IDT (IDT) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results: gross profit up 16%, income from operations up 77%, Adjusted EBITDA up 56% year-over-year, with revenue of $303.3 million and net income of $20.3 million, a 40.5% increase from the prior year quarter.

• Growth was driven by strong performances in NRS, BOSS Money/Fintech, and net2phone, partially offset by declines in Traditional Communications.

• Cash, cash equivalents, and investments totaled $171.1 million at quarter-end, with no outstanding debt and a strong balance sheet supporting ongoing shareholder returns.

• Quarterly dividend was raised 20% to $0.06 per share, and share repurchases accelerated, with over 179,000 shares bought for $8.5 million in Q2.

• Focused on high-growth, high-margin SaaS and fintech businesses, with continued investment in AI and product enhancements.

Financial highlights

• Revenue increased 2.4% year-over-year to $303.3 million; gross profit up 15.7% to $112.1 million, with gross margin rising to 37%.

• Adjusted EBITDA rose 56% year-over-year to $34.0 million, with margin increasing to 11%.

• Net income attributable to IDT was $20.3 million, up 40.5% year-over-year; diluted EPS was $0.80, up from $0.57.

• NRS recurring revenue grew 32% year-over-year to $31.6 million, with Adjusted EBITDA up 65% to $10.1 million.

• BOSS Money/Fintech revenue up 34% to $33.5 million, transactions up 36% to 5.7 million, and Adjusted EBITDA up to $3.9 million.

Outlook and guidance

• Management expects continued growth, with adjusted EBITDA in the second half of FY25 to at least match the first half, targeting approximately 40% growth for the full year over FY24.

• Ongoing investment in AI and product enhancements, especially in net2phone and NRS, is expected to drive further expansion.

• Management expects cash flow from operations and current liquidity to be sufficient for working capital and capital expenditures over the next twelve months.

• NRS recurring revenue per terminal expected to remain around $300 for the rest of the year.

• Anticipated capital expenditures for the twelve months ending January 31, 2026 are $19–$20 million.