IDT(US:IDT)2025-12-10 20:54Revenue Growth - National Retail Solutions (NRS) revenue increased by 22.0% to $37.1 million for the three months ended October 31, 2025, compared to $30.4 million in the same period of 2024[120] - Recurring revenue for NRS grew by 22.1% to $35.3 million, driven by the expansion of the retailer network and increased adoption of premium software services[121] - Fintech segment revenue increased by 15.1% to $42.7 million, with BOSS Money revenue rising by 13.6% to $38.3 million[126] - Total revenues for the three months ended October 31, 2025, increased to $23.4 million, up 8.3% from $21.6 million in the same period of 2024[1] - Subscription revenues rose to $23.0 million, reflecting a 9.5% increase from $21.0 million year-over-year[1] - Revenues from the Traditional Communications segment slightly decreased to $219.5 million, down 0.5% from $220.5 million in the same period of 2024[1] - IDT Digital Payments revenue grew by 1.9% to $107.1 million, while BOSS Revolution revenue declined by 17.3% to $47.0 million[1] Operational Performance - Active POS terminals increased by 14.5% to 37.9 thousand, while payment processing accounts rose by 20.3% to 27.3 thousand[121] - Income from operations for the Fintech segment surged by 98.7% to $6.4 million, up from $3.2 million in the prior year[126] - Income from operations improved significantly to $1.9 million, an 88.7% increase from $1.0 million in the same quarter of 2024[1] - The gross margin percentage increased to 79.8%, up from 79.0% in the previous year[1] - Gross margin for BOSS Money improved to 59.7%, up from 58.2% in the previous year[126] Expenses and Financial Management - Selling, general and administrative expenses for NRS decreased as a percentage of revenue to 59.0% from 62.6% year-over-year[123] - Selling, general and administrative expenses as a percentage of revenues decreased to 58.6% from 60.8% year-over-year[1] - Stock-based compensation expense rose to $2.0 million from $0.9 million in the prior year, reflecting increased expenses related to long-term incentive programs[1] - Technology and development expenses for NRS increased due to ongoing investments in premium software services[124] Cash Flow and Capital Expenditures - For the three months ended October 31, 2025, net cash used in operating activities was $10.1 million, compared to a cash inflow of $0.2 million in the same period of 2024[157][158] - The company deployed $5.3 million for capital expenditures during the three months ended October 31, 2025, and anticipates total capital expenditures of $20 million to $22 million for the twelve-month period ending October 31, 2026[165] - Customer fund deposits increased by $10.2 million during the three months ended October 31, 2025, reflecting balances held on behalf of customers across various programs[161] - The company paid cash dividends of $1.5 million during the three months ended October 31, 2025, with a declared cash dividend of $0.06 per share payable on December 23, 2025[169] - The company repurchased 158,424 shares of Class B common stock for an aggregate purchase price of $7.6 million during the three months ended October 31, 2025[171] Strategic Outlook - The net2phone segment represented 7.3% of total revenues, contributing to the company's overall growth strategy[130] - The company anticipates federal cash taxes liability to approximate 21% of estimated full-year pretax income starting with fiscal 2026[164] - The company is considering strategic investments and acquisitions to expand and enter new businesses, although there is no guarantee of successful opportunities[174] International Operations - Revenues from international operations accounted for 21% of consolidated revenues for both the three months ended October 31, 2025, and 2024[175] - The value of the company's debt and equity security holdings was $35.4 million as of October 31, 2025, representing 5% of total assets[176][177]