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IDT Corp (IDT)
NYSE:IDT

IDT (IDT) AI Stock Analysis

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IDT

(NYSE:IDT)

Rating:78Outperform
Price Target:
$78.00
▲(13.60%Upside)
IDT's strong financial performance, reflected in robust profitability and cash flow metrics, is the most significant factor driving the score. The bullish technical indicators support a positive outlook, while reasonable valuation and positive earnings call insights further bolster the stock's attractiveness. The recent dividend announcement enhances confidence in shareholder value. However, caution is advised due to slight revenue growth challenges and nearing overbought technical levels.

IDT (IDT) vs. SPDR S&P 500 ETF (SPY)

IDT Business Overview & Revenue Model

Company DescriptionIDT Corporation is a multinational telecommunications company that primarily operates in the telecommunications and payment services sectors. The company's core services include international long-distance calling, mobile top-up services, and payment transfer solutions. IDT offers a variety of communication services to both consumers and businesses, leveraging its established global network to facilitate international connectivity.
How the Company Makes MoneyIDT Corporation generates revenue through multiple streams, primarily from its telecommunications services and payment solutions. The company earns money by providing international long-distance calling services, which are monetized through customer subscriptions and usage fees. Additionally, IDT offers mobile top-up services that allow users to add credit to prepaid mobile phones across different countries, generating income from transaction fees and commissions. The company's payment transfer services are another significant revenue source, facilitating money transfers across borders and earning fees for each transaction. Key partnerships with telecommunication providers and financial institutions enhance IDT's service offerings and expand its market reach, contributing to its overall revenue.

IDT Earnings Call Summary

Earnings Call Date:Jun 05, 2025
(Q3-2025)
|
% Change Since: 14.55%|
Next Earnings Date:Oct 02, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong year-over-year financial performance across most business segments, with significant increases in income from operations, adjusted EBITDA, and EPS. However, challenges such as a decline in advertising revenue and slower terminal additions were noted. Overall, the positive aspects of growth and expansion in key areas slightly outweigh the negative aspects.
Q3-2025 Updates
Positive Updates
Significant Year-Over-Year Growth
IDT reported a 133% year-over-year increase in consolidated income from operations, a 57% increase in consolidated adjusted EBITDA, and a 290% increase in EPS.
NRS Performance
NRS saw a recurring revenue increase of 23% year-over-year, with merchant services revenue up 37% and SaaS fees up 33%, offsetting a 12% decrease in advertising and data revenue.
BOSS Money Success
BOSS Money increased transactions by 27% and revenue by 25%. The Fintech segment generated over $5 million in adjusted EBITDA compared to $244,000 a year ago.
net2phone Growth
net2phone saw balanced growth in the U.S., Brazil, and Mexico, with adjusted EBITDA margins reaching 15%. Income from operations increased 188%, and adjusted EBITDA increased 50%.
Traditional Communications Strength
Income from operations and adjusted EBITDA both increased over 30% year-over-year, highlighting the segment as a long-term cash generator.
Negative Updates
Advertising Revenue Decline
Advertising and data revenue decreased by 12% year-over-year due to a decision to limit sales to one of the larger programmatic platform clients.
NRS Bad Debt Provision
A bad debt expense provision of $1.4 million was set up due to amounts due from a client.
Slower Terminal Additions
The pace of POS terminal additions, payment processing accounts, and merchant service revenue slowed down, although the company disputes it is a significant issue.
Company Guidance
In the recent earnings call for IDT Corporation's third quarter of fiscal 2025, the company reported significant year-over-year financial growth across several key metrics. Consolidated income from operations saw a 133% increase, while adjusted EBITDA grew by 57%, and earnings per share surged by 290%. The NRS segment reported a 23% increase in recurring revenue, driven by a 37% rise in merchant services revenue and a 33% increase in SaaS fees. However, it faced a 12% decline in advertising and data revenue. BOSS Money, the company's remittance platform, achieved a 27% growth in transactions and a 25% increase in revenue, with digital transactions constituting over 80% of remittances. The Fintech segment, encompassing BOSS Money and other initiatives, generated over $5 million in adjusted EBITDA, a significant leap from $244,000 the previous year. Net2phone continued its growth trajectory with a 7% increase in subscription revenue and reached an adjusted EBITDA margin of 15%. The Traditional Communications segment also reported a more than 30% increase in income from operations and adjusted EBITDA. The company is optimistic about pursuing new growth initiatives and remains on track to meet its full-year adjusted EBITDA goal of $126 million.

IDT Financial Statement Overview

Summary
IDT demonstrates strong profitability with improving gross and net profit margins. The balance sheet is robust with minimal leverage, and cash flow performance is strong with significant improvements in operating and free cash flow. Although revenue growth has faced challenges, profitability and cash flow strengths provide a solid foundation for future growth.
Income Statement
78
Positive
IDT has demonstrated strong profitability with increasing gross and net profit margins in the TTM period. The gross profit margin improved to 35.46% from previous annual figures, and the net profit margin rose to 7.85%. Revenue growth has been a challenge with slight declines in previous years but showed resilience in the TTM results. The EBIT and EBITDA margins have also shown positive trends, indicating effective cost management and operational efficiency.
Balance Sheet
82
Very Positive
The balance sheet is robust with a very low debt-to-equity ratio of 0.004, highlighting minimal leverage and financial stability. The return on equity (ROE) has improved significantly to 33.55% in the TTM period, reflecting strong profitability relative to equity. The equity ratio is solid at 47.62%, indicating a healthy balance between equity and assets, further supporting the company's financial strength.
Cash Flow
85
Very Positive
Cash flow performance is strong, with significant improvements in operating cash flow and free cash flow. The free cash flow to net income ratio is high at 1.08, indicating efficient earnings conversion into cash. Free cash flow growth has been robust, supporting financial flexibility. The operating cash flow to net income ratio of 1.30 further emphasizes the company's ability to generate cash from operations effectively.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue1.22B1.21B1.24B1.36B1.45B1.35B
Gross Profit433.89M390.16M363.12M329.63M292.94M261.76M
EBITDA107.96M82.26M80.94M53.00M82.99M38.12M
Net Income96.03M64.45M40.49M27.03M96.47M21.43M
Balance Sheet
Total Assets600.91M550.10M510.81M497.09M512.65M404.75M
Cash, Cash Equivalents and Short-Term Investments223.82M193.00M152.25M137.75M163.59M109.19M
Total Debt1.21M1.53M2.88M4.61M5.47M7.35M
Total Liabilities290.06M283.54M300.34M316.27M346.04M333.61M
Stockholders Equity286.16M246.18M193.73M167.62M164.86M74.77M
Cash Flow
Free Cash Flow104.13M59.27M32.18M7.53M49.85M-45.63M
Operating Cash Flow124.94M78.19M54.14M29.41M66.62M-29.59M
Investing Cash Flow-10.00M-748.00K-33.46M-33.78M-44.06M-32.46M
Financing Cash Flow-30.74M-17.23M-15.81M-15.62M-4.52M-5.65M

IDT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price68.66
Price Trends
50DMA
60.86
Positive
100DMA
55.03
Positive
200DMA
50.87
Positive
Market Momentum
MACD
2.33
Positive
RSI
63.28
Neutral
STOCH
78.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDT, the sentiment is Positive. The current price of 68.66 is above the 20-day moving average (MA) of 67.02, above the 50-day MA of 60.86, and above the 200-day MA of 50.87, indicating a bullish trend. The MACD of 2.33 indicates Positive momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 78.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IDT.

IDT Risk Analysis

IDT disclosed 74 risk factors in its most recent earnings report. IDT reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

IDT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
IDIDT
78
Outperform
$1.73B18.1238.36%0.34%1.91%169.96%
75
Outperform
$2.04B76.11-6.47%41.51%-103.22%
75
Outperform
$2.04B76.11-6.47%41.51%-103.22%
61
Neutral
$40.69B-0.79-11.97%3.78%2.11%-69.16%
56
Neutral
$729.53M59.21-1.12%9.10%-6.30%-109.90%
56
Neutral
$729.53M59.21-1.12%9.10%-6.30%-109.90%
56
Neutral
$989.31M7.2034.07%6.76%11.62%
56
Neutral
$989.31M7.2034.07%6.76%11.62%
BOBOC
53
Neutral
$443.81M498.590.16%11.58%
BOBOC
53
Neutral
$443.81M498.590.16%11.58%
41
Neutral
$1.04B21.93%-3.68%-2563.04%
41
Neutral
$1.04B21.93%-3.68%-2563.04%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IDT
IDT
65.83
30.32
85.38%
SBGI
Sinclair Broadcast
14.22
1.70
13.58%
SBGI
Sinclair Broadcast
14.22
1.70
13.58%
GOGO
Gogo
15.76
6.31
66.77%
GOGO
Gogo
15.76
6.31
66.77%
CABO
Cable ONE
133.48
-180.40
-57.47%
CABO
Cable ONE
133.48
-180.40
-57.47%
ATUS
Altice Usa
2.22
0.32
16.84%
ATUS
Altice Usa
2.22
0.32
16.84%
BOC
Boston Omaha
14.11
1.35
10.58%

IDT Corporate Events

Regulatory Filings and Compliance
IDT Presents Investor Slide Deck on June 12
Neutral
Jun 12, 2025

On June 12, 2025, IDT provided a slide presentation to certain investors, which is also accessible on their investor relations webpage. The presentation, disclosed under SEC regulations, includes forward-looking statements and is not filed with the SEC.

Dividends
IDT Announces Quarterly Cash Dividend for June 2025
Positive
Jun 5, 2025

On June 5, 2025, IDT Corporation announced a quarterly cash dividend of $0.06 per share, payable on June 18, 2025, to stockholders of record as of June 9, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may impact its financial positioning and investor relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025