IDT Corporation Reports Record Second Quarter 2025 Results

Core Insights - IDT Corporation reported record levels of gross profit, income from operations, and Adjusted EBITDA for the second quarter of fiscal year 2025, with gross profit increasing by 16% to $112 million and income from operations rising by 77% to $28.3 million [1][6][10] - The company raised its quarterly dividend by 20% to $0.06 per share, reflecting a solid financial position and positive outlook [1][10] - GAAP EPS increased to $0.80 from $0.57, while Non-GAAP EPS rose to $0.84 from $0.67, indicating strong earnings growth [1][10] Financial Performance - Total revenue for 2Q25 was $303.3 million, a 2% increase from $296.1 million in 2Q24 [40] - Adjusted EBITDA for the quarter was $34.0 million, up 56% from the previous year [1][10] - Net income attributable to IDT increased by 41% to $20.3 million [1][10] Segment Performance National Retail Solutions (NRS) - Recurring revenue grew by 32% to $31.6 million, with income from operations increasing by 71% to $9.1 million [5][11] - Active POS terminals rose by 21% year-over-year to 34,800, and payment processing accounts increased by 32% to 23,900 [11][17] BOSS Money / Fintech Segment - BOSS Money transactions increased by 36% to 5.7 million, with revenue rising by 34% to $33.5 million [5][18] - The Fintech segment's income from operations improved to $3.1 million from a loss of $(0.7) million [5][18] net2phone - Subscription revenue increased by 9% to $21.0 million, with income from operations rising to $1.1 million from $0.4 million [5][20] - The segment's Adjusted EBITDA grew by 55% to $2.9 million [5][20] Traditional Communications - Revenue for this segment was $212.0 million, a decrease of 5% year-over-year, but gross profit increased by 2% to $43.1 million [22][33] - Adjusted EBITDA surpassed $20 million for the first time since fiscal 2022, indicating improved cash generation [10][33] Capital Management - The company repurchased 179,338 shares of Class B common stock for $8.5 million during 2Q25 [1][10] - Capital expenditures increased by 6% to $4.8 million [1][10] Cash Position - As of January 31, 2025, IDT held $171.1 million in cash and cash equivalents, with total current assets of $462.1 million [26][27] - The company had no outstanding debt at the end of the quarter [26][27]