IDT(US:IDT)2025-09-29 20:40Financial 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]