Fintech IDT Corporation gains on strong fiscal first-quarter financials
The payments segment was a key driver of IDT’s strong financial performance. / Photo: bossmoney.africa
On Wednesday, December 4, shares of communications and payment services company IDT Corporation spiked in after-hours trading following the release of record earnings for the fiscal-2025 first quarter (ended October 31), which highlighted increasing profitability.
Details
In after-hours trading on Wednesday, IDT Corporation stock added more than 6% to $53.65 per share. It is now up almost 48% since the beginning of the year.
When the market closed, the company released its financial results for the fiscal-2025 first quarter (ended October 31). Revenue grew 3% year over year to $309.6 million, marking the third consecutive quarter of growth, as noted by CEO Samuel Jonas in the press release.
Gross profit jumped 15% to $107.6 million, while the gross profit margin expanded 360 basis points to 34.8%, a record according to Jonas. He also pointed out that adjusted EBITDA reached an all-time high of $29.1 million, up 31%. Meanwhile, GAAP EPS more than doubled to $0.68 per share.
About IDT Corporation
Founded in 1990, IDT Corporation has four core segments: National Retail Solutions, which sells point-of-sale (POS) systems; BOSS Money, a money transfer service; net2phone, a provider of cloud-based communications services; and traditional communications.
In the fiscal-2025 first quarter, three of these segments saw year-over-year growth: NRS added 26.5% to $30.4 million, BOSS Money 40.0% to $37.1 million, and net2phone 8.0% to $21.6 million. Traditional communications was the only segment where revenue declined, down 4% year over year at $220.5 million. On a positive note, the rate of revenue decline is slowing: the segment fell 6% year over year for the fiscal-2024 fourth quarter and 10% for the full year. Jonas attributed this to the company's streamlining efforts.
