IDT Q4 2026 Earnings Results & Report

IDT EPS Results

• Actual EPS: $0.94
• Consensus EPS: $0.98
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: N/A
• EPS Beat Rate: 3 of last 5 quarters

IDT Revenue Results

• Actual Revenue: $338.98 million
• Expected Revenue: $319.00 million
• Beat/Miss: Beat by +$19.98 million
• YoY Revenue Growth: N/A

IDT (NYSE:IDT) (NYSE: IDT) is a telecommunications and fintech company founded in 1990 by Howard Jonas. The company began as an international long-distance provider and has expanded into consumer communications, payment services and technology solutions for businesses and independent retailers.

Through its BOSS Revolution brand, IDT offers international calling, prepaid wireless services, mobile airtime and data top-ups, and international money-transfer services. Its communications operations also provide wholesale voice services and related connectivity solutions to carriers and other communications providers in markets worldwide.

IDT’s National Retail Solutions business provides independent retailers with point-of-sale technology, payment processing, business services and related tools. The company serves customers and business partners across the United States and international markets. Howard Jonas serves as executive chairman, while Samuel Jonas is chief executive officer.

IDT Q4 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Fiscal 2026 was a record year, with revenue up 5%, Adjusted EBITDA up 17% to $154.6 million, and record gross profit and margins. Management guided for fiscal 2027 Adjusted EBITDA of $176 million–$180 million, representing approximately 15% growth at the midpoint.
• Positive Sentiment: NRS delivered strong momentum, with fourth-quarter revenue up 31% and Adjusted EBITDA up 47%. Management plans to increase sales hiring and focus on higher-volume, more profitable retailers while expanding monetization through merchant services, advertising, data, and delivery integrations.
• Positive Sentiment: BOSS Money’s digital channel continued to drive Fintech growth, with fourth-quarter digital transactions up 20%, revenue up 22%, and digital send volume up 38%. Digital transactions represented 88% of total volume, helping lift Fintech gross margin to 66% and supporting significant operating leverage.
• Positive Sentiment: net2phone is expected to surpass $100 million in annual recurring revenue in the current quarter, supported by AI Agent, Coach AI, and workflow integrations. Subscription revenue rose 10% in the fourth quarter, while full-year Adjusted EBITDA increased 33% to $16.1 million.
• Negative Sentiment: Traditional communications remains exposed to a continuing decline in BOSS Revolution Calling revenue, which management expects to fall by double digits in fiscal 2027. Although digital migration, cost reductions, and IDT Digital Payments are expected to offset much of the profit impact, the segment’s legacy communications businesses remain a structural headwind.

Presentation

[Operator]

Note, this conference call is being recorded. I will now turn the call over to Bill Ulrey of IDT Investor Relations. Bill, you may begin.

[Bill Ulrey, VP of Investor Relations and External Affairs at IDT]

Thank you, John. Today's presentation, IDT's Chief Executive Officer, Shmuel Jonas, and Chief Financial Officer, Marcelo Fischer, will discuss IDT's financial and operational results for the 3 months and 12 months ended July 31st, 2026. After their remarks, they will take your questions. Any forward-looking statements made during this conference call, either in their remarks or during the Q&A that follows, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that IDT files periodically with the SEC. IDT assumes no obligation either to update any forward-looking statements that they have made or may make, or to update the factors that may cause actual results to differ materially from those that they forecast.

[Bill Ulrey, VP of Investor Relations and External Affairs at IDT]

In their presentation or in the Q&A session, IDT's management may make reference to Non-GAAP measures, including Adjusted EBITDA, Non-GAAP earnings per share, NRS's Rule of 40 score, and adjusted net cash provided by operating activities. Schedules provided in the IDT earnings release reconcile these Non-GAAP measures to their nearest corresponding GAAP measures. Please note that the IDT earnings release is available on the investor relations page of the IDT Corporation website. The earnings release has also been filed on a Form 8-K with the SEC. Now, I'll turn the call over to Shmuel Jonas for his comments on the quarter's results.

[Shmuel Jonas, CEO at IDT Corporation]

Thank you, Bill, and thanks to everyone on the call for joining us this evening. IDT's fourth quarter capped off a strong fiscal year, highlighted by accelerated top line and Adjusted EBITDA growth. Our 3 high-margin growth segments, NRS, Fintech, and net2phone, each increased their respective quarterly and full-year contributions, while our traditional communications segment generated more Adjusted EBITDA in fiscal year 2026 than it did in fiscal year 2025 or fiscal year 2024. At NRS, we continued to develop and deploy new high-value functionalities for our retailers, such as our recent Uber Eats integration following the Grubhub and DoorDash partnerships we announced last year. These advances are supplementing other tailwinds driving gains in merchant services revenues. Also in the fourth quarter, advertising and data revenue returned to growth, bolstered by a recent acquisition. Taken together, these developments helped drive a 47% year-over-year increase in NRS's fourth quarter Adjusted EBITDA.

[Shmuel Jonas, CEO at IDT Corporation]

Looking ahead, we are working on several product initiatives to increase sales to our existing retailer base and to attract new retailers to the NRS network. Our BOSS Money Remittance business shares its brand identity, distribution networks, and addressable markets with our other BOSS-branded offerings. In recent years, we invested heavily to build and improve our BOSS apps. That strategy is paying off as BOSS Money continues to grow rapidly, thanks in part to the quality of our apps and our customer-centric service. At BOSS Money, remittances surpassed a 30 million annual transaction run rate for the first time in May, thanks to strong Mother's Day results in our digital channel. This channel contributed 88% of our total transaction volume in the fourth quarter, with transactions and revenue both increasing by 20% plus.

[Shmuel Jonas, CEO at IDT Corporation]

We recently launched money transfers via our WhatsApp channel, and we closed the fiscal year by deploying a digital wallet here in the U.S. The wallet enables our customers to load funds, store promotions, and pay for services. In addition, the BOSS Money app is extending its geographic reach, launching internationally with differentiated features by country, including peer-to-peer remittances, a stablecoin-backed wallet with a reloadable debit card, and other money management tools. We are also launching a BOSS Money-branded rechargeable card with credit-building features. All these developments mark early steps towards a broader suite of BOSS Money-branded financial services and tools that we intend to offer globally. net2phone delivered another solid quarter as we enhanced our cloud communications portfolio with both native and standalone AI solutions for businesses across the globe.

[Shmuel Jonas, CEO at IDT Corporation]

Our agentic AI solutions, AI Agent and Coach AI, combined with our new integration layer, enables customers to connect their everyday business applications and workflow tools with net2phone's suite of services. net2phone's AI tools and applications are driving nearly every conversation with our clients. That process is delivering new logos and accelerating accretive sales. net2phone is on track to surpass the $100 million ARR milestone in the current quarter, and we expect continued top-line expansion throughout fiscal 2027. Overall, IDT is well-positioned as we begin the new fiscal year, with accelerating top-line growth, increasing cash generation, and a debt-free balance sheet that affords us strategic flexibility. Now, Marcelo Fischer will discuss our financial results.

[Marcelo Fischer, CFO at IDT Corporation]

Thank you, Shmuel Jonas. I apologize for my voice. I am trying to recover from a cold, so I may have to pause a little more to take a breath from time to time. Okay. As always, my remarks will focus on year-over-year comparisons in order to set aside the seasonal impacts on our business. Our fourth quarter's financial results were very strong and capped off the best year in IDT's operational history. We generated record quarterly and full-year gross profit, gross profit margin, and Adjusted EBITDA.

[Marcelo Fischer, CFO at IDT Corporation]

The key dynamic driving our financial performance continues to be the increasing contributions of our three segments containing our higher margin growth businesses, NRS, Fintech, and net2phone, relative to the larger, lower margin traditional communications segment. In fiscal 2026, the three higher growth segments boosted the aggregate Adjusted EBITDA contribution by $22 million to 53% of consolidated Adjusted EBITDA, exclusive of corporate overhead, compared to 46% in fiscal 2025, while generating only one-third of our consolidated revenue. We expect that this ongoing rotation will continue in the coming quarters and years and be the key driver for our continued growth. Looking at our consolidated results, fourth quarter revenue increased by 7%, while full fiscal year revenue increased 5%, accelerating from 2% growth in fiscal 2025.

[Marcelo Fischer, CFO at IDT Corporation]

For a company like IDT, where the top line had decreased for many years because of the decline of the international long-distance voice paid minute market, generating two consecutive years of top-line accelerating growth while simultaneously expanding our gross margin at a very healthy pace is indeed a gratifying inflection. Consolidated gross profit and gross margin attained record quarterly and full fiscal year levels, driving a strong increase in both Adjusted EBITDA and net income. The full-year Adjusted EBITDA increase of 17% to $154.6 million exceeded the revised guidance range of $150 million-$152 million that we provided when we released our Q3 results. NRS closed the fiscal year with its strongest quarter yet. Total revenue in Q4 increased 31% to $45 million, led by an increase of 31% in merchant services revenue to $28.5 million, and a 49% increase in advertising and data revenue to $10 million.

[Marcelo Fischer, CFO at IDT Corporation]

NRS's Adjusted EBITDA in Q4 grew 47% year-over-year for an Adjusted EBITDA margin of 31%. In addition to the positive revenue growth impact, fourth quarter gross profit and Adjusted EBITDA benefited from a one-time import tariff refund recorded in cost of revenue. Excluding it, gross margin was in line with recent quarters. Tariffs were less important on a full-year basis, so the full year's growth margin of 92% is the better indicator of our future performance. Nevertheless, you can see the underlying operating leverage as we continue to scale the business. Our Rule of 40 score climbed to 60 from 49 in 4Q 2025. Income from operations more than doubled to $12 million in Q4. This increase was positively impacted by non-recurring legal expenses that were recorded in the comparative year-ago quarter. A word on how we will report a key performance indicator of the NRS network going forward.

[Marcelo Fischer, CFO at IDT Corporation]

Starting this quarter, we are sharing in our earnings releases two new KPIs, retailer locations and average monthly gross profit per location. We are retiring the monthly average recurring revenue per terminal KPI to more meaningfully and precisely reflect the economic performance of our retailer network. BOSS Money represents the dominant driver of results within our Fintech segment. It contributed 90% of Fintech revenue in the fourth quarter, and its digital channel, in turn, is what drives BOSS Money revenue growth. Digital channel transactions increased by 20% in Q4, while revenue increased 22%. Digital send volume, namely the principal funds our customers remitted, increased 38% as our customers sent more money per transaction. The new federal tax on remittances, which impacts only cash-originated transfers typically conducted at retailer agents, have further accelerated the long-standing migration of transactions from retail to digital alternatives.

[Marcelo Fischer, CFO at IDT Corporation]

Although revenue from our retailer agent channel declined 17% in Q4, every customer who migrated from retail to digital contributed more profitable transactions. We ended the year with 88% of our total BOSS Money transactions originating in our BOSS Money apps. Turning now to the larger Fintech segment in which we report BOSS Money. During Q4, gross profit margin expanded by 650 basis points year-over-year to 66%, reflecting mainly the mix shift to digital, the higher average send amounts, and also better pricing terms from our payout partners. As BOSS Money continues to grow and scale, we are deploying AI-driven process automation throughout the business to achieve measurable productivity gains. Those gains have enhanced the operating leverage effect on the Fintech segment profitability quite significantly. Fintech revenue grew 14% to $176 million during fiscal 2026, while income from operations grew 40% and Adjusted EBITDA 41%.

[Marcelo Fischer, CFO at IDT Corporation]

Our bottom line was also boosted by increased contribution from the other smaller businesses in our Fintech segment, including our fully licensed Gibraltar-based bank, IDT Financial Services. At net2phone, every new potential customer conversation now leads with AI. Subscription revenue increased 10% year-over-year in the fourth quarter, a 7% increase on a constant currency basis, and we ended the year with 447,000 seats, a 6% increase. Growth was a little stronger in the U.S.A. than elsewhere, with seats increasing by 7%. Our CCaaS business grew revenue by 24%. For the full year, subscription revenue grew 10% to $94.6 million. Income from operations grew 84% to $9.1 million, and Adjusted EBITDA grew 33% to $16.1 million. We are quite pleased with net2phone's strong operating leverage, with Adjusted EBITDA margins increasing to approximately 17%, even as we invested throughout the year in building out our AI capabilities.

[Marcelo Fischer, CFO at IDT Corporation]

Finally, in discussing our segment's performance, I want to call your attention to the traditional communications segment, which once again outperformed our expectations. In fiscal 2026, the segment grew both revenue and Adjusted EBITDA, and increased its Adjusted EBITDA for the second consecutive year. Quarterly gross profit during fiscal 2026 remained steady throughout the year at about $41 million, while declining 4% for the full year to $163 million. We continue to benefit from top-line growth at IDT Digital Payments, while the GP contribution from IDT Global and BOSS Revolution Calling declined in the low single digits year-over-year, as we expected. For the full year, Adjusted EBITDA increased 1% to $77 million, as we compensated for the decline in GP by reducing SG&A expense by nearly 6% compared to fiscal 2025.

[Marcelo Fischer, CFO at IDT Corporation]

We continue to believe that this segment will remain a reliable contributor to our cash generation for many years to come. From a balance sheet perspective, we ended the year with $272 million in unrestricted cash and liquid investments, and we have no debt. We continue to repurchase shares opportunistically, buying back approximately 31,000 shares for $2 million in the fourth quarter, and approximately 422,000 shares for $21 million over the course of fiscal 2026. In terms of our financial outlook for fiscal 2027, we are already working hard to generate strong results on top of our fiscal 2026 records. Continuing a trend that we have established for the past few years, we expect to again expand consolidated gross profit by double digits to a range of $545 million-$555 million, an increase of 11% at the midpoint.

[Marcelo Fischer, CFO at IDT Corporation]

In terms of Adjusted EBITDA, we are working to build on the record $155 million we achieved in fiscal 2026 and to reach $176 million-$180 million in fiscal 2027, with each of our operating segments expanding its contribution. This represents a 15% increase year-over-year at the midpoint. To sum up, fiscal 2026 was the best year in IDT's history, and we finished it with our strongest quarter. The rotation toward our high-margin growth businesses is accelerating. Our top line is growing faster, and we are entering fiscal 2027 debt-free with a stronger balance sheet and a lot of momentum. Shmuel Jonas and I will do our best to answer your questions. Operator, back to you for Q&A.

[Operator]

Thank you. The question and answer session will now begin. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we assemble the roster. The first question is from Emirlan Kelimbetov with Freedom Broker. Please go ahead with your question.

[Emirlan Kelimbetov, Analyst at Freedom Broker]

Yes. Hello, everyone. Thanks for taking my questions. First, I want to ask on the next financial year outlook. Could you please walk us through the main drivers behind the EBITDA guidance across the different segments?

[Marcelo Fischer, CFO at IDT Corporation]

Yeah. As I just mentioned in my remarks, we expect to grow EBITDA in each one of our segments. To a large extent, some of it is going to mirror the same pattern of growth that you saw in fiscal 2026. For example, in fiscal 2026, we said we were going to grow NRS's revenue by 20%-25% and EBITDA between 25%-30%. We achieved that. For this coming fiscal year, we are again assuming almost the same type of guidance. That NRS will again be able to grow revenue 20%-25%, as well as EBITDA at a higher clip than that. The same type of guidance is still also at Fintech, where we believe that EBITDA will continue to grow quite nicely.

[Marcelo Fischer, CFO at IDT Corporation]

It will continue to benefit from the scale of the business as it grows, from the efficiencies that we have incorporated into the business processes of the segment, from better performance, even from the smaller businesses within that segment. In the case of net2phone, we budgeted a very small increase in Adjusted EBITDA for this coming year. We did the same thing last year, as a matter of fact. They ended up delivering a lot higher Adjusted EBITDA last year than we had budgeted for them. Again, for this year, we are trying to budget and allow the management team of net2phone to redeploy a lot of Adjusted EBITDA coming from the growth back into the business so they could continue to roll out and improve on their AI development roadmap.

[Marcelo Fischer, CFO at IDT Corporation]

Even in our traditional segment, we hope to once again be able to demonstrate that that segment is no longer a contracting segment, but it will be, once again, for the third year in a row, a segment that is actually adding to total Adjusted EBITDA.

[Emirlan Kelimbetov, Analyst at Freedom Broker]

Got it. That is helpful. Thank you. As we stopped at net2phone, may I ask one more on that segment, please? Where are we seeing the clearest commercial impact from the AI products so far in net2phone?

[Shmuel Jonas, CEO at IDT Corporation]

Yeah, I would say that we are definitely seeing clear evidence of our product being used. Mostly I try not to talk about other customers without their permission, but I can talk about IDT as a customer of net2phone for our own solutions and in our own customer service areas, as well as in lots of other areas in the company where they are helping us. We are using it tremendously. I would say probably 70%+ of communications are being handled by AI in some way, shape, or form. Some of those from start to finish. Some of them require an agent at some point. But it has been a real game changer in terms of the cost and the efficiency of servicing our customers. From the customers I have spoken to at net2phone, the same thing is true from their perspective.

[Emirlan Kelimbetov, Analyst at Freedom Broker]

Understood. Thanks. One on NRS, if I may. How are you thinking about the balance between network growth and monetization of the existing retailer base from here?

[Shmuel Jonas, CEO at IDT Corporation]

I would like to grow the network much more than we've been growing it. I'll say that just as a starting point, and we're going to be investing more in our sales growth. That being said, for a long time, we looked at every retailer as equal to another retailer, and we focused more so on the quantity rather than the quality. We've become much more, I don't want to use the word analytical, but I'll say that we've become much more regimented about making sure that we're going after the right kinds of stores that produce the right results for our business. Sometimes that, unfortunately, leads to less gross number of adds, but the revenue coming from those locations tend to be quite a lot better than they were beforehand.

[Shmuel Jonas, CEO at IDT Corporation]

You can see that playing out in our numbers, and I think you'll continue seeing that playing out into the future. That being said, we are going to be hiring quite a lot of salespeople this year and really upping our game to make sure that we also bring in higher numbers than what we've been bringing in.

[Emirlan Kelimbetov, Analyst at Freedom Broker]

Great. Thank you. Please, the last one from me on traditional communications. Could I ask you to add some more color on the main drivers you see for EBITDA growth in the next financial year for that segment?

[Shmuel Jonas, CEO at IDT Corporation]

Again, I think, the general switch from a lot of our customers becoming digital-first customers rather than retail-first customers has definitely allowed our margins to improve. Again, from a very macro point, if a customer goes into a store and they spend $10, $2.50 of that revenue goes directly to the store, if not more. When a customer comes to us directly and spends $10, $10 goes directly into our pocket. We are a multi omnichannel, I'll call it, type of a company. We sell in retail, wholesale, direct to consumer. But we've definitely upped our game in the digital space, and we've seen our customers very satisfied by that, and us as well.

[Emirlan Kelimbetov, Analyst at Freedom Broker]

Understood.

[Marcelo Fischer, CFO at IDT Corporation]

If we could just add to that, right? Now, we are going to still expect to see double-digit decline in the revenue of the BOSS Revolution calling business. But as Shmuel Jonas mentioned, the impact that has to the bottom line is much smaller because of our migration from retail to digital, as well as introducing subscription plans and other higher margin elements. On our digital payment business that have been driving growth the past few years, and we now expect that to continue and to offset the declines on the ILD side of the business. Just to mention also now that it's been part of the modus operandi for us at IDT now for many years, that we are constantly looking to reduce the cost structure in that segment.

[Marcelo Fischer, CFO at IDT Corporation]

Now we're coming to achieve reduction in cost and SG&A so that we could now net see positive growth in EBITDA.

[Shmuel Jonas, CEO at IDT Corporation]

Yeah. But again, I would say more than anything, we drive customer growth by driving happy customers. When one customer tells another customer, if you're needing to provide balance to your family, whether that be in cash top-up, their utility bills, their supermarkets, anything related to supporting your family back home, go to IDT. You can trust them. That's really what drives the business. That's what we focus on every day.

[Emirlan Kelimbetov, Analyst at Freedom Broker]

Great. Thanks for the color, gentlemen. That is all from me.

[Operator]

The next question comes from William Vaughan, Ritholtz Wealth. William, please proceed.

[William Vaughan, Analyst at Ritholtz Wealth]

Hi, Shmuel Jonas. Hi, Marcelo Fischer. Congrats on a fantastic quarter.

[Shmuel Jonas, CEO at IDT Corporation]

Thank you.

[William Vaughan, Analyst at Ritholtz Wealth]

You are welcome. Just want to ask a question on, you mentioned trying to reaccelerate new store growth at NRS, which is awesome to hear. Also like maximizing profitability in the types of stores that are brought on. Do you see any types of verticals being more or less attractive in that initiative in terms of thinking about independent retailers versus tobacco versus quick service or liquor stores? Are there any types of verticals that are more attractive than that?

[Shmuel Jonas, CEO at IDT Corporation]

There are, definitely ones that are more attractive and ones that are less attractive. In general, I would say that we are looking for stores that are doing higher volume versus stores that are doing lower volume. That is really the main factor of what we are focusing on. That being said, there definitely are verticals in specific where our solutions are better situated to those types of stores, and we get more revenue from them because they are able to take more types of our services. Again, I will just. It is a bad example, but if somebody is a tobacco shop, we will just use them as an example. They are most likely not going to be able to take a lot of our services at this point because they are not allowed to do delivery in most places.

[Shmuel Jonas, CEO at IDT Corporation]

As opposed to a store that has a big food element to it and does a lot of deliveries, they would be much more profitable, as well as they would be doing much more deliveries for the store. So it is those kinds of factors that influence the overall profitability of a store.

[William Vaughan, Analyst at Ritholtz Wealth]

Okay. A follow-up on that, do you still see that new stores that are brought on are mostly converting folks who did not really have a good POS system prior? Or have you gotten to the point where the offering is taking business away from other providers because of the specialization in terms of services that you add and becoming more competitive that way?

[Shmuel Jonas, CEO at IDT Corporation]

I don't know the answer exactly to the question off the top of my head, but I would just give you my thoughts on it. These aren't statistical numbers. I would say at this point in time, most stores have a point-of-sale system. They're not moving from a Casio to a POS at this juncture. I'm not saying that none are moving off of a Casio, we'll call it. In general, they're moving to us because of all of the different services that we provide and the fact that it's just much more robust and much lower cost than anybody else is offering those services for.

[Shmuel Jonas, CEO at IDT Corporation]

We've had customers that have left us for something new and shiny, and a couple of months later, they realize their bills are not what they thought they were going to be, their service is not what they thought they were going to get, and they end up coming back. A huge percentage of stores also that I would say sell their store to a new operator also come back to us, which I think is also proof of what a good value and good job we do. Because if you're coming into a new business and you want to improve it, and you choose to go with the main core of your business, again, from NRS IDT, that means that you think that part of your business is not what needs changing.

[Shmuel Jonas, CEO at IDT Corporation]

We're very focused on making sure that we provide great service and affordable pricing to our retail partners so that they can continue to do well in really a very tough environment.

[William Vaughan, Analyst at Ritholtz Wealth]

Awesome. Last question on NRS. It's great to see the recovery and increase in advertising spend and advertising revenue. What would you say has really driven that? You mentioned the acquisition. Is it just getting more bidding for ad impressions? What specifically has drove the recovery? If you could just give some color on that.

[Shmuel Jonas, CEO at IDT Corporation]

Yeah. It's not a one facet answer. I would also say, listen, unfortunately and fortunately, depending on which quarter we're talking about, advertising has been somewhat, I don't want to say seasonal, but has been somewhat imbalanced. Right now, it's doing very well. As we're speaking this quarter, it's doing better than ever. I think this is, again, my own opinion, not fact. It's that more and more retailers are seeing good results from the ads that are happening. They're driving results in their stores. Our partners who are usually the brands that sell products in these stores are seeing the results.

[Shmuel Jonas, CEO at IDT Corporation]

Our partners who sell other services, whether or not it's legal services or immigration services or any of a number of types of companies that advertise in our network, see the results from the dollars that they're spending in NRS in a community that's harder to reach than maybe somebody who, I don't know, we'll say you, who works in Wall Street. I think that that's generally speaking what's happening. That being said, the acquisition brought on other pieces of business that they do that have nothing to do with what happens in our stores directly, and that's been a new area of growth. It's that whole combination together.

[William Vaughan, Analyst at Ritholtz Wealth]

Awesome. Thank you. Just one on BOSS Money. Nice growth there. How would you say the market is evolving in the remittance space, with the tax and then with people shifting more to digital? Just any comments you could give there. Do you feel like you guys are taking share in the overall market, and do you guys feel like you're taking share within the digital part of the market specifically as well?

[Shmuel Jonas, CEO at IDT Corporation]

Listen, I can't speak to how our competitors are doing that aren't public competitors. You can see a lot of the public competitors to us who have retail businesses and how it's affected them. That's very public information, and it's easy to see that it's hurting their business, this remittance tax and the move to digital in general. In terms of how we're doing digitally versus our competitors, I would say we're doing well. I wish we were doing always a little better than we're currently doing. We're trying our best always. Right now the business is doing very well, and I don't expect anything to change. We're definitely being helped by the market moving to digital. It's not just us, I would say it like that.

[Marcelo Fischer, CFO at IDT Corporation]

Yeah. We do see that our market share has remained stable to growing to our largest destinations. I'll give you an example. Taking the case of Mexico. Mexico, as you know, is the largest corridor for remittances out of the U.S. So you go back a year ago, we probably had a little less than 2% of the market share. Now we probably have about a little bit less than 3%, so we've grown a little bit there. I think hopefully there will be a lot more opportunities for us to grow market share into Mexico, and we think about Mexico all the time as an area of opportunity for continued growth.

[Marcelo Fischer, CFO at IDT Corporation]

Being able to have the best app out there, which is a BOSS Money app, have been rated, and a great service, now we hope that will be a way to, over time, educate more and more users to try our service and stick with us.

[William Vaughan, Analyst at Ritholtz Wealth]

Awesome. Thanks, guys. Appreciate it. Feel better, Marcelo Fischer.

[Marcelo Fischer, CFO at IDT Corporation]

Thank you.

Participants

Executives

• Bill Ulrey, VP of Investor Relations and External Affairs
• Shmuel Jonas, CEO
• Marcelo Fischer, CFO

Analysts

• Emirlan Kelimbetov, Analyst at Freedom Broker
• William Vaughan, Analyst at Ritholtz Wealth