IDT (IDT) Q3 FY26 earnings call: guidance and Q&A

Why was Colombia chosen as the first non-North American country for NRS terminal expansion, and what are the growth expectations?

Colombia was chosen due to existing partners and a willingness to try expansion there, without a specific strategic reason over other potential countries. It's an opportunistic move.

“The real answer is we could have selected a bunch of different countries to have an expansion, and we have some partners there that suggested that we try it there and we decided why not.”

asked by Unknown Analyst · answered by Samuel Jonas

How will the OnCore Digital acquisition impact NRS' advertising business, given past challenges in the ad industry?

OnCore Digital is expected to help the advertising group by bringing expertise and relationships that IDT previously lacked. It's a long-term relationship, and the acquisition is expected to be accretive.

“I mean they have a lot of expertise internally that we as a company didn't have. They have a lot of relationships that we as a company didn't have, and they're very good guys to work with.”

asked by Unknown Analyst · answered by Samuel Jonas

Given the current IPO environment and high valuations for peers, is IDT considering spinning off net2phone, or will they hold onto it longer due to excitement around AI offerings?

While a spin-off is becoming more appealing, management is very confident in net2phone's future performance, especially with AI offerings, and believes it will outperform competitors. No definitive answer was given.

“I would definitely say that it's becoming more appealing to possibly do something. That being said, I'm very, very confident that Netphone is going to do much better than our investors think it's going to do and much better than some of the competitors that you mentioned without mentioning.”

asked by Unknown Analyst · answered by Samuel Jonas

What kind of EBITDA margins can BOSS Money produce in a steady state, with fewer marketing expenses, given its impressive performance and margin expansion?

Management did not provide a specific EBITDA margin target but highlighted strong digital channel growth, which has higher margins. They are focused on optimizing pricing, managing FX, and using AI to improve efficiency, expecting continued margin expansion as the business scales.

“Our digital channel, as I've mentioned before, those command much higher margins than our retail channel. And that shift in channel continues, it adds to the total margin, the net margin.”

asked by Unknown Analyst · answered by Marcelo Fischer

Is NRS seeing increased competition from larger players like Toast expanding into convenience stores, or is the market still less competitive?

NRS is seeing more competition, which has affected new sign-ups. However, management believes their product is purpose-built and offers better value for convenience and liquor stores compared to broader solutions like Toast. They are focusing on strengthening their existing verticals rather than expanding into new ones.

“I definitely think that we are seeing more competition at NRS, and it's definitely affected the new sign-ups. In terms of some of the bigger players, I mean, again, I think Toast is a great company.”

asked by William Vaughan · answered by Samuel Jonas

How does IDT approach marketing and customer acquisition for BOSS Money – aggressively targeting high market share verticals, or broadening reach to low market share countries?

IDT takes a market-by-market approach, doing a bit of both. They offer better pricing and incentives in certain destinations to achieve critical mass or capitalize on higher profitability. They also aim to expand into other send-out countries over time.

“In terms of in terms of like our penetration into, we'll call it, countries that you send to, we definitely take a market-by-market approach to it. And we do offer better pricing, more incentives, et cetera, to customers in certain destinations than we do to others.”

asked by William Vaughan · answered by Samuel Jonas

Given the $4 million buyback this quarter, should investors expect a similar pace going forward, or was this opportunistic due to attractive stock prices?

The company remains opportunistic with buybacks. They will buy more if the price falls significantly and less if it rises, but they aim to continuously buy back stock, and this quarter was consistent with that strategy.

“I mean, in general, I will continue to buy back stock. Obviously, we're opportunistic. If the price for some reason to fall a lot, like we would be buying like crazy. And if the price goes up a lot, we'll probably buy a little less.”

asked by William Vaughan · answered by Samuel Jonas