IDT(US:IDT)2025-03-07 06:32Financial Data and Key Metrics Changes - IDT Corporation generated record levels of gross profit, income from operations, and adjusted EBITDA in Q2 2025, with consolidated adjusted EBITDA reaching $34 million, bringing the total for the first half of the year to $63 million [12][22]. - The company expects to achieve approximately 40% adjusted EBITDA growth in fiscal 2025, building on the record $90 million obtained in fiscal 2024 [22]. 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 [16]. - BOSS Money achieved a transaction volume of 5.7 million, with digital transactions representing over 80% of all remittances, and gross profit for the Fintech segment grew by 35% to a record $22 million [17][18]. - net2phone's subscription revenue increased by 9% to $21 million, with a 14% increase on a constant currency basis [19]. Market Data and Key Metrics Changes - NRS's same-store sales increased by 3.5% year-over-year in February, indicating healthy business activity among independent retailers [23]. - BOSS Money's transaction volume in February increased by over 30% compared to the previous year, with the second highest weekly remittance transaction volume in its history recorded recently [23]. Company Strategy and Development Direction - The company is focusing on enhancing its solutions for retailers through new features and functionalities, aiming to deepen market penetration and drive growth [8]. - IDT is not currently looking to expand NRS internationally but may consider acquisitions for international growth in the future [36]. Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the potential impact of new federal immigration policies, noting no significant slowdown in business to date [23]. - The company plans to continue increasing its quarterly dividend and return value to shareholders through stock repurchases, reflecting confidence in its financial position [27][28]. Other Important Information - The company has increased its regular quarterly dividend by 20% and repurchased over 179,000 shares for $8.5 million in the quarter [12][28]. - The introduction of net2phone's virtual AI agent is expected to enhance customer interactions and reduce costs [10][11]. Q&A Session Summary Question: NRS terminal growth guidance - Management acknowledged a slight delay in reaching the target of 6,000 terminals but expressed optimism about making up for it later in the year [36][37]. Question: Advertising revenue performance - Advertising revenue increased by 12% year-over-year, with a significant jump in data revenue growing by almost 40% [35]. Question: International expansion plans for NRS - Management indicated that international expansion is not a current focus, with a preference for organic growth in the U.S. market [36]. 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 [40]. Question: BOSS Money working capital requirements - Management explained that the strong balance sheet allows them to fund working capital needs without incurring financing costs [46][47]. Question: Balancing profitability and growth in BOSS Money - Management emphasized a cautious approach to spending, focusing on maintaining profitability while exploring growth opportunities [55][58]. Question: Expansion into new verticals for BOSS Money - Management reported that new country expansions are going better than expected, although scale is still needed to reap significant benefits [62].