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- **Record Financial Performance**: 26% YoY EBITDA growth to $37.9 million, driven by NRS (33% EBITDA increase) and Fintech (87% EBITDA increase).
- **AI-Driven Innovation**: Launch of AI solutions in net2phone and BOSS Money, with AI reducing transaction costs and improving unit economics.
- **Strategic Expansion**: Plans for international market entry and small acquisitions to accelerate growth in adjacent verticals.
- **Shareholder Returns**: $7.6 million in stock buybacks and plans for further buybacks, alongside quarterly dividends.
- **Legal Resolution**: Successful dismissal of Straight Path class action lawsuit, eliminating a major risk.

**【Management Opening Remarks】**
- Bill Ulrey introduced the call, highlighting the company's financial performance and forward-looking statements. He emphasized the use of non-GAAP measures and the risks associated with future projections.

**【CEO Summary Section】**
- **Revenue Growth**: Consolidated revenue increased 4% to $323 million, driven by NRS, Fintech, and net2phone segments, which collectively grew 16%.
- **Profitability**: Record gross profit of $118 million (37% margin) and adjusted EBITDA of $37.9 million (11.7% margin). NRS, Fintech, and net2phone contributed 57% of adjusted EBITDA.
- **Strategic Initiatives**: Launch of AI solutions in net2phone, BOSS Money's digital channel growth (84% of transactions), and premium services driving average recurring revenue per terminal up 6%.
- **Legal Update**: Delaware Supreme Court dismissed all claims in the Straight Path class action suit, resolving a significant legal risk.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP EPS of $0.89 (31% YoY increase), Non-GAAP EPS of $0.94 (32% YoY increase). EBITDA less CapEx reached $32.1 million, a 30% YoY increase.
- **Segment Performance**: 
  - **NRS**: Recurring revenue up 22% to $35 million, merchant services revenue up 38%, and adjusted EBITDA up 33%.
  - **Fintech**: BOSS Money's adjusted EBITDA margin of 18%, with AI-driven cost reductions.
  - **net2phone**: Seats up 7% to 432,000, income from operations up 94%, and AI investment for new verticals.
  - **Traditional Communications**: Adjusted EBITDA up 2% to $18.9 million, with ongoing OpEx reductions.
- **Liquidity**: $220 million in cash, with $7.6 million in stock buybacks and plans for further buybacks and dividends.
- **Guidance**: Full-year 2026 adjusted EBITDA target of $141-$145 million (7%-10% growth).

**【Q&A Key Highlights】**
- **M&A Strategy**: CEO cautious on large acquisitions, focusing on small NRS-related deals and exploring international expansion via acquisitions.
- **Account Growth**: New payment processing accounts require POS terminals, with conversions and adjacent verticals (e.g., food service, CBD) driving growth.
- **International Expansion**: Exploring entry into new countries, with Canada as a potential near-term focus.
- **Traditional Communications**: Resilient performance with stable gross profit despite revenue fluctuations, driven by high-margin solutions.


IDT Corporation (IDT) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

IDT

IDT fundamentals

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