IDT Corporation

Good evening. Welcome to the IDP Corporation's third quarter fiscal year 2026 earnings conference call. All participants are now in a listen-only mode. The 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 Lowry of IDP Investor Relations. Bill, you may begin.

Thank you, John. In today's presentation, IDP's Chief Executive Officer, Shmuel Jonas, and Chief Financial Officer, Marcello Fisher, will discuss IDP's financial and operational results for the three months ended April 30th, 2026. After their remarks, they will 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, IDP'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 IDP earnings release reconcile these non-GAAP measures 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 on a Form 8K with the SEC. And 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 us this evening. Last Friday, my father rang the opening bell at the NYFC to celebrate IDT's 25th anniversary as a NYFC-listed company and our 30th anniversary as a public company. Over 100 employees on their own dime from all over the world made the trip into Manhattan to be part of the event. After the event, I agreed to reimburse them, but I wanted only people to come who genuinely wanted to be there. I'll be honest, I wasn't sure what to expect going in, and as you can tell from my notoriously short speeches, I don't really like long-winded events. But the moment we approached the exchange and my father saw the IDT sign and smiled at me, something shifted for me. The NYIC team had done something really special. They pulled together photos and documents from our past listing anniversaries, creating a timeline of the people to document the, I don't know, history of IDT. And it was a very proud moment. What struck me most throughout the morning was the pride of being part of an organization that has stayed relevant and innovative throughout those 30 years, including the Center for Five Public Companies, and it has consistently delivered for employees and shareholders alike, although not always in a straight line. IDQ's year-over-year revenue and earnings growth is again powered by the continued expansion and operating leverage of our three higher-margin businesses, paired with another quarter of steady cash generation from our traditional communications segment. Consolidated revenue grew 5% to $315.7 million, gross profit grew 9% to $122.5 million, its gross margin expanding at 170 points, to 38.8%. A record quarterly high. Income from operations grew 12% to $29.8 million, and adjusted EBITDA as of 13% to $37.5 million. Based on year-to-date performance and core visibility, we are raising our full-year FY26 adjusted EBITDA guidance to $150 to $152 million, representing a 50% growth at the midpoint over fiscal year 2025. NRS recurring revenue grew 22% year-over-year, and monthly average recurring revenue per terminal increased approximately 10%, driven by merchant services and SAS fees. We expect both categories to continue driving growth in the coming quarters. The terminal network now stands at over 39,000 active POS terminals, and payment processing accounts are also above 29,000, up 14% year-over-year. NRS's rule of 40 score was 50 in the quarter, reflecting a healthy balance between growth and profitability. After the quarter closed, we acquired a controlling stake in Encore Digital, a digital media brokerage. Encore's platform, demand relationships, and publisher network will be integrated with NRF's screen network and first-party transaction data to create a more competitive retail offering. Our digital channel revenue growth rate accelerated in the third quarter compared to the second quarter. Digital transactions grew 20% year-over-year, and digital spend volume, the actual dollars our customers are moving, grew 40%. We gained market share following the implementation of the new federal remittance task as customers got reliable, cost-effective alternatives. NetFoam continued its growth trajectory with subscription revenue up 12% and total revenue up 11%. Seats served reached 441,000, up 6% year-over-year, with CCAT seats growing faster than UCAT, driving revenue per seat higher. Gross margins extended 130 basis points to 80.6%. Most significantly, income from operations is up 76%. We are gaining traction with our AI offerings and expect them to become accretive growth drivers in fiscal year 2027. All NetPhone offerings will also benefit from the recent release of Integrate by NetPhone, an integration layer that enables our clients to easily, through a straightforward no-code interface, use our offerings with the tools they already work with every day, such as popular CRMs and ERPs and much more. Our traditional communication segment continued its role as a reliable cash generator. SGMA declined $2.6 million year-over-year as we continued to right-side the cost structure. And adjusted EBITDA was essentially flat at $19.7 billion. IDT's global revenue grew 11%, partially offsetting the expected decline in bus revolution calling. Across all our business segments, we are integrating machine learning and AI tools to better understand the new expectations for our customers. develop and provide new features faster, better, and cheaper. Additionally, we are enhancing customer service, refining pricing strategies, accelerating product launches, creating marketing campaigns, streamlining back-office operations, to name just a few. We expect that our AI efforts in some cases will serve as the basis for AI offerings that we can sell to our customers. 30 years ago, IDT was a scrappy, long-distance phone company. Today, we operate a POS network serving nearly 40,000 independent retailers, a growing digital remittance business, gaining market share in real time, and a cloud communications platform with AI capabilities, and a traditional communications segment that continues to generate meaningful cash. Thank you all for your continued confidence in IDT. Marcelo will now walk through the financial details.