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.

Thank you, Shmuel. As always, my remarks on our fourth quarter and full fiscal year 25 results will focus on the year-over-year comparisons to set aside seasonal impacts on our business. Our fourth quarter extended the strong year-over-year growth trajectory that we have followed throughout the fiscal year. Full-year adjusted EBITDA totaled $128.7 million, surpassing our updated $126 million guidance. IDT increased consolidated revenue in Q4 by 3%. as our three high-margin growth segments, namely NRS, FinTech, and Netophone, continue to expand their top lines. Collectively, these fast-growing segments contributed 31% of total revenue in the fourth quarter, compared to 27% a year earlier. IDT's fiscal 2025 revenue increased 2%, and that's the first full-year increase since 2021, and represents a significant inflection point, signaling the start of what we expect will become a long-term trend of sustained revenue growth, as the increasing revenue from our growth businesses more than offset the continued declines in revenue from our two ILD voice businesses. Each of our four reporting segments, including traditional communications, increased the gross profit contribution for both the fourth quarter and full year, with our consolidated growth margins including 310 and 380 basis points respectively. These increases reflect the continued expansion of our high-margin segments and, in the traditional communication segment, the increased contributions from our digital payments and IDT global wholesale carrier businesses. Consolidated income from operations increased 9% to $21.9 million in the fourth quarter, and increased 55% to $100.4 million for the full year. Adjusted EBITDA increased 33% to $33.4 million in Q4, and increased 43% to 128.7 million for the full year. These increases were driven by the operational leverage of our three high-margin growth segments, which together generated over 50% of our consolidated adjusted EBITDA for the first time. and the traditional communication segment by significant reductions in OPEX and improved margins on our mobile top-up offerings within our IDT digital payment business. At NRS, income from operations in the fourth quarter decreased 3% to 5.8 million, reflecting the impact of non-recurring expenses. while adjusted EBITDA increased 32% to $9.3 million. For the full fiscal year, income from operations at NRS increased 28% to $27.8 million, and adjusted EBITDA increased 37% to $34.2 million. Recurring revenue increased 22% in the fourth quarter to $32.6 million and increased 27% to $122.6 million for the full year. These increases were powered by merchant services and set fees revenue growth, both of which exceeded 30%. Advertising and data revenue decreased 8% year-over-year in Q4 and was roughly unchanged for the full year. We have now fully walked through the impact of the loss of a programmatic advertising partner and look forward to returning NRS advertising revenue once again into growth mode. A significant part of NRF's growth story has been the increase in monthly average recurring revenue per terminal, which reached $299 in the fourth quarter. Recurring revenue per terminal has benefited from increased penetration of our NRF pay offering, from our work to provide retailers with premium payment processing plans and SaaS plans, and from the ongoing migration of consumers in general from cash to credit and debit card payment methods. We expect to drive continued strong gains in recurring revenue per terminal, and as such, we believe this will help us sustain revenue growth in fiscal 2026 of 20 to 25%, and adjusted EBITDA growth at an even faster clip. In our FinTech segment, income from operations increased 88% to 4.8 million in the fourth quarter, and adjusted EBITDA climbed over threefold to 5.5 million. For the full fiscal year 2024, FinTech generated a loss from operations of 100,000, but now in fiscal 2025, income from operations surged to 15.4 million. Adjusted EBITDA increased over 16 fold from just 1.1 million in fiscal 24 to 18.4 million in fiscal 25. We have long said that our boss money international remittance business could scale to achieve adjusted EBITDA margins comparable to industry peers in the 15 to 20% range. And in the fourth quarter, for the very first time, it did enter that range when viewed on a standalone basis. Fourth quarter remittance transactions surpassed an annual run rate of 26 million, with digital transactions contributing 83% of all remittances. The rate of transaction growth slowed somewhat as our customers sent more money per transaction while cutting back on the frequency of those transactions. Digital transactions increased 28% in the fourth quarter, while the related dollars sent increased by 41%. As Shmuel mentioned, we have recently introduced fee pricing initiatives that will help capture more of the cent volume growth upside. As those of you who follow the remittance space already know, a new 1% federal tax on remittances originated with cash or money orders is scheduled to go into effect on January 1st, 26th. We expect that the effect of the tax will result in an acceleration of the industry-wide migration of remittance transactions to the digital channel, which is effectively exempted from this new tax since customers must use a debit or credit card or ACH to effectuate a digital channel transaction. The migration from retail to digital channel has been a key driver of both monies increasing profitability over the past few years, and digital transactions generate approximately 20% more in gross profit per transaction than retail with lower overhead. For fiscal 2026, We are budgeting BOSS money revenue and adjusted EBITDA to grow at percentage rates in the high teens as we continue to win shares from retail-centric providers. Adjusted EBITDA for the broader FinTech segment is also expected to benefit from bottom-line improvements in our Gibraltar-based bank operations and in other early-stage FinTech initiatives. Now moving to Netofon. In fiscal 25, Netofon continued its steady growth trajectory. Income from operations increased 74% to 1.5 million in the fourth quarter, while adjusted EBITDA increased 42% to 3.5 million. For the full year 25, Netofone's income from operations increased 194% to $4.9 million, and adjusted EBITDA increased 54% to $12.1 million. Netofone subscription revenue increased 8% to $22.2 million in the fourth quarter on strong revenue growth achieved in the U.S. On a constant currency basis, the rate of increase was slightly higher at 9%. For the full 2025 years, the strengthening in dollar-fx translation impacted financial results from our key South American markets, melding the positive impacts of continued seed growth there. For the full year, total Netofon subscription revenue increased 9% to 85.7 million, and in constant currency terms, the revenue increase was 12%. During Q4, Netofon continued its disciplined approach towards customer acquisition spending and fixed overhead cost management. As they did in Q3, the Netophone team was able to hold total SG&A spend year over year almost unchanged again this quarter, even while continuing to grow revenue. Looking ahead to 2026, we are budgeting for a lift in top line growth based on sales of Netophone's AI agent layered on our UCAS and CCAS offerings. However, we also plan to significantly increase our investment, both in Netofont coach product development and in payload agentic AI offerings for specific marketing opportunities. As a result, Netofont adjusted EBITDA percentage growth rate in fiscal 2026 is budgeted to increase more slowly than revenue. in the high single digits. And we expect these investments to significantly drive profitability in years ahead. At our traditional communications segment, growth profit in the fourth quarter increased 2% year over year, powered by IDT digital payments and supported by strong results from our IDT global wholesale carrier business. FG&A expense decreased 1% year-over-year in the fourth quarter and decreased 6% of $5 million for the full year, as we benefited from cost-cutting initiatives previously implemented. Likewise, Technology and development expense decreased 5% for the fourth quarter and 7% for the full year as a result of streamlining efforts. All these cost reductions in combination with higher gross margins realized by our IDT digital payments business helped drive an 11% increase in income from operations to 15.4 million and an 8% increase in adjusted EBITDA to 17.6 million in the fourth quarter. For the whole fiscal 2025, Income from operations increased 18% to $66.5 million, and adjusted EBITDA increased 13% to $75 million. In 2026, we do not expect that either of the above factors will be meaningfully in play, and therefore, we expect that steady growth in our IDT digital payment business will be offset by the expected declines of our Boston Revolution calling and IDT global businesses. As such, we have assumed in our budget that additional communications, gross profit, and adjusted EBITDA will both decline single-digit percentage rates this year. In terms of our financial condition, at July 31st, our balance sheet measure of cash, cash equivalent, and current investment increased $30 million from April 30th to $254 million, reflecting the strong cash generation from all four of our reporting segments. I'll wrap up with a brief comment on capital allocation. Unlike in most recent periods, IDT did not repurchase any of its shares on the open market in the fourth quarter, nor for most of Q3. During that entire period, IDT was very actively pursuing a highly accretive merger acquisition opportunity of a sizable competitor of one of our growth businesses. Our acquisition bid, had it been accepted, would have entailed utilizing significant available cash and also adding substantial leverage to our balance sheet. Consequently, we refrained from repurchasing shares in order to further build our cash position. Ultimately, this opportunity did not come to fruition. Historically, we take an opportunistic approach to share buybacks, repurchasing more heavily during share price dips that we determine to be macro-driven. I expect that unless other sizable M&A opportunities come our way, we will continue to employ this approach towards repurchases in this new fiscal year, even as we continue to build our balance sheet and pay our quarterly dividend. Now, turning to our consolidated financial outlook for fiscal 2026, I want to begin by noting that beginning with our Q1 FY26 earnings, we will report a revised measure of our non-GAAP adjusted EBITDA metric. To make our measure of adjusted EBITDA more directly comparable to those reported by our peers, And to more closely reflect our cash flow generation, we will exclude non-cash compensation expense from the determination of adjusted EBITDA going forward, and we'll adjust prior period figures to the new measure for comparison purposes. Non-cash comp varies from year to year depending on the timing of equity grants through our employee equity growth plan and specific management incentive awards. Over the past four years, non-cash comp averaged $4.2 million with a high of $7.4 million in fiscal 24 and a low of $1.9 million in fiscal 22. In fiscal 25, just ended, non-cash comp totaled $3.1 million. In our earnings release, we provide a reconciliation of our revised measure of adjusted EBITDA to the newest corresponding gap measures for fiscal years 24 and 25. Now, no matter which measure of adjusted EBITDA you use, however, we expect that IDT will deliver another strong increase in fiscal 26, building on our record fiscal 25 level. Utilizing this revised measure of adjusted EBITDA, IDT expects to generate a range of 141 to 145 million in consolidated adjusted EBITDA for fiscal 26. Our estimate of 141 to 145 million for fiscal 26 represents a 7 to 10% increase from fiscal year 2025 level of 131.7 million of similarly defined adjusted EBITDA, i.e. exclusive or non-cash comp. I would just like to mention in closing that we filed our annual 10K report today. Earlier this year, as a result of meeting certain higher public float valuation metrics, IDT Corporation's SEC reporting status changed to become a large accelerated filer. As such, we now have a shorter filing deadline period for our 10K report, which we are pleased to comply with. Now, operator, back to you for Q&A.

The question and answer session will now begin. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we assemble the roster. The first question comes from Anigo Alonso with Morum Capital. Please proceed.

Hello, Shmuel. Hello, Marcelo. I have three or four questions. I'll start with the money remittance business. The whole industry has been subjected to a lot of volatility. You have addressed the tax that is going to be starting next year. I was wondering what's the progress with the stablecoins and the Visa-linked wallets that you mentioned last call since that is being one of the topics creating that volatility.

Yeah, as far as the wallets, we've actually already launched our wallet to some customers. I'll call it in a beta phase right now. I think that over time, most transactions are going to happen using stable coins. And I think a large portion of transactions that aren't spent right away will end up you know, being stored in wallets, you know, using stable coins, you know, both, you know, because of, you know, volatility in currency markets in certain countries as well as because of, you know, the cost in ETH of, you know, moving funds in that manner. You know, As far as how it's impacted us to date, I can't yet say that it's impacted us in any material way. But I think that it's definitely going to be a bigger part of our future and the money transfer business in general.

Another one on this topic that I forgot to ask, was the WatchUp launch date

The WhatsApp launch date, is that what you asked? Yeah. It's also launching in the next couple of days. It's starting with only existing customers, and we expect to launch it to new customers, you know, I would say probably within 30 to 45 days after.

Okay. And then the stable coins, are you going to allow for those in your app in the future? Yes, 100%. Okay. Then switching slightly to the subject, you have mentioned quite a bit a failed acquisition in the past. You also mentioned being very excited about the prospect that some of your competitors were offering and maybe the opportunity to acquire them. We had the acquisition of Intermax by Western Union this quarter. both of them together is going to be nearly 50% of the money sent to Mexico in the retail space. Do you think there's going to be regulatory concerns and this acquisition could be halted?

I can't comment on that. I'm not a regulatory expert. So I don't know. I would suggest if you have a question like that to ask your attorney. Okay.

I'll ask another one on the subject. Have the M&A prospects for IDP changed after what has happened this quarter, or do you see still very attractive valuations in the market?

I mean, it's a complicated question. question to answer. You know, I think that there, you know, there are always, you know, new opportunities, you know, that come around. I don't think that the market for, you know, money transfer companies has improved over this past quarter. in terms of where they trade as a general group. I think there definitely seems to be a large premium being willing to be paid for certain acquisitions. So I think it's a nuanced question that I don't exactly have an answer to.

Okay. Organically, what are the main investments that you are going to make as IDT to grow your businesses this year? Those three, four, five items that are top of mind for you.

That's a very broad question and we don't like to give too much guidance. to competitors on how we are going to acquire customers better and cheaper than they do. So I will say that we will continue to spend wisely and creatively to acquire customers at the lowest possible cost and with the highest benefit. You know, we're using all sorts of techniques, you know, to do those.

Okay. And the last question, you mentioned something of, in Netzufone, of changing from a SIP model to a usage model. Is that going to be for UCAS or is that going to be for the AI agent?

I was more referring to the AI agents in general. In terms of our UCAS and CCAS offerings, those will still be generally sold by the seat. I was really referring to both our coach service as well as our agentic services that we're offering.

Good. Thank you for over-delivering once again.

Thank you for participating once again.

Our next question comes from William Vaughn with Coriant. Please proceed.

Hi, guys. Congrats on the good quarter. My first question is about NRS. The prepared remarks and the release you mentioned, a little increase in the rate of churn or the churn rate in terminals. Do you have an idea of what's causing this churn? And is it folks just

switching to other providers for us getting more competitive like any color you could give on the churn and and the reasons behind it would be helpful yeah i mean i would say that there are a couple of um you know factors you know some of them are you know larger than than other factors um i would say You know, one thing is, you know, in certain, you know, small areas, like there has really been, you know, a big uptick in immigration enforcement, and it's actually, you know, affected, you know, retailers in those areas to a point that they're closing. And, you know, those aren't really being lost to anybody else. Those stores are being lost because they're, you know, out of business. I would say definitely because we've had success in the market, more competitors have come out of the woodwork and have tried to pretend that they can replicate our pricing and feature set. Most of the time, they deliver far less in savings and functionality you know, to retailers than what they claim. But, you know, they do have, you know, strong sales teams in some instances that, you know, has led to churn. I mean, you know, we do our best to win those types of customers, you know, back because most of the time they're very dissatisfied after, you know, a short period of time. I would say two other maybe more recent, you know, issues that we've had is one As with some of the card schemes being maybe I'll say a little bit trigger happy on our merchants in terms of claiming that they're noncompliant with certain of the scheme's rules. And even though they're not fines that are levied by us, they do influence our retailers to think that it's us. And it's really an unfair thing to us, but it has hurt, I would say, churn. And then, you know, we also had some technical issues with some of the equipment that we were, you know, purchasing and how it was interacting with some of our service providers. We seem to have gotten it, you know, I would say 95%, 99%, something in that neighborhood, like, you know, under control over the past, you know, couple of weeks. But it definitely did lead to some spike in churn because essentially, like, it was a I mean, it's hard to go into really the technical reasons of why it was happening, but it was leading to some inaccurate reporting and retailers sort of believing that the amount of money that they were expecting the next day was different than what they were actually receiving. Again, as I said, it's mostly, you know, solid, but it did lead to a little bit of, you know, extra churn.

Wow. Thank you. Thank you for all the detail, my color. Just a little follow-up on one of those points. You mentioned new competitors. Would you say those new competitors are, you know, startups or, you know, legacy businesses, legacy players seeing the success you have in creating a product to try to compete?

I'd say it's a little bit of both. I mean, again, you're seeing the clovers of the world pretending to be really good for convenience stores, which they're not. And you're also seeing some upstart companies that are, as I said, putting on a good, I'll without really having much substance behind it to, you know, as I said, to try to convince retailers that they can do, you know, the same thing as we can, even though, as I said, that's usually not the case and we can usually win those stores back.

Awesome. This is another question. This would be on the boss money business. So you guys have been growing really nicely in the past few quarters, you know, 30%. and a lot of other players in the digital remittance space have been growing well also, like taking share from the retail or the physical channel. Do you think that you guys can continue this strong growth? I mean, that's a pretty strong growth rate. Is this something that you think can be sustained for a longer period of time? Do you think this, you know, naturally over time will sort of, settling up something a little bit more mature. I guess, what are your thoughts on just the overall growth of the digital channel, whether that's sustainable or not?

I would say a couple of things on it. I mean, I would say that, listen, you know, there's no question that, you know, immigration, you know, policy in general in this country has shifted materially over, you know, the past couple of months. And, you know, that is definitely, you know, not a good thing for the remittance business, whether or not you're you know, a digital remittance player or a retail, you know, player, you know, you have, you know, effectively less customers, you know, choosing to, you know, to live and work in our great country. And I think that, you know, there is definitely, you know, I would say, you know, a much more, you know, I don't know the right word, but maybe I won't even explain this one because I don't know how to explain it. But the other thing I would say is that I definitely think that it is becoming a more mature business. And probably because of that, it will grow less than it has traditionally. That being said, there are definitely factors that I think are going to help the digital business you know, in the short term. And there's initiatives that we're doing, you know, whether or not it's in wallets or WhatsApp or, you know, other things that we didn't talk about today that are also going to enhance, you know, the growth of our business. And I think that, you know, all those things together, like I would say I would probably, if I were a betting man, say that growth will slow a little bit, but, you know, not in a very big way. But, again, I think there are things that we don't know yet what those effects will be. I think when this tax comes into place, that's going to bring a lot of people that were going into stores looking for a good alternative to send online. while I don't think we're the only good alternative, I think we are definitely one of the best alternatives for customers to use. And I think that we will probably get more than our fair share of customers that are looking for a new solution, I'll say it, to save money on the tax. That being said, the tax is not as great as it once was you know, planned to be. So, you know, it might not have, you know, as much of an effect as, you know, as it could have, you know, had, you know, had the tax, you know, come out higher than where it ended up coming out.

Right. And we, as you, because of all the things that you most said and the broader uncertainty around immigration, etc., So, when we did the budget for this year, as I mentioned in my prepared remarks, we budgeted that revenue would grow for this year. So, time will tell as the months go by as to whether that is a good forecast or not. But from what we know at this point, it's a pretty good baseline for modeling.

Yeah, I'm usually slightly more pessimistic than Marcelo, but, I mean, in this particular case, I'm slightly more optimistic than Marcelo. But, you know, we shall see in the results.

Awesome. Thank you guys for the color. Last question. You mentioned looking at a potentially larger acquisition the past quarter where you've used up a lot of the cash and possibly borrow. Um, you know, with that acquisition opportunity, um, passing is cause, uh, you're being thoughtful and disciplined on price, which, which I appreciate. Um, do you, are you focusing more on, or would you lean more towards smaller acquisitions or where you can, but you can grow once integrated, um, with more resources behind it or more larger acquisitions, like the one that you, uh, were just looking at, like, where would you say you're leaning more towards in terms of opportunities in the market?

I don't know if I would tell you which one I'm leaning more to. I mean, I would say that there's less large acquisitions, you know, come around, you know, that are, you know, that would meet our, you know, qualifications to do them, you know, than smaller ones. So if I were, you know, going to guess, I would, you know, tend to say that we would go for smaller acquisitions rather than larger ones. You know, that being said, I think that We have a great team at IDT, and because of, I'll say, our prudence, we've sort of decided to double down on building more things internally and acquiring more customers organically rather than looking to do so through acquisitions. So in the short term, I would expect more of an investment to be made in our own efforts, which traditionally have served us I would say probably better than most of the acquisitions, although there are some acquisitions that we've done that have been very good.

Awesome. Thanks, guys. Appreciate it.

Again, if you have a question, please press star, then 1. As there are no more questions, this concludes our question and answer session and conference call. Thank you for attending today's presentation. You may now