IDT Highlights Growth Engines, Delays net2phone Spin-Off Until Markets Improve

IDT highlighted the growing importance of its higher-margin businesses during a recent presentation, while executives indicated the company will wait for favorable market conditions before considering a potential spin-off of net2phone. The company's fiscal year concludes on July 31, and the presentation covered the third quarter of fiscal year 2026, which ended on April 30.

IDT currently has $251 million in cash and no debt, according to the company's Vice President of Investor Relations and External Affairs, Bill Ulrey. The business generated $1.3 billion in revenue and $147 million in adjusted EBITDA over the past 12 months, with $26 million in share repurchases and quarterly dividends paid during that period.

The company operates six primary businesses, with management emphasizing three higher-margin growth operations: National Retail Solutions (NRS), BOSS Money, and net2phone. Together, these businesses account for approximately one-third of revenue and two-thirds of gross profit.

NRS provides point-of-sale technology to independent retailers, including convenience stores and liquor shops. The business operates about 40,000 POS terminals across 34,000 retail locations, generating $36 million in recurring revenue in the latest quarter, excluding hardware sales.

BOSS Money, IDT's international remittance offering, primarily benefits first- and second-generation immigrants sending money to family and friends abroad. Digital-channel revenue increased by 27% year-over-year in the third quarter, while BOSS Money was the main driver of a 30% increase in adjusted EBITDA.

net2phone offers unified communications, contact-center services, and AI-powered customer interaction tools to small- and mid-market businesses. Subscription revenue grew at a 17% compound annual rate over the past four years and reached $93.5 million in the trailing 12 months. Quarterly subscription revenue increased by 12% to $24 million, with the business generating more than $15 million in adjusted EBITDA and a record 17% adjusted EBITDA margin.