% to $21.9 million in Q4 and by 55% to $100.4 million for the full year [13] Business Line Data and Key Metrics Changes - NRS's income from operations decreased by 3% to $5.8 million in Q4, while adjusted EBITDA increased by 32% to $9.3 million [14] - The fintech segment saw income from operations increase by 88% to $4.8 million in Q4, with adjusted EBITDA climbing over threefold to $5.5 million [16] - Net2phone's income from operations increased by 74% to $1.5 million in Q4, and adjusted EBITDA increased by 42% to $3.5 million [19] Market Data and Key Metrics Changes - BOSS Money's digital channel expansion contributed over 80% of remittance volume, with digital transactions increasing by 28% in Q4 and the amount sent increasing by 41% [5][17] - The average recurring revenue per terminal at NRS reached $299 in Q4, benefiting from increased penetration of NRS pay offerings [15] - The strengthening dollar impacted financial results from key South American markets, muting positive impacts from continued seat growth in net2phone [20] Company Strategy and Development Direction - The company plans to continue focusing on high-margin growth segments, with expectations of 20%-25% revenue growth and faster adjusted EBITDA growth in fiscal 2026 [16] - IDT is exploring opportunities in AI-driven solutions, particularly in net2phone, with a shift from a seat-based model to a usage-based model for AI agents [7][19] - The company is committed to returning cash to stockholders through buybacks and dividends while evaluating potential acquisitions [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2026, citing strong customer enthusiasm and the potential for continued growth despite challenges in the remittance business due to immigration policy changes [9][47] - The upcoming 1% federal tax on remittances is expected to accelerate the migration to digital channels, which are exempt from the tax [18] - Management acknowledged the competitive landscape and the need to adapt to changing market conditions while maintaining a focus on operational efficiency [41][42] Other Important Information - The company will report a revised measure of non-GAAP adjusted EBITDA starting Q1 FY 2026, excluding non-cash compensation expenses [24][25] - IDT's cash position increased by $30 million to $254 million, reflecting strong cash generation across all segments [23] Q&A Session Summary Question: What is the progress with stablecoins and Visa-linked wallets? - Management indicated that wallets have been launched in a beta phase and expect stablecoins to play a significant role in future transactions [28] Question: What is the WhatsApp launch date? - The WhatsApp feature is set to launch in the next few days for existing customers, with a broader rollout expected within 30-45 days [30] Question: What is causing the increase in churn rate in NRS terminals? - Management noted factors such as increased immigration enforcement, competition, and technical issues with equipment as contributors to churn [41][42] Question: Can the strong growth in BOSS Money be sustained? - Management believes that while growth may slow slightly, initiatives like wallets and WhatsApp will help maintain a competitive edge [46][49] Question: What is the focus for future acquisitions? - Management indicated a preference for smaller acquisitions over larger ones, emphasizing organic growth and internal investments [54]

Financial Data and Key Metrics Changes - For fiscal year 2025, consolidated adjusted EBITDA increased by 43% to a record $129 million, with full-year adjusted EBITDA totaling $128.7 million, surpassing the updated guidance of $126 million [4][11][26] - Consolidated revenue increased by 2% for the full year, marking the first full-year increase since 2021, with Q4 revenue up by 3% [12][11] - Consolidated gross margins improved by 310 basis points in Q4 and 380 basis points for the full year, reflecting the expansion of high-margin segments [13] Business Line Data and Key Metrics Changes - NRS segment's income from operations decreased by 3% to $5.8 million in Q4, while adjusted EBITDA increased by 32% to $9.3 million [14] - FinTech segment's income from operations surged by 88% to $4.8 million in Q4, with adjusted EBITDA climbing over threefold to $5.5 million [16] - Net2phone's income from operations increased by 74% to $1.5 million in Q4, and adjusted EBITDA increased by 42% to $3.5 million [19] Market Data and Key Metrics Changes - BOSS Money's digital channel now contributes over 80% of remittance volume, with digital transactions increasing by 28% in Q4 and the amount sent increasing by 41% [5][17] - The average recurring revenue per terminal at NRS reached $299 in Q4, benefiting from increased penetration of premium payment processing plans [15] - The remittance industry is expected to see a shift towards digital channels due to a new 1% federal tax on cash-originated remittances, effective January 1, 2026 [18] Company Strategy and Development Direction - The company plans to continue focusing on high-margin growth segments, with expectations of 20% to 25% revenue growth and faster adjusted EBITDA growth in fiscal 2026 [16] - Strategic initiatives include integrating retailers with delivery services like DoorDash and launching digital coupon offerings through NRS Insights [4][5] - The company is also investing in AI-driven solutions for net2phone, shifting its revenue model from a seat-based to a usage-based model [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal year 2026, citing strong customer enthusiasm and the potential for continued growth despite challenges in the remittance market due to immigration policy changes [9][47] - The company is committed to returning cash to stockholders through buybacks and dividends while evaluating potential acquisitions [9][24] - Management acknowledged the competitive landscape and the need to adapt to changing market conditions, particularly in the remittance and digital payment sectors [41][46] Other Important Information - The company did not repurchase shares in Q4 due to pursuing a significant acquisition opportunity that ultimately did not materialize [23][24] - A revised measure of non-GAAP adjusted EBITDA will be reported starting Q1 FY26, excluding non-cash compensation expenses [25][26] Q&A Session Summary Question: Progress on stablecoins and Visa-linked wallets - Management confirmed that wallets are in beta phase and expect stablecoins to play a larger role in future transactions [28] Question: WhatsApp launch date - The WhatsApp service is set to launch in the next few days for existing customers, with a broader rollout expected in 30 to 45 days [30] Question: Churn rate in NRS terminals - Management attributed churn to increased competition, immigration enforcement, and technical issues, but noted improvements in recent weeks [41][44] Question: Sustainability of BOSS Money's growth - Management indicated that while growth may slow, initiatives like WhatsApp and digital wallets could enhance business growth [46][49] Question: Focus on acquisitions - Management suggested a preference for smaller acquisitions over larger ones, emphasizing organic growth and internal investments [54]

Financial Data and Key Metrics Changes - For fiscal year 2025, consolidated adjusted EBITDA increased by 43% to a record $129 million, driven by double-digit growth across all operating segments [4][11] - Consolidated revenue in Q4 increased by 3%, with full-year revenue rising by 2%, marking the first full-year increase since 2021 [11][12] - Adjusted EBITDA for Q4 rose by 33% to $33.4 million, while for the full year, it increased by 43% to $128.7 million [14][26] Business Line Data and Key Metrics Changes - NRS segment's income from operations decreased by 3% to $5.8 million in Q4, but adjusted EBITDA increased by 32% to $9.3 million [14] - FinTech segment's income from operations surged by 88% to $4.8 million in Q4, with adjusted EBITDA climbing over threefold to $5.5 million [16] - Net2phone's income from operations increased by 74% to $1.5 million in Q4, while adjusted EBITDA rose by 42% to $3.5 million [19] Market Data and Key Metrics Changes - BOSS Money's digital channel now contributes over 80% of remittance volume, with digital transactions increasing by 28% in Q4 [5][17] - The average recurring revenue per terminal at NRS reached $299 in Q4, benefiting from increased penetration of premium payment processing plans [15] - The company expects BOSS Money revenue and adjusted EBITDA to grow in the high teens for fiscal 2026 [19] Company Strategy and Development Direction - The company plans to continue integrating retailers with delivery services like DoorDash and is preparing to launch integrations with other large delivery services [4] - A focus on AI-driven solutions is evident, with plans to shift net2phone's revenue model from a seat-based to a usage-based model [7][19] - The company is committed to returning cash to stockholders through buybacks and dividends while evaluating potential acquisitions [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal year 2026, citing strong customer enthusiasm and ongoing growth initiatives [9][10] - The impact of a new 1% federal tax on remittances is expected to accelerate the migration to digital channels, which are exempt from the tax [18] - Management acknowledged challenges in the remittance business due to changing immigration policies but remains confident in the digital channel's growth potential [47][51] Other Important Information - The company did not repurchase shares in Q4 due to pursuing a significant acquisition opportunity that ultimately did not materialize [23][24] - A revised measure of non-GAAP adjusted EBITDA will be reported starting Q1 FY26, excluding non-cash compensation expenses [25][26] Q&A Session Summary Question: What is the progress with stablecoins and Visa-linked wallets? - Management indicated that wallets are in a beta phase and expect stablecoins to play a significant role in future transactions [28] Question: What is the WhatsApp launch date? - The WhatsApp service is set to launch in the next few days for existing customers, with a broader rollout expected in 30 to 45 days [30] Question: What are the main investments for growth this year? - Management refrained from providing specific guidance but emphasized a focus on customer acquisition at low costs [36] Question: What is the cause of increased churn in NRS terminals? - Factors include increased immigration enforcement affecting retailers, competition from new entrants, and technical issues with equipment [41][42] Question: Can the strong growth in BOSS Money be sustained? - Management believes growth may slow slightly but expects continued strong performance due to new initiatives [47][51] Question: What is the focus regarding future acquisitions? - Management indicated a preference for smaller acquisitions over larger ones, emphasizing internal growth and customer acquisition [54]

Financial Data and Key Metrics Changes - IDT reported a 43% increase in consolidated adjusted EBITDA to a record $129 million for fiscal year 2025, with full-year adjusted EBITDA totaling $128.7 million, surpassing guidance of $126 million [4][11][26] - Consolidated revenue increased by 2% for fiscal 2025, marking the first full-year increase since 2021, with Q4 revenue up by 3% [12][11] - Consolidated income from operations increased by 9% to $21.9 million in Q4 and by 55% to $100.4 million for the full year [12][14] Business Line Data and Key Metrics Changes - NRS segment's adjusted EBITDA increased by 37% to $34.2 million for the full year, with recurring revenue up by 27% to $122.6 million [14][15] - FinTech segment saw income from operations surge by 88% to $4.8 million in Q4, with adjusted EBITDA climbing over threefold to $5.5 million [16][19] - Net2phone's income from operations increased by 194% to $4.9 million for the full year, with adjusted EBITDA increasing by 54% to $12.1 million [19][20] Market Data and Key Metrics Changes - BOSS Money's digital channel now contributes over 80% of remittance volume, with digital transactions increasing by 28% in Q4 [5][17] - The average recurring revenue per terminal at NRS reached $299 in Q4, benefiting from increased penetration of premium payment processing plans [15][16] - The company expects BOSS Money revenue and adjusted EBITDA to grow in the high teens percentage range for fiscal 2026 [19] Company Strategy and Development Direction - IDT plans to continue focusing on high-margin growth segments, including merchant services and SaaS fees, to drive revenue and EBITDA growth [4][11] - The company is investing in AI-driven solutions across its segments, particularly in net2phone, where a shift from a seat-based model to a usage-based model is anticipated [7][19] - IDT is also evaluating potential acquisitions while maintaining a conservative approach to M&A, focusing on smaller opportunities rather than large ones [9][24][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2026, citing strong customer enthusiasm and the potential for continued growth despite challenges in the remittance market due to immigration policy changes [9][46] - The upcoming 1% federal tax on remittances is expected to accelerate the migration to digital channels, which are exempt from the tax [18][45] - Management acknowledged the competitive landscape but remains confident in IDT's ability to capture market share through innovative solutions [9][42] Other Important Information - The company will revise its non-GAAP adjusted EBITDA metric starting Q1 FY26 to exclude non-cash compensation expenses, with expectations of generating $141 to $145 million in adjusted EBITDA for fiscal 2026 [25][26] - IDT's cash position increased by $30 million to $254 million, reflecting strong cash generation across all segments [23] Q&A Session Summary Question: Progress on stablecoins and Visa-linked wallets - Management confirmed that wallets are in beta phase and expect stablecoins to play a significant role in future transactions [29] Question: WhatsApp launch date - The WhatsApp feature is launching soon, starting with existing customers [30] Question: Regulatory concerns regarding acquisitions - Management refrained from commenting on regulatory issues related to competitor acquisitions [31] Question: Main investments for growth - Management emphasized a focus on customer acquisition strategies without disclosing specific details [33] Question: Transition from seat model to usage model - The shift pertains mainly to AI agents, while UCaaS and CCaaS will continue to be sold by the seat [35] Question: Churn rate in NRS terminals - Management attributed churn to various factors, including increased competition and technical issues, but noted improvements [37][39] Question: Sustainability of BOSS Money's growth - Management anticipates growth may slow but believes initiatives will help maintain a strong growth trajectory [42][46] Question: Focus on smaller vs. larger acquisitions - Management indicated a preference for smaller acquisitions in the current market environment [48]

Part I [Item 1. Business.](index=4&type=section&id=Item%201.%20Business.) IDT Corporation provides fintech and communications solutions to underserved consumer and B2B markets, leveraging core strategic assets for growth. - IDT Corporation is a provider of fintech and communications solutions, leveraging core strategic assets to serve under-served consumer and B2B markets[14](index=14&type=chunk) Fiscal Year 2025 Segment Revenue Contribution | Segment | Revenue (Millions USD) | % of Total Revenues | | :----------------------- | :--------------------- | :------------------ | | National Retail Solutions | $128.8 | 10.5% | | Fintech | $154.6 | 12.6% | | net2phone | $87.9 | 7.1% | | Traditional Communications | $860.2 | 69.8% | - The company's strategy emphasizes accelerating growth in high-margin businesses (NRS, BOSS Money, net2phone) through organic development and strategic acquisitions, financed by cash flows from mature offerings, avoiding debt and dilutive capital raises[40](index=40&type=chunk)[41](index=41&type=chunk) - Key strategic assets include popular consumer and B2B brands (BOSS Money, BOSS Revolution, NRS, net2phone), a nationwide network of over **32,000** independent retailers, a customer base of over seven million, global technology infrastructure, VoIP and cloud services expertise, and a diverse global staff[45](index=45&type=chunk) - IDT operates in a complex regulatory environment, subject to telecommunications, money transmitter, payment instrument, anti-money laundering, privacy, and data security laws at federal, state, and international levels[119](index=119&type=chunk)[120](index=120&type=chunk)[125](index=125&type=chunk) [Overview](index=4&type=section&id=OVERVIEW) IDT Corporation is a fintech and communications solutions provider targeting underserved consumer and B2B markets, leveraging a common core of strategic assets for growth and profitability. - IDT Corporation provides fintech and communications solutions, focusing on under-served consumer and B2B markets[14](index=14&type=chunk) - The company's offerings leverage a common core of strategic assets to maximize synergies for growth and profitability[14](index=14&type=chunk) [Segment Reporting](index=4&type=section&id=SEGMENT%20REPORTING) IDT operates four reportable business segments: National Retail Solutions (NRS), Fintech, net2phone, and Traditional Communications. Each segment contributed varying percentages to total revenues in fiscal years 2025 and 2024, with Traditional Communications being the largest. - IDT has four reportable business segments: National Retail Solutions (NRS), Fintech, net2phone, and Traditional Communications[16](index=16&type=chunk) Segment Revenue Contribution (FY2025 vs FY2024) | Segment | FY2025 Revenue (Millions USD) | FY2025 % of Total | FY2024 Revenue (Millions USD) | FY2024 % of Total | | :----------------------- | :---------------------------- | :---------------- | :---------------------------- | :---------------- | | National Retail Solutions | $128.8 | 10.5% | $103.1 | 8.6% | | Fintech | $154.6 | 12.6% | $120.7 | 10.0% | | net2phone | $87.9 | 7.1% | $82.3 | 6.8% | | Traditional Communications | $860.2 | 69.8% | $899.6 | 74.6% | [Key Events in Our History](index=5&type=section&id=KEY%20EVENTS%20IN%20OUR%20HISTORY) IDT's history spans from its founding in 1990 to recent strategic developments in 2025, including significant spin-offs, public listings, and the launch of key services like BOSS Revolution, BOSS Money, NRS, and AI-powered net2phone offerings. - Founded in **1990** as International Discount Telephone, the company completed its IPO in **1996** and listed on NYSE in **2001**[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - Key business launches include BOSS Revolution (**2008**), BOSS Money (**2013**), net2phone UCaaS (**2015**), and NRS (**2016**)[26](index=26&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) - Recent developments in **2025** include net2phone launching AI Agent and Coach, NRS surpassing **37,000** active terminals, and BOSS Money handling **2.3 million** remittances in May[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - The company has executed several spin-offs, including CTM Media Holdings (**2009**), Genie Energy Ltd. (**2011**), Straight Path Communications (**2013**), and Zedge (**2016**), and Rafael Holdings (**2018**)[26](index=26&type=chunk)[27](index=27&type=chunk)[31](index=31&type=chunk)[34](index=34&type=chunk) [Our Strategy](index=6&type=section&id=OUR%20STRATEGY) IDT's strategy is to be a leading fintech and communications solutions provider by organically growing high-margin businesses like NRS, BOSS Money, and net2phone, funding these initiatives with cash flows from mature businesses, and avoiding debt or dilutive capital raises. The company aims to expand through new offerings, technologies, and market penetration, particularly in POS, fintech, and AI. - The core strategy is to grow high-margin businesses (NRS, BOSS Money, net2phone) organically, financed by cash flows from mature offerings[40](index=40&type=chunk) - This approach has enabled improved consolidated bottom-line performance, strengthened the balance sheet, and allowed for value return to stockholders through stock repurchases and dividends[40](index=40&type=chunk) - Future efforts focus on developing new offerings organically and through acquisitions, leveraging the balance sheet, and concentrating on POS, fintech, and AI businesses[41](index=41&type=chunk) [Business Description](index=6&type=section&id=BUSINESS%20DESCRIPTION) This section details the operations, revenue generation, and strategic focus of IDT's key business segments: National Retail Solutions (NRS), Fintech (BOSS Money), net2phone, and Traditional Communications (IDT Digital Payments, BOSS Revolution, IDT Global). Each segment has distinct offerings, target markets, competitive advantages, and growth strategies. [National Retail Solutions (NRS)](index=6&type=section&id=National%20Retail%20Solutions) NRS operates a POS terminal-based platform for independent retailers in the U.S., offering integrated hardware and software for efficient operations, payment processing, and digital advertising. NRS saw significant revenue and income growth in fiscal 2025, driven by expanding its POS network and merchant services. NRS Financial Performance (FY2025 vs FY2024) | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | Change ($) | Change (%) | | :--------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Revenues | $128.8 | $103.1 | $25.7 | 24.9% | | Income from Operations | $27.8 | $21.6 | $6.2 | 28.3% | NRS Key Metrics (July 31, 2025 vs 2024) | Metric | July 31, 2025 (Thousands) | July 31, 2024 (Thousands) | Change () | Change (%) | | :------------------------ | :------------------------ | :------------------------ | :--------- | :--------- | | Active POS terminals | 37.2 | 32.1 | 5.1 | 15.8% | | Payment processing accounts | 26.5 | 21.3 | 5.2 | 24.1% | - NRS generates revenue from terminal-based software services (SaaS), merchant services (NRS PAY), display advertising (NRS Digital Media), and data and analytics (NRS Insights)[50](index=50&type=chunk)[51](index=51&type=chunk) - Competitive advantages include purpose-built hardware/software, direct sales capabilities, customer-facing screens for advertising, unique reach into urban/multicultural markets, transparent payment processing pricing, and governmental EBT acceptance[53](index=53&type=chunk) - Growth strategy focuses on expanding the POS network into new retail verticals, subsidizing hardware for NRS Pay enrollment, converting existing terminal customers to NRS payment processing, integrating with new programmatic advertisers, developing home delivery partnerships, and building out digital wholesale supply channels[53](index=53&type=chunk) [Fintech](index=10&type=section&id=Fintech) The Fintech segment, primarily driven by BOSS Money, provides cross-border money transfer services. It experienced substantial revenue and income growth in fiscal 2025, largely due to increased transaction volume across both digital and retail channels. The segment leverages the BOSS brand and ecosystem for customer acquisition and competitive pricing. Fintech Financial Performance (FY2025 vs FY2024) | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | Change ($) | Change (%) | | :--------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Total Revenues | $154.6 | $120.7 | $33.9 | 28.1% | | BOSS Money Revenues | $139.8 | $108.3 | $31.5 | 29.1% | | Income from Operations | $15.4 | $(0.1) | $15.5 | nm | - BOSS Money offers international money transfers to **50** countries through approximately **1,800** disbursement partners and over **250,000** cash payout locations, with transactions initiated via digital channels (BOSS Money and BOSS Revolution apps) and retail agents[58](index=58&type=chunk)[59](index=59&type=chunk) -

Financial Performance - 4Q25 gross profit increased by 12% to $114 million, while FY 2025 gross profit rose by 14% to $446 million[1] - 4Q25 income from operations grew by 9% to $22 million, and FY 2025 income from operations surged by 55% to $100 million[1] - Adjusted EBITDA for FY 2025 reached a record $129 million, reflecting a 43% increase year-over-year[1] - Total revenue for IDT consolidated increased by 3% to $316.6 million in 4Q25, while FY 2025 total revenue rose by 2% to $1,231.5 million[4][8] - GAAP EPS for FY 2025 increased to $3.01 from $2.54, while Non-GAAP EPS rose to $3.19 from $1.95[8] - The company reported net income of $81.1 million for FY 2025, compared to $68.3 million in FY 2024, reflecting a 19.5% year-over-year growth[41] - IDT's total revenues for FY 2025 were $1.23 billion, slightly increasing from $1.21 billion in FY 2024, marking a 2.0% growth[41] - Net income for the year ended July 31, 2025, was $81,139,000, representing a 19% increase from $68,264,000 in 2024 and a 83% increase from $44,366,000 in 2023[43] - For FY 2025, net income attributable to IDT Corporation was $76.1 million, an increase from $64.5 million in FY 2024, reflecting a growth of approximately 18.8%[61] - Net income attributable to IDT Corporation for FY 2025 was $76.1 million, an increase from $64.5 million in FY 2024, representing a growth of 25%[63] Revenue Growth - NRS segment recurring revenue increased by 22% to $32.6 million in 4Q25, and FY 2025 recurring revenue rose by 27% to $122.6 million[4] - BOSS Money digital revenue grew by 31% to $27.6 million in 4Q25, with total revenue for the segment increasing by 21% to $38.2 million[4] - Digital channel revenue grew by 31% in 4Q25 to $27.6 million and by 36% for FY 2025, reaching $99.0 million[17] - Total revenue for the company increased by 21% in 4Q25 to $42.1 million and by 28% for FY 2025, totaling $154.6 million[17] - Subscription revenue for net2phone rose by 8% in 4Q25 to $22.2 million and by 9% for FY 2025, totaling $85.7 million[20] - Total revenue for net2phone increased by 7% in 4Q25 to $22.8 million and by 7% for FY 2025, reaching $87.9 million[19] - IDT Digital Payments revenue was $107.0 million in 4Q25, a 0.8% increase, and $416.3 million for FY 2025, a 2% increase[21] - The total revenue for NRS in 4Q25 was $34.3 million, up from $28.2 million in 4Q24, which is a growth of 22%[65] Cash Flow and Assets - The company held $253.8 million in cash and equivalents as of July 31, 2025, with no outstanding debt[24] - Net cash provided by operating activities increased to $31.0 million in 4Q25 from $25.4 million in 4Q24, and for FY 2025, it rose to $127.1 million from $78.2 million[25][26] - Cash and cash equivalents increased to $226.5 million in FY 2025 from $164.6 million in FY 2024, a growth of 37.6%[39] - Total current assets rose to $520.3 million in FY 2025, up from $422.5 million in FY 2024, indicating a 23.2% increase[39] - Cash, cash equivalents, and restricted cash at the end of 2025 totaled $341,832,000, a 34% increase from $255,456,000 in 2024[43] - The company reported a net increase in cash of $86,376,000 for the year, up from $56,633,000 in 2024, showcasing strong cash flow management[43] Investments and Future Plans - IDT plans to continue investing in new growth initiatives and evaluate potential acquisitions while returning cash to stockholders through buybacks and dividends[13] - Capital expenditures for 2025 were $20,770,000, compared to $18,922,000 in 2024, indicating ongoing investment in growth[43] - IDT expects to generate $141-$145 million of Adjusted EBITDA in FY 2026 under the revised non-GAAP definition[29] - IDT plans to include stock-based compensation expense in its calculation of Adjusted EBITDA starting in fiscal 2026, which may affect future financial metrics[62] Operational Metrics - NRS added approximately 1,500 net active terminals in 4Q25, with a total of 5,100 net active terminals added in FY 2025[16] - BOSS Money transactions increased by 22% year-over-year in 4Q25, reaching $6.6 million, and by 30% for FY 2025, totaling $23.9 million[17] - The 'Rule of 40' score for NRS was calculated by adding the growth rate of recurring revenue to the Adjusted EBITDA margin, providing insights into the balance between growth and profitability[56][57] - The Rule of 40 score for NRS in 4Q25 was 49%, combining revenue growth and profitability metrics[65] - The average number of active POS terminals for NRS is calculated to assess recurring revenue per terminal, which is crucial for revenue forecasting[69] - BOSS Money's digital send volume is a key operational metric, reflecting customer usage and performance in the remittance business[70] Tax and Expenses - The company recorded an income tax benefit of $3.3 million in 4Q25, reflecting improved profitability in the UK[54] - The company recorded a provision for income taxes of $24.7 million for FY 2025, compared to a benefit from income taxes of $6.4 million in FY 2024[61] - Stock-based compensation recognized was $3,074,000 in 2025, down from $7,397,000 in 2024, highlighting a reduction in this expense category[43] - The company reported other operating expenses, net of $5.9 million for Q4 2025, which includes severance expenses of $0.3 million[60]

Core Insights - IDT Corporation reported a strong financial performance for the fourth quarter and full fiscal year 2025, with significant increases in gross profit, income from operations, and adjusted EBITDA, indicating robust growth across its business segments [1][7][11]. Financial Performance - 4Q25 gross profit increased by 12% to $114 million, while FY 2025 gross profit rose by 14% to $446 million [1]. - Income from operations for 4Q25 grew by 9% to $22 million, and for FY 2025, it surged by 55% to $100 million [1][11]. - Adjusted EBITDA for 4Q25 was up 33% to $33 million, and for FY 2025, it increased by 43% to a record $129 million [1][11]. - 4Q25 earnings per share (EPS) were $0.67, with non-GAAP EPS at $0.76; FY 2025 EPS reached $3.01, and non-GAAP EPS was $3.19 [1][11]. Segment Performance National Retail Solutions (NRS) - NRS reported a 22% increase in recurring revenue to $32.6 million, with adjusted EBITDA rising by 32% to $9.3 million [4]. - The segment added approximately 1,500 net active terminals in 4Q25, contributing to a total of 37,200 active POS terminals [14]. - NRS is addressing customer churn through AI for prediction and enhanced service levels [14]. BOSS Money / Fintech Segment - BOSS Money digital revenue increased by 31% to $27.6 million, with total revenue up 21% to $38.2 million [4]. - The segment's income from operations grew by 88% to $4.8 million, and adjusted EBITDA soared by 267% to $5.5 million [4]. - BOSS Money's digital channel now accounts for over 80% of remittance volume, reflecting a significant shift from retail to digital [9][19]. net2phone - Subscription revenue for net2phone increased by 8% to $22.2 million, with income from operations rising by 74% to $1.5 million [4][20]. - The segment is focusing on AI solutions, with expectations that 30% of sales will involve AI offerings by year-end [10][23]. Traditional Communications - Traditional communications revenue decreased by 3% to $217.4 million, with gross profit up 2% to $41 million [22]. - The segment's income from operations increased by 11% to $15.4 million, indicating some resilience despite overall revenue decline [22]. Cash Flow and Capital Expenditures - Net cash provided by operating activities in 4Q25 increased to $31 million from $25.4 million in 4Q24, with FY 2025 net cash rising to $127.1 million from $78.2 million in FY 2024 [28][29]. - Capital expenditures for FY 2025 increased to $20.8 million from $18.9 million in FY 2024, reflecting ongoing investments in growth initiatives [29]. Future Outlook - IDT expects to generate between $141 million and $145 million of adjusted EBITDA in FY 2026, following a revision in its non-GAAP Adjusted EBITDA definition [30][31]. - The company plans to continue investing in new growth initiatives and return cash to stockholders through dividends and share repurchases [12][34].