IDT Corporation

Good evening and welcome to the IDT Corporation's second quarter fiscal year 2025 earnings call. During management's remarks, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. I'll now turn the call over to Bill Ulrey of IDT Investor Relations.

Thank you, John. In today's presentation, IDT's Chief Executive Officer, Shmuel Jonas, and Chief Financial Officer Marcelo Fisher will discuss IDT's financial and operational results for the three-month period into January 31st, 2025. After their remarks, they will be happy to take your questions. Any forward-looking statements made during this conference call, either in their remarks or during the Q&A that follows, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that IDT files periodically with the SEC. IDT assumes no obligation either to update any forward-looking statements that they have made or may make, or to update the factors that may cause actual results to differ materially from those that they forecast. In their presentation or in the Q&A session, IDT's management may make reference to non-GAAP measures, including adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per share. A schedule provided in the IDT earnings release reconciles adjusted EBITDA, non-GAAP net income, and non-GAAP earnings per share to the nearest corresponding GAAP measures. Please note that the IDT earnings release is available on the investor relations page of the IDT Corporation website. The earnings release has also been filed in a Form 8K with the SEC. Now I'll turn the call over to Shmuel for his comments on the quarter's results.

Thank you, Bill. Welcome to IDT's earnings conference call. IDT had a strong second quarter led by NRS and BOSS money and supported by robust results from our traditional communications segment, which increased its cash generation for the third consecutive quarter. On a consolidated basis, we again generated record levels of gross profit, income from operations, and adjusted EBITDA. NRS continued to deepen its penetration of the independent retailer market. We are now launching new features and functionalities that increase the value of our solution for retailers and will help us deepen market penetration and drive growth. Boss Money delivered another quarter of strong year-over-year transaction and revenue growth. In the second quarter, we continued to focus on improving the margin contribution particularly on our retail channel, and that effort helped to boost our fintech segment's gross profit and adjusted EBITDA less capex to record levels. NetDefone continued its expansion, led by further growth in the U.S. market. We are especially excited about last week's launch of NetDefone's virtual AI agent. It has been very well received by our internal boss and NRS teams that are using it with great success to enhance the quality and consistency of customer interactions while reducing costs. We are confident that NetPhone clients will find that it provides them with great value right out of the gate. Moreover, as they build with our AI agent, it will provide clients with increasingly sophisticated, tailored solutions that add value across disparate functions within their organizations. Our traditional communications segment increased adjusted EBITDA for the third sequential quarter and surpassed $20 million for the first time since fiscal 2022. In light of our solid financial position and positive outlook, and mindful of the feedback we've received from our investors, we stepped up our repurchases of stock during the second quarter and have increased our regular quarterly dividend by 20%. Now Marcel will also brief you on the second quarter results, and we'll be happy to take your questions afterwards.