Financial Data and Key Metrics Changes - IDT achieved record levels in several key consolidated financial metrics, including gross profit, gross profit margin, Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP EPS [8] - The company raised its consolidated Adjusted EBITDA guidance for fiscal 2026 from the range of $141-$145 million to $147-$149 million, reflecting a $5 million increase and a 12% increase compared to fiscal 2025 actuals [10][11] Business Line Data and Key Metrics Changes - NRS recurring revenue grew year-over-year, driven by significant increases in merchant services and SaaS fee revenues [4] - BOSS Money's digital channel transactions increased by 17% year-over-year, outperforming the industry [4] - Net2Phone's Adjusted EBITDA grew by 37% year-over-year to $3.9 million, benefiting from strengthening gross margins and operating leverage [11][12] Market Data and Key Metrics Changes - The new federal remittance tax, effective January 1, has accelerated customer migration from lower-margin retail channels to higher-margin digital channels [5][12] - The impact of the remittance tax has been primarily felt on transactions originated at retailer agents rather than those initiated through digital channels [11] Company Strategy and Development Direction - The company is focusing on expanding its higher-margin growth segments, namely NRS, Fintech, and Net2Phone, while the contributions from the lower-margin Traditional Communications segment are becoming less impactful [8] - IDT is developing new AI offerings, such as Agentic AI, targeting small and medium businesses [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing rotation towards higher-margin digital transactions and the positive impacts expected from the new federal remittance tax [5][12] - The company is pleased with its financial results and is continuing to build on its momentum, with expectations for further growth in the second half of the fiscal year [14] Other Important Information - The board has increased the annual dividend by 17% to $0.28 per year, marking the second consecutive year of dividend increases [6][9] - IDT repurchased $15 million of stock in the first six months of fiscal 2026, indicating a commitment to returning capital to shareholders [9] Q&A Session Summary Question: Will the monthly report for NRS be released again? - Management indicated that the report would likely be released soon [18][19] Question: What caused the increase in SG&A and the pickup in advertising? - The increase in SG&A was attributed to new product sales, hiring in advance of product launches, and a higher percentage of sales through resellers [20] Question: What are the dynamics of the advertising market? - Management acknowledged challenges in advertising sales but expressed confidence in improving connections between data and ads to drive future sales [22][23] Question: How has the remittance tax affected BOSS Money's revenue? - The tax has led to a significant increase in digital transactions, with management noting a strong uptick in January and February following the tax implementation [27][29] Question: What is the competitive landscape for BOSS Money? - Management acknowledged strong competition but emphasized the quality of their app and customer experience as key differentiators [43][44] Question: What are the plans for MarketSpark? - Management refrained from commenting on MarketSpark's business without authorization [32][34] Question: Any updates on M&A plans? - Management stated there are no updates on M&A discussions at this time [36]