IDT(US:IDT)2025-12-04 21:41Revenue 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]