IDT(IDT) - 2025 Q4 - Annual Report

Part I Item 1. Business. 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] 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][41] - 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] - 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][120][125] 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] - The company's offerings leverage a common core of strategic assets to maximize synergies for growth and profitability[14] Segment Reporting 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] 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 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][24][25] - Key business launches include BOSS Revolution (2008), BOSS Money (2013), net2phone UCaaS (2015), and NRS (2016)[26][29][30][32] - 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][38][39] - 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][27][31][34] Our Strategy 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] - 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] - Future efforts focus on developing new offerings organically and through acquisitions, leveraging the balance sheet, and concentrating on POS, fintech, and AI businesses[41] Business Description 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) 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 | $6.2 | 28.3% | NRS Key Metrics (July 31, 2025 vs 2024) | Metric | July 31, 2025 (Thousands) | July 31, 2024 (Thousands) | Change () | Change (%) | | :------------------------ | :------------------------ | :------------------------ | :--------- | :--------- | | Active POS terminals | 37.2 | 32.1 | 5.1 | 15.8% | | Payment processing accounts | 26.5 | 21.3 | 5.2 | 24.1% | - NRS generates revenue from terminal-based software services (SaaS), merchant services (NRS PAY), display advertising (NRS Digital Media), and data and analytics (NRS Insights)[50][51] - Competitive advantages include purpose-built hardware/software, direct sales capabilities, customer-facing screens for advertising, unique reach into urban/multicultural markets, transparent payment processing pricing, and governmental EBT acceptance[53] - Growth strategy focuses on expanding the POS network into new retail verticals, subsidizing hardware for NRS Pay enrollment, converting existing terminal customers to NRS payment processing, integrating with new programmatic advertisers, developing home delivery partnerships, and building out digital wholesale supply channels[53] Fintech The Fintech segment, primarily driven by BOSS Money, provides cross-border money transfer services. It experienced substantial revenue and income growth in fiscal 2025, largely due to increased transaction volume across both digital and retail channels. The segment leverages the BOSS brand and ecosystem for customer acquisition and competitive pricing. Fintech Financial Performance (FY2025 vs FY2024) | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | Change ($) | 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][59] -