IDT CORP Segments Disclosure

Note 2—Business Segment Information

 

The Company’s reportable segments are distinguished by types of service, customers, and methods used to provide their services. The operating results of the business segments are regularly reviewed by the Company’s chief operating decision maker (“CODM”), which is a group of the Company’s executives that includes the Chairman of the Board of Directors, Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer. The Company’s CODM uses actual and budgeted income (loss) from operations to evaluate the performance of the business segments and allocate resources, including capital allocations, primarily by monitoring actual results compared to prior periods and expected results. The accounting policies of the segments are the same as the accounting policies of the Company as a whole. There are no significant asymmetrical allocations to segments.

 

 

The NRS segment is an operator of a nationwide POS network providing independent retailers with POS equipment, store management software, electronic payment processing, and other ancillary merchant services. NRS’ POS platform provides marketers with digital out-of-home advertising and transaction data.

 

The Fintech segment is comprised of: (i) BOSS Money, a provider of international money remittance and related value/payment transfer services; and (ii) other, significantly smaller, financial services businesses, including a variable interest entity (“VIE”) that processes disbursement payments (the “Disbursement Payments VIE”), (iii) IDT Financial Services Limited (“IDT Financial Services”), a Gibraltar-based bank and (iv) IDT Services Limited (“IDTS”), a Malta-based electronic money institution.

 

The net2phone segment is comprised of net2phone’s integrated cloud -based Unified Communications as a Service (“UCaaS”) and Contact Center as a Service (“CCaaS”) offerings.

 

The Traditional Communications segment includes: (i) IDT Digital Payments, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts; (ii) BOSS Revolution, an international long-distance calling service marketed primarily to immigrant communities in the United States and Canada; and (iii) IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide. Traditional Communications also includes other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

 

Corporate costs mainly include compensation, consulting fees, treasury, tax and accounting services, human resources, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, and other corporate-related general and administrative expenses. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

 

Operating results for the business segments of the Company are included in the tables below. The significant expense categories align with the segment-level information that is regularly provided to the CODM. The significant expense categories include depreciation and amortization. Other segment items, which is the difference between segment revenues less the segment expenses disclosed and segment income (loss) from operations, includes severance expense and other operating expense, net. The reconciliation of the total income (loss) from operations to income before income taxes is reflected in the consolidated statements of income.

 

 Schedule of Operating Results of Business Segments

(in thousands)		National Retail Solutions				Fintech				net2phone				Traditional Communications				Corporate				Total
Year ended July 31, 2025
Revenues		$	128,793			$	154,610			$	87,875			$	860,217			$	—			$	1,231,495
Direct cost of revenues			(11,933)				(63,868	)			(18,165	)			(691,334	)			—				(785,300	)
Selling, general and administrative expense			(78,015	)			(66,209	)			(52,354	)			(79,875	)			(11,114	)			(287,567	)
Technology and development expense			(8,682	)			(9,064	)			(11,671	)			(21,540	)			(7	)			(50,964	)
Other segment items			(2,410	)			(49	)			(736	)			(942	)			(3,103	)			(7,240	)
Income (loss) from operations		$	27,753			$	15,420			$	4,949			$	66,526			$	(14,224	)		$	100,424
Depreciation and amortization			4,071				2,932				6,382				7,561				62				21,008
Capital expenditures		$	5,367			$	3,501			$	6,608			$	5,279			$	15			$	20,770

 

(in thousands)		National Retail Solutions				Fintech				net2phone				Traditional Communications				Corporate				Total
Year ended July 31, 2024
Revenues		$	103,141			$	120,721			$	82,325			$	899,591			$	—			$	1,205,778
Direct cost of revenues			(11,625	)			(53,387	)			(17,236	)			(733,373	)			—				(815,621	)
Selling, general and administrative expense			(62,652	)			(59,650	)			(52,588	)			(84,864	)			(10,453	)			(270,207	)
Technology and development expense			(7,070	)			(9,505	)			(10,777	)			(23,153	)			(49	)			(50,554	)
Other segment items			(168	)			1,691				(43	)			(1,767	)			(4,356	)			(4,643	)
Income (loss) from operations		$	21,626			$	(130	)		$	1,681			$	56,434			$	(14,858	)		$	64,753
Depreciation and amortization			3,200				2,872				6,133				8,064				82				20,351
Capital expenditures		$	3,606			$	3,650			$	6,334			$	5,332			$	—			$	18,922

 

 

(in thousands)		National Retail Solutions				Fintech				net2phone				Traditional Communications				Corporate				Total
Year ended July 31, 2023
Revenues		$	77,115			$	86,610			$	72,388			$	1,002,741			$	—			$	1,238,854
Direct cost of revenues			(10,734	)			(36,599	)			(15,272	)			(819,009	)			—				(881,614	)
Selling, general and administrative expense			(47,017	)			(47,213	)			(49,711	)			(89,901	)			(9,317	)			(243,159	)
Technology and development expense			(4,961	)			(7,278	)			(9,969	)			(25,780	)			—				(47,988	)
Other segment items			(3	)			1,947				(190	)			(6,764	)			(340	)			(5,350	)
Income (loss) from operations		$	14,400			$	(2,533	)		$	(2,754	)		$	61,287			$	(9,657	)		$	60,743
Depreciation and amortization			2,363				2,683				5,608				9,428				54				20,136
Capital expenditures		$	4,252			$	3,856			$	6,652			$	7,198			$	—			$	21,958

 

Total assets for the reportable segments are not provided because a significant portion of the Company’s assets service multiple segments and the Company does not track such assets separately by segment.

 

Geographic Information

 

Net long-lived assets and total assets held outside of the United States, which are located primarily in Western Europe, were as follows:

 

Schedule of Net Long-lived Assets and Total Assets by Geographic Areas

(in thousands)		United States				Other Countries				Total
July 31, 2025
Long-lived assets, net		$	28,306			$	12,441			$	40,747
Total assets			345,218				280,985				626,203
July 31, 2024
Long-lived assets, net		$	28,825			$	13,100			$	41,925
Total assets			305,738				244,357				550,095