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].

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

Summary of IDT Conference Call - September 17, 2025 Company Overview - **Company**: IDT Corporation (NYSE:IDT) - **Market Cap**: Approximately $1.6 billion, an increase of nearly 80% over the past year [2] - **Headquarters**: Newark, New Jersey - **Financial Position**: Profitable with $224 million in cash and no debt, providing strategic flexibility [3] Key Business Segments High-Growth, High-Margin Businesses 1. **National Retail Solutions (NRS)** - Largest point-of-sale platform for independent retailers in the U.S. with 37,200 active terminals across over 32,000 stores [4][5] - Recurring revenue increased 23% year-over-year to $29.4 million, with a 70% CAGR from 2021 to 2024 [6] - Recurring revenue per terminal increased to $279.79 per month, up 3% year-over-year [7] - Merchant services revenue grew 37% year-over-year to $20 million, with a four-year CAGR of 91% [8] - Adjusted EBITDA for NRS was $7.2 million with a 23% EBITDA margin [10] 2. **BOSS Money** - International money remittance business generating over 90% of fintech segment revenue [11] - Digital transaction volume increased 32% in Q3, with send volume up 40% [12] - Digital revenue grew 31% to $24.5 million in Q3, with a four-year annualized growth rate of 27% [12] - Adjusted EBITDA for BOSS Money was over $5 million, with a 13% margin [15] 3. **net2phone** - Provides cloud communications services, focusing on SMB and mid-market enterprises [16] - Served 415,000 UCaaS and CCaaS seats, with an 8% year-over-year increase [17] - Adjusted EBITDA increased 50% year-over-year to $3.2 million, with a margin of 15% [17] Traditional Communication Segment - Generated $867 million in revenue over the trailing 12 months, accounting for 71% of consolidated revenue [18] - Focus on expanding digital prepaid platforms while managing declines in legacy businesses [19] Financial Performance - Consolidated gross profit margin reached a record 37.1%, up 470 basis points year-over-year [20] - Adjusted EBITDA for the trailing 12 months was $120.4 million, with expectations of at least $126 million for fiscal year 2025 [22] - Regular quarterly dividend increased from 5% to 6% ($0.06 per share) [22] Market and Regulatory Environment - Immigration policy impacts money transfer operators; IDT positioned well due to its digital focus [24] - A 1% remittance transaction tax will take effect on January 1, 2026, primarily affecting cash transactions [25] - Retailers in immigrant-heavy communities are not significantly impacted by immigration issues, with an 8% year-over-year sales increase reported [27] Future Outlook - Guidance for fiscal 2026 to be provided in the upcoming Q4 earnings report [29] - Focus on increasing recurring revenue per terminal and expanding the customer base through upselling and cross-marketing initiatives [30][32] Additional Insights - The company is actively scouting M&A opportunities to enhance growth [22] - The shift towards digital transactions is expected to continue driving revenue growth and customer acquisition [25][26]

Company Overview - IDT Corporation is a global provider of fintech and communications solutions, operating through a portfolio of synergistic businesses including National Retail Solutions, BOSS Money, net2phone, IDT Digital Payments, and IDT Global [4] Upcoming Event - IDT Corporation will participate in the Sidoti September Virtual Investor Conference on September 17th and 18th, 2025 [1] - Marcelo Fischer, IDT's Chief Financial Officer, and Bill Ulrey, VP Investor Relations, will present an overview of the company's operations, strategy, and financial results for the third quarter of fiscal year 2025 on September 17th from 10:45 to 11:15 AM Eastern Time [2] Presentation Details - The IDT presentation will be available via webcast on the Sidoti website, and registration for the presentation is free and open to the public [2]

Core Viewpoint - IDT Corporation is set to release its financial and operational results for the fourth quarter and full fiscal year 2025 on September 29, 2025, highlighting its ongoing commitment to transparency and investor engagement [1]. Financial Reporting - The earnings release will be available on the IDT investor relations website at approximately 4:30 PM Eastern on the reporting date [1]. - An earnings conference call will follow at 5:30 PM Eastern, featuring management's discussion of the results and a Q&A session with investors [2]. Conference Call Details - Investors can participate in the conference call by dialing 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international), using access code 849358 [2]. - A replay of the conference call will be available approximately three hours after the call concludes, accessible until October 13, 2025 [3]. - The replay can be accessed by dialing 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international), using replay passcode 52805, and 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 - August same-store sales increased by 8.3% year-over-year, marking the largest increase in over two years [1][5] - The average price for the top 500 items rose by 3.0% year-over-year, indicating a higher inflation rate compared to previous months [1][12] Sales Performance - Same-store sales rose 3.4% compared to July 2025, which had a 5.8% increase year-over-year [5][6] - For the three months ending August 31, 2025, same-store sales increased by 5.6% compared to the same period last year [6] - Units sold increased by 4.3% year-over-year, with a 1.8% increase compared to the previous month [6] - Baskets per store increased by 2.6% year-over-year, reflecting a 2.2% increase from the previous month [6] Transaction Data - The NRS retail network had approximately 37,100 active terminals as of August 31, 2025, processing transactions at around 32,200 independent retailers [2] - During August 2025, NRS' POS terminals processed $2.2 billion in sales, an 18% increase year-over-year [16] Market Commentary - The growth in sales was attributed to more frequent shopping trips and larger basket sizes, with transactions rising by 2.6% [11] - Consumers are increasingly turning to local independent retailers for key categories such as cigarettes, prepared cocktails, and beer [12]

Core Insights - NRSInsights reported a 5.8% year-over-year increase in same-store sales for July 2025, marking the highest growth rate in over a year [6][10] - The NRS retail network includes approximately 37,200 active terminals across 32,100 independent retailers, primarily serving urban consumers [2][14] - The data reflects a total of $2.1 billion in sales processed through NRS POS terminals in July 2025, an 18% increase year-over-year [14] Sales Performance - Same-store sales increased 5.8% year-over-year and 0.3% month-over-month compared to June 2025 [6] - For the three months ending July 31, 2025, same-store sales rose 4.2% compared to the same period last year [6] - Units sold increased by 3.2% year-over-year but decreased by 1.5% compared to June 2025 [6] Transaction Metrics - The number of baskets (transactions) per store increased by 1.5% year-over-year but decreased by 0.4% compared to June 2025 [6] - The average price of the top 500 items purchased rose by 2.9% year-over-year, slightly higher than the 2.7% increase recorded in June 2025 [6] Comparative Analysis - Over the past twelve months, the U.S. Commerce Department's Advance Monthly Retail Trade data, excluding food services, outpaced the NRS network's three-month moving average same-store sales by 0.2% on average [8] - In June, the NRS network's three-month rolling average increase exceeded the U.S. Commerce Department's by 0.9% [8] Consumer Behavior Insights - Beverage categories, including energy drinks and soft drinks, contributed significantly to sales growth, while certain snack categories faced challenges [11] - Shifts in consumer behavior have led to increased demand for prepared cocktails and nutrition shakes [11] Transaction Volume - Same-store data comparisons for July 2025 were based on approximately 226 million transactions processed through about 23,000 stores [12] - For the three months ending July 31, 2025, comparisons were derived from approximately 649 million scanned transactions [13]

Group 1 - IDT's shares have decreased nearly 20% from their all-time high of $71, which was reached earlier this month [1] - Despite the recent decline, IDT's shares remain 23% above the price at the time of the initial analysis [1] Group 2 - The analysis focuses on undercovered companies, particularly in sectors such as technology, software, electronics, and energy transition [1] - The analyst has over 7 years of personal investment experience and emphasizes the importance of identifying asymmetric investment opportunities for achieving market-beating returns [1]