Financial Data and Key Metrics Changes - IDT reported a 133% year-over-year increase in consolidated income from operations, a 57% increase in consolidated adjusted EBITDA, and a 290% increase in EPS [6] - Gross profit increased 15% year-over-year, with a gross profit margin reaching a record high of 37.1% [12][13] - Cash and cash equivalents increased to $224 million from $171 million at the end of the previous quarter [19] Business Line Data and Key Metrics Changes - NRS saw a 23% year-over-year increase in recurring revenue, driven by a 37% increase in merchant services revenue and a 32% increase in SaaS fees [6] - The fintech segment, including Boss Money, generated over $5 million in adjusted EBITDA compared to $244,000 in the same quarter last year [8] - Traditional communications segment income from operations and adjusted EBITDA both increased over 30% year-over-year [9] Market Data and Key Metrics Changes - Subscription revenue for Netafone increased 7% to $21.5 million, with a higher constant currency increase of 11% [18] - Digital remittance transactions through Boss Money constituted over 80% of total remittances, with a 27% increase in transactions and a 25% increase in revenue [7][16] - Advertising and data revenue decreased by 12% year-over-year, largely due to a strategic decision to limit sales to a major client [14] Company Strategy and Development Direction - The company is focusing on developing new offerings that leverage the NRS platform to help independent retailers compete with larger chains [7] - IDT is pursuing next-generation growth initiatives while maintaining operational efficiency in its existing segments [10] - The company is exploring acquisitions but emphasizes the importance of paying the right price to extract value [37] Management's Comments on Operating Environment and Future Outlook - Management noted that the third quarter was slightly softer than the second quarter due to seasonal factors, but overall performance was strong [11] - The company remains optimistic about future growth, particularly in the fintech and SaaS segments, despite some challenges in the advertising revenue [12][14] - Management confirmed guidance for the full fiscal year, expecting to double the adjusted EBITDA from the first half [21] Other Important Information - The company has been actively repurchasing shares and is considering further capital allocation strategies based on acquisition opportunities [40][42] - IDT has implemented AI agents in its Netafone segment, which are already showing benefits in efficiency [9] Q&A Session Summary Question: Insights on NRS growth and sales strategy - Management indicated that increased efforts in sales and onboarding new retailers contributed to strong revenue despite fewer terminal additions [26][28] Question: AI agent customer demographics - Most customers for the AI agent are existing Netafone customers, with plans to expand to new clients in the future [30] Question: Future acquisitions and technology integration - Management confirmed ongoing interest in acquisitions and highlighted the recent acquisition of a restaurant technology company [38] Question: Stock repurchase strategy - Management stated that stock repurchases are made with excess cash, not borrowed funds, and will continue based on market conditions [43] Question: Advertising revenue outlook post-partner reduction - Management noted that while a significant partner was reduced, other advertising relationships are growing, and they expect to fill the gap [62] Question: Future EBITDA margins for NetSuite phone - Management expressed uncertainty about future margins but indicated that new initiatives could lead to substantial improvements over time [66] Question: Investment in customer acquisition for Boss Money - Management acknowledged the potential for increased investment in customer acquisition to capture market share from legacy players [70]

Financial Data and Key Metrics Changes - IDT Corporation generated record levels of gross profit, income from operations, and adjusted EBITDA in the second quarter, with consolidated adjusted EBITDA reaching a record $34 million, bringing the total for the first half of the year to $63 million [21][11][12] - The company expects to achieve approximately 40% adjusted EBITDA growth in fiscal 2025, building on the record $90 million obtained in fiscal 2024 [21] Business Line Data and Key Metrics Changes - NRS reported a 32% growth in recurring revenue, with adjusted EBITDA exceeding $10 million, and $310 in recurring revenue per terminal [15][11] - BOSS Money achieved a transaction volume of 5.7 million, with digital transactions representing over 80% of all remittances, and gross profit growth of 35% to a record $22 million [16][17] - net2phone's subscription revenue increased by 9% to $21 million, with a 14% increase on a constant currency basis [18] Market Data and Key Metrics Changes - Same-store sales at NRS retailers increased by 3.5% year-over-year in February, indicating healthy business activity [22] - BOSS Money's transaction volume in February increased by over 30% compared to the previous year, achieving the second highest weekly remittance transaction volume in its history [22] Company Strategy and Development Direction - The company is focusing on deepening market penetration and enhancing the value of its solutions for retailers through new features and functionalities [7] - IDT plans to continue returning value to shareholders through stock repurchases and increasing dividends, with a 20% increase in the quarterly dividend announced [11][26] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the impact of new federal immigration policies, noting no significant slowdown in business across segments [22] - The company is optimistic about the trajectory and opportunities in the U.S. market, with no immediate plans for organic international expansion [35] Other Important Information - The company provided capital expenditures from each reporting segment for the first time, offering greater clarity into cash generation [13] - IDT's traditional communications segment has seen adjusted EBITDA increase for three consecutive quarters, surpassing $20 million for the first time since fiscal 2022 [11][20] Q&A Session Summary Question: NRS terminal growth guidance - Management acknowledged a slight delay in adding units but expressed confidence in making up for it over the year due to new sales personnel [36] Question: Advertising revenue performance - Advertising revenue increased by 12% year-over-year, with data side growth of nearly 40% [34] Question: International expansion plans for NRS - Management indicated that international expansion is not a current focus, with potential acquisitions being a more likely route for entering new markets [35] Question: net2phone revenue growth despite low seat count addition - Management noted a good pipeline of larger deals and expects better performance in the second half of the year [39] Question: BOSS Money working capital requirements - Management clarified that the strong balance sheet supports working capital needs, allowing avoidance of financing costs [45] Question: Balancing profitability and growth in BOSS Money - Management emphasized a cautious approach to growth, focusing on profitability while exploring opportunities for investment in customer acquisition [51][56] Question: Expansion into new verticals for BOSS Money - Management reported positive initial results from new markets like Venezuela, while Brazil is still in the launch phase [62]