IDT(US:IDT)2025-09-29 22:32Financial Data and Key Metrics Changes - For fiscal year 2025, consolidated adjusted EBITDA increased by 43% to a record $129 million, driven by double-digit growth across all operating segments [4][11] - Consolidated revenue in Q4 increased by 3%, with full-year revenue rising by 2%, marking the first full-year increase since 2021 [11][12] - Adjusted EBITDA for Q4 rose by 33% to $33.4 million, while for the full year, it increased by 43% to $128.7 million [14][26] Business Line Data and Key Metrics Changes - NRS segment's income from operations decreased by 3% to $5.8 million in Q4, but adjusted EBITDA increased by 32% to $9.3 million [14] - FinTech segment's income from operations surged by 88% to $4.8 million in Q4, with adjusted EBITDA climbing over threefold to $5.5 million [16] - Net2phone's income from operations increased by 74% to $1.5 million in Q4, while adjusted EBITDA rose by 42% to $3.5 million [19] Market Data and Key Metrics Changes - BOSS Money's digital channel now contributes over 80% of remittance volume, with digital transactions increasing by 28% in Q4 [5][17] - The average recurring revenue per terminal at NRS reached $299 in Q4, benefiting from increased penetration of premium payment processing plans [15] - The company expects BOSS Money revenue and adjusted EBITDA to grow in the high teens for fiscal 2026 [19] Company Strategy and Development Direction - The company plans to continue integrating retailers with delivery services like DoorDash and is preparing to launch integrations with other large delivery services [4] - A focus on AI-driven solutions is evident, with plans to shift net2phone's revenue model from a seat-based to a usage-based model [7][19] - The company is committed to returning cash to stockholders through buybacks and dividends while evaluating potential acquisitions [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal year 2026, citing strong customer enthusiasm and ongoing growth initiatives [9][10] - The impact of a new 1% federal tax on remittances is expected to accelerate the migration to digital channels, which are exempt from the tax [18] - Management acknowledged challenges in the remittance business due to changing immigration policies but remains confident in the digital channel's growth potential [47][51] Other Important Information - The company did not repurchase shares in Q4 due to pursuing a significant acquisition opportunity that ultimately did not materialize [23][24] - A revised measure of non-GAAP adjusted EBITDA will be reported starting Q1 FY26, excluding non-cash compensation expenses [25][26] Q&A Session Summary Question: What is the progress with stablecoins and Visa-linked wallets? - Management indicated that wallets are in a beta phase and expect stablecoins to play a significant role in future transactions [28] Question: What is the WhatsApp launch date? - The WhatsApp service is set to launch in the next few days for existing customers, with a broader rollout expected in 30 to 45 days [30] Question: What are the main investments for growth this year? - Management refrained from providing specific guidance but emphasized a focus on customer acquisition at low costs [36] Question: What is the cause of increased churn in NRS terminals? - Factors include increased immigration enforcement affecting retailers, competition from new entrants, and technical issues with equipment [41][42] Question: Can the strong growth in BOSS Money be sustained? - Management believes growth may slow slightly but expects continued strong performance due to new initiatives [47][51] Question: What is the focus regarding future acquisitions? - Management indicated a preference for smaller acquisitions over larger ones, emphasizing internal growth and customer acquisition [54]