Executive Summary

Record quarter: gross profit $107.6M and gross margin 34.8% (+360 bps YoY), Adjusted EBITDA $29.1M (+31% YoY); GAAP EPS $0.68 vs $0.30 YoY, Non‑GAAP EPS $0.71 vs $0.32 .
Consolidated revenue $309.6M (+3% YoY) with sequential revenue up for the third straight quarter, driven by NRS, BOSS Money (Fintech) and net2phone while traditional communications continues to shrink .
Segment momentum: Fintech swung to income from operations $3.2M from $(1.4)M YoY; net2phone subscription revenue +13% to $21.0M and Adjusted EBITDA +77% to $2.5M; NRS recurring revenue +29% to $28.9M .
Forward look: Management reiterated focus on margins/GMPT in BOSS Money and guided that FY25 consolidated EBITDA could top $100M; BOSS Money to deliver >$10M EBITDA in FY25, a step-up from FY24 .

What Went Well and What Went Wrong

What Went Well

Margin expansion and records: “record levels of gross profit, gross profit margin and Adjusted EBITDA” with sequential consolidated revenue growth for three consecutive quarters .
Fintech turnaround: BOSS Money revenue +39% to $33.7M, segment income from operations improved to $3.2M from $(1.4)M; Adjusted EBITDA improved to $4.0M from $(0.7)M, aided by margin-focused strategy .
net2phone scaling: seats surpassed 400k; subscription revenue +13% to $21.0M; operating margin +5% (from breakeven) and Adjusted EBITDA margin 12% (from 7%) despite FX headwinds .

What Went Wrong

Traditional Communications structural decline: segment revenue down 4% YoY to $220.5M, with BOSS Revolution calling down 20% YoY; Adjusted EBITDA down 1% YoY .
Operating cash flow drop: net cash provided by operating activities fell to $0.2M from $14.9M YoY; exclusive of customer funds deposits changes, operating cash flow was $(2.6)M vs $17.9M YoY, reflecting disbursement prefunding timing and working capital movements .
NRS net adds moderated: ~1,000 net active terminals added, below recent quarters due to seasonal churn and sales focus on new SaaS plans and kiosks reducing push on unit volumes in the quarter .

Financial Results

Consolidated Summary (Oldest → Newest)

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($M)	$301.2	$308.8	$309.6
Gross Profit ($M)	$94.0	$102.2	$107.6
Gross Margin (%)	31.2%	33.1%	34.8%
Income from Operations ($M)	$17.2	$20.1	$23.6
Net Income Attributable to IDT ($M)	$7.7	$36.8	$17.2
GAAP EPS (Diluted)	$0.30	$1.45	$0.68
Non‑GAAP EPS (Diluted)	$0.32	$0.57	$0.71
Adjusted EBITDA ($M)	$22.3	$25.2	$29.1

Notes: 4Q24 net income attributable to IDT ($36.8M) per reconciliation ; press bullets also cite $36.8M .

Segment Breakdown (Revenue, GP, Op Income, Adj. EBITDA)

Segment ($M)	Q1 2024	Q4 2024	Q1 2025
NRS Revenue	$24.0	$28.2	$30.4
NRS Gross Profit	$20.8	$26.1	$27.6
NRS Income from Ops	$5.5	$6.0	$6.6
NRS Adjusted EBITDA	$6.2	$7.1	$7.6
Fintech Revenue	$26.6	$34.6	$37.1
Fintech Gross Profit	$14.8	$19.1	$21.6
Fintech Income from Ops	$(1.4)	$2.5	$3.2
Fintech Adjusted EBITDA	$(0.7)	$1.5	$4.0
net2phone Revenue	$19.9	$21.4	$21.6
net2phone Gross Profit	$15.8	$16.8	$17.1
net2phone Income from Ops	$0.0	$0.8	$1.0
net2phone Adjusted EBITDA	$1.4	$2.5	$2.5
Traditional Comm. Revenue	$230.7	$224.6	$220.5
Traditional Comm. Gross Profit	$42.6	$40.1	$41.3
Traditional Comm. Income from Ops	$15.4	$13.9	$15.7
Traditional Comm. Adjusted EBITDA	$18.1	$16.3	$17.8

KPIs (Oldest → Newest)

KPI	Q1 2024	Q4 2024	Q1 2025
NRS Active POS Terminals (units)	27,200	32,100	33,100
NRS Payment Processing Accounts (units)	17,100	21,300	22,700
NRS Monthly Avg Recurring Rev/Terminal ($)	$282	$285	$295
BOSS Money Transactions (M)	4.0	5.4	5.6
BOSS Money Avg Rev/Transaction ($)	$6.00	$5.84	$6.01
net2phone Seats (k)	364	396	406

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated EBITDA	FY 2025	Not previously quantified	“Could definitely top $100 million”	Raised (qualitative)
BOSS Money (Fintech) EBITDA	FY 2025	~$4M in FY24 achieved	“More than $10 million” expected	Raised
Traditional Comm. EBITDA trend	FY 2025	FY24 decline ~$11M	Decline moderated to ~$5–$6M expected	Improved outlook
NRS Net Margin	FY 2025	~24% current run-rate	Target ~25%	Raised
Dividend	Ongoing	$0.05 per quarter in Q4’24	No change disclosed in Q1’25 materials	Maintained

Management also emphasized BOSS Money pricing changes to increase GMPT even if it modestly slows top-line growth near term .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
BOSS Money margin focus (GMPT)	Q3: Fintech first positive Adj. EBITDA; targeting industry-leading margins . Q4: Plan to improve GMPT via pricing changes; FY25 BOSS Money EBITDA >$10M .	Margin expansion drove gross margin +230 bps and Op income +$4.6M YoY; digital rebound post-quarter .	Strengthening margin discipline; mix shifts to digital supportive.
net2phone ARPU and seats	Q3: ARPU initiatives incl. premium plans, AI functionality . Q4: Latin America growth; EBITDA margin doubled YoY .	Seats >400k; subscription revenue +13%; operating margin +5%; FX headwinds reduced USD growth by ~300 bps .	Continued growth; FX translation headwinds persist.
NRS product expansion (screens/kiosks)	Q4: Deploying hundreds of screens; kiosks sold out; expanding verticals (QSR/hotels) .	Ordered 3,000+ screens; seasonal churn moderated net adds; SaaS/merchant services up strongly .	Product breadth increasing; net adds seasonally softer.
Traditional Communications optimization	Q3: Cost reduction and pricing changes (mobile top-up) improved profitability . Q4: Improved unit economics and SG&A reductions .	2nd consecutive quarter of Op income and Adj. EBITDA increases; revenue still down YoY .	Execution on cost/pricing with stabilizing profitability.
Macro/policy commentary	Not prominent in Q3/Q4 calls.	Immigration policy uncertainty; focus on product driving results rather than border flows .	Watchful; no quantified impact/guidance change.

Management Commentary

“Building on our momentum from fiscal 2024, IDT delivered strong financial results in the first quarter of fiscal 2025, including record levels of gross profit, gross profit margin and Adjusted EBITDA... NRS along with our Fintech segment powered by BOSS Money, and net2phone each achieved robust increases in revenue, gross profit, and Adjusted EBITDA.” — CEO Shmuel Jonas .
“BOSS Money’s Q1 results reflected our decision to enhance margins, particularly within our retail channel... transaction growth slowed somewhat... in November... transaction growth rebounded led by D2C.” — CEO Shmuel Jonas .
“net2phone increased seats served to over four hundred thousand... despite the negative FX impact... financial discipline... contributed to healthy increases in income from operations and Adjusted EBITDA.” — CEO Shmuel Jonas .
“Our ongoing efforts to streamline [Traditional Communications]... continue to pay off. In Q1, the year over year revenue decrease was 4%, while income from operations increased by 2%.” — CEO Shmuel Jonas .

Q&A Highlights

Policy/immigration risk to BOSS Money growth: Management emphasized product and customer experience over macro flows; too early to assess new administration policies .
net2phone FX headwinds: BRL ~14% and MXN ~11% weaker YoY; subscription revenue would have been +16% YoY ex-translation; cost inputs partly USD-pegged, mitigations in place .
NRS seasonality and kiosks: Larger seasonal fireworks customer boosted churn; sales focus on new SaaS plans and kiosks temporarily diverted attention from pushing unit volumes; “back on track” .
Digital screens: >3,000 screens ordered, placed mostly in hotels and entertainment attractions; high-traffic locations targeted .

Estimates Context

Wall Street consensus (S&P Global) for Q1 FY2025 EPS and revenue was unavailable at time of review due to SPGI request limits; as a result, we cannot conclusively categorize beat/miss vs consensus [GetEstimates error].

Where estimates may need revision:

Given record gross margin and Adj. EBITDA, and Fintech’s profitability inflection, we expect upward revisions to FY25 EBITDA and segment profitability trajectories to align with management commentary (e.g., consolidated EBITDA “top $100M”; BOSS Money >$10M) .

Key Takeaways for Investors

Mix shift toward higher-margin businesses is accelerating consolidated margin and EBITDA; momentum is supported by disciplined margin management in BOSS Money and operating leverage at net2phone .
Watch working capital/cash flow: operating cash flow dropped sharply due to disbursement prefunding and asset/liability timing; monitor sustainability of cash conversion as Fintech scales .
net2phone growth remains solid despite FX headwinds; ARPU initiatives (premium/AI) and CCaaS mix should continue to support margins and subscription revenue .
NRS monetization broadening (merchant services, SaaS, advertising/screens); seasonal churn impacted quarterly net adds, but per-terminal economics improved (MARR up to $295) .
Traditional Communications: revenue decline continues, but cost actions/pricing improve profitability; offers cash generation to fund growth segments .
FY25 setup: Management targets consolidated EBITDA >$100M and BOSS Money EBITDA >$10M, implying continued beats on profitability if execution persists; consider the narrative shift toward margin over pure volume growth .
Risk monitor: immigration policy uncertainty, FX translation impacts in LatAm, and advertising seasonality could create quarterly volatility; execution on product and pricing emphasized by management .

Appendix — Additional Financial Data Points

Cash, equivalents, debt securities, and current equity investments: $180.4M as of Oct 31, 2024 (down from $193.0M at July 31, 2024), reflecting BOSS Money disbursement prefunding timing .
No outstanding debt; current assets $431.7M vs current liabilities $269.8M at Oct 31, 2024 .
Share repurchases: 37,714 Class B shares for $1.3M in Q1; quarterly dividend continuity noted in prior quarter .

IDT CORP (IDT)·Q1 2025 Earnings Summary