"IDT is on track to deliver approximately 40% adjusted EBITDA growth in fiscal '25 on top of the record $90 million we obtained in fiscal '24."
— Marcelo Fischer
03Detailed Report
IDT
Company IDT
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 17, 2026
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Executive Summary
IDT Corporation reported a solid QQ2 2025, underpinned by robust Fintech results and continued profitability momentum in Traditional Communications. Total quarterly revenue reached $303.3 million, delivering a GAAP net income of $20.3 million and earnings per share of $0.81. Despite a modest year-over-year revenue uptick (YoY +2.5%) and a slight sequential decline (QoQ -2.0%), IDT generated a quarterly EBITDA of $28.3 million under GAAP, with management highlighting record first-half Adjusted EBITDA of $63.0 million and a commitment to ~40% adjusted EBITDA growth in fiscal 2025 versus FY2024’s $90 million. The company maintained a conservative balance sheet with a strong liquidity position (net cash of approximately -$246 million) and continued to return capital to shareholders via a 20% dividend increase and a record level of share repurchases (179k shares for $8.5 million in the quarter). Segment commentary emphasized continued NRS penetration, disciplined gross profit management in BOSS Money, and net2phone’s ongoing growth, aided by AI-related features and a strong U.S. trajectory. Management signaled a focus on AI enhancements, data-driven pricing in the digital payments space, and potential US-based inorganic opportunities to scale international capabilities. Overall, IDT’s results reflect a diversified mix of high-margin Fintech cash generation and steady profitability from traditional communications, supported by a pragmatic capital-allocation approach.
Key Performance Indicators
Revenue
Increasing
303.35M
QoQ: -2.01% | YoY: 2.45%
Gross Profit
Increasing
112.11M
36.96% margin
QoQ: 4.17% | YoY: 19.74%
Operating Income
Increasing
28.32M
QoQ: 19.78% | YoY: 70.02%
Net Income
Increasing
20.27M
QoQ: 17.51% | YoY: 40.51%
EPS
Increasing
0.81
QoQ: 19.12% | YoY: 42.11%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability
- QQ2 2025 revenue: $303.3 million; YoY growth 2.45%; QoQ decline -2.01%.
- Gross profit: $112.11 million; gross margin 36.96%; YoY gross profit growth 19.74%; QoQ +4.17%.
- Operating income: $28.32 million; operating margin 9.33%; YoY operating income growth 70.02%; QoQ +19.78%.
- Net income: $20.27 million; net margin 6.68%; YoY net income growth 40.51%; QoQ +17.51%.
- EPS (GAAP): $0.81; diluted EPS $0.80; YoY EPS growth 42.11%; QoQ +19.12%.
- EBITDA: $28.32 million (GAAP); adjusted EBITDA in QQ2 2025 was $34.0 million (management-reported, per call), with 1H 2025 adjusted EBITDA of $63.0 million.
- EBITDA margin (GAAP): 9.33%; net margin 6.68%.
- Free cash flow: $15.33 million; cash flow from operations: $20.15 million; capex: $4.82 million; operating cash flow to revenue ratio ~6.6% (consistent with reported operating cash flow/segment mix).
- Balance sheet: Cash and cash equivalents $247.71 million; total assets $575.73 million; total liabilities $280.63 million; stockholders’ equity $271.60 million; net debt position is negative (net cash) at approximately -$246.36 million.
- Liquidity and returns: Current ratio 1.66; quick ratio 1.66; cash ratio 0.89; dividend payout ratio 6.23%; share repurchases of ~179k shares for $8.5 million in QQ2; total twelve-month share repurchases ~380k shares for $16.0 million.
- Valuation context (as of QQ2 2025 ratios): P/E ~14.6x; P/B ~4.37x; EV/EBITDA ~33.2x; P/S ~3.9x; dividend yield ~0.11%; EV multiple reflects strong cash generation and modest leverage.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
303.35M
2.45%
-2.01%
Gross Profit
112.11M
19.74%
4.17%
Operating Income
28.32M
70.02%
19.78%
Net Income
20.27M
40.51%
17.51%
EPS
0.81
42.11%
19.12%
Key Financial Ratios
Gross Profit Margin
Fair
37.00%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
9.33%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
6.68%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
3.52%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
7.46%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.66
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
14.64x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Premium
4.37x
Trading at premium to book value, reflects strong intangibles or growth
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