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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 MM
GAAP 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 QUARTER HIGHLIGHTS
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(Throughout this release, unless otherwise noted, results for the third quarter of fiscal year 2025 (3Q25) are compared to the third quarter of fiscal year 2024 (3Q24). All earnings per share (EPS) and other 'per share' results are per diluted share.)
| ● | Key Businesses / Segments |
| ■ | Recurring revenue: +23% to $29.4 million; |
| ■ | Income from operations: +29% to $6.2 million; |
| ■ | Adjusted EBITDA: +29% to $7.2 million; |
| ■ | 'Rule of 40' score: 49; |
| ○ | BOSS Money / Fintech segment |
| ■ | BOSS Money transactions: +27% to 6.0 million; |
| ■ | BOSS Money revenue: +25% to $34.4 million; |
| ■ | Fintech segment gross profit: +31% to $22.6 million; |
| ■ | Fintech segment income from operations: +$4.9 million, to $4.3 million; |
| ■ | Fintech segment Adjusted EBITDA: +$4.8 million, to $5.0 million; |
| ■ | Subscription revenue: +7% to $21.5 million (+11% on a constant currency basis); |
| ■ | Income from operations: +188% to $1.4 million; |
| ■ | Adjusted EBITDA: +50% to $3.2 million; |
| ○ | Traditional Communications |
| ■ | Gross profit: +5% to $43.4 million; |
| ■ | Income from operations: +39% to $17.3 million; |
| ■ | Adjusted EBITDA: +30% to $19.3 million; |
| ○ | Revenue: +1% to $302.0 million; |
| ○ | Gross profit (GP) / margin: GP +15% to $112.0 million; GP margin +470 bps to 37.1%; |
| ○ | Income from operations: +133% to $26.6 million; |
| ○ | GAAP EPS: Increased to $0.86 from $0.22; |
| ○ | Non-GAAP EPS: Increased to $0.90 from $0.38; |
| ○ | Adjusted EBITDA: +57% to $32.2 million; |
| ○ | CapEx: +14% to $5.4 million. |
REMARKS BY SHMUEL JONAS, CEO
IDT's third quarter was solid, with strong year-over-year gains, while slightly softer than our second quarter in part because of expected seasonal factors. Year-over-year revenue growth, and continued expansion of each of our business segments' bottom-line results, drove a 133% year-over-year increase in consolidated income from operations, a 57% increase in consolidated Adjusted EBITDA, and a 290% increase in EPS.
At NRS, recurring revenue increased 23% year-over-year, powered by a 37% revenue increase from NRS' largest vertical, Merchant Services, and a 33% increase in SaaS Fees, which more than offset a 12% decrease in Advertising & Data revenue. Income from operations and Adjusted EBITDA were both up by 29% year-over-year, and the business has generated a record $32 million in Adjusted EBITDA over the past twelve months.
Looking ahead, we continue to focus on developing new offerings that leverage the NRS platform to enable retailers to compete more effectively with large retail chains. For instance, independent neighborhood retailers have not yet meaningfully benefitted from the consumer shift to online ordering and delivery. We are working to change that by integrating our network with online ordering and delivery platforms, enabling retailers on the NRS network to provide hyper-fast local delivery of sundries and prepared foods. The 100 or so retailers we have signed up so far are already receiving, in aggregate, over 2000 delivery orders a week.
BOSS Money, our remittance platform, increased transactions by 27% and revenue by 25%. The growth rates have been impacted by the deliberate shift we made last summer to prioritize gross profit per transaction in our retail channel rather than market share, and by a recent shift in customer preferences toward larger send amounts per remittance through fewer transactions. The Fintech segment, which includes BOSS Money and early stage fintech initiatives, generated over $5 million in Adjusted EBITDA - compared to $244 thousand in the year ago quarter. Looking ahead, Boss Money is working on initiatives to drive sustained long-term growth and innovations that reduce cross border friction and increase profitability.
net2phone continued its steady progress with balanced growth in the U.S., Brazil, and Mexico. The team has done a great job growing its business while holding the line on overhead. net2phone's Adjusted EBITDA margin reached 15% in 3Q25. net2phone began to offer its AI Agents this quarter and customers are already seeing the benefits, including enhanced efficiency. Even as we deploy AI Agents refined for specific market verticals, we are preparing to launch another AI-powered service which internally we refer to as 'Coach.' We think that it will be very successful.
In our Traditional Communications segment, income from operations and Adjusted EBITDA both jumped by over 30% year-over-year to $17.3 million and $19.3 million, respectively, underscoring that this segment continues to be a long-term cash generator.
I want to wrap up by thanking the millions of customers who put some of their hard-earned wages to work through our BOSS offerings, and the business customers around the world who rely on us to enhance their businesses and communications. Our ability to provide these services depends on the dedication of our employees who have been executing and innovating on so many fronts, and on our stockholders who entrust us with their capital. I am grateful for your continued patronage and support.
(This release discloses certain Non-GAAP financial measures (Adjusted EBITDA, Non-GAAP EPS and NRS 'Rule of 40') as well as certain Key Performance Metrics (net2phone subscription revenue, netphone constant currency subscription revenue growth rate, net2phone operating margin, net2phone Adjusted EBITDA margin, NRS Monthly Average Recurring Revenue, and BOSS Money transactions and digital send volume). Please see the explanations of those measures and metrics, the reasons for their inclusion and reconciliations at the end of this release.)
3Q25 RESULTS BY SEGMENT
National Retail Solutions (NRS)
National Retail Solutions (NRS)
(Terminals and accounts at end of period. $ in millions, except for average revenue per terminal)
| 3Q25 | 2Q25 | 3Q24 | 3Q25-3Q24 (% Δ) | ||||||||||||||
| Terminals and payment processing accounts | |||||||||||||||||
| Active POS terminals | 35,600 | 34,800 | 30,300 | +17.6 | % | ||||||||||||
| Payment processing accounts | 25,500 | 23,900 | 19,500 | +31.1 | % | ||||||||||||
| Recurring revenue | |||||||||||||||||
| Merchant Services & Other | $ | 19.7 | $ | 18.1 | $ | 14.4 | +37.3 | % | |||||||||
| Advertising & Data | $ | 5.9 | $ | 10.0 | $ | 6.7 | (12.3 | )% | |||||||||
| SaaS Fees | $ | 3.9 | $ | 3.5 | $ | 2.9 | +32.8 | % | |||||||||
| Total recurring revenue | $ | 29.4 | $ | 31.6 | $ | 24.0 | +22.9 | % | |||||||||
| POS terminal sales | $ | 1.7 | $ | 1.3 | $ | 1.8 | (2.9 | )% | |||||||||
| Total revenue | $ | 31.1 | $ | 33.0 | $ | 25.7 | +21.1 | % | |||||||||
| Monthly average recurring revenue per terminal | $ | 279 | $ | 310 | $ | 271 | +3.0 | % | |||||||||
| Gross profit | $ | 28.4 | $ | 30.3 | $ | 22.1 | +28.4 | % | |||||||||
| Gross profit margin | 91.3 | % | 91.8 | % | 86.1 | % | +520 | bps | |||||||||
| Technology & development | $ | 2.3 | $ | 2.2 | $ | 1.7 | +32.5 | % | |||||||||
| SG&A | $ | 20.0 | $ | 19.0 | $ | 15.7 | +27.8 | % | |||||||||
| Income from operations | $ | 6.2 | $ | 9.1 | $ | 4.8 | +29.3 | % | |||||||||
| Adjusted EBITDA | $ | 7.2 | $ | 10.1 | $ | 5.6 | +28.6 | % | |||||||||
| CapEx | $ | 1.9 | $ | 0.9 | $ | 0.9 | +115.2 | % | |||||||||
NRS Take-Aways / Updates:
| ● | NRS added approximately 900 net active terminals and approximately 1,600 net payment processing accounts during 3Q25. As mentioned in the prior quarter's earnings release, net active terminal additions for 3Q25 included churn of approximately 300 terminals operating in seasonal stores. |
| ● | The 37% year-over-year increase in Merchant Services & Other revenue was driven by the increase in payment processing accounts, and by higher merchant services revenue per account, reflecting in part the ongoing, gradual migration of customer payment preference from cash to credit and debit cards. |
| ● | NRS Advertising & Data revenue declined 12.3% year-over-year due to NRS' decision to slow sales to one large programmatic partner in order to limit potential bad debt risk exposure. NRS' direct channel advertising sales, as well as sales to other programmatic partners, remained robust. |
| ● | NRS has begun rolling out the first of several planned integrations of its POS platform with leading online ordering and delivery services. The first integration, with DoorDash, went live this quarter. |
Fintech
Fintech
(Transactions and $s in millions, except for average revenue per transaction)
| 3Q25 | 2Q25 | 3Q24 | 3Q25-3Q24 (% Δ, $) | ||||||||||||||
| BOSS Money transactions | 6.0 | 5.7 | 4.7 | +27.0 | % | ||||||||||||
| Fintech Revenue | |||||||||||||||||
| BOSS Money | $ | 34.4 | $ | 33.5 | $ | 27.6 | +24.7 | % | |||||||||
| Other | $ | 4.2 | $ | 3.3 | $ | 3.9 | +7.0 | % | |||||||||
| Total Revenue | $ | 38.6 | $ | 36.8 | $ | 31.5 | +22.5 | % | |||||||||
| Gross profit | $ | 22.6 | $ | 21.7 | $ | 17.3 | +30.6 | % | |||||||||
| Gross profit margin | 58.5 | % | 58.9 | % | 54.9 | % | +360 | bps | |||||||||
| Technology & development | $ | 2.2 | $ | 2.3 | $ | 2.5 | (11.9 | )% | |||||||||
| SG&A | $ | 16.0 | $ | 16.3 | $ | 15.3 | +5.2 | % | |||||||||
| Income (loss) from operations | $ | 4.3 | $ | 3.1 | $ | (0.6 | ) | +$ | 4.9 | ||||||||
| Adjusted EBITDA | $ | 5.0 | $ | 3.9 | $ | 0.2 | +$ | 4.8 | |||||||||
| CapEx | $ | 0.8 | $ | 0.8 | $ | 1.0 | (19.8 | )% | |||||||||
Fintech Take-Aways:
| ● | The 27% increase in BOSS Money transactions comprised a 32% year-over-year increase in digital channel transactions and an 8% increase in retail channel transactions. |
| ● | BOSS Money revenue increased 25% year-over-year driven by a 31% increase in digital channel revenue. |
| ● | Digital channel send volume, or the amount of principal transferred by BOSS Money customers using the BOSS Money and BOSS Revolution apps, grew 40% year-over-year as customers increased their amount sent per transaction while reducing the frequency of transactions. BOSS Money is testing strategies to optimize pricing given this recent dynamic. |
| ● | The robust increases in the Fintech segment's income from operations and Adjusted EBITDA were driven primarily by BOSS Money revenue and gross margin growth, coupled with improved operating leverage as BOSS Money continues to scale. |
net2phone
net2phone
(Seats in thousands at end of period. $ in millions)
| 3Q25 | 2Q25 | 3Q24 | 3Q25-3Q24 (% Δ) | |||||||||||||
| Seats | 415 | 410 | 384 | +7.9 | % | |||||||||||
| Revenue |
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