IDT Corporation (NYSE:IDT) Q3 2025 Earnings Conference Call June 5, 2025 5:00 PM ET Company Participants Bill Ulrey - Vice President of Investor Relations & External Affairs Marcelo Fischer - Chief Financial Officer Samuel Jonas - Chief Executive Officer Conference Call Participants Alexander Rohr - Unidentified Company William Vaughan - Unidentified Company Operator Good evening. Welcome to the IDT Corporation's Third Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] Please note, this c ...

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]

IDT (IDT) Q3 2025 Earnings Call June 05, 2025 05:00 PM ET Speaker0 Evening. Welcome to the IDT Corporation's Third Quarter Fiscal twenty twenty five Earnings Conference Call. All participants are now in listen only mode. A question and answer session will follow management's remarks. Please note this conference call is being recorded. Will now turn the call over to Bill Urie of IDT Investor Relations. Bill, you may begin. Thank you, John. In today's presentation, IDT's Chief Executive Officer, Shmuel Jonas ...

Financial Performance - Gross profit increased by 15% year-over-year to $112 million, achieving a record gross profit margin of 37.1%[1] - Income from operations rose by 133% to $27 million, while adjusted EBITDA increased by 57% to $32 million[1] - GAAP EPS increased to $0.86 from $0.22, and non-GAAP EPS increased to $0.90 from $0.38[1] - Total revenue for 3Q25 was $210.2 million, a decrease of 5.2% compared to $221.7 million in 3Q24[24] - Gross profit for 3Q25 was $43.4 million, reflecting a year-over-year increase of 5.3% and a gross profit margin of 20.7%, up 210 basis points from 18.6% in 3Q24[24] - Income from operations rose significantly by 39.2% to $17.3 million in 3Q25 compared to $12.5 million in 3Q24[24] - Adjusted EBITDA for 3Q25 was $19.3 million, a 30.1% increase from $14.9 million in 3Q24[24] - Net income for the nine months ended April 30, 2025, was $63,657,000, compared to $30,572,000 for the same period in 2024, representing a growth of 108%[42] - Net income attributable to IDT Corporation for 3Q25 was $21.7 million, a significant increase from $5.6 million in 3Q24, representing a growth of 287.5%[59] - Non-GAAP net income for 3Q25 was $22.7 million, up from $9.7 million in 3Q24, marking an increase of 134.0%[59] Revenue Segments - Recurring revenue for the National Retail Solutions (NRS) segment grew by 23% to $29.4 million, driven by a 37% increase in Merchant Services revenue[2] - BOSS Money transactions increased by 27% to 6.0 million, with revenue rising by 25% to $34.4 million[2] - Traditional Communications segment's income from operations increased by 39% to $17.3 million, and adjusted EBITDA rose by 30% to $19.3 million[2] - IDT Digital Payments revenue increased by 1.0% year-over-year to $102.6 million, while BOSS Revolution revenue decreased by 18.1% to $51.7 million[24] - NRS' recurring revenue for 3Q25 was $29.4 million, reflecting a growth rate of 23% compared to the previous year[60] - Total revenue for NRS in 3Q25 was $31.1 million, up from $25.7 million in 3Q24, representing a year-over-year increase of 21.1%[60] Cash Flow and Assets - Net cash provided by operating activities was $75.7 million in 3Q25, a substantial increase from $9.5 million in 3Q24[26] - As of April 30, 2025, IDT held $223.8 million in cash and cash equivalents, with total current assets of $498.3 million and current liabilities of $287.2 million[25] - Cash, cash equivalents, and restricted cash at the end of the period totaled $323,077,000, up from $232,845,000, marking a 39% increase[42] - Net cash provided by operating activities increased to $96,059,000 from $52,778,000 year-over-year, reflecting an increase of 82%[42] Capital Expenditures and Dividends - Capital expenditures increased to $5.4 million in 3Q25 from $4.7 million in 3Q24[27] - Capital expenditures for the nine months were $15,507,000, up from $13,621,000, indicating a 14% increase[42] - The company approved a quarterly dividend of $0.06 per share, to be paid on June 18, 2025[29] - Dividends paid increased to $4,036,000 from $1,269,000, showing a significant rise of 218%[42] Operational Metrics - Active POS terminals increased by 17.6% year-over-year to 35,600, and payment processing accounts rose by 31.1% to 25,500[12] - Digital channel send volume for BOSS Money grew by 40% year-over-year, indicating a shift towards larger send amounts per transaction[19] - The Adjusted EBITDA margin for net2phone was 26% in 3Q25, indicating strong profitability relative to sales[60] - The company's income from operations for 3Q25 was $26.6 million, compared to $28.3 million in 2Q25, reflecting a decrease of 6.0%[59] Performance Evaluation - The company's Adjusted EBITDA and Non-GAAP EPS metrics are used to provide insights into core operational strengths and performance relative to competitors[46] - The 'Rule of 40' score for the NRS segment is utilized to assess the balance between revenue growth and profitability, indicating a healthy combination for long-term success[53] - The Rule of 40 score for NRS in 3Q25 was 49%, indicating a healthy balance of growth and profitability[60] - BOSS Money's digital send volume is a key metric for evaluating operational performance in the remittance business[66] - The digital send volume reflects the aggregate amount of principal remitted by customers using BOSS Money and BOSS Revolutions apps[66] - This metric allows for performance comparison against competitors in the remittance business[66] - BOSS Money's digital channel performance can be assessed over different temporal periods using this metric[66] Stock-Based Compensation - Stock-based compensation recognized was $2,720,000 for the nine months, down from $5,375,000, reflecting a decrease of 49%[42]

Gross Profit +15% Year-over-Year to $112 MM; Record Gross Profit Margin of 37.1%Income from Operations +133% to $27 MM; Adjusted EBITDA +57% to $32 MMGAAP EPS Increased to $0.86 from $0.22; Non-GAAP EPS Increased to $0.90 from $0.38 NEWARK, NJ, June 05, 2025 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, today reported results for its third quarter fiscal year 2025, the three months ended April 30, 2025. THIRD QU ...

NEWARK, NJ, May 30, 2025 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, has scheduled its report of financial and operational results for the third quarter fiscal year 2025 (the three months ended April 30, 2025) on Thursday, June 5, 2025. IDT’s earnings release will be issued and posted on the IDT investor relations website (https://www.idt.net/investors-and-media) at approximately 4:15 PM Eastern. IDT will host ...

I first wrote about IDT Corporation (NYSE: IDT ) in August 2023 when the price was roughly $24 a share. As I am writing this the stock is at $58.21 - a return of 142% over 21 months. On a personal note, IDT remains myJonquil Capital is a private investor, investment analyst, and writer from Smyrna, Georgia - the Jonquil city.Hopefully, by putting some words down in a page I can clarify my own thoughts on investment ideas and inspire worthwhile discussion and debate about the merits of these investments. I'v ...

April same-store sales increased 4.3% year-over-year* NEWARK, N.J., May 07, 2025 (GLOBE NEWSWIRE) -- NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative retail same-store sales results for April 2025. As of April 30, 2025, the NRS retail network comprised approximately 35,600 active terminals nationwide, scanning purchases at approximately 31,000 independent retailer ...

Newark, NJ, May 01, 2025 (GLOBE NEWSWIRE) -- BOSS Money, the remittance and payments brand of IDT Corporation (NYSE: IDT), today announced promotional $0-fee international money transfers for new and existing customers on Mother’s Day. “BOSS Money has removed money transfer fees for Mother’s Day to make celebrating Moms everywhere easy and economical,” said Michelle Rendo, VP Marketing for BOSS Money. “Mother’s Day is a celebration of connection, love, and appreciation that transcends borders. A transfer on ...

March same-store sales increased 2.3% year-over-year* NEWARK, N.J., April 07, 2025 (GLOBE NEWSWIRE) -- NRSInsights, a provider of sales data and analytics drawn from retail transactions processed through the National Retail Solutions (NRS) point-of-sale (POS) platform, today announced comparative retail same-store sales results for March 2025. As of March 31, 2025, the NRS retail network comprised approximately 35,200 active terminals nationwide, scanning purchases at approximately 30,700 independent retail ...