IDT delivered a solid QQ1 2025 performance with sequential revenue growth for three consecutive quarters and notable margin expansion driven by Fintech and NRS initiatives, complemented by Net2Phone UCaaS strength. Revenue reached $309.6 million, gross margin was 34.8%, and EBITDA stood at $23.6 million, underscoring positive operating leverage despite FX headwinds in Latin America. Management signaled confidence in continued EBITDA outperformance relative to prior projections, while FX volatility in LATAM remains a key near-term drag on Net2Phone’s reported results. The company maintains a strong liquidity position with a net cash balance and a solid asset base, positioning IDT to invest in US-centric growth platforms while extending its addressable markets in payments, cloud communications, and traditional services.
Key takeaway: IDT’s diversified mix (Fintech, net2phone UCaaS, and Traditional Communications) is driving steady top-line progress and profitability improvements, supported by disciplined cost management and strategic investments in product and go-to-market initiatives. The near-term caveat remains currency movements in LATAM and seasonality in NRS deployments, which management discussed as temporary but meaningful in quarterly results.