IDT B 2025 Q4 Earnings Misses Targets as Net Income Plunges 53.6%

IDT B reported its fiscal 2025 Q4 earnings on September 29, 2025. The results fell short of expectations, with net income declining sharply by 53.6% year-over-year. Despite a modest 2.5% revenue increase to $316.59 million, the earnings shortfall and weak post-earnings price movements signaled underlying challenges.

Revenue

IDT B reported total revenue of $316.59 million for Q4 2025, marking a 2.5% increase from $308.83 million in the same period the previous year. This growth was driven by strong performance in several of its business segments, including NRS and BOSS Money. The NRS segment reported recurring revenue of $32.6 million, a 22% increase, primarily fueled by Merchant Services and SaaS Fees. BOSS Money also contributed positively, with a 21% year-over-year increase in total revenue to $38.2 million. The net2phone segment posted a 9% increase in subscription revenue, while Traditional Communications saw a 2% increase in gross profit. However, the overall modest top-line growth suggests limited scalability in some core operations.

Earnings/Net Income

IDT B's earnings per share (EPS) declined significantly by 57.0% to $0.63 in Q4 2025 from $1.46 in Q4 2024. This decline was mirrored in net income, which dropped by 53.6% to $17.48 million in Q4 2025 from $37.69 million in the prior-year period. The drop in earnings reflects a combination of higher operating costs, competitive pressures, and challenges in maintaining margins across key segments such as NRS and Traditional Communications.

This substantial decrease in net income and EPS indicates a disappointing performance, as the company failed to maintain the profitability seen in the previous year.

Post Earnings Price Action Review

Following the release of the earnings report, IDT B's stock price experienced mixed movements. While it edged up by 2.09% during the latest trading day, the stock dropped 6.16% during the most recent full trading week. Over the month, it posted a marginal gain of 1.02%. These fluctuations suggest investor uncertainty and mixed sentiment in the market following the earnings report.

CEO Commentary

Samuel Jonas, CEO of IDT B, highlighted the company’s strong performance in fiscal 2025, with adjusted EBITDA growing by 4