IDT Corporation

Good evening. Welcome to the IDT Corporation's first quarter fiscal year 2026 earnings conference call. All participants are now in listen-only mode. A 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 months ended October 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 in 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, adjusted EBITDA margin, non-GAAP earnings per share, NRS's rule of 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.

And thanks to everyone on the call for joining this evening. IDT delivered consolidated revenue growth and record levels of gross profit, excuse me, adjusted EBITDA, and adjusted EBITDA in the first quarter. NRS led top line expansion while all three of our growth segments reported strong bottom line results. Our traditional communications segment again provided steady cash generation. NRS recurring revenue increased 22% year over year helping to drive a 35% increase in income from operations and a 33% increase in adjusted EBITDA. This quarter we continue to launch and build out innovative premium services. delivery integrations, couponing, and product data scan programs, to name a few. Our premium offerings are becoming important growth drivers and factor into the large increase in average recurring revenue per terminal this quarter. There is tremendous opportunity for additional long-term growth through innovation both in NRS's current and adjacent markets. At Boss Money, our digital channel continues to outperform retail, and that trend may accelerate as implementation of the new federal excise tax on cash remittances begins on January 1st. The FinTech segment's income from operations at an adjusted EBITDA nearly doubled year over year, aided by Boss Money's increasing operating leverage and enhanced profitability of other smaller FinTech initiatives. Our push to integrate tailored AI and machine learning into Boss Money customer service and fraud detection activities have helped to significantly improve unit economics. Looking ahead, we will soon introduce the first integration of the Boss Wallet, enabling our U.S. customers to share money and receive rewards. During the quarter, Netaphone began offering its AI agent to both our existing and new customers and added our Coach AI solution at quarter's end. Increasingly, our customers are ordering multiple Netaphone offerings to enhance their operations and streamline workflows. As a result, we have pivoted from standalone product offerings to holistic solutions comprised of multiple offerings tailored to customers' communications and workflow needs. This approach plays to Netaphone's product and distribution strengths, and we are very excited about the potential as we continue to add new AI solutions. On a final note, the Delaware Supreme Court, in a ruling issued yesterday, affirmed the decision of the Court of Chancery dismissing all claims against IDT in the straight path class action suit, and we are very pleased that this case has now been favorably resolved. I don't usually do this, but I would like to see thank a couple people in particular. I would like to thank Jason Sorolnik and Paul Fattoruso and Rudy Koch, as well as our own Menachem Ash. I would also on a sad note like to remember our esteemed colleague Susie Solomon, who led the data division of NRS and worked tirelessly for NRS even while very sick and in lots of pain and unfortunately, has departed. I will wrap up by thanking everyone on the IDT team for their hard work and another great year and wishing them and all of you on the call a very joyous holiday season. Now Marcelo will discuss our financial results.