IDT Corporation

Good evening. Welcome to the IDT Corporation's fourth quarter and full fiscal year 2025 earnings conference call. All participants are now in listen-only mode. Question and answer session will follow management's remarks. Anyone requiring operator assistance during the conference call should press star zero on your telephone keypad. Please note, this conference call is being recorded. I will now turn the call over to Bill Ulrey of IDT Investor Relations. Bill, you may begin.

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 and 12-month periods ended July 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, non-GAAP earnings per share, NRS's Rule 40 score, and adjusted net cash provided by operating activities. Schedules provided in the IDT earnings release reconcile these non-GAAP measures to their 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 on 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.

IDT's fourth quarter capped off a strong fiscal year, highlighted by full-year double-digit adjusted EBITDA expansion at each of our operating segments. combining to drive a 43% increase in consolidated adjusted EBITDA to a record $129 million. At NRS, merchant services and SAS fee revenue drove the top-line growth, while NRS operating leverage continued to contribute to net margin expansion. In fiscal 2026, we expect that merchant services and SAS fees revenue will again drive significant increases in revenue per terminal and adjusted EBITDA. Also at NRS, we continue to work on several early stage initiatives that, true to our mission, will help our retailers to prosper. In fiscal 2025, we began to integrate select retailers with DoorDash. Our retailers are thrilled by the new orders DoorDash is bringing to them. Building on this success, we are preparing to begin integrations with another large delivery service. NRS's data business, NRS Insights, just signed a deal with one of the largest coupon providers in the country. Once this deal is launched in the calendar year 2026, our retailers will be able to offer digital coupons to their customers, helping their customers to save money while opening a new channel for our brand partners to engage with customers. Boss Money's fourth quarter and full year results reflected strong digital channel expansion, which is now contributing over 80% of our remittance volume. The industry-wide customer-led migration from retail to digital provides us a large opportunity. In the year ahead, we expect to continue to build market share by increasing our marketing and cross-marketing efforts within the larger bus ecosystem, while also expanding our reach through our integration with WhatsApp and deployment of a cross-border digital wallet. In our digital channel, the amount of cash our customers send increased by 41% in the fourth quarter, while transactions increased 34%. Customers are sending larger amounts and fewer transactions. Last quarter I mentioned that we would adapt our pricing to capture more of the upside, and we have begun to do that, removing some discounts for larger transactions. In our back office, our efforts to leverage machine learning and AI to reduce costs and improve the customer experience have been very successful, and we will continue to invest in AI-driven efforts to improve our remittance services and many other areas as well. At NetPhone, we are very excited by the potential we see in the marketplace of AI agentic offerings and the progress we have made to date in developing and deploying these solutions. Already, approximately one in ten of our sales conversations includes an AI agent, and we have successfully sold and launched hundreds of agents already. Keep in mind that our agentic AI program is still in the warm-up stage. We are not playing ball yet, but when we do, we expect to win a lot. As it becomes a key driver of Netaphone's growth, our revenue model will gradually shift from a seat-based model to one based on usage that we expect will generate significant revenues at high margins. In fiscal 2026, we will focus on building out Netaphone's AI agent and coach product, our data-driven coaching agent, and deploying tailored solutions for specific industry verticals, including offerings for hospitality and medical operators. With this investment, we believe that by year end, 30% or more of our sales will include one or both of these, even as we continue to steadily expand our base of UCAS and CCAS customers. To that last point, we have already picked up momentum with several large contact center wins to start the new fiscal year. In our traditional communications segment, IDT digital payments business and boss calling both continue to benefit from our efforts to streamline operating costs, which is helping us expand margins. Meanwhile, we continue to operate Boss Calling and IDT Global, both of which participate in the international long-distance minutes business for maximum cash flow efficiency. Across IDT, we expect to build on the considerable progress we made during fiscal 2025 with top-line growth and stronger cash generation. In all our markets, consumer attitudes, government policy, and or technology are driving rapid change, and we are working hard to capitalize on the exciting opportunities in each of our growth businesses. Backed by the cash on our balance sheet and strengthening financial performance, we will continue returning cash to our stockholders through opportunistic buybacks in our quarterly dividend. We will also continue to evaluate potential acquisitions. Our conservative approach to M&A had led to some almost acquisitions, but we won't pursue deals at prices that don't make sense. I am very excited about the potential for fiscal year 2026 because every day I see how enthusiastic our customers are about our services. whether they are NRS retailers expanding their businesses, hardworking customers supporting their families through boss money and calling home, or businesses relying on NetPhone to improve their business, please customers and operate more leanly and intelligently with services like Coach that we offer them. Our ability to continue to outperform depends, of course, on the commitment and hard work of our employees around the globe who have been nothing short of amazing. Their expertise and professionalism empower everything we do, Each day I am first and foremost grateful to them. And to you, our stockholders, thank you for your continued support and guidance. We look forward to reporting to you on our progress in the fiscal year ahead. Thank you. Now I will pass the call over to Marcelo.