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.
In October, Zacks Investment Research called the performance of most of IDT’s business in the 2024 fiscal year “impressive,” with the results of BOSS Money described as “promising.” For the 2024 fiscal year, revenue grew 42% year over year at NRS, 41% at BOSS Money and 11% at net2phone.
