IDT B 2025 Q3 Earnings Strong Performance as Net Income Rises 262%

IDT B(IDT) reported its fiscal 2025 Q3 earnings on Jun 09th, 2025. IDT Corporation's third-quarter results exceeded expectations, showcasing significant growth across several key financial metrics. The company reported a remarkable 15% increase in gross profit, achieving a record margin of 37.1%. Additionally, income from operations surged by 133%, while Adjusted EBITDA grew by 57%. The company also announced an increase in its quarterly dividend, reflecting confidence in its ongoing financial performance. With these strong results, IDT is poised to continue its growth trajectory, supported by strategic investments and innovations in fintech and communications solutions.

Revenue

IDT Corporation saw a 0.8% increase in total revenue, reaching $301.99 million in Q3 2025 compared to $299.64 million in Q3 2024. The Fintech segment reported revenue of $38.62 million, followed by National Retail Solutions at $31.14 million. Net2phone contributed $21.99 million, while the Traditional Communications segment led with $210.23 million. Corporate revenue remained at $0, bringing the total to $301.99 million.

Earnings/Net Income

IDT B's earnings per share (EPS) saw a significant increase, rising 290.9% from $0.22 in 2024 Q3 to $0.86 in 2025 Q3, demonstrating strong earnings growth. The company's net income also experienced substantial growth, increasing 262.1% to $22.96 million in 2025 Q3 from $6.34 million in 2024 Q3. The EPS improvement suggests a positive financial performance.

Price Action

The stock price of IDT B has dropped 5.84% during the latest trading day, has climbed 7.53% during the most recent full trading week, and has surged 22.79% month-to-date.

Post-Earnings Price Action Review

Investing in IDT B shares following revenue increases on earnings report dates and holding them for 30 days has yielded substantial returns over the past three years. This strategy delivered an impressive overall return of 128.65%, significantly outperforming the benchmark return of 58.41% by 70.24%. Despite experiencing a maximum drawdown of -35.15% and maintaining a Sharpe ratio of 0.89, indicating some risk and moderate returns, the strategy's compound annual growth rate (CAGR) of 32.13% and excess return of 70.24% underscore its effectiveness in capturing stock price appreciation after earnings reports.

CEO Commentary

Shmuel Jonas, CEO of IDT Corporation, highlighted a solid third quarter, underscored by a 133% year-over-year increase in consolidated income from operations and a 57% rise in Adjusted EBITDA. The National Retail Solutions (NRS) segment saw recurring revenue grow by 23%, driven by a significant 37% increase in merchant services revenue and a 33% rise in SaaS fees. BOSS Money experienced a 27% increase in transactions and a 25% rise in revenue, while net2phone achieved an Adjusted EBITDA margin of 15%, reflecting effective cost management. Jonas emphasized the company's commitment to enhancing service offerings and leveraging technology to drive sustained growth.

Guidance

IDT Corporation anticipates full-year Adjusted EBITDA of approximately $126 million, driven by continued growth in the NRS and BOSS Money segments. The company expects to maintain momentum in revenue generation and profitability, aiming to enhance its market positioning through strategic investments and innovations that capitalize on current trends in fintech and communications.

Additional News

In recent developments, IDT Corporation announced a quarterly cash dividend, scheduled for June 18, 2025, demonstrating its commitment to returning value to shareholders. The company also participated in the East Coast IDEAS Investor Conference on June 12, 2025, with CFO Marcelo Fisher presenting IDT's business portfolio to investors. Additionally, IDT recently unveiled NRSInsights' May 2025 Retail Same-Store Sales Report, showcasing a 4.9% year-over-year increase in same-store sales, marking the highest growth since November. These activities highlight IDT's focus on strengthening investor relations and expanding market presence.