IDT Corporation (NYSE: IDT) is a global provider of fintech and telecommunications solutions, specializing in innovative payment options and communication services. The company reported a record performance in its second quarter for fiscal year 2025, showcasing substantial growth across its key segments.

In the second quarter ended January 31, 2025, IDT experienced a rise in revenue, reporting $303.3 million, a 2% increase from $296.1 million in the same quarter of the prior year. Gross profit rose to $112 million, reflecting a 16% increase, resulting in a gross margin of 37.0%, an increase of 420 basis points year-over-year. The company’s income from operations saw a significant rise of 77%, totaling $28.3 million.

Adjusted EBITDA for the quarter reached $34 million, marking a 56% increase compared to the prior year’s $21.8 million. Net income attributable to IDT rose by 41%, amounting to $20.3 million, with GAAP earnings per share increasing to $0.80 from $0.57. Non-GAAP net income increased by 26% to $21.3 million, and non-GAAP earnings per share jumped to $0.84 from $0.67.

IDT’s primary segments contributed to this positive financial trajectory. The National Retail Solutions (NRS) segment realized a 32% increase in recurring revenue, totaling $31.6 million, alongside a 71% rise in income from operations to $9.1 million. Adjusted EBITDA for NRS came in at $10.1 million, up 65% from the same quarter last year.

In the fintech segment, BOSS Money reported a transaction volume of 5.7 million, a 36% increase, while segment revenue reached $33.5 million, up 34%. Gross profit for the fintech segment rose 35% to $21.7 million, leading to a transformation from a loss of $(0.7) million in the previous year to positive income of $3.1 million. Adjusted EBITDA turned positive at $3.9 million.

net2phone experienced a 9% increase in subscription revenue to $21 million, with total revenue at $21.5 million. The income from operations for this segment increased to $1.1 million, a significant rise from $0.4 million in the year-over-year comparison. Adjusted EBITDA improved to $2.9 million, reflecting a 55% increase.

The Traditional Communications segment also performed well, with a gross profit increase of 2%, reaching $43.1 million, and income from operations of $18.1 million, which is a 24% increase. Adjusted EBITDA for this segment was reported at $20.2 million, a 19% increase year-over-year.

Capital expenditures increased by 6%, totaling $4.8 million. The company repurchased 179,338 shares for $8.5 million at an average price of $47.59 per share, contributing to a 20% increase in its quarterly dividend, now set at $0.06.

IDT’s financial position remains strong, with no outstanding debt and cash, cash equivalents, and current investments totaling $171.1 million as of January 31, 2025. The company’s net cash provided by operating activities saw a decrease to $20.2 million from $28.4 million in the prior year, which was attributable to the timing of payments related to BOSS Money disbursements.

Overall, these results indicate that IDT Corporation continues to demonstrate solid growth across its segments and maintain a stable operational and financial condition.