IDT (IDT) Sidoti March Small-Cap Virtual Conference summary

Key financial highlights

• Market cap reached $1.2 billion with $246 million in cash and no debt as of January 2026, and record adjusted EBITDA of $143 million on $1.3 billion revenue.

• Trailing twelve-month adjusted net cash from operations was $122 million.

• Consolidated adjusted EBITDA margin reached a record 11.9% in the most recent quarter, improving by 40 basis points in 2026.

• Growth segments (NRS, BOSS Money, net2phone, Fintech) drove a 14% increase in consolidated revenue and a 9% rise in adjusted EBITDA year-over-year.

• Dividend payments and opportunistic share repurchases continue as part of shareholder value strategy.

High-margin business performance and strategy

• NRS recurring revenue exceeded $37 million in the latest quarter, with annualized recurring revenue growing at a 39% CAGR to $134 million TTM and $150 million ARR, and a 46% Rule of 40 score.

• BOSS Money digital channel revenue grew 14% in the most recent quarter, with digital transactions up 17%, send volume up 29%, and digital transactions making up 85% of total with a 37% CAGR in digital revenue (2022–2025).

• net2phone achieved a 17% subscription revenue CAGR over four years, with $90 million TTM subscription revenue, 435,000 seats served, and a 16.5% adjusted EBITDA margin in 2026.

• net2phone introduced AI Agent and Coach solutions, targeting SMBs and planning a shift to direct-to-market channels for AI offerings.

• Traditional Communications segment generated $421 million in TTM revenue and maintained durable adjusted EBITDA margins near 11%.

Market trends and competitive dynamics

• NRS network now covers over 39,000 POS terminals at 34,000 locations, with less than 20% market penetration in a fragmented market and a 200,000-store addressable market.

• Increased competition in the independent retailer POS space is being met with enhanced features, partnerships (e.g., DoorDash), and vertical-specific solutions.

• BOSS Money benefits from a new 1% federal tax on retail remittances, accelerating migration from retail to digital channels.

• Digital transactions are 25%-30% more profitable than retail, despite lower revenue per transaction.

• BOSS Money leveraged a digital-first approach, with over 90% repeat customers and cross-marketing across its ecosystem.