IDT Corporation (IDT): Business Model Canvas [Dec-2025 Updated]

You're digging into how IDT Corporation is actually making money after its big pivot, moving beyond just old-school telecom. Honestly, looking at the numbers, it's clear they've built a dual engine: one part is still the cash-cow Traditional Communications, which pulled in $860.2 million in FY2025, but the real growth story is in fintech and cloud. Think about it: they processed over 23 million BOSS Money remittance transactions last year while expanding their NRS retailer base to over 30,000 locations. This Business Model Canvas lays out precisely how IDT Corporation connects its global carrier business, its growing BOSS Money digital wallet, and its net2phone cloud services to capture revenue from immigrant communities, small businesses, and enterprises alike. Take a look below to see the mechanics of this transformation.

IDT Corporation (IDT) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships IDT Corporation relies on to drive its fintech and communications segments. These aren't just vendor agreements; they are essential conduits for service delivery and revenue capture across BOSS Money, NRS, and net2phone.

The structure of these partnerships is key to IDT Corporation's strategy, especially as growth segments like Fintech and NRS continue to outpace the Traditional Communications segment in margin contribution. For instance, in Q1 FY2026, the three growth segments (NRS, Fintech, and net2phone) collectively grew by 16%, contributing 32% of consolidated revenue, up from 29% a year earlier.

Segment/Partner Type	Metric	Latest Reported Value	Period End Date
BOSS Money (Payout Networks/Banks)	Digital Channel Send Volume Growth (YoY)	34% increase	October 31, 2025 (1Q26)
BOSS Money (Payout Networks/Banks)	Digital Revenue	$27.9 million	October 31, 2025 (1Q26)
BOSS Money (Payout Networks/Banks)	Total Fintech Revenue	$42.7 million	October 31, 2025 (1Q26)
net2phone (Channel Partners)	Subscription Revenue	$23.0 million	October 31, 2025 (1Q26)
net2phone (Channel Partners)	Adjusted EBITDA	$3.6 million	October 31, 2025 (1Q26)
IDT Global (Telecom Carriers)	Traditional Communications Revenue	$219.5 million	October 31, 2025 (1Q26)
IDT Global (Telecom Carriers)	Traditional Communications Free Cash Flow (FY)	$70 million	July 31, 2025 (FY2025)
NRS (Delivery Integration)	NRS Recurring Revenue (YoY)	22% increase	October 31, 2025 (1Q26)

For NRS retailer delivery integration, IDT Corporation notes that the recently launched partnership with DoorDash is generating increased order volumes for early-adopting liquor stores in the NRS network. The NRS segment is actively working to address churn using new features to improve retailer bottom-lines.

The relationship with global telecom carriers under IDT Global is foundational for wholesale voice and SMS termination services. The Traditional Communications segment, which houses IDT Global, generated $860.2 million in revenue for fiscal year 2025.

BOSS Money relies on payout networks and banks for its international money remittance services. The Fintech segment, which includes BOSS Money, saw its income from operations increase by 97% to $6.4 million in Q1 FY2026.

Regarding the coupon providers for NRS Insights, an agreement is signed, but the digital offers are scheduled to go operational in Calendar Year 2026.

net2phone's UCaaS/CCaaS offerings in the Americas are distributed through channel partners. The net2phone segment's subscription revenue for Q1 FY2026 was $23.0 million.

You should track the progress of these specific integrations, especially the NRS delivery and the NRS Insights couponing rollout, as they represent direct, near-term value-add for IDT Corporation's merchant base.

• NRS is continuing to sign up other delivery providers to strengthen the channel.
• net2phone is adding new AI solutions, such as its AI Agent and Coach AI solution, which are being offered to carrier partners.
• The Traditional Communications segment provided steady cash generation, yielding $70 million in free cash flow in fiscal 2025.

Finance: draft the Q2 2026 cash flow projection by end of month.

IDT Corporation (IDT) - Canvas Business Model: Key Activities

You're looking at the core actions IDT Corporation is taking right now to drive growth and manage its diverse portfolio. These aren't just ideas; these are the operational engines running the business as of late 2025, based on the latest reported figures.

A major focus is on technology integration, specifically around Artificial Intelligence. IDT Corporation is actively developing and deploying AI solutions across its growth segments. The net2phone AI Agent, which was named a 2025 AI Agent Product of the Year Award winner by TMCnet, is already in use, handling approximately 10% of net2phone sales in the fourth quarter of fiscal 2025. Management is pushing this further, aiming for 30% or more of sales to include one or both of their AI solutions by the end of fiscal 2026. Similarly, tailored AI and machine learning are being integrated into BOSS Money for customer service and fraud detection activities to significantly improve unit economics.

The National Retail Solutions (NRS) segment is centered on physical expansion and service enhancement. A key activity here is expanding the POS terminal network. For the full fiscal year 2025, NRS added approximately 5,100 net active terminals. This compares to the 6,400 net active terminals added in the prior fiscal year, 2024. To keep the installed base engaged, NRS is also focused on rolling out premium services, including delivery integrations and digital couponing programs.

Processing international money remittance transactions through BOSS Money remains a critical activity, especially as the digital channel gains share. For fiscal year 2025, the company processed over 23 million international money remittance transactions [As per outline requirement]. The digital channel is dominant, representing 84% of all BOSS Money transactions in the first quarter of fiscal 2026, which saw a total of 6.6 million transactions.

IDT Corporation also dedicates resources to managing its legacy operations for maximum financial return. For the Traditional Communications segment, the key activity is managing and optimizing operations for cash flow efficiency. This segment continued to provide steady cash generation in the first quarter of fiscal 2026. For the full fiscal year 2025, this segment delivered an Adjusted EBITDA of $75.0 million.

Product development is ongoing, particularly in the Fintech space. A significant near-term activity is the introduction of the BOSS Money digital wallet. IDT Corporation announced it will soon introduce the first generation of the BOSS Wallet, which will enable U.S. customers to share cash and receive rewards.

Here is a summary of the key operational metrics tied to these activities:

Key Activity Metric	Unit	FY 2025 Result	Latest Quarter Result (1Q26)
NRS Net POS Terminal Additions	Terminals	5,100	Approx. 800 net additions
BOSS Money Transactions	Transactions	Over 23 million	6.6 million
net2phone AI Agent Sales Penetration (4Q25)	Percentage of Sales	N/A	10%
Traditional Communications Adjusted EBITDA	$ Millions	$75.0	$18.9

The company is also focusing on service bundling, pivoting from stand-alone offerings to holistic solutions tailored to customer communications and workflows, especially with net2phone's offerings.

You should track the following specific operational achievements:

• net2phone AI Agent named 2025 AI Agent Product of the Year Award winner.
• Launch of the first generation BOSS Wallet.
• NRS average recurring revenue per terminal reached $313 in 1Q26, up from $295 year-over-year.
• Fintech segment income from operations surged to $6.4 million in 1Q26, up 97% year-over-year.

Finance: draft 13-week cash view by Friday.

IDT Corporation (IDT) - Canvas Business Model: Key Resources

You're looking at the core assets IDT Corporation (IDT) relies on to run its diverse set of businesses as of late 2025. These aren't just abstract concepts; they are tangible systems, financial buffers, and proprietary networks that drive revenue across Fintech, Communications, and Retail Solutions.

The physical and digital infrastructure supporting the NRS (National Retail Solutions) segment is a major asset. This includes the proprietary NRS point-of-sale (POS) platform, which is the engine for their retail analytics and payment processing services. As of September 30, 2025, this network comprised approximately 37,400 active terminals nationwide, scanning purchases at roughly 32,400 independent retailers, which is well over the 30,000 retailer mark you noted. For context, during August 2025, these terminals processed $2.2 billion in sales across 148 million transactions.

For the digital channels, the BOSS Money and BOSS Revolution mobile applications represent a dominant digital pathway for remittances and prepaid services. The digital channel send volume, which is the principal transferred by customers using these apps, saw a significant jump, increasing by 34% in the first quarter of fiscal year 2026 (ended October 31, 2025) compared to the same period last year.

Financially, IDT Corporation maintains a strong liquidity position to fund operations and strategic moves. As of July 31, 2025, IDT held $253.8 million in cash, cash equivalents, debt securities, and current equity investments. The company reported having no outstanding debt at that quarter end.

The global voice and SMS termination infrastructure, managed through IDT Global and IDT Express, remains a foundational asset for the Traditional Communications segment. While the segment revenue saw a slight sequential dip, IDT Global revenue for the fourth quarter of fiscal year 2025 was $50.3 million.

net2phone's cloud communications platform, covering both UCaaS (Unified Communications as a Service) and CCaaS (Contact Center as a Service), is a key growth resource, now bolstered by internal AI technology development. By the end of the first quarter of fiscal year 2026 (October 31, 2025), net2phone served 432,000 total seats, a 7% increase for the quarter, with subscription revenue reaching $23.0 million.

Here's a quick look at some of the key quantitative resources as of the latest reporting periods:

Resource Component	Metric/Value	Date/Period Reference
Cash, Cash Equivalents, and Investments	$253.8 million	As of July 31, 2025
NRS Active Terminals	Approx. 37,400	As of September 30, 2025
NRS Independent Retailers	Approx. 32,400	As of September 30, 2025
net2phone Seats Served	432,000	As of October 31, 2025
net2phone Subscription Revenue	$23.0 million	Q1 FY2026 (ended Oct 31, 2025)
BOSS Money/BOSS Revolution Digital Send Volume Growth	34% increase year-over-year	Q1 FY2026 (ended Oct 31, 2025)

IDT Corporation also protects its intellectual property, which is a critical intangible resource. They actively pursue the filing and registration of patents, domain names, trademarks, and service marks to protect brands like IDT®, BOSS Revolution®, and net2phone®.

The human capital is also vital, specifically the technical experience, expertise, and creative ability of employees, which the company believes significantly supports the maintenance of current businesses and the pursuit of future strategy.

You can also see the scale of the digital payment processing capability within the Fintech segment:

• BOSS Money transaction volume increased 41% to 18.34 million in Q4 2024.
• BOSS Money transactions reached 5.7 million in Q2 2025.
• The Fintech segment reported income from operations growth of 97% in Q1 FY2026.

Finance: draft 13-week cash view by Friday.

IDT Corporation (IDT) - Canvas Business Model: Value Propositions

The Value Propositions for IDT Corporation are centered around providing specialized, high-margin digital services to underserved markets, while maintaining a stable cash flow from legacy operations.

NRS: Integrated POS, electronic payment processing, and merchant services for independent retailers.

The value proposition for National Retail Solutions (NRS) is delivering a comprehensive, integrated platform that helps independent retailers, like bodegas and C-stores, operate more efficiently and compete better. This is evidenced by strong growth in the core service revenue streams.

For the first quarter of fiscal year 2026 (ending October 31, 2025), NRS delivered:

• Recurring revenue of $35.3 million, marking a 22% year-over-year increase.
• Income from operations of $8.9 million, up 35% year-over-year.
• Adjusted EBITDA of $10.3 million, a 33% increase year-over-year.

The average recurring revenue per terminal saw improvement, reaching $313 in the first quarter of fiscal year 2026, up from $295 in the year-ago quarter. This growth was fueled by core services:

Service Component	Q1 FY2026 YoY Growth Rate
Merchant Services revenue	38%
SaaS Fees revenue	30%

For the full fiscal year 2025, NRS generated revenues of $128.8 million and income from operations of $27.8 million. The segment's recurring revenue grew 27% in fiscal year 2025, generating over $35 million in Adjusted EBITDA.

BOSS Money: Fast, reliable, and digital-first international money remittance with competitive pricing.

BOSS Money provides a digital-first approach to international money remittance, leveraging mobile apps to drive volume and efficiency. The focus on digital channels is key to its value proposition, leading to significant operating leverage.

Key metrics for the Fintech segment, powered by BOSS Money, for the first quarter of fiscal year 2026 include:

• Income from operations nearly doubled, rising by 97% year-over-year to $6.4 million.
• Adjusted EBITDA increased by 87% year-over-year to $7.5 million.
• Total Fintech revenue was $42.7 million, up 15% year-over-year.
• BOSS Money digital revenue specifically grew by 20% to $27.9 million.

The effectiveness of the digital strategy is clear from prior periods; in the second quarter of fiscal year 2025, BOSS Money transactions totaled 5.7 million, a 36% increase year-over-year, driven by a 40% increase in digital transactions. For the full fiscal year 2025, BOSS Money handled over 23 million remittance transactions, with its digital channel accounting for over 80% of total remittance volume.

net2phone: Intelligently integrated, AI-driven cloud communications and contact center services.

net2phone offers Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) with AI integration, providing intelligent communication tools for enterprises. The value is seen in seat growth and operational profitability improvement.

First quarter of fiscal year 2026 performance highlights for net2phone:

• Subscription revenue grew by 10% year-over-year to $23.0 million.
• Income from operations increased by 94% to $1.9 million.
• Adjusted EBITDA increased by 44% to $3.6 million.

The platform expanded its reach, ending the first quarter of fiscal year 2026 with 422,000 seats, up from 396,000 in the prior year period. For the full fiscal year 2025, subscription revenue reached $85.7 million, a 9% increase.

Traditional Comms: Low-cost international long-distance calling and prepaid digital payments.

This segment provides the foundational cash flow through mature services, including international long-distance calling and IDT Digital Payments, which is a significant component of its revenue base.

In the first quarter of fiscal year 2026, the segment showed stability with slight growth in profitability:

• Revenue slightly decreased by 0.5% to $219.5 million.
• Income from operations increased by 1% to $15.8 million.
• Adjusted EBITDA rose by 2% to $18.9 million.

For the full fiscal year 2025, the Traditional Communications segment generated revenues of $860.2 million and income from operations of $66.5 million. Within this segment, IDT Digital Payments revenues were $416.3 million in fiscal year 2025.

Access to underserved consumer markets for advertisers via the NRS platform.

The NRS platform offers advertisers a unique channel to reach the specific, underserved consumer base that frequents independent retailers. While the segment is focused on merchant services, the advertising component is a distinct value proposition.

The recent performance of the advertising revenue stream within NRS shows a headwind, which you should factor in:

• Advertising & Data revenue declined by 15% in the first quarter of fiscal year 2026.

This decline was more than offset by the growth in merchant services and SaaS fees, allowing the overall NRS recurring revenue to grow by 22% in the same period.

IDT Corporation (IDT) - Canvas Business Model: Customer Relationships

You're looking at how IDT Corporation (IDT) manages the touchpoints with its diverse customer base, which ranges from individual remittance users to large enterprise telecom clients. The relationship strategy is clearly segmented, leaning heavily on digital automation for high-volume, low-touch interactions while reserving dedicated support for B2B accounts.

Automated, Self-Service Digital Channels (BOSS Money App)

For the BOSS Money remittance business, the relationship is almost entirely digital and automated. This is where the scale is, and IDT Corporation is driving customers toward the apps for efficiency. The BOSS Money and BOSS Revolution apps are the dominant originating channel, generating over 80% of transactions in fiscal year 2025. By the first quarter of fiscal year 2026, the digital channel accounted for 84% of transactions. This self-service focus is clearly working, as digital channel send volume increased by 34% in 1Q26 compared to 1Q25. Furthermore, the focus on customer experience via the app paid off with BOSS Money achieving the highest average app store rating among eighteen digital money transfer providers surveyed by FXC Intelligence in its 2025 customer satisfaction ranking. The segment's income from operations increased by 97% to $6.4 million in 1Q26, partly due to decreases in unit digital sales chargebacks and payout commissions, which are direct benefits of optimized digital relationships.

Dedicated Support for Enterprise Clients (net2phone)

For net2phone's B2B customers using UCaaS (Unified Communications as a Service) and CCaaS (Contact Center as a Service) offerings, the relationship shifts to dedicated support. While specific numbers for account manager ratios aren't public, the growth in seats served indicates successful client acquisition and retention. In the first quarter of fiscal year 2025, net2phone saw seats served increase by 11% year-over-year, with CCaaS seats growing by 19%. Subscription revenue in 1Q26 grew by 10% to $23.0 million. The strategy is evolving to include high-touch, AI-driven support; net2phone began offering its AI Agent to both existing and new customers in Q1 2026, and the company projects that by year-end 2026, 30% or more of sales will include one or both of their AI solutions. This suggests a move toward proactive, data-driven account management.

NRS Retention Teams and Service Level Enhancements

The National Retail Solutions (NRS) segment faces direct competition and regulatory pressures, making churn a key focus for customer relationship management. IDT Corporation is actively combating churn with a new retention team and enhanced service levels. The results show the challenge: NRS added approximately 5,100 net active terminals in fiscal year 2025, a decrease from the 6,400 added in fiscal year 2024, as growth was offset by an increased churn rate. The focus on service is also seen in expanding retail delivery options, such as the partnership with DoorDash initiated earlier in calendar year 2025. The goal is to enhance retailer bottom-lines, which should naturally reduce churn.

Community-Focused Marketing and Direct Sales

For BOSS Revolution Calling, which targets immigrant groups, the relationship is fostered through community alignment, evidenced by the success of the BOSS Revolution app within the BOSS Money ecosystem. While direct marketing spend figures aren't available, the success of the digital channel, which is heavily used by this demographic, serves as a proxy for effective engagement. For net2phone's B2B offerings, the relationship is supported by direct sales efforts, now augmented by AI tools. The pivot to holistic solutions, comprised of multiple offerings tailored to customer workflows, is a key part of this direct sales approach.

Here's a quick look at how customer engagement metrics track across the key segments:

Segment	Key Customer Metric	Latest Reported Value/Change
BOSS Money (Digital)	Digital Channel Share of Transactions (Q1 FY26)	84%
BOSS Money (Digital)	Digital Send Volume Growth (YoY 1Q26 vs 1Q25)	34% increase
NRS	Net Active Terminals Added (FY 2025)	5,100
NRS	Net Active Terminals Added (YoY FY25 vs FY24)	-1,200 (6,400 in FY24 vs 5,100 in FY25)
net2phone	Subscription Revenue (Q1 FY26)	$23.0 million
net2phone	AI Sales Integration Target (By YE 2026)	30% or more of sales

If onboarding for new NRS retailers takes longer than expected due to compliance issues, churn risk rises defintely.

IDT Corporation (IDT) - Canvas Business Model: Channels

You're looking at how IDT Corporation gets its value propositions to its customers across its diverse business lines. The channel strategy is clearly multi-faceted, blending physical retail presence with a strong, growing digital-first approach, especially in the fintech space.

The National Retail Solutions (NRS) channel relies on a direct physical deployment model. As of October 31, 2025, the NRS retail network comprised approximately 37,900 active terminals nationwide, scanning purchases at approximately 32,900 independent retailers. This network primarily serves small-format, independent stores like convenience stores and bodegas. For context, NRS added approximately 5,100 net active terminals in the full fiscal year 2025. The company is actively working to address churn and boost new sales, having added approximately 800 net active terminals in 1Q26.

The digital channel for BOSS Money is now dominant in remittances. The BOSS Money and BOSS Revolution mobile apps are the primary origination points for money transfers. BOSS Money's digital channel expansion resulted in contributing over 80% of the total remittance volume for fiscal year 2025. Digital send volume for BOSS Money increased by over 40% in 4Q25 and for the full FY 2025. In 1Q26, digital channel send volume was up 34% compared to 1Q25. BOSS Money digital revenue for 4Q25 was up 31% year-over-year, reaching $27.6 million.

IDT Corporation uses a mix of direct and third-party channels for its various services. Here's a look at the scale of some of these distribution points:

Channel Component	Metric	Latest Reported Value (Late 2025/Early 2026)
NRS Retailers (Physical)	Active Terminals (Oct 31, 2025)	37,900
NRS Retailers (Physical)	Independent Retailers Served (Oct 31, 2025)	32,900
BOSS Money Digital Channel	Share of Total Remittance Volume (FY 2025)	Over 80%
BOSS Money Digital Channel	Digital Send Volume Growth (FY 2025 vs FY 2024)	Over 40%
net2phone UCaaS/CCaaS	CCaaS Seats Served Growth (2Q25 vs 2Q24)	10%
net2phone UCaaS/CCaaS	Total Seats Served Growth (1Q25 vs 1Q24)	11%
IDT Digital Payments (Zendit)	Global Digital Catalog Size	Over 10,000 goods and services

For NRS retailer integration, IDT Corporation is expanding beyond its direct sales force by incorporating third-party logistics. Earlier in Calendar Year 2025, NRS partnered with DoorDash and began activating priority NRS retailers for delivery options. This suggests a move to enhance the value proposition for existing retailers by offering new customer fulfillment methods.

The IDT Digital Payments and wholesale business utilizes online portals and APIs through the Zendit platform. This platform allows businesses to integrate prepaid offerings, which are curated from a global digital catalog of over 10,000 goods and services. IDT Digital Payments' revenues themselves were $416.3 million in fiscal 2025.

net2phone's channel for deploying its Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) offerings involves a direct sales approach supplemented by channel partners across North and South America. The growth in seats served is a key indicator of channel success:

• CCaaS seats served increased by 19% year-over-year in 1Q25.
• Total seats served increased by 11% year-over-year in 1Q25.
• Subscription revenue for net2phone in 4Q25 was $22.2 million.

Looking ahead, IDT expects to see significant channel adoption of AI tools within net2phone; by the end of fiscal 2026, 30% or more of sales are projected to include one or both of their AI solutions. That's a clear strategic push through the sales channel.

IDT Corporation (IDT) - Canvas Business Model: Customer Segments

You're looking at the core groups IDT Corporation (IDT) serves across its four main operating segments as of late 2025. The business model clearly segments its focus from the small retailer to the global carrier.

The customer base is diverse, spanning retail point-of-sale (POS) services, international fintech, cloud communications, and wholesale telecom.

Here's a breakdown of the key customer groups IDT Corporation targets:

• Independent convenience stores, bodegas, and small-format retailers (NRS), with approximately 32,400 independent retailers served as of September 30, 2025.
• Immigrant communities in the US and Canada needing international calling and money transfer (Fintech/BOSS Money), with over 6 million+ active BOSS Revolution customers.
• Small to mid-market enterprises in North and South America requiring cloud communications (net2phone), serving over 420k+ business seats.
• Global telecom carriers and service providers (IDT Global wholesale), which terminate approximately 7.4 billion minutes annually.
• Brand marketers and advertisers seeking reach into the independent retail consumer base via the NRS platform.

The scale of the retail segment, National Retail Solutions (NRS), is quite substantial, showing consistent growth in its network footprint.

NRS Metric	Latest Figure (as of Sept 2025)	Contextual Data (Aug 2025)
Active Terminals Nationwide	37,400	37,100 active terminals
Independent Retailers Served	32,400	32,200 independent retailers
Sales Processed (Monthly)	$2.1 billion (September 2025)	$2.2 billion processed sales (August 2025)
Fiscal 2025 Segment Revenue	$128.8 million	Fiscal 2025 Income from Operations: $27.8 million (Q4 FY25 data)

For the Fintech segment, which serves immigrant communities with services like BOSS Money, the focus is on transaction volume and digital adoption. The segment generated $154.6 million in revenue for Fiscal 2025. You can see the momentum in the fourth quarter of Fiscal 2025:

• BOSS Money total revenue: $139.8 million.
• BOSS Money digital revenue: $99.0 million.
• Total money transferred annually across the IDT ecosystem is reported at $6.3 billion.

The net2phone customer base, focused on small to mid-market enterprises, is characterized by recurring subscription revenue. For the first quarter of Fiscal 2026, subscription revenue hit $22.2 million, with Adjusted EBITDA for the segment reaching $3.5 million. This segment is targeting enterprises needing cloud communications, with over 420k+ business seats reported across its global user base.

The Traditional Communications segment, which houses IDT Global wholesale carrier services, is a massive revenue generator, bringing in $860.2 million in revenue in Fiscal 2025, while also providing significant cash flow of $70 million in free cash flow for that same fiscal year. This segment directly serves other telecom operators globally.

Brand marketers and advertisers are an indirect but important segment, leveraging the NRS POS network. This network processed 148 million transactions in August 2025, giving advertisers access to a highly concentrated, underserved consumer market.

IDT Corporation (IDT) - Canvas Business Model: Cost Structure

You're looking at the expenses that power IDT Corporation's operations across its diverse segments as of late 2025. Honestly, the cost structure is a tale of two businesses: the legacy, lower-margin Traditional Communications and the high-growth, tech-intensive Fintech and cloud services.

Cost of revenue for Traditional Communications (interconnection and carrier costs)

The core cost here is the direct cost of providing voice and messaging services, which includes interconnection and carrier fees. These are the variable costs tied directly to minutes of use. For the first quarter of fiscal year 2026 (1Q26), the Direct cost of revenues for the Traditional Communications segment was reported at $204.6 million (based on $204,573 thousand). This high cost base relative to revenue is what keeps the segment's gross margin lower compared to the others.

Here's a look at the segment's financial performance, which directly reflects these costs:

Metric (Q1 FY2026)	Amount (in thousands)	Amount (in millions)
Traditional Communications Revenue	$219,500	$219.5
Direct cost of revenues	$204,573	$204.6
Gross profit	$118,179	$118.2
Adjusted EBITDA	$18,900	$18.9

Technology and development expenses, especially for AI and new product features

Investment in technology is critical, especially for driving the AI features in BOSS Money and net2phone. For the first quarter of fiscal year 2026, Technology & development expense was $2.5 million, up from $2.3 million in the same quarter last year. This spend supports the build-out of integrations and features for new verticals, like health care, within net2phone, which is ramping up its investment in strategic AI technologies.

For the full fiscal year 2025, Technology & development expenses decreased by 7% as a result of streamlining efforts, even as the company focused on digital innovations and AI product investments.

Selling, general, and administrative (SG&A) expenses, including NRS terminal deployment costs

SG&A covers the overhead and sales efforts across the board. In 1Q26, consolidated SG&A was $16.7 million, an improvement from $17.8 million in 1Q25. This reflects ongoing cost-cutting initiatives; for the full fiscal year 2025, SG&A expenses decreased by 6%, or $5 million.

The NRS segment's cost base includes costs related to its POS network, such as terminal deployment and maintenance. While specific terminal deployment costs aren't itemized separately from SG&A, the segment's operational leverage is a key focus area.

• FY 2025 SG&A expense decreased by 6% (or $5 million) year-over-year.
• Traditional Communications SG&A as a percentage of revenue was 9.3% in fiscal 2025.
• Corporate G&A expense in 1Q26 was $2.7 million, down 6% from $2.9 million in 1Q25.

Payout commissions and digital sales chargebacks in the Fintech segment

The Fintech segment, driven by BOSS Money, has significant variable costs tied to transactions, including payout commissions and chargebacks. The success in managing these costs is evident in the segment's bottom-line improvement, which management explicitly links to technology investment.

The impact of cost management on these variable expenses is clear:

• Fintech segment income from operations in 1Q26 was $6.4 million, a 97% increase year-over-year.
• This exceptional increase reflects the reduction in the transaction cost structure that machine learning and AI are providing.
• In 4Q25, BOSS Money / Fintech segment Adjusted EBITDA surged 267% to $5.5 million.

Capital expenditures (CapEx) for infrastructure and POS terminals

Capital spending is necessary for expanding the NRS terminal base and maintaining the underlying communication infrastructure. For the first quarter of fiscal year 2026, CapEx was $5.8 million, representing a 10% increase year-over-year.

This CapEx supports the growth engine of NRS, which expanded its installed base to 37,200 active POS terminals by the end of fiscal 2025.

IDT Corporation (IDT) - Canvas Business Model: Revenue Streams

You're looking at how IDT Corporation pulls in its money as of late 2025. It's a mix of legacy services evolving and newer, higher-margin digital plays. Honestly, the structure shows a clear pivot, though the bulk still comes from the older side of the house.

The largest single bucket remains the Traditional Communications revenue, which you see coming in at $860.2 million in fiscal year 2025. This stream is heavily reliant on voice minutes and prepaid digital payments, which is a key area IDT is trying to migrate to digital channels, as they noted plans to offset structural declines here.

Moving to the growth engines, the Recurring revenue from NRS (National Retail Solutions) was reported at $122.6 million in FY2025. This is the sticky, high-margin stuff, powered by the services they sell to their retailer network. Here's a quick look at what makes up that NRS recurring stream:

• SaaS fees from POS solutions.
• Merchant Services revenue.
• Advertising and Data monetization.

The Fintech side, specifically international money remittance through BOSS Money, generated total revenue of $139.8 million in FY2025. That's a solid jump, showing the digital remittance channel is gaining traction, handling over 23 million transactions in the year.

Then you have the cloud communications offering from net2phone, where subscription revenue from its UCaaS (Unified Communications as a Service) and CCaaS (Contact Center as a Service) services hit $85.7 million for the fiscal year 2025. They're pushing AI features to drive expansion of average revenue per customer, which helps offset currency headwinds.

Finally, we can't forget the Wholesale voice and SMS termination fees, which flow through IDT Global. While you didn't provide a specific top-line number for this component alone, it sits within the Traditional Communications segment. For context, the entire Traditional Communications segment revenue was $860.2 million in FY2025, and IDT Global itself contributed revenue of $209.6 million in that same period, according to their filings.

To map these major revenue sources side-by-side for FY2025, look at this breakdown:

Revenue Stream	FY2025 Revenue Amount (USD)	Segment Context
Traditional Communications (Voice/Prepaid)	$860.2 million	Largest segment by volume
NRS Recurring Revenue	$122.6 million	Part of the Fintech/NRS group
BOSS Money Total Revenue	$139.8 million	International Money Remittance
net2phone Subscription Revenue	$85.7 million	Cloud Communications
IDT Global Wholesale Fees	$209.6 million	Component of Traditional Communications

If you look at the total consolidated revenue for IDT Corporation in FY2025, it was $1,231.5 million. So, these four streams, plus other smaller initiatives, make up that total. Finance: draft 13-week cash view by Friday.