Core Insights - IDT reported significant growth in recurring revenue, primarily driven by increases in merchant services and SaaS fee revenues, with a focus on expanding delivery partnerships and developing offerings for differentiated retailer verticals [1] - The three growth segments contributed 53% of consolidated adjusted EBITDA less CapEx, an increase from 45% in the previous year, indicating improved cash flow contributions from these segments [1] - Record levels were achieved in gross profit, gross profit margin, adjusted EBITDA, adjusted EBITDA margin, and non-GAAP earnings per share, attributed to a shift towards higher-margin segments [1] Financial Performance - The annual dividend was increased by 17% to $0.28, and $15 million of stock was repurchased in the first half of fiscal 2026, with management indicating that buybacks will remain opportunistic [2][16] - Adjusted EBITDA guidance for fiscal 2026 was raised to a range of $147 million to $149 million, reflecting stronger-than-expected profitability across segments [15] Segment Performance - BOSS Money experienced a 17% increase in digital transactions and a 15% rise in gross profit, with adjusted EBITDA for the segment jumping 44% year-over-year, driven by a new remittance tax that accelerated customer migration to digital transactions [3][5][7] - net2phone's adjusted EBITDA rose 37% year-over-year to $3.9 million, supported by improved gross margins and disciplined investment in AI offerings [10][11] - Traditional Communications generated $19 million in adjusted EBITDA, showing resilience despite a slight decline compared to the previous year [13][14] Market Conditions - The competitive landscape remains strong, with both traditional and digital-only rivals, prompting increased spending on customer acquisition [9] - Management noted that the economics of single-store operators are more influenced by the broader economy than immigration issues, although market-specific impacts may exist [4]