IDT Corporation Reports Third Quarter 2025 Results

Core Insights - IDT Corporation reported strong financial results for the third quarter of fiscal year 2025, with significant year-over-year increases in gross profit, income from operations, and earnings per share [1][4][30]. Financial Performance - Gross profit increased by 15% year-over-year to $112 million, achieving a record gross profit margin of 37.1$27 million, while adjusted EBITDA increased by 57% to $32 million [1][3]. - GAAP EPS increased to$0.86 from $0.22, and non-GAAP EPS rose to$0.90 from $0.38 [1][3]. Segment Performance National Retail Solutions (NRS) - Recurring revenue grew by 23$29.4 million, driven by a 37% increase in Merchant Services revenue and a 33% rise in SaaS fees [2][5]. - Income from operations and adjusted EBITDA both increased by 29% year-over-year [2][5]. BOSS Money / Fintech Segment - BOSS Money transactions increased by 27% to 6 million, with revenue rising by 25% to $34.4 million [2][7]. - The fintech segment's gross profit grew by 31$22.6 million, and income from operations reached $4.3 million [2][7]. net2phone - Subscription revenue increased by 7$21.5 million, with income from operations surging by 188% to $1.4 million [3][26]. - Adjusted EBITDA for net2phone rose by 50$3.2 million [3][26]. Traditional Communications - Gross profit increased by 5% to $43.4 million, with income from operations rising by 39$17.3 million [3][9]. - Adjusted EBITDA for this segment grew by 30% to $19.3 million [3][9]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was$75.7 million in 3Q25, compared to $9.5 million in 3Q24 [30]. - Capital expenditures increased by 14$5.4 million [3][31]. Future Outlook - The company is focusing on developing new offerings to enhance the competitiveness of independent retailers against larger chains [6]. - BOSS Money is working on initiatives to drive long-term growth and reduce cross-border transaction friction [7].