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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ Annual report pursuant to section 13 or 15(d) of the securities exchange act of 1934 for the fiscal year ended July 31, ~~2024~~2025.

☐ Transition report pursuant to section 13 or 15(d) of the securities exchange act of 1934.

Commission File Number: 1-16371

IDT Corporation

(Exact name of registrant as specified in its charter)

Delaware		22-3415036
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

520 Broad Street, Newark, New Jersey 07102 (Address of principal executive offices, zip code)

(~~Address~~973) of438-1000 (Registrant’s ~~principal~~telephone ~~executive offices~~number, ~~zip~~including area code)

(973) 438-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Class B common stock, par value $0.01 per share		IDT		New York Stock Exchange

Securities registered pursuant to section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐☒ Accelerated filer ☒☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant, based on the adjusted closing price on January 31, ~~2024~~2025 (the last business day of the registrant’s most recently completed second fiscal quarter) of the Class B common stock of $3447.5818 per share, as reported on the New York Stock Exchange, was approximately $~~643~~884.68 million.

As of ~~October~~September 724, ~~2024~~2025, the registrant had outstanding 23,~~654~~656,~~509~~689 shares of Class B common stock and 1,574,326 shares of Class A common stock. Excluded from these numbers are 4,~~535~~872,~~028~~006 shares of Class B common stock and 1,698,000 shares of Class A common stock held in ~~treasury~~ treasury by IDT Corporation.

DOCUMENTS INCORPORATED BY REFERENCE

The definitive proxy statement relating to the registrant’s Annual Meeting of Stockholders, to be held December 1211, ~~2024~~2025, is incorporated by reference into Part III of this Form 10-K to the extent described therein.

Index

IDT Corporation

Annual Report on Form 10-K

Part I			1
	Item 1.	Business.	1
	Item 1A.	Risk Factors.	1918
	Item 1B.	Unresolved Staff Comments.	41
	Item 1C.	Cybersecurity.	41
	Item 2.	Properties.	4142
	Item 3.	Legal Proceedings.	42
	Item 4.	Mine Safety Disclosures.	42
Part II			4243
	Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	4243
	Item 6.	[Reserved]	4445
	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	4445
	Item 7A.	Quantitative and Qualitative Disclosures about Market Risks.	57
	Item 8.	Financial Statements and Supplementary Data.	5857
	Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	5857
	Item 9A.	Controls and Procedures.	58
	Item 9B.	Other Information.	5960
	Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	5960
Part III			60
	Item 10.	Directors, Executive Officers and Corporate Governance.	60
	Item 11.	Executive Compensation.	60
	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	60
	Item 13.	Certain Relationships and Related Transactions, and Director Independence.	60
	Item 14.	Principal Accountant Fees and Services.	60
Part IV			6160
	Item 15.	Exhibit and Financial Statement Schedules.	6160
	Item 16.	Form 10-K Summary.	62
Signatures			63

Part I

As used in this Annual Report, unless the context otherwise requires, the terms the “Company,” “IDT,” “we,” “us,” and “our” refer to IDT Corporation, a Delaware corporation, ~~its predecessor, International Discount Telecommunications, Corp., a New York corporation,~~ and its subsidiaries, collectively. Each reference to a fiscal year in this Annual Report refers to the fiscal year ending in the calendar year indicated (for example, fiscal ~~2024~~2025 refers to the fiscal year ended July 31, ~~2024~~2025).

Item 1. Business.

OVERVIEW

IDT is a provider of ~~point-of-sale~~fintech ~~terminal-based~~and communications solutions, ~~international~~focused ~~money~~on ~~remittances~~certain under-served consumer and ~~other~~B2B ~~financial~~markets. ~~technology,~~Our orofferings ~~fintech,~~were built ~~offerings~~around, ~~cloud~~and ~~communications~~continue ~~and~~to ~~traditional~~leverage, ~~communications~~a ~~services.~~common ~~Our~~core ~~businesses~~of ~~leverage~~strategic ~~one~~assets, orand ~~more~~we ofseek ~~our~~to ~~core~~maximize ~~strategic~~the ~~assets to~~synergies ~~serve~~among ~~differentiated~~them ~~markets~~to ~~with~~achieve ~~innovative~~exceptional growth ~~offerings~~and profitability.

IDT’s key businesses are:

■ National Retail Solutions (NRS): Operates ~~the~~a leading point-of-sale, or POS, terminal-based platform for independent retailers in the United States including convenience stores, bodegas, liquor, small-format grocery, and tobacco stores. NRS’ purpose-built integrated POS hardware and software ~~solution~~solutions ~~enables~~enable these stores to operate ~~and process transactions~~ more effectively. Through its ~~NRS~~payment ~~PAY~~processing offerings, NRS enables these retailers to accept and process credit, debit, and electronic benefit transfer payments. ~~Leveraging~~NRS’ ~~its~~nationwide ~~POS~~network ~~platform,~~of ~~including its~~ customer-facing screens and its transaction ~~analytics,~~data ~~NRS~~and ~~also~~analytics ~~provides~~provide advertisers and marketers with unprecedented reach into ~~the U.S.’s predominantly~~ urban, multi-cultural consumer markets across the United States.; ■ BOSS Money: Provides ~~international~~fintech-based ~~money~~services ~~remittance~~featuring ~~services~~cross-border ~~marketed~~money ~~primarily~~transfers to ~~immigrant~~customers ~~communities~~in ~~across~~ the United States ~~and Canada~~. BOSS Money makes it easy and convenient ~~for customers~~ to ~~send~~share ~~money~~resources towith friends and family in 50 destination countries in Latin America and the Caribbean, Africa, Europe, and Asia. BOSS Money ~~transfers~~transactions are initiated ~~both~~predominantly ~~digitally,~~ through its digital channel including the popular BOSS Money and BOSS Revolution apps, and also through aits nationwide network of licensed BOSS Money retail agents who ~~can~~ accept cash payments; ■ net2phone: ~~Operates~~Provides abusinesses ~~global,~~with ~~cloud~~AI-powered ~~platform~~communications solutions that ~~provides businesses in North America~~analyse, ~~South America~~inform, and ~~many~~manage ~~other~~communications ~~countries~~for ~~around~~enhanced ~~the~~productivity. ~~world~~net2phone’s ~~with~~offerings include unified communications as a service (UCaaS), ~~offerings marketed under its Unite brand and~~ contact center as a service (CCaaS), ~~offerings~~and ~~under~~autonomous ~~its~~agentic ~~uContact brand~~solutions, asnet2phone ~~well~~Coach asand ~~other,~~net2phone ~~smaller~~AI ~~offerings~~Agent. tonet2phone’s ~~enable~~services ~~intelligent~~are ~~business~~available ~~communications~~worldwide with a focus on North and South America; ■ IDT Digital Payments: Provides ~~a wide range of~~ prepaid digital ~~products~~offerings including mobile airtime top-up, mobile data bundles, digital gift cards, eSIMs and other offerings directly to consumers through BOSS’ retail and digital channels. (Mobile airtime top-up, or simply mobile top-up, enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts.) IDT Digital Payments’ ~~also~~B2B ~~serves the enterprise space via Zendit, its~~ prepaid-as-a-service platform., Zendit, enables businesses, entrepreneurs, and developers to offer prepaid digital offerings ~~globally including mobile airtime top-up, mobile data bundles, digital gift cards, eSIMs and prepaid utility payments~~; ■ BOSS Revolution ~~(formerly BOSS Revolution Calling)~~: Provides international long-distance voice ~~service~~calling marketed primarily to immigrant communities in the United States and Canada. BOSS Revolution is provisioned through the popular BOSS Revolution app and prepaid ‘~~calling~~hard cards’ sold by a ~~robust~~nationwide network of over 2830,000 BOSS Revolution retail agents; and ■ IDT Global: Provides wholesale international voice ~~termination,~~and ~~virtual~~SMS ~~numbers,~~termination and ~~SMS~~outsourced ~~termination~~traffic management solutions to telecoms worldwide. Through its IDT Express branded self-provisioning portal, IDT Global also serves small and medium businesses.

IDT also operates other, smaller businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

Our headquarters is located at 520 Broad Street, Newark, New Jersey 07102. The main telephone number at our headquarters is (973) 438-1000 and our corporate website’s home page is www.idt.net.

SEGMENT REPORTING

We have four reportable business segments: (1) National Retail Solutions, or NRS; (2) Fintech; (3) net2phone; and (4) Traditional Communications.

The NRS segment, which contributed revenue of $128.8 million in fiscal 2025 and $103.1 million in fiscal 2024 (10.5% and 8.6% of our total revenues, respectively) comprises our NRS business.

The ~~NRS~~Fintech segment, which contributed revenue of $~~103~~154.16 million in fiscal ~~2024~~2025 and $77120.17 million in fiscal ~~2023~~2024 (812.6% and 610.20% of our ~~total~~ total revenues, respectively), comprises our ~~NRS~~BOSS Money remittance business and other, significantly smaller, financial services businesses.

The ~~Fintech~~net2phone segment, which contributed revenue of $~~120~~87.79 million in fiscal ~~2024~~2025 and $8682.63 million in fiscal ~~2023~~2024 (107.01% and 76.08% of our total revenues, respectively), ~~comprises~~offers ~~our~~AI-driven ~~BOSS~~communications ~~Money~~solutions ~~remittance~~to ~~business~~businesses ~~and~~primarily ~~other,~~in ~~significantly~~North ~~smaller,~~and ~~financial~~South ~~services businesses~~America.

The ~~net2phone~~Traditional Communications segment, which contributed revenue of $82860.32 million in fiscal ~~2024~~2025 and $72899.46 million in fiscal ~~2023~~2024 (669.8% and 574.86% of our total revenues, respectively), ~~offers~~includes ~~unified~~IDT ~~communications~~Digital ~~as a service~~Payments, orBOSS ~~UCaaS~~Revolution, and ~~contact~~IDT ~~center~~Global, as awell ~~service,~~as ~~or CCaaS, and~~ other ~~significantly~~small ~~smaller~~businesses and offerings ~~that~~including ~~leverage~~early-stage ~~the~~business ~~cloud~~initiatives toand ~~enable~~mature ~~intelligent~~businesses ~~business~~in ~~communications~~harvest mode.

The Traditional Communications segment, which contributed revenue of $899.6 million in fiscal 2024 and $1,002.7 million in fiscal 2023 (74.6% and 81.0% of our total revenues, respectively) includes IDT Digital Payments, BOSS Revolution, and IDT Global, as well as other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

Financial information by segment is presented in Note 2 to our Consolidated Financial Statements in Item 8 to Part II of this Annual Report.

Our headquarters is located at 520 Broad Street, Newark, New Jersey 07102. The main telephone number at our headquarters is (973) 438-1000 and our corporate website’s home page is www.idt.net.

We make available free of charge our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to these reports, and all beneficial ownership reports on Forms 3, 4 and 5 filed by directors, officers and beneficial owners of more than 10% of our equity through the investor relations page of our website (http://ir.idt.net/) as soon as reasonably practicable after such material is electronically filed with the Securities and Exchange Commission. Our website also contains information not incorporated into this Annual Report on Form 10-K or our other filings with the Securities and Exchange Commission.

KEY EVENTS IN OUR HISTORY

1990 – Howard S. Jonas, our founder, launches International Discount Telephone to provide international call re-origination services.

1995 – We begin selling wholesale services to other long-distance carriers by leveraging our access to favorable international telephone rates generated by our retail calling traffic.

1996 – We successfully complete an initial public offering of our common stock.

2000 – We complete the sale of a stake in our net2phone subsidiary, a pioneer in the development and commercialization of Voice over Internet Protocol, or VoIP, technologies and services, to AT&T for approximately $1.1 billion in cash. We subsequently repurchased net2phone from AT&T.

2001 – Our common stock is listed on the New York Stock Exchange, or NYSE.

2006 – We sell our Russian telecom business, Corbina, for $129.9 million in cash.

2007 – We complete the sale of IDT Entertainment to Liberty Media for $220.0 million in cash, stock and other considerations.

2008 –We launch BOSS Revolution, a pay-as-you-go international calling service. BOSS Revolution has since become our flagship brand, and the BOSS Revolution platform has expanded to include payment offerings.

2009 – We spin-off our CTM Media Holdings subsidiary to our stockholders. CTM Media Holdings was subsequently renamed IDW Media Holdings, Inc.

2011 – We spin-off our Genie Energy Ltd. subsidiary to our stockholders. Genie Energy’s common stock is listed on the NYSE with the ticker symbol “GNE”.

2013 – We spin-off our subsidiary, Straight Path Communications, Inc., or Straight Path, including its wireless spectrum holdings, to our stockholders. Straight Path was purchased in February 2018 by Verizon Communications Inc.

2– We introduce our BOSS Revolution app for Android and iOS.

– We ~~introduce our BOSS Revolution app for Android and iOS. – We~~ launch our BOSS Money international remittance service.

2014 – We sell our stake in Fabrix Systems, a pioneer in cloud storage and network delivery technologies, to Ericsson for $69 million.

2015 – net2phone launches its UCaaS offering in the United States.

2016 – We spin-off our Zedge subsidiary to our stockholders. Zedge’s stock is listed on the NYSE American with the ticker symbol “ZDGE”.

– We launch NRS to provide POS-based services to independent retailers in the United States.

– net2phone initiates global expansion of its UCaaS offering with a launch in Brazil.

2017 – We introduce our BOSS Money app for Android and iOS.

2018 – We spin-off our Rafael Holdings, Inc. subsidiary to our stockholders. Rafael Holdings’ stock is listed on the NYSE with the ticker symbol “RFL”.

2019 – NRS launches NRS PAY, enabling retailers to accept credit cards and other forms of digital payment.

2020 – net2phone introduces its Huddle video conferencing solution and integration with Microsoft Teams.

2021 – net2phone launches integrations with Salesforce and Zapier among others, and HIPAA-compatible solutions for healthcare providers.

– Offerings of our BOSS Money remittance service are integrated into the BOSS Revolution app.

2022 – net2phone acquires Integra CCS, or Integra, a CCaaS provider operating in the Americas and Europe.

2024 – ~~NRS~~We ~~launches~~initiate ~~its~~payment ~~eWIC~~of ~~service,~~a ~~enabling~~regular ~~NRS~~quarterly ~~retailers~~dividend to ~~accept~~holders ~~electronic benefits vouchers from the beneficiaries~~ of ~~the~~our ~~popular~~Common ~~Supplemental Nutrition Program for Women, Infants and Children, or WIC~~Stock.

~~2023~~2025 – ~~NRS~~net2phone ~~expands~~launches ~~its~~net2phone ~~POS~~AI ~~network~~Agent, toa ~~Canada~~customizable, ~~enrolling~~AI-powered ~~its~~offering ~~first~~delivering ~~retailers~~exceptional incustomer ~~Ontario~~experiences across sales, support and administrative tasks, and Coach, an AI-driven workforce intelligence and coaching platform.

-– ~~IDT~~NRS ~~Digital~~surpasses ~~Payments~~37,000 ~~launches~~active ~~Zendit,~~terminals aoperating ~~global~~at ~~prepaid-as-a-service~~over ~~platform~~32,000 independent retailers.

~~2024~~– -BOSS WeMoney ~~initiate~~handles ~~payment~~2.3 ofmillion aremittances ~~regular~~for ~~quarterly~~customers ~~dividend~~in toMay, ~~holders of our Common Stock~~2025.

– BOSS Money begins offering domestic money transfers, enabling both banked and unbanked customers to send money to friends and family within the United States.

OUR STRATEGY

We ~~operate~~are a ~~portfolio~~fintech ofand ~~interrelated~~communications ~~businesses.~~solutions ~~Each~~provider with synergistic offerings focused on underserved, fragmented consumer and B2B markets. Many of ~~the~~our ~~businesses~~offerings ~~leverages~~leverage one or more of our core strategic assets – assets that we have carefully built during the ~~more than~~ thirty -five years since our inception. ~~They~~These assets include:

■ Our ~~key~~popular BOSS consumer brands ~~including~~(BOSS ~~NRS,~~Money ~~net2phone,~~and BOSS Revolution) and our leading B2B brands NRS, ~~BOSS~~NRS ~~Money~~Pay, ~~IDT~~NRS Digital ~~Payments~~Media, ~~and~~NRS Insights, net2phone, IDT Global and Zendit; ■ Our nationwide network of ~~more~~over ~~than 30~~32,000 independent retailers who operate NRS’s POS-based platform and approximately 2825,000 BOSS Revolution and BOSS Money retailers who utilize our digital retailer platform; ■ Our customer base of more than ~~eight~~seven million ~~users~~people, ~~primarily~~predominantly infirst ~~immigrant~~and ~~communities~~second-generation immigrants within the ~~United States~~U.S.; ■ Our ~~technology,~~ global technology infrastructure and high-capacity transaction platforms; ■ Extensive VoIP and cloud services expertise; and ■ Our staff of approximately 2,~~300~~400 dedicated personnel working in over 2030 countries on ~~four~~five continents including in-house technology and product development teams.

InThe ~~recent~~development ~~years,~~of weeach ~~leveraged~~of ~~these assets to build~~ our ~~three~~current high- margin, growth businesses —– NRS, ~~net2phone, and~~ BOSS Money~~. Each~~, ofand ~~these~~net2phone ~~businesses’~~- ~~development~~ has been principally organic and financed with the cash flows generated by our ~~more~~ mature ~~businesses~~ ~~including IDT Digital Payments, BOSS Revolution and IDT Global~~businesses. Consequently, we have avoided debt financing and dilutive capital raises ~~while building an exceptionally strong balance sheet~~. Today, each of these high-margin growth businesses is cash-flow positive , and ~~positioned~~in combination with our efforts to ~~significantly~~maximize ~~expand~~the cash ~~its~~generation ~~operations~~of our lower margin, mature offerings, have enabled us to improve our consolidated bottom-line performance in ~~pursuit~~recent years, to further strengthen our balance sheet, and to return value to stockholders through purchases of ~~significant~~our ~~market~~Class ~~opportunities~~B common stock and payment of a quarterly dividend. We expect that this trend will continue as the three high-margin businesses steadily become larger contributors to our top and bottom-line results.

3We seek to accelerate and extend this rotation by developing new offerings organically and through acquisitions that leverage our balance sheet. Broadly speaking, these efforts are focused on, but not limited to, our POS, fintech and AI businesses, and typically involve development or application of new technologies, expansion to new markets, or both.

Our IDT Digital Payments business provides prepaid digital offerings, principally mobile top-up, directly to consumers through BOSS’ retail and digital channels. We also sell over 3,500 digital gift cards from around the world, as well as over 2,000 digital data-only eSIM plans to more than 150 countries. Through its Zendit enterprise platform, IDT Digital Payments enables businesses, entrepreneurs, and developers to offer over 16,000 prepaid digital offerings to their audiences globally.

Our BOSS Revolution and IDT Global businesses operate in the paid-minute voice communications market. Like other operators in this market, these businesses are subject to intense revenue and margin pressure as consumers continue to migrate to free over-the-top voice and messaging services and to flat-rate international long-distance plans. We have worked to counter the impacts of these trends by continually innovating and deploying new features and enhancements to augment the contributions of these offerings while reducing their associated overhead and operating expenditures. To date, these efforts have significantly offset the bottom-line impacts of these offerings’ revenue declines. Nevertheless, we expect that the revenues and cash-flows generated by the BOSS Revolution and IDT Global businesses will decline appreciably in the coming years as the overall paid communications market continues to contract.

On a consolidated basis, the increasing revenue and gross margin contributions from our high-margin growth businesses in combination with our efforts to maximize the cash generation of our lower margin, more mature offerings have enabled us to improve our consolidated bottom-line performance in recent years, to further strengthen our balance sheet, and to return value to stockholders through purchases of our Class B common stock and payment of a quarterly dividend We expect that this trend will accelerate and continue to offset declining revenues from our legacy businesses as our high-margin growth businesses gradually become more significant contributors to our financial results relative to our declining paid-minute voice communications businesses.

BUSINESS DESCRIPTION

National Retail Solutions

NRS generated $~~103~~128.18 million in revenues and income from operations of $2127.68 million in fiscal ~~2024~~2025, as compared with revenues of $77103.1 ~~million~~ million and income from operations of $1421.46 million in fiscal ~~2023~~2024.

NRS operates a network of POS terminals at independent retailers throughout the United States and has a small but growing presence in Canada. The NRS ~~solution~~solutions ~~includes~~include integrated hardware and software tools that enable these retailers to operate more efficiently and compete more effectively against larger retail chains.

The POS terminal’s hardware includes a cash register, barcode scanner, retailer and customer-facing hi-definition screens, a receipt printer, and a credit card reader. NRS’ integrated, proprietary software is offered to retailers as a service and provides operational tools including inventory management, sales tracking, price book management, and other useful features. NRS technology teams continuously enhance the software and develop new features to better serve existing customers and facilitate expansion into additional retail market segments.

The primary market for NRS’ POS terminals is the independently owned convenience, bodega, liquor, grocery, and tobacco stores in the United States, many of which primarily serve foreign-born communities in urban areas.3

~~NRS~~The ~~continues~~primary tomarket ~~increase~~for ~~the~~NRS’ ~~number of~~ POS terminals ~~active~~is inthe ~~its~~independently ~~network.~~owned ~~As of July 31~~convenience, ~~2024~~bodega, ~~the NRS POS network included approximately 32~~liquor,~~100~~ ~~terminals~~grocery, anand ~~increase~~tobacco ~~from 25~~stores,~~700~~ ~~a year~~many ~~earlier. We believe that our network~~ of ~~NRS~~which ~~retailers~~primarily ~~comprises~~serve ~~the~~foreign-born ~~largest~~communities ~~POS network serving convenience store retailers~~ in ~~the~~urban Uareas.S. by a significant margin. NRS sells its POS terminals through our and NRS’ own dedicated sales agents, through in-house telemarketing, and through strategic relationships with wholesale distributors.

NRS ~~generates~~continues ~~revenue~~to ~~from~~increase athe ~~portfolio~~number of ~~services~~POS ~~for~~terminals ~~both~~active ~~retailers~~in ~~and~~its ~~third~~network. ~~parties~~As of July 31, 2025, the NRS POS network included approximately 37,200 terminals, an increase from 32,100 a year earlier. ~~The~~We ~~vast~~believe ~~majority~~that our network of ~~revenue~~NRS isretailers ~~generated~~comprises bythe ~~recurring~~largest POS network ~~services~~serving ~~including:~~independent convenience store retailers in the U.S. by a significant margin.

~~■ Merchant Services. Merchant services revenue is generated by~~ NRS markets ~~PAY,~~through athree service enabling retailers to accept and process payments made by credit cards, debit cards, electronic benefits transfer and other forms of electronic payment. The NRS PAY offering is attractive to retailers for several reasonschannels:

○■ ~~For~~wholesale ~~new~~distributors; ~~customers~~■ /dedicated ~~retailers,~~sales ~~NRS~~agents ~~incentivizes~~including ~~retailers~~exclusive toagents ~~also~~and ~~enroll~~BOSS inagents; ~~NRS~~and ~~PAY~~■ byin-house ~~reducing the cost of the NRS POS hardware;~~telemarketing.

4NRS generates revenue from a portfolio of services for both retailers and third parties. The majority of revenue is generated by recurring services including:

○■ ~~NRS~~Merchant ~~PAY’s~~Services. ~~pricing~~Merchant ~~model~~services revenue is ~~straightforward~~generated ~~and~~by ~~easily~~enabling ~~understood,~~retailers ~~NRS~~to ~~PAY~~accept ~~does~~and ~~not~~process ~~charge~~payments ~~hidden~~made ~~fees~~by –credit acards, ~~frequent~~debit ~~sore~~cards, ~~point~~electronic ~~for~~benefits ~~retailers~~transfer ~~under~~and ~~contract to~~ other ~~providers;~~forms ○of ~~NRS~~electronic ~~provides~~payment. ~~the~~The NRS ~~PAY~~offering ~~equipment~~is atattractive ~~no cost~~ to ~~the~~retailers ~~retailer;~~for ~~and ○ NRS PAY offers~~ several ~~credit card processing plans that include a cash discount offering, a standard plan and customized pricing.~~reasons:

~~NRS~~■ For new customers / retailers, ~~though~~ NRS ~~PAY,~~incentivizes ~~operates~~retailers asto analso ~~independent~~enroll ~~service~~in ~~organization~~NRS ~~(ISO),~~payment ~~acting~~processing asby anreducing ~~essential,~~the ~~retailer-facing~~cost ~~intermediary~~of ~~between~~the NRS ~~retailers~~ POS hardware; ■ NRS’ payment processing pricing model is straightforward and ~~its~~easily understood. NRS does not charge hidden fees – a frequent sore point for retailers under contract to other providers; ■ NRS provides the payment ~~facilitator~~processing equipment at no cost to the retailer; and ■ NRS offers several credit card processing plans that include a cash discount offering, a standard plan and customized pricing.

AtNRS ~~July~~operates ~~31,~~as ~~2024,~~an ~~NRS~~independent ~~had~~service ~~approximately~~organization 21(ISO),~~300~~ ~~NRS~~acting ~~PAY~~as ~~customers~~an ~~compared~~essential, toretailer-facing ~~approximately~~intermediary ~~15,800~~between aNRS ~~year~~retailers ~~earlier~~and its payment facilitator.

	■	Display Advertising. NRS’ offerings participate in the retail media network advertising market, which is uniquely positioned to reach consumers at or near their point of purchase. Through its NRS Digital Media brand, NRS operates a nationwide, digital retail media platform. The platform leverages the 15-inch digital consumer facing display screens on each NRS terminal enabling advertisers to engage customers at the time of purchase. NRS Digital Media offers its large inventory of static and video advertisements, including video accompanying third-party provisioned content, extensive reach into the predominantly urban, multicultural consumer market served by NRS retailers. It markets its advertising inventory through both programmatic and, to a lesser extent, direct channels to consumer package-good sellers and other brand marketers, government agencies and non-profits.
	■	Data and Analytics: NRS licenses its first party retail data from merchants operating the NRS POS system to consumer packaged goods brands, marketers, and other third-parties under its NRS Insights brand. This data captures product sales processed through the NRS POS at the transaction level including all scannable products identified with a universal product code (UPC) as well as items prepared or packaged in-house, i.e., brewed coffee, bakery, and food service. The data are provisioned based on the client’s formatting and business requirements and are typically ingested into broader sales and marketing data warehouses. NRS Insights’ data typically fill a blind spot in overall retail sales, as the independent retailer market that NRS serves is often either under-represented through common data syndicators or not included in their “tracked channels”. Additionally, because NRS retailers’ stores predominantly serve urban consumers, their shoppers over-index to multicultural demographics – a view that may be diluted or unavailable through other data providers and aggregators.

At July 31, 2025, NRS had approximately 26,500 NRS payment processing customers compared to approximately 21,300 a year earlier.

	■	Display Advertising. NRS’ offerings participate in the retail media network advertising market. Through its NRS Digital Media brand, NRS operates a nationwide, digital retail media platform. The platform leverages the 15-inch digital consumer facing display screens on each NRS terminal enabling advertisers to engage customers at the time of purchase. NRS Digital Media offers its large inventory of static and video advertisements, including video accompanying third-party provisioned content, extensive reach into the predominantly urban, multicultural consumer market served by NRS retailers. NRS Digital Media goes to market through both programmatic advertising platforms that match buyers with sellers in real time, and, to a lesser extent, through direct channels to consumer package-good sellers and other brand marketers, government agencies and non-profits.

	■	Data and Analytics: NRS licenses its first party retail data from merchants operating the NRS POS system to consumer-packaged goods brands, marketers, and other third-parties under its NRS Insights brand. This data captures product sales processed through the NRS POS at the transaction level including all scannable products identified with a universal product code (UPC) as well as items prepared or packaged in-house, i.e., brewed coffee, bakery, and food service. The data are provisioned based on the client’s formatting and business requirements and are typically ingested into broader sales and marketing data warehouses. NRS Insights’ data typically fill a blind spot in overall retail sales, as the independent retailer market that NRS serves is often either under-represented through common data syndicators or not included in their “tracked channels”. Additionally, because NRS retailers’ stores predominantly serve urban consumers, their shoppers over-index to multicultural demographics – a view that may be diluted or unavailable through other data providers and aggregators.

The NRS Insights data are used by licensees both tactically and strategically. Common tactical applications of the data include sales enablement activities such as identifying core item distribution voids and monitoring speed to shelf and adoption of new product launches. Popular strategic applications of the data include gaining competitive intelligence, informing research and development activities, and informing acquisition and merger strategies.

NRS Insights also provides analytical services to third parties, leveraging its data to answer high impact business questions including, but not limited to, advertising measurement, market-basket studies, inventory (SKU) optimization, and price elasticity.

■ Terminal-based software services. NRS offers retailers several ~~pricing~~Software as a Service (SaaS) plans for its proprietary ~~software~~terminal ~~solutions~~software. These plans offer ~~different~~differentiated ~~levels~~packages of features ~~depending~~and functionalities including advanced business operations tools, e-commerce functionalities, and loyalty program management, many of which can be purchased separately. Additional services are offered to retailers on ~~the~~an ~~retailer’s~~a ~~needs~~la carte basis.

~~In addition to these recurring sources of revenue, NRS also sells its POS terminals to retailers.~~4

In addition to these recurring sources of revenue, NRS sells its POS terminals to retailers. Discounted terminal pricing is available to retailers who sign up for NRS Pay.

We believe that NRS’ competitive advantages include:

■ Our purpose-built package of hardware and software is tailored specifically to the needs of independent retailers; ■ Our established direct sales and marketing capabilities focused on independent retailers including our relationships with the wholesale distributors who supply these stores; ■ Our POS terminal’s 15 inch hi-definition customer-facing screen for displaying advertising and promotions provisioned via the NRS platform, and established relationships with supply side advertising platforms; ■ Our ability to accept and target advertising and content in multiple formats to meet the needs of a diverse variety of potential advertising inventory buyers; ■ For our data analytics business, the scale of our network and unique reach into the urban consumer convenience store market; ■ Our focus on urban markets with high concentrations of first- and second-generation immigrants that provides advertisers and marketers with unprecedented reach and insight into these communities; ■ For NRS payment processing, we are ideally positioned to supply payment processing services to retailers who purchase, or already utilize, our terminals, and appeal to many more potential customers through simplified, transparent pricing plans with credit card terminals, no hidden fees and lower total cost to operate than most competitors; ■ n certain states, NRS’ payment processing solution is licensed to accept governmental electronic benefit transfers that certain competitors may not be licensed to accept; ■ Because of our large scale compared to newcomers and smaller competitors, we can attractively price our software-as-a-service fees at levels that are generally well below theirs; ■ Our ability to leverage new offerings for retailers through third party providers who are attracted by our scale and the flexibility of our platform; and ■ Our experienced and proven management team, many of whom have been with NRS since inception.

■ For our data analytics business, the scale of our network and unique reach into the urban consumer convenience store market; ■ Our focus on urban markets with high concentrations of first- and second-generation immigrants that provides advertisers and marketers with unprecedented reach and insight into these communities; ■ For NRS PAY, we are ideally positioned to supply payment processing services to retailers who purchase, or already utilize, our terminals, and appeal to many more potential customers through simplified, transparent pricing plans with credit card terminals, no hidden fees and lower total cost to operate than most competitors; ■ In certain states, NRS PAY’s solution is licensed to accept governmental electronic benefit transfers that certain competitors may not be licensed to accept; ■ Because of our large scale compared to newcomers and small competitors, we are able to attractively price our software-as-a-service fees at levels that are generally well below theirs; ■ Our ability to leverage new offerings for retailers through third party providers who are attracted by our scale and the flexibility of our platform; and ■ Our experienced and proven management team, many of whom have been with NRS since inception.

NRS’ growth strategy includes:

■ Expansion of our POS terminal network into new retail verticals, enabled, in some markets, by the development of new POS hardware formats and software functionalities; ■ Subsidize the POS hardware, particularly for retailers who also enroll in NRS ~~PAY~~payment processing; ■ For NRS ~~PAY~~payment processing, conversion of current NRS terminal customers, particularly as contracts with their existing credit card processors expire, and conversion of existing NRS ~~PAY~~payment processing customers to higher margin pricing plans; ■ For NRS advertising, integrations with new programmatic advertisers and the development of differentiated offerings that enable us to more effectively leverage the unique strengths of our platform; ■ Develop partnerships to provide NRS retailers with robust home delivery service options; and ■ Build out the NRS digital wholesale supply channel to provide NRS retailers with new cost-effective supply options.

Competition

Currently, nationwide POS platform service providers, including Square, Toast, Lightspeed, Clover, and NCR, primarily serve retail chains or are focused on other retail segments, such as sit-down restaurant chains.

NRS markets its POS platform offerings primarily to independent convenience stores, including bodegas, and other small format retailer store owners including liquor and tobacco stores. ~~Historically,~~A ~~many~~large majority of new NRS’ customers ~~have~~did not previously ~~used~~use a POS system. In ~~cases~~the minority ~~where~~of ~~NRS’~~cases ~~target~~where ~~market~~potential iscustomers are using, or ~~does~~are ~~consider~~considering using, an alternative solution, we believe that NRS’ suite of proprietary software solutions, affordable and discounted POS equipment and free credit card terminals are key drivers behind its success versus the competition.

NRS expects to encounter more frequent direct competition from local and/or national POS networks as it expands to new adjacent target markets.

Fintech

Fintech is comprised of BOSS Money and other, significantly smaller, financial services businesses. Fintech revenues were $~~120~~154.76 million in fiscal ~~2024~~2025 compared to $86120.67 million in fiscal ~~2023~~2024. Fintech’s ~~loss~~income from operations was $015.14 million in fiscal ~~2024~~2025 compared to a loss from operations of $20.5 1 million in fiscal ~~2023~~2024. BOSS Money revenues were $~~108~~139.38 million in fiscal ~~2024~~2025, an increase of 4029.81% from revenues of $76108.93 million in fiscal ~~2023~~2024.

BOSS Money enables customers in the United States ~~and Canada~~ to send money conveniently and affordably to third parties around the world. ~~International~~ International remittances are a primary economic activity for the tens of millions of first- and second-generation immigrants in the United States. At July 31, ~~2024~~2025, BOSS Money provided its remittance service to 4950 countries through approximately 1,~~300~~800 ~~payer~~disbursement ~~entities~~ partners and its payout network included over ~~235~~250,000 cash payout locations worldwide in addition to a growing number of bank deposits, mobile money wallets, ~~credit~~ to debit cards, and home delivery payout options.

6BOSS Money is offered directly to consumers via our digital channel — the BOSS Money app and the BOSS Revolution app. To utilize our digital channel, customers can use their debit or credit cards or authorize ACH transfers from their bank accounts.

BOSS Money is offered directly to consumers via our digital channels including the BOSS Money app and the BOSS Revolution app. To utilize our digital channel, customers can charge their debit or credit cards or authorize ACH transfers from their bank accounts.

Our retail channel network comprises licensed and authorized BOSS Money agents nationwide. Customers can initiate transfers through a BOSS Money agent with cash as well as with their debit or credit cards.

We continue to build our retail origination network by using our internal sales force to recruit new BOSS Money retailers, primarily focusing on retailers that already provision BOSS Revolution and IDT Digital Payments services. To qualify to provide our service, BOSS Money retailers must meet ~~certain~~ stringent financial and other regulatory qualifications. We also continue to enhance the BOSS Money retailer ~~portal~~ portal and platform to make transaction execution more convenient for retailers, the majority of whom host multiple remittance providers.

We continue to expand our BOSS Money customer base at rates well above the domestic remittance industry’s average by marketing toour service to the large ~~BOSS~~base ~~Revolution~~of ~~customer~~customers ~~base,~~who asutilize ~~well~~our asBOSS byRevolution ~~targeting~~voice ~~new~~calling ~~customers~~and ~~directly,~~IDT ~~primarily~~Digital ~~through~~Payments offering. We offer new customers attractive fee and foreign exchange rate offers, through both our digital and retail channels, ~~but~~and ~~also~~ through online, media and events advertising.

BOSS Money generates revenues from a per-transaction fee charged to the customer and from foreign exchange differentials. Our transaction costs include commissions paid when the transaction is initiated by a retail agent, payment to the international disbursing agent, banking, compliance and foreign currency exchange costs, and, for digital transfers, credit and debit card processing fees.

BOSS Money’s gross margins are typically higher on remittances initiated through our digital channels compared to retail channel transactions, as we pay retail agents transaction-based commissions on the latter.

Competition and Competitive Strengths

The money transfer industry is intensely competitive, with participants ranging from banks, digital remittance providers, fintech startups and traditional remitters. Digital competitors such as Xoom (a subsidiary of PayPal), Wise, Remitly, and Sendwave along with traditional money remitters, including Western Union, Ria, MoneyGram, Intermex and Viamericas compete in the remittance space. Increased competition could result in lower prices, slimmer margins, lower profitability and potential loss of market share. The ability to adjust pricing and continuously innovate is crucial but also erodes margins. As competition in the remittance market intensifies, there is a need to increase investment in marketing and promotions to attract and retain customers, which could lead to higher costs and tighter margins. BOSS Money will also face challenges in retaining customers as the market becomes more competitive, and high churn rates or failure to increase customer loyalty could negatively impact long-term growth.

We continue to compete successfully in part by migrating customers from our other BOSS offerings to BOSS Money leveraging our highly regarded BOSS brand, insights into our customers, and cross-marketing capabilities. We compete for customers outside the BOSS ecosystem primarily based on brand reputation, low fees, and competitive foreign exchange rates. We believe that BOSS Money’s competitive strengths include:6

■We continue ~~Our~~to ~~BOSS~~compete ~~name~~successfully ~~is an established and trusted brand that has served immigrant communities~~ in ~~the~~part ~~United~~by ~~States~~migrating ~~for~~customers ~~over~~of aour ~~decade.~~other ~~We spend significantly on~~ BOSS~~-branded~~ ~~marketing~~offerings tofrom ~~support~~their ~~BOSS~~current ~~Revolution~~remittance ~~and~~providers to BOSS Money. ~~Through~~leveraging ~~the~~our ~~nationwide~~highly ~~network~~regarded ~~of over 28,000~~ BOSS ~~Revolution retailers~~brand, ~~the~~insights ~~BOSS~~into ~~brand~~our has a high-visibility storefront presence in many communities with significant immigrant populations; ■ The BOSS customer eco-system includes the significantly larger customer bases of BOSS Revolution and IDT Digital Payments. We are able to significantly lower BOSS Money’s customer acquisition costscustomers, and ~~therefore grow more efficiently, through our intensive~~ cross-~~product~~ marketing ~~efforts~~capabilities. ~~within~~We ~~our~~compete ~~eco-system;~~for ■customers outside ~~The~~the BOSS ~~Money~~ecosystem ~~and~~primarily ~~BOSS Revolution apps, which are used for the substantial majority of our transactions, are~~ based on abrand ~~proprietary~~reputation, ~~internally~~low ~~developed~~fees, ~~scalable platform that has earned high marks from customers for its ease of use, reliability,~~ and ~~customer~~competitive ~~service;~~foreign ■exchange ~~Our~~rates. ~~internal~~We ~~sales~~believe ~~force,~~that ~~which serves our 28,000~~ BOSS Money’s ~~retailers;~~competitive strengths include:

7■ Our BOSS name is an established and trusted brand that has served immigrant communities in the United States for well over a decade. We spend significantly on BOSS-branded marketing to support BOSS Revolution and BOSS Money. Through the nationwide network of over 30,000 BOSS Revolution retailers, the BOSS brand has a high-visibility storefront presence in many communities with significant immigrant populations; ■ The BOSS customer eco-system includes the large customer bases of BOSS Revolution and IDT Digital Payments. We are able to significantly lower BOSS Money’s customer acquisition costs, and therefore grow more efficiently, through our intensive cross-product marketing efforts within our eco-system; ■ The BOSS Money and BOSS Revolution apps, which are used for the substantial majority of our transactions, are based on a proprietary, internally developed, scalable platform that has earned high marks from customers for its ease of use, reliability, and customer service; ■ Our internal sales force, which serves our 30,000 BOSS Revolution retailers; ■ Our nationwide retail channel that enables underbanked and unbanked customers to initiate cash transactions; ■ Our comprehensive compliance processes and procedures; ■ Our ready access to capital leveraging IDT’s strong balance sheet including robust levels of cash and cash equivalents; and ■ Our experienced management team.

■ Our nationwide retail channel that enables underbanked and unbanked customers to initiate cash transactions; ■ Our comprehensive compliance processes and procedures; and ■ Our experienced management team.

BOSS Money’s growth strategy includes:

■ Expansion of our international payout network with a focus on ~~certain~~growth ~~popular~~in ~~destinations~~Latin inAmerica, Africa and Asia; ■ ~~Expansion of origination beyond the United States and Canada to the United Kingdom and, potentially over the longer term, to European countries with large immigrant populations; ■~~ Continued migration of our BOSS Revolution and IDT Digital Payments customers from competitors to BOSS Money; ■ Further ~~enhancement~~enhancements to our BOSS Money app, BOSS Revolution app and retailer portal; ■ Increasing the number of BOSS Money retail agents; and ■ Addition of new features and offerings including the deployment of a wallet to receive, hold and pay for remittances and other Boss products.

net2phone

net2phone’s revenues were $8287.39 million in fiscal ~~2024~~2025 compared to $7282.43 million in fiscal ~~2023~~2024. net2phone’s income from operations was $14.79 million in fiscal ~~2024~~2025 compared to ~~loss from operations of~~ $21.87 million in fiscal ~~2023~~2024.

net2phone enables its customers to transform their communications by leveraging its cloud platform to provide solutions that enable more intelligent, flexible and adaptive communications. net2phone operates in the United States, Canada, Mexico, Central and South America and Spain.

net2phone’s offerings include:

■ Unified Communications as a Service (UCaaS): net2phone’s ~~Unite branded~~ UCaaS service utilizes its cloud platform to provide conversational continuity across channels from any connected device – tethered or mobile – and to measure, manage and analyze those communications for enhanced insight and productivity. net2phone provides its UCaaS customers that convert from on-premise PBXs with advanced Internet Protocol, or IP, desktop phones and/or with a bring-your-own-device solution accessed through its integrated web portal and through net2phone’s mobile app. net2phone’s UCaaS service includes multi-channel communications with voice management features, unlimited domestic and international calling to over 40 countries, robust messaging and chat tools, voicemail to email transcription, client analytics, AI-powered functionalities including instant call summaries and transcripts, internal team chat, the net2phone Huddle video conferencing service, and reporting and system management capabilities accessed through its online console. net2phone’s UCaaS service integrates seamlessly with business communication platforms (such as Microsoft Teams and Slack), leading customer relationship management, or CRM, services (such as SalesForce, Zoho and others) and text-based communications platforms. net2phone adds features, enhancements and integrations on a regular basis leveraging its agile development philosophy. ■ Contact Center as a Service (CCaaS): net2phone offers robust and integrated cloud CCaaS solutions under its uContact brand. uContact provides omnichannel contact center solutions including workflows, forms, reports, dashboards, CRM alerts, and monitoring for inbound, outbound, or blended contact centers. uContact also offers gamification components to improve employee efficiency and engagement. uContact is sold either as a stand-alone offer or as a bundled solution with net2phone’s UCaaS or SIP Trunking offerings. ■ Huddle: net2phone’s video and audio streaming solution, Huddle, is integrated with and provisioned through its unified communications offering, Unite. Huddle delivers a comprehensive feature set including phone dial-in conference options, robust user controls, single sign-on, noise cancelation, screen blur, Huddle reactions and complete on-the-go access. Huddle integrates fully with Google and Microsoft Outlook calendars. Conversations on Huddle are secure, and passcode protected. ■ Session Initiation Protocol (SIP) Trunking: net2phone’s SIP Trunking service provides high-quality voice channels from net2phone’s expansive VoIP network directly to the client’s on-premise IP-PBX. net2phone’s SIP Trunking service has been certified for compatibility with leading IP-PBX vendors such as Avaya and 3CX.

~~These~~ ■ Contact Center as a Service (CCaaS): net2phone offers robust and integrated cloud CCaaS solutions under its uContact brand. uContact provides omnichannel contact center solutions including workflows, forms, reports, dashboards, CRM alerts, and monitoring for inbound, outbound, or blended contact centers. uContact also offers gamification components to improve employee efficiency and engagement. uContact is sold either as a stand-alone offer or as a bundled solution with net2phone’s UCaaS, SIP Trunking and AI Agent offerings. ~~include~~■ ~~advanced~~net2phone ~~feature~~AI: ~~sets~~net2phone’s ~~ideal~~autonomous, customer-facing AI agent expertly handles both routine and complex sales, support and administrative tasks for ~~many~~customers ~~mid~~across their website, phone, and chat channels. net2phone’s AI Agent can be reached via text or voice. ■ net2phone Coach: net2phone’s workforce intelligence and coaching platform uses real-~~market~~time ~~scale~~AI-powered ~~businesses~~insights to support employee performance. net2phone Coach resolves the biggest drawback of remote work – a lack of supervision and coaching– with 50real-time employee monitoring, performance tracking, and coaching. The platform examines multiple channels of communication, including calls, SMS, chats, emails, and video meetings. It analyses response time, tone, sentiment, and performance trends and other tendencies to ~~1000~~develop ~~seats~~and deliver suggestions for improvement and productivity gains. net2phone Coach includes an AI Assistant which can be customized to respond to unique business questions for the business owner.

Other net2phone differentiators include white glove customer service, integrations with third-party software and deep localization. net2phone’s global infrastructure, locally based sales and customer support teams and native language support, enable net2phone clients to retain the look and feel of localized customer and user experiences.

net2phone ~~goes~~focuses toprimarily on an indirect go-to-market ~~through~~strategy ain ~~synergistic~~most ~~combination~~of its markets, utilizing extensive networks of channel ~~partnership~~partners including Technology Solutions Brokerages (TSBs), Technology Services Distributors (TSDs), Managed Service Providers (MSPs), and ~~direct~~Value-Added toResellers (VARs). ~~end~~This channel-~~user~~centric ~~sales~~approach ~~with~~enables ~~differentiated~~net2phone ~~approaches~~to ~~tailored~~efficiently reach its extensive target market of midsize businesses, which rely heavily on these types of service providers to ~~each~~address ~~geographic~~their ~~market~~IT needs. net2phone’s partner channel is overseen by regional channel sales managers employed by net2phone.

net2phone ~~focuses~~is ~~primarily~~developing ondirect anto ~~indirect go~~end-~~to-market~~user ~~strategy~~capabilities into ~~the~~market ~~majority~~primarily of its ~~markets~~AI offerings, ~~utilizing~~net2phone ~~extensive~~AI ~~networks~~Agent ofand ~~channel partners including Technology Solutions Brokerages (TSBs)~~Coach, ~~Tech~~in ~~Services~~the ~~Distributors~~small ~~(TSDs), Managed Service Providers (MSPs),~~ and ~~Value~~medium-~~Added~~sized ~~Resellers~~business ~~(VARs) partners. This channel-centric approach enables net2phone to efficiently reach its extensive target~~ market ~~of midsize businesses, which rely heavily on these types of service providers to address their IT needs~~. ~~net2phone’s partner channel is overseen by regional channel sales managers employed by net2phone.~~

net2phone is continuing to expand its direct-to-business channel in each of its markets through digital marketing, brand awareness campaigns, and participating in local and regional events.

Both net2phone’s channel partners and direct business customers choose its solutions because of our user-friendly offerings, availability of in-house support agents, value proposition, and track record of reliability and stability. Channel partners value net2phone for its extensive customization capabilities, frictionless and rapid quote generation, and competitive compensation – backed by its dedicated channel sales team.

net2phone’s direct marketing to channel partners and end users includes search engine marketing, search engine optimization, third-party lead generation platforms, social media marketing, webinars, industry focused events, and other forms of demand generation.

net2phone’s indirect marketing funnels through its network of partners, technology distributors, and affiliates and includes tradeshows and local events, marketing development support for partners and other forms of demand generation, layered with ongoing channel sales training, proof of concepts and demos.

net2phone closely tracks its acquisition costs across both channels to ensure it is acquiring customers in a cost-efficient manner and consistent with its targets for return on investment.

net2phone’s growth strategy includes:

■ ~~Expanded~~Further development and distribution of net2phone AI~~-powered~~ ~~functionalities~~Agent toand ~~further~~net2phone ~~leverage~~Coach ~~the~~through ~~large~~both indirect and ~~improving~~direct ~~capabilities~~channels. of■ ~~language~~Refine ~~models~~net2phone toAI ~~drive~~agent ~~quantifiable~~to ~~improvements~~offer inindustry ~~customer~~vertical ~~engagement~~specific ~~and~~variants ~~business~~that ~~performance~~integrate ~~across~~with ~~its~~popular ~~Unite~~industry-specific ~~and~~CRMs ~~uContact~~to ~~platforms~~handle administrative, support and ~~its~~sales ~~Huddle~~tasks ~~video~~while ~~conferencing~~leveraging ~~feature~~industry specific learnings and workflows. ~~net2phone~~■ Within its UCaaS offerings, expand AI-powered ~~was~~functionalities ~~initially~~to ~~introduced~~further onleverage ~~net2phone’s~~the ~~platform~~large inand ~~2024,~~improving ~~including~~capabilities ~~instant~~of ~~call~~language ~~transcription~~models to drive quantifiable improvements in customer engagement and ~~summarization~~business ~~features~~performance. ■ Across its offerings, net2phone plans to introduce burstable line capacity that allows a customer to temporarily increase their bandwidth to handle short-term traffic spikes, providing end users with the option to leverage net2phone’s robust network capabilities to temporarily exceed stipulated line limits, thereby enabling them to effortlessly add additional capacity during periods of brief demand volatility. ■ For its ~~Unite~~UCaaS customers in Mexico and Brazil, net2phone plans to provide integration with WhatsApp. With this integration – already available to uContact customers, clients will be able to send and receive WhatsApp messages on the net2phone portal. ■ Premium plan tiers: net2phone offers multiple tiered plans with differentiated functionalities and pricing for its UCaaS and CCaaS offerings. To meet the needs of its customers and enhance revenue per customer, sales efforts will focus on upselling premium feature sets to existing customers as well as onboarding new customers on premium plans. ■ Focus channel expansion on MSPs and resellers: net2phone’s continuous product development makes its offerings increasingly attractive to larger, more complex organizations that demand more advanced feature sets. As a result, net2phone is focused on expanding its partnerships with both MSPs, who provision services to larger, more technologically demanding end users on a subscription basis, and resellers, who purchase services directly for subsequent resale, often under their own label, and who are responsible for customer onboarding and support. ■ Expansion of CCaaS: net2phone’s uContact branded CCaaS solution enables net2phone to expand its channel partner portfolio by adding partners that focus mainly or exclusively on the CCaaS space. uContact also expands net2phone’s total addressable market by allowing it to target larger enterprise accounts, business process optimization, or BPO, providers (outsourced call centers), and international contact centers, as well as enterprises that want an integrated UCaaS and CCaaS solution. net2phone expects CCaaS-driven opportunities will continue to increase its average user per customer considerably beyond what it experiences in the UCaaS space. In addition, uContact is expected to generate higher revenue per customer, while commanding stickier, longer-term relationships with customers. ■ Selectively pursue acquisitions and strategic investments: net2phone may continue to selectively pursue acquisitions and strategic investments to strengthen its platform with new capabilities and solutions as well as to expand its position in its existing markets or to establish a presence in new markets.

	■	Expansion of CCaaS: net2phone’s uContact branded CCaaS solution enables net2phone to expand its channel partner portfolio by adding partners that focus mainly or exclusively on the CCaaS space. uContact also expands net2phone’s total addressable market by allowing it to target larger enterprise accounts, business process optimization, or BPO, providers (outsourced call centers), and international contact centers, as well as entities that want an integrated UCaaS and CCaaS solution. net2phone expects CCaaS-driven opportunities will continue to increase its average user per customer considerably beyond what it experiences in the UCaaS space. In addition, Ucontact is expected to generate higher revenue per customer, while commanding stickier, longer-term relationships with customers.
	■	Selectively pursue acquisitions and strategic investments: net2phone may continue to selectively pursue acquisitions and strategic investments to strengthen its platform with new capabilities and solutions as well as to expand its position in its existing markets or to establish a presence in new markets.

Competitive Strengths

We believe that net2phone’s competitive strengths include:

■ Proprietary communications-as-a-service product suite. net2phone provides a leading, proprietary cloud-based communications and collaboration platform for its customers. Key differentiators include net2phone’s advanced feature sets, proprietary CCaaS offering, white glove customer service, integrations with third-party software, and deep localization. Through net2phone’s platform, customers can access voice, video, chat and messaging services, softphone and mobile applications, customizable packages, and a partner portal. The seamlessly integrated solutions on net2phone’s platform are delivered and centrally managed through an intuitive, ‘single pane of glass’ master portal that allows channel partners and customers to easily monitor and manage the product offering. net2phone’s CCaaS offering provides software for customized campaign management, including inbound and outbound call management, messaging, gamification, reporting, and live monitoring. net2phone’s CCaaS offering is tailored for call centers ranging from 20 to 1,000 agents. net2phone supports seamless product suite integrations with leading third-party CRMs and text-based business collaboration platforms including Google Meet, Microsoft Teams, Zoho, Slack, Zapier, and Salesforce, with new integrations added to meet demand. ■ Platform built for our channel partners. net2phone has built its platform to both serve the needs of its customers and to empower its channel partners. We believe that net2phone’s platform provides its partners with an effective way to market and sell its comprehensive solutions to new customers and manage its existing customers. In addition, net2phone’s integrations with leading third-party applications enable its partners to offer more comprehensive solutions. net2phone’s suite of solutions is delivered to the marketplace both quickly, intuitively, and precisely. net2phone has developed a proprietary partner portal exclusively for its growing partner community. net2phone’s channel partners can easily quote and deliver a net2phone proposal and agreement proceeding directly to onboarding. ■ One World, One Platform. net2phone is deploying a single cloud-based platform to provide its unified communications service globally. This single-platform approach enables a consistent, holistic approach to new feature deployment, service upgrades, and marketing. The platform has been deployed in the United States, Brazil, and Mexico to date. ■ Distribution power of net2phone’s more than 2,500 active channel partners enhanced with an emergent direct to consumer strategy. net2phone’s’ vast and growing partner network gives it tremendous leverage to grow its business customer base, increase revenue from its existing clients and expand its footprint to adjacent geographies. net2phone’s platform is tailored to support channel partners and includes channel incentives built into its pricing structure, technology platform, and support services. net2phone puts its channel and customer priorities first. Channel partners are motivated to sell net2phone’s offering due to its premier, localized channel partner support and marketing. While net2phone is primarily focused on strategically growing its channel sales, it has also been focusing on the expansion of its direct-to-business sales. ■ Differentiated customer support and local market presence. net2phone offers channel partners and customers white glove customer service, integrations with third-party software, and deep localization. net2phone’s on-the-ground presence in international markets accounted for approximately 77% of its personnel at the end of fiscal 2024. Regional-based customer service and sales teams are a key differentiator and propel net2phone’s international business.

	■	Proprietary communications-as-a-service product suite. net2phone provides a leading, proprietary cloud-based communications and collaboration platform for its customers. Key differentiators include net2phone’s advanced feature sets, proprietary CCaaS offering, white glove customer service, integrations with third-party software, and deep localization. Through net2phone’s platform, customers can access voice, video, chat and messaging services, softphone and mobile applications, customizable packages, and a partner portal. The seamlessly integrated solutions on net2phone’s platform are delivered and centrally managed through an intuitive, ‘single pane of glass’ master portal that allows channel partners and customers to easily monitor and manage the product offering. net2phone’s CCaaS offering provides software for customized campaign management, including inbound and outbound call management, messaging, gamification, reporting, and live monitoring. net2phone’s CCaaS offering is tailored for call centers ranging from 20 to 1,000 agents. net2phone supports seamless product suite integrations with leading third-party CRMs and text-based business collaboration platforms including Google Meet, Microsoft Teams, Zoho, Slack, Zapier, and Salesforce, with new integrations added to meet demand.

	■	Platform built for our channel partners. net2phone has built its platform to both serve the needs of its customers and to empower its channel partners. We believe that net2phone’s platform provides its partners with an effective way to market and sell its comprehensive solutions to new customers and manage its existing customers. In addition, net2phone’s integrations with leading third-party applications enable its partners to offer more comprehensive solutions. net2phone’s suite of solutions is delivered to the marketplace both quickly, intuitively, and precisely. net2phone has developed a proprietary partner portal exclusively for its growing partner community. net2phone’s channel partners can easily quote and deliver a net2phone proposal and agreement proceeding directly to onboarding.

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	■	Track record and focus on innovative solutions. net2phone’s long track record of innovation includes the development of its proprietary UCaaS platform, including the Huddle video conferencing service, as well as numerous patents around virtualized communication technologies.
	■	Employee-friendly culture that allows net2phone to attract and retain talent. net2phone has sought to create a workplace and culture that is entrepreneurial, positive, employee-friendly and encourages its employees to work towards its shared goals of delivering innovative solutions to its customers and supporting its partners. As of July 31, 2024, net2phone had approximately 460 employees worldwide, with 77% located outside of the United States.

	■	One World, One Platform. net2phone is deploying a single cloud-based platform to provide its unified communications service globally. This single-platform approach enables a consistent, holistic approach to new feature deployment, service upgrades, and marketing. The platform has been deployed in the United States, Brazil, and Mexico to date. net2phone Canada is slated to go into production early in fiscal 2026.

	■	Distribution power of net2phone’s more than 2,500 active channel partners enhanced with an emergent direct to consumer strategy. net2phone’s’ vast and growing partner network gives it tremendous leverage to grow its business customer base, increase revenue from its existing clients and expand its footprint to adjacent geographies. net2phone’s platform is tailored to support channel partners and includes channel incentives built into its pricing structure, technology platform, and support services. net2phone puts its channel and customer priorities first. Channel partners are motivated to sell net2phone’s offering due to its premier, localized channel partner support and marketing. While net2phone is primarily focused on strategically growing its channel sales, it has also been focusing on the expansion of its direct-to-business sales.

	■	Differentiated customer support and local market presence. net2phone offers channel partners and customers white glove customer service, integrations with third-party software, and deep localization. net2phone’s on-the-ground presence in international markets accounted for approximately 84% of its personnel at the end of fiscal 2025. Regional-based customer service and sales teams are a key differentiator and propel net2phone’s international business.

	■	Track record and focus on innovative solutions. net2phone’s long track record of innovation includes the development of its proprietary UCaaS platform, including the Huddle video conferencing service, as well as numerous patents around virtualized communication technologies. Recently, net2phone’s leverage of AI include the Huddle video platform being upgraded with real-time AI summaries and reporting as well as the launch of net2phone AI Agent and net2phone Coach.

	■	Employee-friendly culture that allows net2phone to attract and retain talent. net2phone has sought to create a workplace and culture that is entrepreneurial, positive, employee-friendly and encourages its employees to work towards its shared goals of delivering innovative solutions to its customers and supporting its partners. As of July 31, 2025, net2phone had approximately 540 employees worldwide, with 84% located outside of the United States.

Competition

net2phone’s most significant competitors in the UCaaS space include RingCentral, 8x8, Crexendo, Vonage, Dialpad and Nextiva. Some AI agent focused (only) companies such as Lindy or Phonely are also competitors. Many of these companies offer more widely recognized brands, larger and more developed marketing and sales forces and/or channel agent networks, and more advanced product sets and solutions customized for specific market segments or verticals. These competitors’ offerings typically also support integration of their services with other well-known, third-party CRM vendors as well as with various Google and Microsoft applications.

The CCaaS market is fragmented, highly competitive and evolving rapidly in response to shifting consumer behavior, especially the rapid adoption of AI, mobile devices and social media. ~~The~~This proliferation ~~of AI, mobile devices and social media~~ is driving change in contact center technology, as customers expect seamless communication across any channel according to their preference and needs. net2phone competes with large legacy vendors that offer on-~~premise~~ premises contact center systems, such as Avaya and Cisco. These legacy telephony vendors are increasingly supplementing and replacing their traditional ~~on-premise~~ contact center systems with competing cloud offerings, through a combination of acquisitions, partnerships, and in-house development. Additionally, net2phone competes with vendors that historically provided other contact center services and technologies and expanded to offer cloud contact center software such as NICE, Five9, and Genesys. net2phone also faces competition from many smaller contact center service providers such as Talkdesk and Seranova, as well as vendors offering both unified communications and contact center solutions. In addition, Amazon and Twilio have introduced solutions aimed at companies who wish to build their own contact centers with in-house developers. CRM vendors are also increasingly offering features and functionality that were traditionally provided by contact center service providers. CRM vendors also continue to partner with contact center service providers to provide integrated solutions and may, in the future, acquire competitive contact center service providers.

net2phone’s competitors may enjoy competitive advantages over it, including greater name recognition, longer operating histories and larger marketing budgets, as well as greater financial and/or technical resources. With the introduction of new technologies and market entrants, net2phone expects competition to continue to intensify.10

Traditional Communications

Our Traditional Communications segment generated $~~899~~860.62 million in revenues and income from operations of $5666.45 million in fiscal ~~2024~~2025, as compared with revenues of $~~1,002~~899.76 million and income from operations of $6156.34 million in fiscal ~~2023~~2024.

Traditional Communications comprises the following businesses:

■ IDT Digital Payments, which includes certain consumer prepaid offerings – primarily mobile top-up, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts, and Zendit, its cloud-based prepaid-as-a-service platform, which enables businesses and developers to offer prepaid digital offerings globally through their apps and websites; ■ BOSS Revolution, an international long-distance calling service marketed primarily to immigrant communities in the United States and Canada; ■ IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide; and ■ Other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

■ BOSS Revolution, an international long-distance calling service marketed primarily to immigrant communities in the United States and Canada;

■ IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide; and

■ Other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

IDT Digital Payments

IDT Digital Payments’ revenues were $~~407~~416.43 million in fiscal ~~2024~~2025 compared to $~~417~~407.14 million in fiscal ~~2023~~2024 (4548.34% and 4145.63% of Traditional Communications’ revenues in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively). The substantial majority of IDT Digital Payments’ revenue is from sales of international mobile top-up services. IDT Digital Payments offers mobile top-up for approximately ~~185~~194 different carriers in more than ~~100~~113 countries, primarily in Latin America, the Caribbean and Africa. IDT Digital Payments leverages our platform capabilities, our distribution reach into foreign-born communities and our relationships with mobile operators around the world.

IDT Digital Payments is sold through the BOSS platform primarily through three channels:

■ direct-to-consumer, through the BOSS digital channel, including our BOSS Revolution and BOSS Money apps, and the BOSS Revolution website; ■ retail, through our BOSS Revolution retail network including direct provisioning by retailers using our BOSS Revolution retailer platform, NRS terminals and through mobile operator-branded top-up cards,; and ■ enterprise and wholesale, in which we provision international offerings for other businesses through Zendit’s cloud-based prepaid-as-a-service platform.

IDT Digital Payments’ growth drivers include deployment of additional data-centric bundles to meet the growing demand for data from mobile phone customers in developing countries worldwide, the introduction of digital gift cards and e-sims, cross selling to our current BOSS Revolution and BOSS Money customers, expansion of the Zendit prepaid platform, and further expansion into the enterprise and wholesale market as well as other regions.

Competition

IDT Digital Payments’ major competitors include:

■ international mobile operators, who seek to control more of their own distribution channel or create their own products that directly compete with IDT Digital Payments; and ■ other service providers, distributors, and wholesalers, including Western Union, Ria, Viamericas, DT One, Ding, and Recharge.com.

We believe that IDT Digital Payments’ competitive advantages include:

■ our direct connection to most of the Tier 1 and Tier 2 mobile carriers worldwide; ■ the strength of IDT’s balance sheet, which allows us to compete effectively in capital intensive prepaid markets; ■ our extensive distribution and retail networks that provide us with a strong presence in communities of foreign-born residents, a significant portion of which purchase our services with cash; and ■ our strong omni channel approach, which includes the BOSS Revolution retailer network, the BOSS digital platform, including the BOSS Money and BOSS Revolution apps and the BOSS Revolution website, and the enterprise and wholesale channel.

	■	our direct connection to most of the Tier 1 and Tier 2 mobile carriers worldwide;

	■	the strength of IDT’s balance sheet, which allows us to compete effectively in capital intensive prepaid markets;

	■	our extensive distribution and retail networks that provide us with a strong presence in communities of foreign-born residents, a significant portion of which purchase our services with cash; and

	■	our strong omni channel approach, which includes the BOSS Revolution retailer network, the BOSS digital platform, including the BOSS Money and BOSS Revolution apps and the BOSS Revolution website, and the enterprise and wholesale channel.

BOSS Revolution

BOSS Revolution’s revenues were $~~263~~211.2 million in fiscal ~~2024~~2025 compared to $~~322~~263.12 million in fiscal ~~2023~~2024 (2924.36% and 3229.13% of Traditional Communications’ revenues in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively).

BOSS Revolution is a prepaid international long-distance calling service marketed primarily to foreign-born and under-banked consumers in the United States and Canada, and a digital-only offering in Europe and Australia.

BOSS Revolution includes our flagship ‘BOSS Revolution’ branded international long-distance prepaid calling service as well as disposable hard cards sold under a variety of brands. In the United States, BOSS Revolution served, as of July 31, ~~2024~~2025, approximately 1.84 million customers per month.

BOSS Revolution is offered through our digital channels – the BOSS Revolution app and website, and through our extensive national network of BOSS Revolution retailers.

BOSS Revolution allows users to place international long-distance calls at affordable rates from the BOSS Revolution app or by calling an access number. Regardless of how the call originates, our customers must first establish and top-up a prepaid BOSS Revolution account that is linked to their phone. Customers can open a BOSS Revolution account for free and top-up with a debit or credit card using the BOSS Revolution app, through the BOSS Revolution website (www.bossrevolution.com) or by phone, or with cash at any BOSS Revolution retailer. Once the account is established and a call is placed, our platform recognizes the customer’s phone through its network-provided automatic number identification and seamlessly links each call to the corresponding BOSS Revolution account. Callers then enter their destination phone numbers. BOSS Revolution customers’ account balances are debited at a fixed rate per minute or at a fixed amount for calling plans to a specific country over a specified time period. In contrast to certain of our competitors, BOSS Revolution does not charge connection, usage or breakage fees. BOSS Revolution’s per minute rates vary by the destination country, city, and whether the call is placed to a landline or mobile phone. Rates are published on the BOSS Revolution website and within the BOSS Revolution app.

12Users of the BOSS Revolution app constitute the majority of our customers to date. At July 31, 2025, approximately 1.0 million customers per month utilized the BOSS Revolution app.

Users of the BOSS Revolution app constitute the majority of our customers to date. At July 31, 2024, approximately 1.25 million customers per month utilized the BOSS Revolution app.

In the United States, we distribute our BOSS Revolution hard cards and other retail products primarily through our network of distributors that, either directly or through sub-distributors, sell to retail locations. In addition, our internal sales force sells BOSS Revolution and other platform products directly to retailers.

At July 31, ~~2024~~2025, approximately 2830,000 retailers per month utilized our digital retailer platform to provision customers, the substantial majority of whom pay the retailer in cash. In addition, we estimate that approximately 31,~~000~~700 retailers resell our disposable hard cards without utilizing our retailer portal. BOSS Revolution retailers are typically independent retailers serving foreign-born communities with significant unbanked or under-banked populations.

The BOSS Revolution retailer portal can be accessed by any broadband enabled device. Through the portal, retailers can access our platform to create accounts for new customers, add funds to existing customer balances and execute sales transactions. The platform provides us with a direct, real-time interface with our BOSS Revolution retailers to create a cost-effective and adaptable distribution model that allows us to target and promote services directly to distributors and retailers, to introduce and cross-sell new offerings, and to rapidly adapt to changes in the business environment.

In the United States, the BOSS Revolution brand is supported by national, regional, and local marketing programs that include television and radio advertising, online advertising and grass roots marketing at community and sporting events. In addition, we work closely with distributors and retailers on in-store promotional programs and events.

BOSS Revolution’s retail sales have traditionally been, and continue to be, strongest in the Northeastern United States and in Florida because of our extensive local distribution network. We continue to grow BOSS Revolution’s distributor relationships and expand BOSS Revolution’s retail network in other areas of the United States and Canada, including the Southwest and West Coast.

Competition

BOSS Revolution is subject to fierce competition. While virtually any company offering communication services is a competitor, we face particularly strong competition from Tier 1 mobile network operators who offer flat-rate international calling plans, other PIN-less prepaid voice offerings, prepaid calling card providers, mobile virtual network operators, and VoIP and other “over the top”, or OTT, service providers. Outside the United States, we also compete with large state-owned or state-sanctioned telephone companies.

Many of these companies, including AT&T, Verizon, and T-Mobile, are substantially larger and have greater financial, technical, engineering, personnel, and marketing resources, longer operating histories, greater name recognition, and larger customer bases than we do.

In addition to these larger competitors, we face significant competition from smaller prepaid calling providers.

From time to time, competitors may offer rates that are substantially below ours, in an ~~apparent~~ attempt to gain market share. In some instances, ~~these~~ these rates are below what we believe to be the cost to provide the service. This predatory pricing can adversely affect our revenues and our gross margins.

The continued growth of OTT calling and messaging services such as WhatsApp, Messenger, FaceTime, and others have adversely affected the sales of BOSS Revolution and our other prepaid calling services. We expect the popularity of these IP-based services—many of which offer free voice and/or video communications—to continue to increase, which will increase substitution for, and pricing pressure on, our BOSS Revolution and other international prepaid calling offerings. However, free services typically require both the caller and recipient to have a broadband connection. BOSS Revolution utilizes telephone networks to enable voice communications even when neither party has broadband connectivity.

Many mobile operators offer unlimited international long-distance plans that include international destinations to which customers can place direct calls from their mobile phones without time limitation. These plans now include some of our most popular international destinations. The growth of these “international unlimited” plans adversely affects our revenues as these operators gain subscriber market share.

Our ability to compete successfully against these various operators and service providers stems from several factors, including:

■ our interconnect and termination agreements, network infrastructure, and least-cost-routing system enable us to offer low-cost, high-quality services; ■ our continued innovation with new plans tailored to the specific needs of different corridors and finding new ways of delivering more value to consumers striving to connect with ~~third~~family ~~parties~~and friends around the globe; ■ our extensive distribution and retail networks provide us with a strong presence in communities of foreign-born residents, a significant portion of which purchase our services with cash; ■ our BOSS Revolution brand is often highly visible in these communities and has a reputation for quality service and competitive, transparent pricing; ■ our continued migration of our existing customers to our digital platform including the BOSS Revolution app; and ■ our offering of synergistic IDT Digital Payments and BOSS Money over the BOSS Revolution platform that customers can conveniently access from their accounts.

Our ability to maintain and/or to capture additional market share will remain dependent upon our ability to continue to provide competitively priced services, to maintain our distribution and retail networks, to increase usage through the BOSS Revolution app, and to innovate new products and services to fit the evolving needs of our customers.

IDT Global

IDT Global’s revenues were $~~201~~209.16 million in fiscal ~~2024~~2025 compared to $~~230~~201.31 million in fiscal ~~2023~~2024, contributing 2224.4% and 2322.04% of Traditional Communications’ revenues in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively.

IDT Global is one of the larger wholesale carriers of international long-distance minutes in the world.

IDT Global’s telecommunications network is comprised of interconnections and commercial relationships that reach virtually every significant global telecom operator. These relationships enable us to carry international telecommunications traffic to more than 200 countries around the world. IDT Global’s customers include our BOSS Revolution and net2phone businesses, major and niche carriers around the globe, mobile network operators, and other service providers such as call aggregators. For many of these customers, particularly the major carriers, we engage in buy-sell relationships, terminating their customers’ traffic in exchange for terminating our traffic with them.

IDT Global offers competitively priced international termination rates at several quality levels. We can offer competitively priced termination services in part because of the large volumes of originating minutes generated by our BOSS Revolution business, our global platform powered by proprietary software, our team of professional and experienced account managers and market makers, and our global network of interconnections and relationships with other telecom operators. IDT Global’s services are marketed and sold through our internal account management team and the IDT Express digital portal. IDT Express focuses on delivering wholesale voice and direct inward dialing, or DID, services to small and medium size businesses domestically and internationally.

Traditional Communications terminated 87.04 billion minutes in fiscal ~~2024~~2025, as compared to 98.30 billion minutes in fiscal ~~2023~~2024. IDT Global accounted for 5.768 billion minutes and 65.370 billion minutes of the total Traditional Communications’ minutes in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively.

IDT Global has a significant number of direct connections to Tier 1 providers in North America, Latin America, Asia, Africa, Europe, and the Middle East. Tier 1 providers are the largest recognized licensed carriers in the country. Direct connections improve the quality of the telephone calls and reduce the cost, thereby enabling us to generate more traffic with higher margins to the associated foreign locales. We also have direct relationships with mobile network operators, reflecting their growing share of the voice traffic market.

Termination rates charged by Tier 1 and other providers of international long-distance traffic have been declining for many years. Nevertheless, termination rates charged to us by individual Tier 1 carriers and mobile operators can be volatile. Termination price volatility on heavily trafficked routes can significantly impact our minutes of use and wholesale revenues.

14In addition to offering competitive rates to our carrier customers, we emphasize our ability to offer the high-quality connections that these providers often require. To that end, we offer higher-priced services in which we provide higher-quality connections, based upon a set of predetermined quality of service criteria. These services meet a growing need for higher-quality connections for some of our customers who provide services to high-value, quality-conscious retail customers. As of July 31, 2025, IDT Global, through its wholesale carrier organization and IDT Express channel had more than 1,450 customers, including more than 280 carrier relationships globally.

In addition to offering competitive rates to our carrier customers, we emphasize our ability to offer the high-quality connections that these providers often require. To that end, we offer higher-priced services in which we provide higher-quality connections, based upon a set of predetermined quality of service criteria. These services meet a growing need for higher-quality connections for some of our customers who provide services to high-value, quality-conscious retail customers. As of July 31, 2024, IDT Global, through its wholesale carrier organization and IDT Express channel had more than 1,600 customers, including more than 280 carrier relationships globally.

IDT Global’s revenues are generated by sales to both postpaid and prepaid customers. Postpaid customers typically include Tier 1 carriers, mobile network operators, and our most creditworthy customers. The majority of IDT Global’s prepaid customers connect via our IDT Express portal. IDT Express offers the convenience of a mobile self-service portal paired with dedicated account managers backed by customer support. Prepaid customers are typically smaller telecommunication companies as well as independent call aggregators.

IDT Global also offers outsourcing services to help fixed and mobile telephony operators enhance the profitability and value of their international voice operations. IDT Global offers these operators customized solutions, including full outsourcing, handing all inbound and outbound calls with or without switch management, and hybrid arrangements whereby the operator retains certain routes or customers directly. Pursuant to these deals, IDT Global collaborates with the operators to provide a full range of international long-distance services to their respective customers in-country and overseas.

IDT Global is subject to intense revenue and margin pressure as communications globally continues to transition away from international voice calling to video conferencing and other collaboration platforms, low-cost or free messaging services, free peer-to-peer voice calls available when both parties utilize broadband connections, and flat-rate international long-distance plans offered both by the largest mobile network operators and niche mobile virtual network operators.

Competition

The wholesale carrier industry has numerous entities competing for the same customers, primarily based on price and quality of service.

IDT Global participates in a global marketplace with:

	■	interexchange carriers and other long-distance resellers and providers, including large carriers such as T-Mobile, AT&T, and Verizon;

	■	historically state-owned or state-sanctioned telephone companies such as Telefonica, Orange SA, and KDDI;

	■	on-line, spot-market trading exchanges for voice minutes;

	■	OTT internet telephony providers;

	■	other VoIP providers;

	■	other providers of international long-distance services; and

	■	alliances between large multinational carriers that provide wholesale carrier services.

We believe that IDT Global derives a competitive advantage over some participants on certain routes from several inter-related factors:

■ our BOSS Revolution business generates originating minutes, which represents a desirable, negotiable asset that helps us win return traffic and obtain beneficial pricing which we can offer in the wholesale marketplace; ■ the proprietary technologies powering our IDT Global platform and, in particular, the software that drives VoIP enables us to scale up or down at a lower cost than many of our competitors; ■ our professional, dedicated and experienced account management team; and ■ our extensive network of interconnects around the globe, with the ability to connect in whichever format (IP or time-division multiplexing, or TDM) is most feasible.

Communications and Payment Network Infrastructure and Technology Development

Our products and services utilize a combination of proprietary software ~~and services~~ as well as technologies and services provided by third parties. We have developed intuitive user interfaces, customer tools and transaction processing, and database and network applications that enable our users to reliably and securely complete transactions and help our customers and partners utilize our suite of services. Our technology infrastructure simplifies the storage and processing of large amounts of data, eases the deployment and operation of large-scale ~~global~~ global products and services, and automates much of the administration of large-scale clusters of computers.

Our technology infrastructure has been designed around industry-standard architectures to reduce downtime in the event of outages or catastrophic occurrences. We strive to continually improve our technology infrastructure to enhance the customer experience and to increase efficiency, scalability, and security. Our platforms’ architecture enables us to connect parties regardless of whether the transaction is occurring at a traditional physical location, online, or through a mobile device. Our platforms incorporate multiple layers of protection, both for continuity purposes and to address cybersecurity challenges. We engage in multiple efforts to protect our software platforms against these challenges, including regularly testing our systems to address potential vulnerabilities.

Our product and technology organization is responsible for the design, development, testing, and delivery of new software, technologies, and features of our products and services, as well as the continued improvement and iteration of our existing products and services. Our technology employees are distributed globally in our Newark, Jerusalem, Guatemala, Warsaw, and Minsk offices. Our technology team consists of our software engineering, voice engineering, quality engineering, data warehousing, ML (Machine Learning) and AI ~~(Artificial Intelligence)~~ development, data engineering, systems, NOC (Network Operations Center), and operations teams. We intend to continue to invest in our research and development capabilities to extend our products and services.

Our technology organization uses several key performance indicators to track service quality that meet or exceed industry standards for Software-as-a-Service and technology enabled services. Our technology organization maintained an aggregate service uptime of approximately 99.97% in fiscal 2024. The software defect escape ratio, a measure of quality engineering for our flagship BOSS Revolution brand, was 4% in fiscal 2024, meaning more than 96% of product defects were detected and fixed internally before being released to our customers. Furthermore, this high level of quality was achieved utilizing suites of proprietary tests of which the majority are fully automated by a combination of proprietary software and technologies provided by third parties.15

Our technology organization uses several key performance indicators to track service quality that meet or exceed industry standards for SaaS and technology enabled services. Our technology organization maintained an aggregate service uptime of approximately 99.995% in fiscal 2025. The software defect escape ratio, a measure of quality engineering for our flagship BOSS Revolution brand, was 3% in fiscal 2025, meaning more than 97% of product defects were detected and fixed internally before being released to our customers. Furthermore, this high level of quality was achieved utilizing suites of proprietary tests of which the majority are fully automated by a combination of proprietary software and technologies provided by third parties.

Our product offerings and go-to-market strategy continue to evolve, and we expect our product offerings to continue to become available to customers at more frequent intervals than our historical release cycles. Our Agile development methodology is characterized by a dynamic development process with more frequent revisions to a product release’s features and functions as the software is being developed. In addition, we have implemented a holistic portfolio management process, which has improved transparency and efficiency across the portfolio through a recurring cadence of business reviews.

REGULATION

The following summary of regulatory developments and legislation is intended to describe what we believe to be the most important, but not all, current and proposed international, federal, state, and local laws, regulations, orders, and legislation that are likely to materially affect us.

Regulation of Telecom in the United States

Telecommunications services are subject to extensive government regulation at both the federal and state levels in the United States. Any violations of the regulations may subject us to enforcement actions, including interest and penalties. The Federal Communications Commission, or FCC, has jurisdiction over all telecommunication’s common carriers to the extent they provide interstate or international communications services, including the use of local networks to originate or terminate such services. Each state regulatory commission has jurisdiction over the same carriers with respect to their provision of local and intrastate communications services. Local governments often indirectly regulate aspects of our communications business by imposing zoning requirements, taxes, permit or right-of-way procedures or franchise fees. Significant changes to the applicable laws or regulations imposed by any of these regulators could have a material adverse effect on our business, operating results and financial condition.

Regulation of Telecom by the Federal Communications Commission

In 1997, the FCC issued an order, referred to as the Universal Service Order, that requires all telecommunications carriers providing interstate telecommunications services to contribute to universal service support programs administered by the FCC (known as the Universal Service Fund). In addition, beginning in October 2006, interconnected VoIP providers, such as our subsidiary net2phone, are required to contribute to the Universal Service Fund. These periodic contributions are currently assessed based on a percentage of each contributor’s interstate and international end user telecommunications revenues reported to the FCC. We also contribute to several other regulatory funds and programs, most notably Telecommunications Relay Service, or TRS, FCC Regulatory Fees, and Local Number Portability (collectively, the Other Funds). We and most of our competitors pass through Universal Service Fund and Other Funds contributions as part of the price of our services, either as part of the base rate or, to the extent allowed, as a separate surcharge on customer bills. Due to the manner in which these contributions are calculated, we cannot be assured that we fully recover from our customers all of our contributions. In addition, based on the nature of our current business, we receive certain exemptions from Universal Service Fund contributions. Changes in our business could eliminate our ability to qualify for some or all of these exemptions. As a result, our ability to pursue certain new business opportunities in the future may be constrained in order to maintain these exemptions, the elimination of which could materially affect the rates we would need to charge for existing services. Changes in regulation may also have an impact on the availability of some or all of these exemptions. If even some of these exemptions become unavailable, they could materially increase our Universal Service Fund or Other Funds’ contributions and have a material adverse effect on the cost of our operations and, therefore, on our ability to continue to operate profitably, and to develop and grow our business. We cannot be certain of the stability of the contribution factors for the Other Funds. Significant increases in the contribution factor for the Other Funds in general and the TRS Fund in particular can impact our profitability. Whether these contribution factors will be stable in the future is unknown, but it is possible that we will be subject to significant increases.

Regulation of Telecom by State Public Utility Commissions

Our telecommunications services that originate and terminate within the same state, including both local and in-state long distance services are subject to the jurisdiction of that state’s public utility commission, or PUC. The Communications Act of 1934, as amended, generally ~~preempts~~pre-empts state statutes and regulations that prevent the provision of competitive services but permits state PUCs to regulate the rates, terms and conditions of intrastate services, so long as such regulation is not inconsistent with the requirements of federal law. We are certified to provide facilities-based and/or resold long-distance service in all 50 states and facilities-based and resold local exchange service in 45 states. In addition to requiring certification, state regulatory authorities may impose tariff and filing requirements, consumer protection measures, and obligations to contribute to the Universal Service Fund and Other Funds. Rates for intrastate switched access services, which we both pay to local exchange companies and collect from long-distance companies for terminating in-state toll calls, are subject to the jurisdiction of the state commissions. State commissions also have jurisdiction to approve negotiated rates, or establish rates through arbitration, for interconnection, including rates for unbundled network elements. Changes in those access charges or rates for unbundled network elements could have a substantial and material impact on our business.

Regulation of Telecom—International

In connection with our international operations, we have obtained licenses or are otherwise authorized to provide telecommunications services in various foreign countries. We have obtained licenses or authorizations in Argentina, Australia, Belgium, Brazil, Canada, Chile, Denmark, Germany, Hong Kong, Italy, Japan, Mexico, the Netherlands, Peru, Singapore, South Africa, Spain, Sweden, Switzerland, the United Kingdom, and Uruguay. In numerous countries where we operate or plan to operate, we are subject to many local laws and regulations that, among other things, may restrict or limit the ability of telecommunications companies to provide telecommunications services in competition with state-owned or state-sanctioned dominant carriers.

Regulation of Internet Telephony

The use of the Internet and private IP networks to provide voice communications services is generally less regulated than traditional switch-based telephony within the United States and abroad and, in many markets, is not subject to the imposition of certain taxes and fees that increase our costs. As a result, we are able, in many markets, to offer VoIP communications services at rates that are more attractive than those applicable to traditional telephone services. However, in the U.S. and abroad, there have been efforts by legislatures and regulators to harmonize the regulatory structures between traditional switch-based telephony and VoIP. This could result in additional fees, charges, taxes, and regulations on IP communications services that could materially increase our costs and may limit or eliminate our competitive pricing advantages. Additionally, several foreign governments have adopted laws and/or regulations that could restrict or prohibit the provision of voice communications services over the Internet or private IP networks. These efforts could likewise harm our ability to offer VoIP communications services.

Money Transmitter and Payment Instrument Laws and Regulations

Our consumer payment services offerings include BOSS Money and various network branded, also called “open loop”,” prepaid card offerings. These industries are heavily regulated. Accordingly, we, and the products and services that we market in consumer payment services, are subject to a variety of federal and state laws and regulations, including:

■ Banking laws and regulations; ■ Money transmitter and payment instrument laws and regulations; ■ Anti-money laundering laws; ■ Privacy and data security laws and regulations; ■ Consumer protection laws and regulations; ■ Unclaimed property laws; and ■ Card association and network organization rules.

17In connection with the development of our money transmission services and the expansion of our network branded prepaid card offerings, we have actively pursued our own money transmitter licenses. At July 31, 2025, we had received a money transmitter license in 48 of the 49 U.S. states that require such a license, as well as in Washington, D.C.

■ Anti-money laundering laws; ■ Privacy and data security laws and regulations; ■ Consumer protection laws and regulations; ■ Unclaimed property laws; and ■ Card association and network organization rules.

In connection with the development of our money transmission services and the expansion of our network branded prepaid card offerings, we have actively pursued our own money transmitter licenses. At July 31, 2024, we had received a money transmitter license in 48 of the 49 U.S. states that require such a license, as well as in Washington, D.C.

Regulation of Other Businesses

We operate other smaller or early-stage initiatives and operations, which may be subject to federal, state, local or foreign law and regulation.

INTELLECTUAL PROPERTY

We own numerous patents, trademarks, domain names and other intellectual property rights necessary to conduct our business. We actively pursue the filing and registration of patents, domain names, trademarks, and service marks to protect our intellectual property rights within the United States and abroad; in particular our registered trademarks and brands: IDT®, BOSS Revolution®, BOSS Money®, net2phone® and zendit®. From time to time, we have also acquired or licensed intellectual property relating to present and future business strategy. We believe that our technological position significantly depends on the technical experience, expertise, and creative ability of our employees to maintain both our current businesses and pursue future business development. Our corporate policies require all employees to assign intellectual property rights developed in the scope of, or in relation to our business to us, and to protect all intellectual property and proprietary information and materials as confidential. Our global telecommunications switching and transmission infrastructure enables us to provide an array of telecommunications, internet access and internet telephony services to our customers worldwide. We rely upon domestic and foreign patents, patent applications, and other intellectual property rights, regarding our infrastructure and global telecommunication network for our international telecommunications traffic and the international traffic of other telecommunications companies.

Our global telecommunications switching and transmission infrastructure enables us to provide an array of telecommunications, internet access and internet telephony services to our customers worldwide. We rely upon domestic and foreign patents, patent applications, and other intellectual property rights, regarding our infrastructure and global telecommunication network for our international telecommunications traffic and the international traffic of other telecommunications companies.

EMPLOYEES AND HUMAN CAPITAL RESOURCES

Attracting and retaining qualified personnel familiar with our businesses and who ~~head~~lead our different ~~businesses~~business units and functions is critical to our success. As of ~~October~~September 1, ~~2024~~2025, we had a total of 1,~~833~~925 employees, of which 1,~~820~~915 were full-time employees.

Our human capital resources’ objectives include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating our existing and new employees, advisors and consultants. To accomplish that, our compensation practices are designed to attract and retain qualified and motivated personnel and align their interests with our goals and with the best interests of our stockholders. Our compensation philosophy is to provide compensation to attract the individuals necessary for our current needs and growth initiatives and provide them with the proper incentives to motivate those individuals to achieve our long-term plans, which includes among other things, equity and cash incentive plans that attract, retain and reward personnel through the granting of stock-based and cash-based compensation awards.

We believe that talent attraction and retention are critical to our ability to achieve our strategy and that a trained, diverse and inspired workforce is integral to delivering our objectives. Our recruiting process reaches a wide array of potential employees, and we employ a rigorous screening process to ensure that we identify and hire quality professionals.

We are committed to ~~diversity and inclusion in the workforce including~~ a policy of non-discriminatory treatment and respect of human rights for all current and prospective employees. We do not permit discrimination based on an individual’s race, religion, creed, color, sex, sexual orientation, age, marital status, disability, national origin or veteran’s status, which is illegal in many jurisdictions. We respect the human rights of all employees and strive to treat them with dignity consistent with standards and practices recognized by the international community.

Item 1A. Risk Factors.

RISK FACTORS

Investing in our Class B common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K, including the section titled “Management’s ~~Discussion~~ Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes, before making a decision to invest in our Class B common stock. The risks and uncertainties described below may not be the only ones we face. If any of the risks occur, our business, financial condition, operating results, cash flows and prospects could be materially and adversely affected. In that event, the market price of our common stock could decline, and you could lose part or all of your investment.

Risk Factor Summary

Our business operations are subject to numerous risks and uncertainties, including those outside of our control, that could cause our business, financial condition or operating results to be harmed, including, but not limited to, risks regarding the following:

Risks Related to our Businesses and Operations

■ ~~errors~~changes into ~~our~~immigrant ~~technology~~populations orcould ~~technological~~negatively ~~issues~~impact ~~outside~~certain of our ~~control~~businesses; ■ cyberattacks impacting our networks or systems; ■ network disruptions, security breaches, or other significant disruptions or failures of our IT infrastructure and related systems or of those we operate for certain of our customers; ■ the failure, or perceived failure, of one or more of our products; ■ our international operations subject us to geopolitical and other risks including ongoing developments in Belarus, Ukraine and Israel; ■ failures in our data center or services; ■ our dependence on industry standard protocols and third-party software, including but not limited to open-source software; ■ our dependence on a single supplier or small group of suppliers; ■ changes to rates by our suppliers and increasing regulatory charges or tariffs; ■ our customers, particularly our IDT Global customers, and partners could experience financial difficulties; ■ technologies could affect our ability to track the results of ads and/or could block ads online;

Risks Related to Our NRS Business

	■	substantial and increasing competition in the POS industry and payment space;
	■	a decline in advertising on the NRS platform due to macro-economic factors or otherwise;
	■	the ability of NRS to develop products and services to address the market for POS products and services;

Risks Related to Our BOSS Money Business

	■	BOSS Money faces a complex and dynamic regulatory landscape;
	■	BOSS Money depends on a licensed network of agents for its retail money remittance business;
	■	adverse fluctuations in exchange rates can materially impact revenue and profitability;
	■	money transfer services can be vulnerable to illegal activities and fraud schemes;
	■	BOSS Money has less brand recognition in the money remittance space compared to larger players, which could make it harder to attract and retain customers;

Risks Related to Our net2phone Business

■ competition against established well-financed alternative voice communication providers, who may provide comparable services at comparable or lower pricing; ■ the capacity, reliability, and performance of several third-party providers and their network infrastructure; ■ scaling the business efficiently or quickly enough to meet customers’ growing needs; ~~■ the integration of Integra’s CCaaS business;~~

Risks Related to Our Traditional Communications Segment

●■ each of our BOSS Revolution and IDT Global businesses is highly sensitive to declining demand and prices; ■ obtaining sufficient or cost-effective termination capacity to particular destinations; ■ the termination of our carrier agreements with partners or our inability to enter into carrier agreements in the future;

● obtaining sufficient or cost-effective termination capacity to particular destinations; ● the termination of our carrier agreements with partners or our inability to enter into carrier agreements in the future;

Risks Related to Our Financial Condition

	■	we hold cash, cash equivalents, debt securities and equity investments that are subject to various market risks;
	■	if we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results;

Intellectual Property, Tax, Regulatory, and Litigation Risks ~~(many of which are related to our Fintech segment, among others)~~

	■	protecting our proprietary technology;
	■	claims of infringement of intellectual property rights of others;
	■	tax and regulatory audits;
	■	legal proceedings;
	■	our disbursement partners’ and our payment processors’ ability to comply with a wide range of laws and regulations intended to help detect and prevent illegal or illicit activity;
	■	licensing and other requirements imposed by regulators and governments;
	■	our collection, processing, storage, use, and transmission of personal data;
	■	collection of sales and use, value added, or similar taxes;
	■	certain imminent FCC Orders and rules that effect the telecommunications marketplace;
	■	our ability to comply with requirements for debit card, credit card, and other digital payment methods;

Risks Related to Our Capital Structure

	■	holders of our Class B common stock have significantly less voting power than holders of our Class A common stock; and
	■	Howard S. Jonas, our Chairman and Chairman of the Board, holds shares that, in the aggregate, represent more than a majority of the combined voting power of our outstanding capital stock.

Risks Related to Our Businesses and Operations

Errors in our technology or technological issues outside our control could cause delays or interruptions to our customers.

Our services can be disrupted by issues with our networks, platforms, technology, and systems, including malfunctions in our servers, processors, software or facilities. In addition, there may be service interruptions for reasons outside of our control. Our customers and potential customers subscribing to our services have experienced such interruptions in the past and may experience such interruptions in the future asbecause ~~a result~~ of these types of problems or others which may or may not be in our control. Such interruptions may cause us to lose customers and/or offer customer credits, which could adversely affect our revenue and profitability. Network and telecommunication interruptions may also impair our ability to sign-up new customers.

Cyberattacks impacting our networks or systems could have an adverse effect on our business.

Cyberattacks, including ~~through~~ the use of malware, ransomware, computer viruses, denial of services attacks, credential harvesting, social engineering ~~and~~ and other means for obtaining unauthorized access to or disrupting the operation of our networks and systems and those of our suppliers, vendors and other service providers, could have an adverse effect on our business. Cyberattacks may cause equipment failures, loss of information (including sensitive personal information of customers or employees or valuable technical and marketing information), or disruptions to our or our customers’ operations. Furthermore, ransomware could potentially deny the use of our systems until a ransom is paid. Cyberattacks against companies, including us, have increased in frequency, scope, and potential harm in recent years. They may occur alone or in conjunction with physical attacks, especially where disruption of service is an objective of the attacker. The development and maintenance of systems to prevent such attacks is costly and requires ongoing monitoring and updating to address their increasing prevalence and sophistication. While, to date, we have not been subject to cyberattacks that, individually or in the aggregate, have been material to our operations or financial condition, the preventive actions we take to reduce the risks associated with cyberattacks, including protection of our systems and networks, may be insufficient to repel or mitigate the effects of a cyberattack in the future.

20The inability to operate or use our networks and systems or those of our suppliers, vendors, and other service providers because of cyberattacks, even for a limited period of time, may result in significant expenses to us and/or a loss of revenue and market share. The costs associated with a major cyberattack on us could include expensive incentives offered to existing customers and business partners to retain their business, increased expenditures on cybersecurity measures and the use of alternate resources, lost revenues from business interruption, and litigation. Further, certain of our businesses, such as those offering cloud services to business customers, could be negatively affected if our ability to protect our own networks and systems is called into question because of a cyberattack. In addition, a compromise of security or a theft or other compromise of valuable information, such as financial data and sensitive or private personal information, could result in lawsuits and government claims, investigations, or proceedings. Any of these occurrences could damage our reputation, adversely impact customer and investor confidence and result in a material adverse effect on our results of operation or financial condition.

~~The~~Changes ~~inability~~ to ~~operate~~immigrant orpopulations use our networks and systems or those of our suppliers, vendors, and other service providers as a result of cyberattacks, even for a limited period of time, may result in significant expenses to us and/or a loss of revenue and market share. The costs associated with a major cyberattack on us could ~~include~~negatively ~~expensive~~impact incentives offered to existing customers and business partners to retain their business, increased expenditures on cybersecurity measures and the use of alternate resources, lost revenues from business interruption, and litigation. Further, certain of our businesses~~, such as those offering cloud services to business customers, could be negatively affected if our ability to protect our own networks and systems is called into question because of a cyberattack~~. In addition, a compromise of security or a theft or other compromise of valuable information, such as financial data and sensitive or private personal information, could result in lawsuits and government claims, investigations, or proceedings. Any of these occurrences could damage our reputation, adversely impact customer and investor confidence and result in a material adverse effect on our results of operation or financial condition.

Certain of our businesses, particularly Boss Money’ Boss Revolution and IDT Digital Payments, rely in large part on immigrant communities in the United States and elsewhere. Migration of immigrants and their spending patterns are affected by (among other factors) overall economic conditions, the availability of job opportunities, changes in immigration laws and their enforcement, including the potential for large scale deportations, restrictions on immigration and travel, and political or other events (such as civil unrest, war, terrorism, natural disasters, or public health emergencies or epidemics) that would make it more difficult for workers to migrate or work outside of the their countries of origin. Changes to these factors could materially and adversely affect our business, financial condition, results of operations, and cash flows.

We could be harmed by network disruptions, security breaches, or other significant disruptions or failures of our IT infrastructure and related systems or of those we operate for certain of our customers.

To be successful, we need to continue to have available, for our and our customers’ use, a high capacity, reliable and secure network. We face the risk, as does any company, of a security breach, whether through cyberattack, malware, computer viruses, sabotage, or other significant disruption of our IT infrastructure. As such, there is a risk of a security breach or disruption of the systems we operate, including possible unauthorized access to our and our customers’ proprietary or classified information. We are also subject to breaches of our respective networks resulting in unauthorized utilization of our services or products, which subject us to the costs of providing those products or services, which are likely not recoverable. The secure maintenance and transmission of our and our customers’ information is a critical element of our operations. Our information technology and other systems that maintain and transmit customer information, or those of service providers or business partners, may be compromised by a malicious third-party penetration of our network security, or that of a third-party service provider or business partner, or impacted by advertent or inadvertent actions or inactions by our employees, or those of a third-party service provider or business partner. As a result, our or our customers’ information may be lost, disclosed, accessed, or taken without our or our customers’ consent, or our product and service may be used without payment.

Although we make significant efforts to maintain the security and integrity of these types of information and systems, there can be no assurance that our respective security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging, especially in light of the growing sophistication of cyberattacks and intrusions sponsored by state or other interests. We may be unable to anticipate all potential types of attacks or intrusions or to implement adequate security barriers or other preventative measures. Certain of our business units have been the subject of attempted and successful cyberattacks in the past. We have researched these situations and do not believe any material internal, or customer information has been compromised.

Network disruptions, security breaches and other significant failures of the above-described systems could (i) disrupt the proper functioning of our networks and systems and therefore our operations or those of certain of our customers; (ii) result in the unauthorized use of our services or products without payment; (iii) result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or our customers, including trade secrets, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; and (iv) require significant management attention or financial resources to remedy the damages that result or to change our systems and processes. We could be subject to claims for contract breach, damages, credits, fines, penalties, termination, or other remedies from our customers, and subject to additional scrutiny or litigation by regulators, as a result of network disruptions, security breaches and other significant failures of the above-described systems, any or all of which could result in a loss of business, damage to our reputation among our customers and the public generally and have a negative impact on our results of operations, financial condition, and cash flows.

If technology that drives one or more of our products fails, or is perceived to fail, or if there are technical defects, our reputation could be harmed, our market share may decline, and we could be subject to various liability claims.

The technology that drives and supports our products may contain undetected errors or defects that may result in failures or otherwise cause our products to fail to perform in accordance with customer expectations and contractual obligations. Moreover, our customers could incorrectly implement or inadvertently misuse our products, which could result in customer dissatisfaction and harm the perceived utility of our products and our brand. Because our customers use our products for mission-critical aspects of their business, any real or perceived errors or defects in, or other performance problems with, our products may damage our customers’ businesses and could significantly harm our reputation. If that occurs, we could lose future sales, or our existing customers could cancel our services, seek payment credits, seek damages against us, or delay or withhold payment to us, which could result in service credits that reduce our revenues, an increase in collection cycles for accounts receivable, an increase in our provision for uncollectible accounts, and ultimately harm our financial results. Product performance problems could result in loss of market share, reputational harm, failure to achieve market acceptance and the diversion of development resources.

In addition, since telecommunications billing and associated telecom taxes, and the related calculations and billing of telecom taxes, are inherently complex and require highly sophisticated information systems to administer, our billing system may experience errors or we may improperly operate the system, which could result in the system incorrectly calculating the fees owed by our customers or related taxes and administrative fees. Customers also may make indemnification or warranty claims against us, which could result in significant expense and risk of litigation.

Any product liability, intellectual property, warranty, or other claims against us could damage our reputation and relationships with our customers and could require us to spend significant time and money in litigation or pay significant settlements or damages. Although we maintain general liability insurance, including coverage for errors and omissions, this coverage may not be sufficient to cover liabilities resulting from such claims. Also, our insurers may disclaim coverage. Our liability insurance also may not continue to be available to us on reasonable terms, in sufficient amounts, or at all. Any contract or product liability claims successfully brought against us would harm our business.

Failure in our data ~~center~~centers or services could lead to significant costs and disruptions.

All data centers, including ours, are subject to various points of failure. Problems with cooling equipment, generators, uninterruptible power supply, routers, switches, or other equipment, whether or not within our control, could result in service interruptions for our customers as well as equipment damage. Any failure or downtime could affect a significant percentage of our customers. The destruction or severe impairment of our data center facilities could result in significant downtime of our services and the loss of customer data.

Our ability to provide cloud-based communication services is dependent upon our physical and cloud-based infrastructure. While most of our physical equipment required for providing these services is redundant in nature, certain types of failures or malfunctioning of critical hardware/software equipment, including but not limited to fire, water or other physical damage may impact our ability to deliver continuous service to our customers. Acts of God or terrorism or vandalism or negligence or gross negligence of person(s) currently or formerly associated with us including failure to properly update and maintain infrastructure may result in loss of revenue, profitability, and failure to retain and acquire new customers.

Our ability to recover from disasters or failures, if and when they occur, is paramount to offering continued service to our existing customers. We maintain telecommunications points of presence in Brazil, Canada, and Spain. These network footprints do not guarantee continued reliability if a catastrophic event occurs. Despite implementation of network security measures, our servers may be vulnerable to computer viruses, break-ins, and similar disruptions from unauthorized tampering with our computer systems including, but not limited to, denial of service attacks. In addition, if there is a breach or alleged breach of security or privacy involving our services, including but not limited to data loss, or if any third party undertakes illegal or harmful actions using our communications or e-commerce services, our business and reputation could suffer substantial adverse publicity and impairment. We have experienced interruptions in service in the past. We have taken and continue to take steps to improve our infrastructure to prevent service interruptions.

In addition to our physical infrastructure, we have a cloud infrastructure deployment with Amazon Web Services, or AWS, and Google Cloud that supplements and extends our physical infrastructure. We utilize AWS’ and Google Cloud’s high availability configurations using multiple availability zones and, in some cases, we have services deployed in multiple AWS regions. However, we do not have cross region redundancy, which means we cannot guarantee continued reliability if AWS or Google Cloud suffers a catastrophic event which disrupts a region in which we have our services deployed. If there were a failure to respond quickly to problems, or such a catastrophic event were to occur, our customers may experience service interruptions, and we may suffer customer losses.

Our revenues and profits will suffer if our distributors and sales representatives fail to effectively market and distribute our products and services.

We rely on our distributors and representatives to market and distribute our BOSS products and services and NRS’ POS terminals and portfolio of services. We utilize a network of several hundred sub-distributors that sell our BOSS products and services to retail outlets throughout most of the United States. NRS’ POS terminal sales and marketing efforts are targeted, in part, to our nationwide network of BOSS Revolution retailers. If our distributors or sales representatives fail to effectively market or distribute our products and services, our ability to generate revenues and profits and grow our customer base for these products and services could be substantially impaired.

22Our global operations subjects us to geopolitical and other risks that may harm our results of operations and financial condition.

Our global operations subject us to geopolitical and other risks that may harm our results of operations and financial condition.

We have developers, product development personnel, other employees and senior management in different countries, and some business activities may be concentrated in one or more geographic areas. As a result, our ability to design, develop or sell products and services may be affected by:

	■	geopolitical concerns, such as armed conflict and civil or military unrest, crime, political instability, and terrorist activity;

	■	natural disasters and health concerns;

	■	inefficient and limited infrastructure and disruptions, such as supply chain interruptions and large-scale outages or interruptions of service from utilities, transportation, or telecommunications providers;

	■	restrictions on our operations by governments seeking to support local industries, nationalization of our operations, and restrictions on our ability to repatriate earnings;

	■	differing employment practices and labor issues; and

	■	local business and cultural factors that differ from our normal standards and practices, including business practices that we are prohibited from engaging in by the Foreign Corrupt Practices Act, or FCPA, and other anti-corruption laws and regulations.

Legal and regulatory requirements differ among jurisdictions worldwide. Violations of these laws and regulations could result in fines; criminal sanctions against us, our officers, or our employees; prohibitions on the conduct of our business; and damage to our reputation. Although we have policies, controls, and procedures designed to ensure compliance with these laws, our employees, contractors, or agents may violate our policies.

Our global operations subject us to additional risks which could have an adverse effect on our business, operating results, and financial condition.

We have attempted to control our operating expenses by ~~utilizing~~operating ~~lower-cost labor~~ in foreign countries such as Poland, Belarus, Guatemala, ~~Dominican~~Costa Rica, Georgia, Dominican Republic and Israel and we may in the future expand our reliance on offshore labor to other countries. Our employees in Poland, Belarus, Georgia and Israel primarily help develop, test, and maintain certain of our technology. Our labor source in Guatemala, Costa Rica and the Dominican Republic primarily ~~performs~~ perform certain call center, administrative, operational and customer acquisition functions. We also have significant operations in Brazil, Uruguay, and Argentina as a result of net2phone’s growth.

Countries outside of the United States may be subject to relatively higher degrees of political and social instability and may lack the infrastructure to withstand political unrest or natural disasters. The occurrence of natural disasters, pandemics such as COVID-19, or political or economic instability in these countries could interfere with work performed by these labor sources or could result in our having to replace or reduce these labor sources. If countries in which we operate experience civil or political unrest or acts of terrorism, especially when such unrest leads to an unseating of the established government, our operations in such countries could be materially impaired. Our vendors in other countries could potentially shut down suddenly for any reason, including financial problems or personnel issues. Such disruptions could decrease efficiency, increase our costs, and have an adverse effect on our business or results of operations.

The practice of utilizing labor based in foreign countries has come under increased scrutiny in the United States. Governmental authorities could seek to impose financial costs or restrictions on foreign companies providing services to customers or companies in the United States. Governmental authorities may attempt to prohibit or otherwise discourage us from sourcing services from offshore labor.

The FCPA and other applicable anti-corruption laws and regulations prohibit certain types of payments by our employees, vendors, and agents. Any violation of the applicable anti-corruption laws or regulations by us, our subsidiaries or our local agents could expose us to significant penalties, fines, settlements, costs, and consent orders that may curtail or restrict our business as it is currently conducted and could have an adverse effect on our business, financial condition, or results of operations.

Weakness of the United States dollar in relation to the currencies used in these foreign countries may also reduce the savings achievable through this strategy and could have an adverse effect on our business, financial condition, and results of operations.

23Our technology and development(“T&D”) may be adversely affected by ongoing developments in Belarus and Ukraine.

~~Our~~We ~~research~~have ~~and~~a ~~development~~significant ~~(“R~~number of T&D”) ~~may~~personnel bein ~~adversely~~Belarus. ~~affected~~Belarus shares borders with both Russia and Ukraine. In February 2022, Russian military personnel stationed in Belarus were part of an invasion force by ~~ongoing~~Russian ~~developments~~forces into Ukraine. In response to the support and facilitation by Belarus for the invasion, the United States, the European Union, or EU, and various other nations imposed sanctions against multiple individuals and entities in Belarus. Other potential retaliatory measures could be taken by the United States and ~~Ukraine~~other countries, particularly if Belarus were to take a more active role in the conflict. While we continue to monitor the situation in Belarus closely, any prolonged or expanded unrest, military activities, or sanctions could have an adverse effect on our product roadmap and T&D. We cannot predict whether additional sanctions or other measures will be imposed, or the nature of severity of those measures, and whether they will directly or indirectly impact our T&D in Belarus or elsewhere.

WeFurther, ~~have~~our aBelarussian ~~significant number of R~~T&D personnel incould ~~Belarus.~~be ~~Belarus~~impacted shares borders with both Russia and Ukraine. In February 2022, in connection with escalating tensions involving Russia and Ukraine, Russian military personnel stationed in Belarus were part of an invasion force by Russian forces into Ukraine. In response to the support and facilitation by Belarus for the invasion, the United States, the European Union, or EU, and various other nations imposed sanctions against multiple individuals and entities in Belarus. Other potential retaliatory ~~measures~~actions ~~could be~~ taken by ~~the~~third ~~United~~parties ~~States~~related ~~and other countries, particularly if Belarus were~~ to ~~take~~actual aor ~~more~~perceived ~~active role~~Belarussian inactions ~~the conflict. While we continue to monitor the situation~~ in ~~Belarus~~support ~~closely,~~of any prolonged or expanded unrest, military activities, or sanctions could have an adverse effect on our future product roadmap and R&D. We cannot predict whether additional sanctions or other measures will be imposed, or the ~~nature of severity of those measures~~invasion, ~~and~~including ~~whether they will directly or indirectly impact our R&D in Belarus or elsewhere~~cyberattacks.

Further, our Belarussian R&D personnel could be impacted by retaliatory actions taken by third parties related to actual or perceived Belarussian actions in support of the invasion, including cyberattacks.

Should the military conflict expand to Belarus, our operations there could likely be impacted, including due to availability of personnel, electrical outages, cyberattacks, and actual battles in areas where we have personnel.

Any of the foregoing could have an adverse impact on our ability to ~~research and~~ develop ~~new~~ technology, including corrections or enhancements of existing platforms supporting our current products and services or development of new or complementary offerings.

Global and regional economic conditions could materially adversely affect our business, results of operations, financial condition, and growth.

We have international operations with revenues outside the United States representing a significant amount of our total revenues. As a result, our operations and performance depend significantly on global and regional economic conditions. Adverse macroeconomic conditions, including inflation, slower growth, or recession, new or increased tariffs or excise taxes and other barriers to trade, changes to fiscal and monetary policy, tighter credit, higher interest rates, high unemployment, and currency fluctuations could materially adversely affect demand for our products and services. In addition, consumer confidence and spending could be adversely affected in response to financial market volatility, negative financial news, conditions in the real estate and mortgage markets, declines in income or asset values, changes to fuel and other energy costs, labor and healthcare costs, and other economic factors.

Our financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to other currencies.

Our primary exposure to movements in foreign currency exchange rates relates to non–U.S. dollar–denominated revenues and operating expenses. The strengthening of foreign currencies may increase our costs denominated in those currencies, thus adversely affecting our earnings. The weakening of foreign currencies relative to the U.S. dollar adversely affects the U.S. dollar value of our foreign currency–denominated revenues and earnings and could lead us to raise international pricing, potentially reducing demand for our products and services. In some circumstances, for competitive or other reasons, we may decide not to raise international pricing to offset the U.S. dollar’s strengthening, which would adversely affect the U.S. dollar value of our foreign currency–denominated revenue and earnings.

We depend upon industry standard protocols and third-party software, including but not limited to open-source software.

We rely on non-proprietary third-party software, some of which may be open source. We may be subject to additional royalties, license or trademark infringement costs or other unknown costs when one or more of these third-party technologies are affected or need to be replaced due to end-of-support or end-of-sale of such third parties.

Certain functions related to our business depend on a single supplier or small group of suppliers to carry out our business, and the inability to do business with some or all of these suppliers could have a materially adverse effect on our business and financial results.

If the services of any of the single suppliers or small group of suppliers, including, without limitation, software from third-party service providers used in certain of our products and services, that we depend on were unavailable, or available only in decreased capacity or at less advantageous terms, this could result in interruptions to our ability to provide certain services, could cause reduction in service and/or quality as the function is transitioned to an alternate provider, if an alternate provider is available, or could increase our cost, which in the current competitive environment, we may not be able to pass along to customers. Accordingly, any of these events could materially and negatively impact our business, our revenues, our profits, and our relationships with customers.

Our success depends in part upon our ability to provide customer service that effectively supports the needs of our customers.

Providing customer service effectively requires that our customer support personnel have industry-specific technical knowledge and expertise. Our support personnel require extensive training on our products and services, which may make it difficult to scale up our support operations rapidly or effectively. The importance of high-quality customer support will increase as we expand our business and pursue new customers. If we do not help our customers quickly resolve post-implementation issues and provide effective ongoing support, our ability to sell additional features and services to existing customers will suffer and our reputation may be harmed.

Changes to rates by our suppliers and increasing regulatory charges, tariffs or ~~tariffs~~excise taxes may require us to raise prices, which could ~~impact~~adversely affect ~~results~~our financial result and business.

Our upstream carriers, suppliers and vendors may increase their prices thus directly impacting our direct cost of revenues, which would affect our earnings. Future changes in tariffs by regulatory agencies or application of tariff requirements to currently un-tariffed products or services could affect the price and sales of our products for a certain set of customers. Changes in our underlying direct costs of revenues may cause us to increase the rates we charge our customers, which could make us less competitive and impact our sales and retention of existing customers. On July 4, 2025, the One Big Beautiful Bill Act imposed a one percent excise tax on certain remittance transfers that will take effect for transfers made after December 31, 2025. The imposition of these or similar excise taxes could adversely affect our business and financial condition.

Our customers, particularly our IDT Global customers, could experience financial difficulties, which could adversely affect our revenues and profitability if we experience difficulties in collecting our receivables.

As a provider of international long-distance services, we depend upon sales of transmission and termination of traffic to other long-distance providers and the collection of receivables from these customers. The wholesale telecommunications market continues to feature many smaller, less financially stable companies. If weakness in the telecommunications industry or the global economy reduces our ability to collect our accounts receivable from our major customers, particularly our wholesale customers, our profitability may be substantially reduced. While our most significant customers, from a revenue perspective, vary from quarter to quarter, our five largest IDT Global customers collectively accounted for 4.02% and 4.7% of our total revenues in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively. Our IDT Global customers with the five largest receivables balances collectively accounted for 98.40% and 1.6% of our total gross trade accounts receivable on July 31, ~~2024~~2025, and ~~2023~~2024, respectively. This concentration of revenues and receivables increases our exposure to non-payment by our larger customers, and we may experience significant write-offs if any of our large customers fail to pay their outstanding balances, which could ~~adversely~~ adversely affect our cash flow and profitability.

We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel, hire qualified personnel, or maintain our corporate culture, we may not be able to grow effectively.

We believe that our corporate culture fosters innovation, creativity, and teamwork. Our performance largely depends on the talents and efforts of highly skilled individuals. Our future success depends on our continuing ability to identify, hire, develop, motivate, and retain highly skilled personnel for all areas of our organization, in particular our technology and software engineering organization. Competition for qualified technology and engineering employees is intense, and our compensation arrangements may not always be successful in attracting new employees and retaining and motivating our existing employees. Our continued ability to compete effectively depends on our ability to attract new employees and to retain and motivate our existing employees.

New and existing technologies could affect our ability to track the results of ads and/or could block ads online, which would harm our business.

A significant portion of our revenues are derived from customers acquired in connection with the display of advertisements online. Technologies have been developed to make tracking the results of our online advertisements more difficult or to block the display of advertisements altogether and some providers of online services have integrated technologies that could potentially impair the core functionality of third-party digital advertising. As a result, such technologies and tools could adversely affect our operating results.

Risks Related to Our NRS Business

Substantial and increasingly intense competition in the POS industry may harm NRS’ business.

NRS competes in the POS market that is characterized by vigorous competition, changing technology, evolving industry standards, changing customer needs, and frequent introductions of new products and services. We expect competition to intensify in the future as existing and new competitors introduce new services or enhance existing services. NRS competes against many companies to attract customers, and some of these companies have greater financial resources and substantially larger bases of customers than NRS does, which may provide them with significant competitive advantages. These companies may devote greater resources to the development, promotion, and sale of products and services, may achieve economies of scale due to the size of their customer bases, and may more effectively introduce their own innovative products and services that adversely impacts NRS’ growth. If some or all of NRS’ competitors focus additional resources on NRS’ target markets, NRS’ growth may slow, or we may lose customers due to the competition.

NRS may also face pricing pressures from competitors, which may result in the need for NRS to alter the pricing that it offers and could reduce our profitability.

If NRS fails to increase advertising on its platform, our business could be adversely affected.

NRS’ strategy includes increasing its revenues from brand advertising. Brands may not do business with NRS or may reduce the amounts they are willing to spend to advertise if NRS does not deliver ads, and other commercial content and marketing programs in an effective manner, or if they do not believe that their investment in advertising with NRS will generate a competitive return relative to other alternatives. NRS’ ability to increase the number of brands that use its brand advertising, and ultimately to generate advertising and marketing services revenues, depends on aseveral ~~number of~~ factors, many of which are outside of our control. If NRS fails to increase advertising on ~~its~~ its platform, our business could be adversely affected.

The long-term success of NRS depends on its ability to develop products and services to address the rapidly evolving market for POS products and services, and, if it is not able to implement successful enhancements and new features for its products and services, our business could be materially and adversely affected.25

The long-term success of NRS depends on its ability to develop products and services to address the rapidly evolving market for POS products and services, and, if it cannot implement successful enhancements and new features for its products and services, our business could be materially and adversely affected.

NRS’ success will depend, in part, on its ability to develop new technologies and to adapt to technological changes and evolving industry standards. New services and technologies may be superior to, impair, or render obsolete the POS products and services that NRS currently offers or the technologies NRS currently uses to provide them. Incorporating new technologies into NRS’ POS products and services may require substantial expenditures and take considerable time, and NRS may not be successful in realizing a return on these development efforts in a timely manner or at all. NRS’ ability to develop new products and services may be inhibited by industry-wide standards, existing and future laws and regulations, resistance to change from its customers, or third parties’ intellectual property rights. If NRS is unable to provide enhancements and new features for its products and services or to develop new products and services that achieve market acceptance or that keep pace with rapid technological developments and evolving industry standards, our business would be materially and adversely affected.

Risks Related to Our BOSS Money Business

BOSS Money and its retailers face a complex and dynamic regulatory landscape; changes in laws and regulations can impact business operations, and non-compliance or failure to comply with laws can result in hefty fines, penalties, operational restrictions and reputational damage.

BOSS Money and its retailers face a complex and dynamic regulatory landscape related to anti-money laundering (AML), know your customer (KYC), consumer protection laws and data privacy. Changes in laws and regulations can impact business operations, and non-compliance or failure to comply with laws can result in hefty fines, penalties, operational restrictions and reputational damage. For example, certain banks, in an effort to comply with increasingly more challenging regulations, have gradually imposed stricter restrictions and limitations and higher costs on money remittance retailers making deposits to bank accounts. This can negatively affect the business of the BOSS Money retailers and, at times, disincentivize retailers from growing their BOSS Money business. As governments and regulatory bodies place increasing emphasis on anti-money laundering, data privacy, consumer protection and financial transparency, BOSS Money and its retailers may face rising costs to ensure compliance with, among others, customer due diligence, transaction monitoring, and consumer data privacy protection and reporting, which can negatively affect, among other things, the ability of BOSS Money to maintain and grow its retailer network.

BOSS Money depends on a licensed network of agents for its retail money remittance business.

BOSS Money depends on a licensed network of agents for its retail money remittance business. Maintaining good relationships with agents, ensuring their compliance, and managing risks associated with their actions is critical but costly. Agents may not always act in BOSS Money’s best interest, engaging in fraudulent activities, regulatory violations, or causing reputational damage. In addition, agents could affect BOSS Money’s revenue and profitability due to non-payment of remittances collected or termination of the relationship.

BOSS Money has financial and business exposure to fluctuations in the foreign exchange markets.

BOSS Money’s international remittance business is subject to ~~adverse~~daily fluctuations in U.S. dollar exchange rates, resulting from devaluation or appreciation of currencies, exchange rate volatility, or currency restrictions, which can materially impact revenue and profitability.

BOSS Money can be vulnerable to illegal activities and fraud schemes.

BOSS Money’s transfer services can be vulnerable to illegal activities and fraud schemes such as identity theft, account takeover, money laundering, and terrorist financing. Failure to detect and mitigate these risks could lead to regulatory penalties, reputational harm and significantly and adversely affect revenues and profitability.

BOSS Money’s rapid growth can strain resources and internal controls which could potentially lead to, among other things, operational inefficiencies, increased costs and reduced profitability.

BOSS Money is experiencing rapid growth, which can strain resources and internal controls, carrying inherent risks and uncertainties when scaling operations or entering new markets, potentially leading to operational inefficiencies, increased costs and reduced profitability. BOSS Money’s growth depends on acquiring and retaining customers in a competitive market. BOSS Money invests significantly in marketing to grow its customer base. Rising costs of customer acquisition, especially in competitive markets, could adversely affect profitability.

The rapid evolution of payment technologies and shifts in consumer preferences along with adoption of new technologies could disrupt the money transfer industry.

The rapid evolution of payment technologies and shifts in consumer preferences along with adoption of new technologies such as mobile wallets, real-time payment systems and blockchain-based cryptocurrencies could disrupt the money transfer industry and require significant investments to stay competitive. Failure to innovate, adopt new technologies, or keep pace with industry advancements can potentially lead to market share and revenue declines. In addition, the inability to adapt to changing customer needs could significantly and negatively impact business growth.

Disruptions in mobile networks or changes in consumer preferences for mobile devices could impact our business.

BOSS Money relies heavily on mobile technology. Any disruptions in mobile networks or changes in consumer preferences for mobile devices could adversely impact our business. The BOSS Money and BOSS Revolution mobile apps are distributed through Apple’s App Store and Google Play app store. Changes in app store policies or restrictions could negatively impact our ability to reach customers. BOSS Money’s direct to consumer channel relies on the performance and uptime of its digital platform which means that failures in technology or software could impact transaction flow, customer satisfaction and ultimately revenues.

BOSS Money has less brand recognition than many of its competitors in the money remittance space which could make it harder to attract and retain customers.

Compared to its larger competitors such as Western Union, Moneygram, Ria, Intermex, Xoom, Wise and Remitly, BOSS Money has less brand recognition in the money remittance space which could make it harder to attract and retain customers. BOSS Money leverages the brand value and trust built by BOSS Revolution. The remittance industry is highly sensitive to consumer trust. As such, negative publicity, such as being associated with poor service, fraud or money laundering, could significantly and negatively harm BOSS Money’s reputation, leading to a loss of customers and revenue.

BOSS Money relies on partnerships with global banks and payout agents to process transactions in its receiving markets.

BOSS Money relies on partnerships with global banks and ~~payout~~disbursement agents to process transactions in its receiving markets. If these partners face operational, financial, or regulatory issues, it could severely and negatively impact the company’s ability to conduct business. BOSS Money’s success depends, in part, on reliable access to international banking systems and payment infrastructure. Disruptions in these systems due to political or economic issues, or regulatory changes, could severely and negatively impact the company’s ability to provide services.

Risks Related to Our net2phone Business

net2phone’s VoIP or cloud-based communications service competes against established well financed alternative voice communication providers who may provide comparable services at comparable or lower pricing or deploy new services that net2phone is unable to offer.

Pricing in the telecommunications industry is very fluid and competitive. Price is often a substantial motivating factor in a customer’s decision to switch to net2phone’s cloud-based communications products and services. net2phone’s competitors may reduce their rates, which may require it to reduce its rates, which would affect our revenues and profitability, or otherwise make our pricing non-competitive. net2phone may be at a disadvantage compared with those competitors who have substantially greater resources than us or may otherwise be better positioned to withstand an extended period of downward pricing pressure.

Many of net2phone’s current and potential competitors have longer operating histories, significantly greater resources and brand awareness, and a larger base of customers than net2phone has. As a result, these competitors may have greater credibility with net2phone’s existing and potential customers. net2phone’s competitors may also offer bundled service arrangements that present a more differentiated or better integrated product to customers. Certain of net2phone’s competitors that have more significant R&D capabilities may develop or deploy new value-added services that net2phone is unable to offer. Announcements, or expectations, as to the introduction of new products and technologies by net2phone’s competitors or net2phone could cause customers to defer purchases of net2phone’s existing products, which also could have a material adverse effect on our business, financial condition, or operating results.

net2phone depends in part upon the capacity, reliability, and performance of several third-party providers and their network infrastructure, the failure of which could cause delays or interruptions of net2phone’s service and impact our revenue and profitability.

net2phone depends on several third-party providers to provide service to maintain its operations. net2phone does not have control over these providers, and some of these providers are also its competitors. net2phone may be subject to interruptions or delays in their service and its reputation and business may be harmed. The failure of any of these third party service providers to properly maintain services may result in negative consequences to net2phone, including but not limited to: (i) a loss of customers, (ii) adverse impact on its reputation, (iii) negative publicity, (iv) negative impact on its ability to acquire customers, (v) negative impact on its revenue and profitability, (vi) potential law suits for not reaching emergency E-911 services, and (vii) potential law suits for loss of business and loss of reputation.

Internet Bandwidth Providers. net2phone’s cloud-based communications service requires its customers to have an operative broadband Internet connection and an electrical power supply, which are provided by the customer’s broadband Internet service provider and electric utility company and not by net2phone. The quality of some broadband Internet connections may be too poor for customers to use net2phone’s services properly. In addition, if there is any interruption to a customer’s broadband Internet service or electrical power supply, that customer will be unable to make or receive calls, including emergency calls, using net2phone’s service. In addition, Internet backbone providers may be able to block, degrade or charge for access to, or the bandwidth use of certain of net2phone’s products and services which could have a negative effect on its services and could lead to additional expenses and the loss of users. Further, customers who access net2phone’s mobile application (or future applications) through their smartphones must have a high-speed connection to use its services. This access is provided by companies that have significant and increasing market power in the broadband and Internet access marketplace and some of these providers offer products and services that directly compete with net2phone’s offerings, which give them a significant competitive advantage.

Tier 1 and non-Tier 1 Telecom suppliers for Telecom Origination and Termination Services. net2phone depends on these companies to provide telecom services, sourcing of DID, porting of numbers, and delivering telephone calls from and to endpoints and devices on our network. If net2phone fails to maintain reliable connectivity or performance with its upstream carriers it could significantly reduce customer demand for its services and damage its business.

E-911 and other emergency service providers. net2phone maintains an agreement with an E-911 provider to assist it in routing and terminating emergency calls directly to an emergency service dispatcher at the public-safety answering point, or PSAP, in the ~~area of the~~ customer’s ~~registered~~ registered location. net2phone also contract with a provider for the national call center that operates 24 hours a day, seven days a week to receive certain emergency calls and with several companies that maintain PSAP databases for the purpose of deploying and operating E-911 services. The dispatcher will have automatic access to the customer’s telephone number and registered location information. If a customer moves their service to a new location, the customer’s registered location information must be updated and verified by the customer. Until that takes place, the customer will have to verbally advise the emergency dispatcher of his or her actual location at the time of an E-911 call. This can lead to delays in the delivery of emergency services. Interruptions in service from these vendors could also cause failures in net2phone’s customers’ access to E-911 services and expose it to liability.

Local number portability providers. net2phone has agreements with companies that initiate its local number portability, which allows new customers to retain their existing telephone numbers when subscribing to its services. net2phone needs to work with these companies to properly port numbers. The failure to port numbers may cause net2phone to lose customers.

net2phone faces risks from the outsourcing of the manufacturing of its desktop telephones (“desktop devices”).

net2phone primarily sells Polycom, Yealink and Grandstream-branded desktop devices, although, it supports other third-party devices as well. These desktop devices are being manufactured by vendors in China. Recent supply-chain challenges in China and global ramifications of supply-chain difficulties, the U.S. trade war with China, including trade protection measures such as tariffs, and the effects of any new wave of COVID-19 infections or another pandemic may cause disruptions in obtaining its desktop devices. This may increase pricing, slow delivery times or may force net2phone to find ~~another~~other third-party ~~manufacturer~~manufacturers offor its branded desktop devices.

net2phone targets sales to small, mid-market and enterprise customers. Not properly managing these customers could negatively affect our business, cash flow and operations.

A substantial percentage of net2phone’s revenues comes from small and medium-sized businesses. These customers may be more adversely affected by economic downturns than larger, more established businesses. The majority of net2phone’s customers pay for subscriptions with credit cards. Weakness in certain segments of the credit markets in the U.S. and global economies may result in increased numbers of rejected credit and debit card payments, which could negatively affect net2phone’s business. If small and medium-sized businesses experience financial hardship because of a weakening economy, industry consolidation, or any other reason, the overall demand for net2phone’s products and services could be materially and adversely affected.

Selling to larger enterprise customers also contains inherent risks and uncertainties. The loss of a key customer or the failure of some ~~of them~~ to renew or to continue to recommend net2phone’s products may have a material negative impact on its results. net2phone has a limited ~~history~~ history of selling its services to larger businesses and may experience challenges in configuring and providing ongoing support for the ~~products~~ products it sells to large customers. Larger customers’ networks are often more complex than those of smaller customers, and the ~~configuration~~ configuration of services for these customers usually requires customer assistance. There is no guarantee that the customer will make available to net2phone the necessary personnel and other resources for a successful configuration of services. Lack of assistance from the customers or lack of local resources may prevent net2phone from properly configuring its services for these customers, which can in turn adversely impact the quality of services that it delivers over its customers’ networks, and/or may result in delays in the implementation of its services and impact the quality and ability to continue to provide the services. This could also create a public perception that net2phone is unable to deliver high quality service to its customers, which could harm its reputation. In addition to the foregoing, larger customers tend to require higher levels of customer service and individual attention, which may increase net2phone’s ~~costs~~ costs for implementing and delivering services.

If net2phone’s existing customers terminate their subscriptions or reduce their subscriptions and related usage, its revenues and earnings will be harmed, and we will be required to spend more money to grow net2phone’s customer base.

net2phone expects to continue to derive a significant portion of its revenues from existing customers. As a result, retaining its existing customers is critical to its future operating results. net2phone offers monthly, annual and multiple-year contracts to its customers, generally with 30 days’ notice required for reductions in the number of seats. Increases in the number of seats can be provisioned almost immediately.

Subscriptions and related usage by existing customers may decrease if:

	■	customers are not satisfied with the services, prices or the functionality of net2phone’s products;
	■	the stability, performance or security of net2phone’s products are not satisfactory;
	■	the U.S. or global economy declines;
	■	net2phone’s customers’ business or demand for net2phone’s services declines due to industry cycles, seasonality, business difficulties or other reasons;
	■	customers favor products offered by other providers, particularly as competition continues to increase;
	■	alternative technologies, products or features emerge or gain popularity that net2phone does not provide;
	■	net2phone’s customers or potential customers experience financial difficulties; or
	■	fewer customers purchase services from net2phone.

If net2phone’s existing customers’ subscriptions and related usage decrease or are terminated, net2phone will need to spend more money to acquire new customers and still may not be able to maintain its existing level of revenues. net2phone incurs significant costs and expenses, including sales and marketing expenses, to acquire new customers, and those costs and expenses are an important factor in determining our profitability. There can be no assurance that net2phone’s efforts to acquire new customers will be successful.

net2phone must acquire new customers on an ongoing basis to maintain and increase its customers and revenues, ~~while~~and the significant costs to acquire new customers may hinder profitability.

net2phone ~~will~~has ~~have~~ to acquire new customers to increase revenues. net2phone incurs significant costs to acquire new customers, and those costs are an important factor in determining our profitability. Therefore, if net2phone is unsuccessful in retaining customers or is required to spend significant amounts to acquire new customers, its revenue and or profits ~~would~~may decrease, which would negatively affect profitability. ~~Sales~~ Sales and marketing expenditures are an ongoing requirement of net2phone’s business as it strives to acquire more new customers.

net2phone’s customer churn rate may increase in future periods, which may adversely impact its revenue or require it to spend more money to grow its customer base.

net2phone’s customers generally have initial service periods of between two and three years and may discontinue their subscriptions for services after the expiration of their initial subscription period. In addition, net2phone’s customers may renew for lower subscription amounts or for shorter contract lengths. net2phone may not accurately predict cancellation rates for its customers. net2phone’s cancellation rates may increase or fluctuate because of several factors, including customer needs, pricing changes, number of applications used by its customers, customer satisfaction with its service, the acquisition of net2phone’s customers by other companies, and deteriorating general economic conditions. If net2phone’s customers do not renew their subscriptions for its service or decrease the amount they spend with net2phone, its revenue will decline, and our business will suffer.

net2phone may not be able to scale its business efficiently or quickly enough to meet its customers’ growing needs, in which case our operating results could be harmed.

As usage of net2phone’s cloud-based communications services by mid-market and larger distributed enterprises expands and as customers continue to integrate its services across their enterprises, net2phone is required to devote additional resources to improving its application architecture, integrating net2phone’s products and applications across our technology platform as well as expanding integration and performance. net2phone will need to appropriately scale its internal business systems and services organization, including its onboarding and customer support services to serve a growing customer base. Any failure of or delay in these efforts could impair net2phone’s systems’ performance and reduce customer satisfaction, which could result in decreased sales to new customers and lower renewal rates by existing customers and eventually hurt net2phone’s revenue growth and its reputation. We cannot guarantee that the expansion and improvements to our infrastructure and systems will be fully or effectively implemented on a timely basis, if at all, which failure may reduce our revenue and earnings and adversely impact our financial results.

net2phone may not realize the anticipated benefits of its acquisition of Integra’s CCaaS business.

On March 3, 2022, net2phone purchased all of the outstanding shares of Onwaba S.R.L. and Gem S.R.L. Onwaba S.R.L. and Gem S.R.L. are located in Uruguay and used the trade name Integra, which we have rebranded as Ucontact. Ucontact provides cloud-based CCaaS in the Americas and Europe.

The success of the acquisition of Ucontact will depend, in part, on net2phone’s ability to provide its customers and channel partners with a robust stand-alone contact center solution or an intelligently integrated UCaaS and CCaaS solution. The target market for the Ucontact CCaaS solution is two-fold: (i) businesses and other entities with embedded service and support centers; and (ii) contact centers / BPO providers. Consistent with businesses across the globe that have been moving their on-premise phone systems to the cloud, these service and support centers and contact centers are migrating in a similar fashion, propelled by the growing hybrid and remote work environments. The Ucontact CCaaS platform is layered with a development surface which allows for custom deployments and sophisticated work force management, where the solution is tailored to the center’s work-flow requirements. This customization will provide for an additional layer of stickiness, which is expected to translate into longer term service periods with the end user. For this reason, we also expect to see increased stickiness with our current and future UCaaS customers that bundle CCaaS into their product suite. We also expect this solution set to open for us a whole new segment of channel partners that specifically target CCaaS audiences. Our capacity to realize these anticipated benefits is subject to certain risks, including, among others, our ability to successfully integrate the CCaaS business, and the risk that the CCaaS business will not perform as expected.

If we are not able to successfully integrate Integra’s CCaaS business within the anticipated time frame, or at all, the anticipated synergies, operational efficiencies and other benefits of the acquisition may not be realized fully or may take longer to realize than expected, and we may not perform as expected.

Integrating Integra’s CCaaS business may be more difficult, time-consuming or costly than expected.

There can be no assurances that Integra’s CCaaS business, which we rebranded as Ucontact, can be integrated successfully. It is possible that the integration process could result in the loss of key employees, the disruption of net2phone’s ongoing UCaaS business or unexpected integration issues, such as higher than expected integration costs and an overall post-completion integration process that takes longer than originally anticipated. Specifically, issues that must be addressed in integrating the operations of Ucontact in order to realize the anticipated benefits of the acquisition, so net2phone performs as expected include, among others:

■ integrating the companies’ technologies, products and services; ■ harmonizing the companies’ operating practices, employee development, compensation and benefit programs, internal controls and other policies, procedures and processes; ■ attracting and recruiting prospective employees; ■ maintaining existing agreements with customers and vendors and avoiding delays in entering into new agreements with prospective customers and vendors; and ■ coordinating and servicing geographically dispersed organizations.

Risks Related to Our Traditional Communications Segment

Each of our BOSS Revolution and IDT Global businesses is highly sensitive to declining prices, which may adversely affect our revenues and profitability.

The worldwide telecommunications industry is characterized by intense price competition, which has resulted in declines in both our average per-minute price realizations and our average per-minute termination costs. Many of our competitors continue to aggressively price their services or offer them for free. The intense competition has led to continued erosion in our pricing power, in both our retail and wholesale markets, and we have generally had to pass along all or some of the savings we achieve on our per-minute costs to our customers in the form of lower prices. In the case of some international calling locations, indirect competitors, such as wireless carriers, may include calls to those locations at no extra cost, which increases our risk of losing customers. Any price increase by either our BOSS Revolution or IDT Global business may result in our prices becoming less attractive to customers, which may result in a reduction of revenue. If these trends in pricing continue or accelerate, it could have a material adverse effect on the revenues generated by our BOSS Revolution and IDT Global businesses and/or our profitability.

We may not be able to obtain sufficient or cost-effective termination capacity to particular destinations, which could adversely affect our revenues and profits.

Most of our telecommunications’ traffic is terminated through third-party providers. InTo ~~order to~~ support our minutes of use ~~demands~~ demand and geographic footprint, we may need to obtain additional termination capacity or destinations. We may not be able to obtain sufficient ~~termination~~ termination capacity from high-quality carriers to particular destinations or may have to pay significant amounts to obtain such capacity. This could result in our not being able to support our minutes of use demands or in higher cost-per-minute to particular destinations, which could adversely affect our revenues and profits.

The termination of our carrier agreements with partners or our inability to enter into carrier agreements in the future could materially and adversely affect our ability to compete, which could reduce our revenues and profits.

We rely upon our carrier agreements with partners to provide our telecommunications services to our customers. These carrier agreements are for finite terms and, therefore, there can be no guarantee that these agreements will be renewed at all or on favorable terms to us. Our ability to compete would be adversely affected if our carrier agreements were terminated or we were unable to enter into carrier agreements in the future to provide our telecommunications services to our customers, which could result in a reduction of our revenues and profits.

Risk Related to Our Financial Condition

We hold cash, cash equivalents, debt securities and equity investments that are subject to various market risks.

At July 31, ~~2024~~2025, we had cash, cash equivalents, debt securities, and current equity investments of $~~193~~260.04 million. Debt securities and equity investments carry a degree of risk, as there can be no assurance that we can redeem them at any time and that our investment managers will be able to accurately predict the course of price movements and, in general, the securities markets have in recent years been characterized by great volatility and unpredictability. As a result of these different market risks, our holdings of cash, cash equivalents, debt securities, and equity investments could be materially and adversely affected.

If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results, and current and potential stockholders may lose confidence in our financial reporting which could have a negative effect on the trading price of our stock.

We are required by the Securities and Exchange Commission to establish and maintain adequate internal control over financial reporting that provides reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements in accordance with accounting principles generally accepted in the United States. We are likewise required, on a quarterly basis, to evaluate the effectiveness of our internal controls and to disclose any changes and material weaknesses in those internal controls. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.

We cannot be certain that we will continue to maintain an effective system of internal control over our financial reporting in future periods. Any failure to maintain such internal controls could adversely impact our ability to report our financial results on a timely and accurate basis. If our financial statements are not accurate, investors may not have a complete understanding of our operations. Likewise, if our financial statements are not filed on a timely basis as required by the Securities and Exchange Commission and The New York Stock Exchange, we could face severe consequences from those authorities. In either case, there could be a material adverse effect on our business. Inferior internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our stock.

Intellectual Property, Tax, Regulatory, and Litigation Risks

Changes in national policy, governmental actions related to tariffs or international trade agreements, as well as shifts in social, political, regulatory, and economic conditions or laws and policies governing foreign trade, manufacturing, development, and investment in the regions where we operate, can significantly impact our business. Such changes could lead to negative sentiments towards us, potentially depressing economic activity or restricting access to suppliers or customers and thereby have a material adverse effect on our business, results of operations and outlook.

In January 2025, the global tariff landscape began to quickly change with the United States implementing tariffs on goods from various foreign countries, either generally or with respect to certain products, and certain of those foreign countries implementing rebalancing tariffs on goods from the United States, either generally or with respect to certain products. In certain circumstances the United States and certain foreign countries temporarily suspended tariffs they had recently implemented, either in whole or in part. Since then, the United States has continued to impose tariffs on imported goods, and affected countries have often responded by imposing tariffs on U.S. goods. In April 2025, the U.S. announced a baseline tariff of 10% on goods from all countries and instituted additional individualized reciprocal tariffs for countries with which the United States has significant trade deficits. The United States continues to implement new, reinstated or adjusted tariffs, and we expect that it will continue with this practice. Foreign countries subject to these U.S. tariffs continue to implement new, reinstated or adjusted rebalancing tariffs, and we expect that foreign countries will continue with that practice.

The U.S. tariffs and rebalancing tariffs that were recently enacted or that may be enacted have contributed to uncertainty about current global economic conditions. Sustained uncertainty could result in a global economic slowdown and long-term changes to global trade. Such changes could lead to negative sentiments towards us, potentially depressing economic activity or restricting access to suppliers or customers and thereby have a material adverse effect on our business, results of operations and outlook.

We provide communications and payment services to consumers and are therefore subject to various federal and state laws and regulations.

As a provider of communications and payment services to consumers, such as BOSS Revolution and BOSS Money, we are subject to various federal and state laws and regulations relating to the ~~manner~~way ~~in which~~ we advertise our services, describe and present the terms of our services, and communicate with our customers and consumers in general. Compliance with these laws requires us to be constantly vigilant as they often vary from state to state. Failure to comply with these laws could result in action being taken by federal and state agencies or offices responsible for consumer protection, like the Federal Trade Commission, or FTC, which could have a material adverse effect on our results of operations, financial condition, revenues, and profits.

We may be adversely affected if we fail to protect our proprietary technology.

We depend on proprietary technology and other intellectual property rights in conducting our various business operations. We rely on a combination of patents, copyrights, trademarks and trade secret protection, and contractual rights to establish and protect our proprietary rights. Circumstances outside our control could pose a threat to our intellectual property rights. For example, effective intellectual property protection may not be available in every country in which our products and services are distributed. Also, the efforts we have taken to protect our proprietary rights may not be sufficient or effective enough. Any significant impairment of our intellectual property rights could harm our business or our ability to compete. Also, protecting our intellectual property rights is costly and time consuming. Any increase in the unauthorized use of our intellectual property could make it more expensive to do business and harm our operating results. Failure of our patents, copyrights, trademarks, and trade secret protection, non-disclosure agreements and other measures to provide protection of our technology and our intellectual property rights could enable our competitors to compete with us more effectively and have an adverse effect on our business, financial condition, and results of operations.

Rapid, significant, and disruptive technological changes impact the industries in which we operate, and we expect new services and technologies to continue to emerge and evolve. We cannot predict the effects of technological changes on our businesses. Developing and incorporating new technologies into our products and services may require significant investment, take considerable time, and ultimately may not be successful.

In addition, we may be required to litigate in the future to enforce our intellectual property rights, to protect our trade secrets, to determine the validity and scope of the proprietary rights of others, or to defend against claims of infringement or invalidity. Any such litigation could result in substantial costs and diversion of resources and could have a material adverse effect on our business, financial condition, or results of operations, and there can be no assurances that we will be successful in any such litigation.

32We may incur costs in complying with, or face exposure from the failure to comply with, laws, regulation or initiatives regarding greenhouse gas emissions or reporting of our direct and indirect emissions.

Several states have either passed (California) or are drafting (e.g. Washington, New York, Illinois, and Minnesota) what is being referred to as “sustainability legislation.” This class of legislation generally requires companies generating certain levels in annual revenue (either globally or in the relevant state) and who have a presence in the relevant state to report data on the impact of the company on the environment, including as to direct and indirect greenhouse gas emissions or other factors believed to impact climate. Each company that meets the requirements will be required to report the data to a state regulator and may also be required to post the data online. Significant monetary penalties may apply to companies that fail to report in a timely manner. We believe that we will be required to report under the California legislation, and may also be subject to other states’ legislation, if passed. We are currently evaluating the resources necessary to comply with the law. While, barring unforeseen circumstances, we anticipate meeting the requirements in a timely manner, there can be no assurance that we will do so.

In addition, many foreign jurisdictions have enacted laws and regulations mandating certain reporting related to direct and indirect greenhouse gas emission by businesses operating in those areas. Our costs to comply with any legislation, regulations or initiatives may be significant and we could be exposed to fines and penalties and other negative impacts on our businesses if we do not comply with the laws and regulations that apply to us.

We may be subject to claims of infringement of intellectual property rights of others, which could have a material adverse effect on our results of operations, financial condition, revenues, and profits.

Companies in the telecommunications industry and other industries in which we compete own large numbers of patents, copyrights and trademarks and frequently enter into litigation based on allegations of infringement or other violations of intellectual property rights. As we face increasing competition, the possibility of intellectual property claims against us grows. Although we do not believe that we infringe upon the intellectual property rights of others, our technologies may not be able to withstand any third-party claims or rights against their use. From time to time, we may be subject to claims and legal proceedings from third parties regarding alleged infringement by us of trademarks, copyrights, patents, and other intellectual property rights. Such lawsuits can be expensive and time-consuming and could distract us and our management from focusing on our businesses. Further, the loss of such lawsuits could result in financial burdens and the requirement to modify our modes of operation, which could materially adversely affect our business.

We are subject to tax and regulatory audits which could result in the imposition of liabilities that may or may not have been reserved.

We are subject to audits by taxing and regulatory authorities with respect to certain of our income and operations. These audits can cover periods for several years prior to the date the audit is undertaken and could result in the imposition of liabilities, interest, and penalties if our positions are not accepted by the auditing entity.

Our 2017 FCC Form 499-A, which reported our calendar year 2016 revenue was audited by the Universal Service Administrative Company, or USAC. The USAC’s final decision imposed a $2.9 million charge on us for the Federal TRS Fund. We have appealed the USAC’s final decision to the FCC and do not intend to remit payment for the TRS Fund fees unless and until a negative decision on our appeal has been issued. We have made certain changes to our filing policies and procedures for years that remain potentially under audit. As of July 31, ~~2024~~2025, our accrued expenses included $2521.91 million for FCC-related regulatory fees for the year covered by the audit, as well as prior and subsequent years. If we do not properly calculate, or have not properly calculated, the amount payable by us to the FCC, we may be subject to interest and penalties.

We are subject to value added tax, or VAT, audits from time-to-time in various jurisdictions. In the conduct of such audits, we may be required to disclose information of a sensitive nature and, in general, to modify the way we have conducted business with our distributors until the present, which may affect our business in an adverse manner.

We are also subject to audits in various jurisdictions for various other taxes, including utility excise tax, sales and use tax, communications services tax, gross receipts tax, and property tax.

Our business is subject to strict regulation under federal law regarding anti-money laundering and anti-terrorist financing. Failure to comply with such laws, or abuse of our programs for purposes of money laundering or terrorist financing, could have a material adverse impact on our business, financial condition, and operating results.

Provisions of the USA PATRIOT Act, the Bank Secrecy Act and other federal laws impose substantial regulations on financial institutions that are designed to prevent money laundering and the financing of terrorist organizations. Increasing regulatory scrutiny of our industry with respect to money laundering and terrorist financing matters could result in more aggressive enforcement of these laws or the enactment of more onerous regulation, which could have a material adverse impact on our business. In addition, abuse of our money transfer services or prepaid card programs for purposes of money laundering or terrorist financing, notwithstanding our efforts to prevent such abuse through our regulatory compliance and risk management programs, could cause reputational or other harm that would have a material adverse impact on our business, financial condition, and operating results.

Our business is subject to a wide range of laws and regulations intended to help detect and prevent illegal or illicit activity and our failure, or the failure of one of our disbursement partners or payment processors to comply with those laws and regulations could harm our business, financial condition, and operating results.

Our BOSS Money and network branded prepaid card services are subject to a strict set of legal and regulatory requirements intended to help detect and prevent money laundering, terrorist financing, fraud, and other illicit activity. The interpretation of those requirements by judges, regulatory bodies and enforcement agencies is changing, often quickly and with little notice. Economic and trade sanctions programs that are administered by the U.S. Treasury Department’s Office of Foreign Assets Control prohibit or restrict transactions to or from or dealings with specified countries, their governments, and in certain circumstances, with individuals and entities that are specially designated nationals of those countries, narcotics traffickers and terrorists or terrorist organizations. As federal, state, and foreign legislative regulatory scrutiny and enforcement action in these areas increase, we expect our costs to comply with these requirements will increase, perhaps substantially. Failure to comply with any of these requirements by us, our regulated retailers or our disbursement partners could result in the suspension or revocation of a money transmitter license, the limitation, suspension or termination of our services, the seizure and/or forfeiture of our assets and/or the imposition of civil and criminal penalties, including fines.

Furthermore, failure by us or our agents to comply with applicable laws and regulations could also result in termination of contracts with our banks and/or merchant payment processors. Termination of services by one of our retail banks would seriously diminish our ability to collect funds from our BOSS Revolution agents. Likewise, termination of services by our merchant processor would negatively impact our ability to process payments in our digital channels.

The foregoing laws and regulations are constantly evolving, unclear, and inconsistent across various jurisdictions, making compliance challenging. If we fail to update our compliance system to reflect legislative or regulatory developments, we could incur penalties. New legislation, changes in laws or regulations, implementing rules and regulations, litigation, court rulings, changes in industry practices or standards, changes in systems rules or requirements or other similar events could expose us to increased compliance costs, liability, reputational damage, and could reduce the market value of our BOSS Money and network branded prepaid card services or render them less profitable or obsolete.

The Dodd-Frank Act, as well as the regulations required by the Dodd-Frank Act and the Consumer Financial Protection Bureau could harm us and the scope of our activities, and could harm our operations, results of operations, and financial condition.

The Dodd-Frank Act, which became law in the United States on July 21, 2010, enacted significant structural reforms and substantive regulation across the financial services industry. In addition, the Dodd-Frank Act created the Consumer Financial Protection Bureau, or CFPB, whose purpose is to issue and enforce consumer protection initiatives governing financial products and services, including money transfer services.

We may be subject to examination by the CFPB, which has broad authority to enforce consumer financial laws. The CFPB has a large budget and staff and has broad authority with respect to our money transfer service and related business. It is authorized to collect fines and provide consumer restitution in the event of violations, engage in consumer financial education, track consumer complaints, request data, and promote the availability of financial services to underserved consumers and communities. In addition, the CFPB may adopt other regulations governing consumer financial services, including regulations defining unfair, deceptive, or abusive acts or practices, and new model disclosures. The CFPB’s authority to change regulations adopted in the past by other regulators, or to rescind or alter past regulatory guidance, could increase our compliance costs and litigation exposure.

The Dodd-Frank Act established a Financial Stability Oversight Council that is authorized to designate as “systemically important” non-bank financial companies and payment systems. Companies designated under either standard will become subject to new regulation and regulatory supervision. If we were designated under either standard, the additional regulatory and supervisory requirements could result in costly new compliance burdens or may require changes in the way we conduct business that could harm our business, financial condition, and operating results.

We are subject to licensing and other requirements imposed by U.S. state regulators, and the U.S. federal government. If we were found to be subject to or in violation of any laws or regulations governing money transmitters, we could lose our licenses, be subject to liability or be forced to change our business practices, which could harm our business, results of operations, and financial condition.

ASeveral ~~number of~~ states and territories have enacted legislation regulating money transmitters, with 49 states requiring a license as of July 31, ~~2024~~2025. At July 31, ~~2024~~2025, we had obtained licenses to operate as a money transmitter in 48 U.S. states and Washington, D.C. We are also registered as money services businesses with the Financial Crimes Enforcement Network of the U.S. Department of the Treasury, or FinCEN. As a licensed money transmitter, we are subject to bonding requirements, liquidity requirements, restrictions on our investment of customer funds, reporting requirements, and inspection by state and foreign regulatory agencies. If we were found to be subject to and in violation of any banking or money services laws or regulations, we could be subject to liability or additional restrictions, such as increased liquidity requirements. In addition, our licenses could be revoked, or we could be forced to cease doing business or change our practices in certain states or jurisdictions or be required to obtain additional licenses or regulatory approvals that could impose a substantial cost on us. Regulators could also impose other regulatory orders and sanctions on us. Any change to our business practices that makes our service less attractive to customers or prohibits use of our services by residents of a particular jurisdiction could decrease our transaction volume and harm our business, financial condition, and operating results.

Our disbursement partners generally are regulated institutions in their home jurisdiction, and money transfers are regulated by governments in both the United States and in the jurisdiction of the recipient. If our disbursement partners fail to comply with applicable laws, it could harm our business, results of operations, and financial condition.

Money transfers are regulated by state, federal and foreign governments. Many of our disbursement partners are banks that are heavily regulated by their home jurisdictions. Our non-bank disbursement partners are also subject to money transfer regulations. We require regulatory compliance as a condition to our continued relationship, perform due diligence on our disbursement partners, and monitor them periodically with the goal of meeting regulatory expectations. However, there are limits to the extent to which we can monitor their regulatory compliance. Any determination that our disbursement partners or their sub-disbursement partners have violated laws and regulations could seriously damage our reputation, resulting in diminished revenue and profit and increased operating costs. While our services are not directly regulated by governments outside the United States, except with respect to IDT Financial Services Limited, or IDTFS, our Gibraltar-based bank as discussed below, it is possible that in some cases we could be liable for the failure of our disbursement partners or their sub-disbursement partners to comply with laws, which also could harm our business, financial condition, and results of operations.

IDTFS is regulated by the Gibraltar Financial Services Commission, or FSC, and, as such, is subject to Gibraltarian and EU laws relating to financial institutions. As an issuer of prepaid debit cards for programs operated by other entities, commonly known as program managers, IDTFS is responsible, inter alia, for anti-money laundering laws oversight and compliance. If we were to fail to implement the requisite controls or follow the rules and procedures mandated by the FSC and applicable law, we could be subject to regulatory fines, and even the loss of our banking license.34

IDTFS is a licensed bank regulated by the Gibraltar Financial Services Commission (“GFSC”). As a deposit-taking institution, IDTFS is authorized to provide a wide range of regulated banking and financial services, including the issuance of electronic money, payment services and foreign exchange services. As a regulated bank, IDTFS is subject to stringent supervisory oversight and is required to maintain robust governance, risk management, anti-money laundering (AML) controls, and capital adequacy in accordance with Gibraltarian and EU financial regulations. The GFSC’s oversight extends to all aspects of IDTFS’ operations, including customer due diligence, transaction monitoring, and safeguarding of client funds. Failure to comply with regulatory obligations could result in fines, enforcement actions, reputational damage, or, in severe cases, revocation of the banking license.

IDT Services Limited (IDTS) is regulated by the Malta Financial Services Authority (MFSA) and operates under the Maltese and EU legal framework for financial services providers. It was licensed by the MFSA as an Electronic Money Institution (EMI) in May 2025, authorizing it to issue electronic money and provide payment services. While its operational scope differs from that of IDTFS, IDTS is nonetheless subject to similar regulatory expectations regarding AML compliance, internal governance, data protection, and financial reporting. The MFSA conducts regular supervision to ensure ongoing compliance with applicable regulations. Non-compliance could result in regulatory sanctions or, ultimately, the withdrawal of authorization.

We receive, store, process, and use personal information and other data, which subjects us to governmental regulation and other legal obligations related to privacy. Our actual or perceived failure to comply with such obligations could harm our business, financial condition, and results of operations.

We receive, store, and process personal information and other customer data, including bank account numbers, credit and debit card information, identification numbers, and images of government identification cards. As a result, we are required to comply with the privacy provisions of the Gramm-Leach-Bliley Act of 1999, or the Gramm-Leach-Bliley Act, and the Payment Card Industry Data Security Standard, or PCI DSS. There are also numerous other federal, state, local, and international laws, such as the California Consumer Privacy Act, or CCPA and the EU’s General Data Protection Regulation, or GDPR, regarding privacy and the storing, sharing, use, processing, disclosure, and protection of personal information and other customer data, the scope of which are changing, subject to differing interpretations, and may be inconsistent among different jurisdictions or conflict with other applicable rules. It is possible that these obligations may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other rules or our business practices.

Additionally, with advances in computer capabilities and data protection requirements to address ongoing threats, we may be required to expend significant capital and other resources to protect against potential security breaches or to alleviate problems caused by security breaches.

Any failure or perceived failure by us to comply with our privacy policies, our privacy-related obligations to customers or other third parties, or our privacy-related legal obligations, or any compromise of security that results in the unauthorized release or transfer of personally identifiable information or other customer data, may result in governmental enforcement actions, fines, or litigation. If there is a breach of credit or debit card information that we store, we could also be liable to the issuing banks for their cost of issuing new cards and related expenses. In addition, a significant breach could result in our being prohibited from processing transactions for any of the relevant network organizations, such as Visa or MasterCard, which would harm our business. If any third parties with whom we work, such as marketing partners, vendors, or developers, violate applicable laws or our policies, such violations may put our customers’ information at risk and could harm our business. Any negative publicity arising out of a data breach or failure to comply with applicable privacy requirements could damage our reputation and cause our customers to lose trust in us, which could harm our business, results of operations, financial position, and potential for growth.

We may be harmed by certain imminent FCC Orders and rules that effect the telecommunications marketplace.

In the Telephone Robocall Abuse Criminal Enforcement and Deterrence, or TRACED, Act, Congress gave the FCC new tools to fight unwanted, and often illegal, robocalls, the top consumer complaint reported to the FCC annually. The TRACED Act required the FCC to mandate the STIR/SHAKEN caller identification framework. STIR/SHAKEN enables phone companies to verify that the caller ID information transmitted with a call matches the caller’s real phone number. The FCC has issued a series of Orders and adopted several rules to implement ~~the TRACED Act. For example, by June 30, 2021, many domestic and foreign carriers were required~~ ~~to register with~~ the ~~FCC specifically for~~ TRACED Act ~~compliance~~. Initially, the FCC concluded that by September 28, 2021, we and other similarly situated carriers would not be able to accept certain IP-based telecommunications traffic from foreign and domestic carrier partners unless those carriers were registered with the FCC. However, the FCC temporarily suspended this obligation while it reconsiders its impact. We believe the FCC will eventually reinstate the rule or implement a new rule that will have a comparable impact upon us and the industry as a whole. We also believe the FCC will continue to address and refine its rules in this area. Of equal importance, carriers such as us have the right to “sign” their traffic, effectively attesting that the traffic they are transmitting is not illegal robocalls.

The FCC’s rules present several concerns to all carriers. Notably, the ~~rules~~FCC ~~extend~~has toprohibited ~~many~~STIR/SHAKEN ~~foreign~~compliant carriers, ~~and~~such itas ~~is unclear whether foreign carriers will be sufficiently educated and experienced to implement U.S. rules and regulations. Foreign carrier compliance~~IDT, or ~~the~~from ~~lack~~doing ~~thereof,~~business ~~could~~with ~~impact~~non-compliant ~~U.S.~~ carriers ~~as they seek to meet their own regulatory obligations~~. There may also be changes in the marketplace as foreign carriers may look to limit U.S. carrier partners to whom they transmit calls for termination in the U.S. that are subject to the STIR/SHAKEN rules.

Additionally, the rules extend to many foreign carriers, and it is unclear whether foreign carriers will be sufficiently educated and experienced to implement U.S. rules and regulations. Foreign carrier compliance, or the lack thereof, could impact U.S. carriers as they seek to meet their own regulatory obligations. There may also be changes in the marketplace as foreign carriers may look to limit U.S. carrier partners to whom they transmit calls for termination in the U.S. that are subject to the STIR/SHAKEN rules.

In Canada, the Canadian Radio-Television and Telecommunications Commission, or CRTC is implementing near-identical STIR/SHAKEN rules as the FCC is implementing in the U.S. although it is not apparent whether the CRTC will punish service providers who fail to meet their obligations with the zealousness of the FCC. We expect that additional national communications regulators will implement similar, if not identical, STIR/SHAKEN legislation.

We anticipate meeting our regulatory obligations under the STIR/SHAKEN rules and we are undertaking efforts to prevent us from being harmed by potential changes in the marketplace. Nevertheless, the FCC’s rules allow for the possibility that well-prepared carriers with anti-robocalling procedures in place may fail and be punished for their failure, despite their best efforts. Moreover, because the STIR/SHAKEN rules may have a significant impact on the telecommunications marketplace, it is difficult to predict their outcome. We are prepared for the implementation of STIR/SHAKEN but are concerned about its impact on the market as a whole and on us specifically.

Federal and state regulations may be passed that could harm our business, financial condition, and results of operations.

Our ability to provide VoIP communications services at attractive rates arises in large part from the fact that VoIP services are not currently subject to the same level of regulation as traditional, switch-based telephony. The use of the Internet and private IP networks to provide voice communications services is largely unregulated within the United States, although several foreign governments have adopted laws and/or regulations that could restrict or prohibit the provision of voice communications services over the Internet or private IP networks. In the United States, the California PUC has initiated a proceeding under which we believe the PUC will expand its authority to regulate interconnected VOIP. Other states are expected to follow the California PUC’s lead. If interconnected VoIP services become subject to state regulation and/or additional regulation by the FCC, such regulation will likely lead to higher costs and reduce or eliminate the competitive advantage interconnected VoIP holds over traditional telecommunications services by virtue of its lesser regulatory oversight. More aggressive regulation of the Internet in general, and Internet telephony providers and services specifically, may materially and adversely affect our business, financial condition, and results of operations.

Our ability to offer services outside of the United States is subject to the local regulatory environment, which may be unfavorable, complicated, and often uncertain.

Regulatory treatment outside the United States varies from country to country. We distribute our products and services through resellers that may be subject to telecommunications regulations in their home countries. The failure of these resellers to comply with these laws and regulations could reduce our revenue and profitability or expose us to audits and other regulatory proceedings. Regulatory developments such as these could have a material adverse effect on our operating results.

In many countries in which we operate, or our services are sold, the status of the laws that may relate to our services is unclear. We cannot be certain that our customers, resellers, or other affiliates are currently in compliance with regulatory or other legal requirements in their respective countries, that they or we will be able to comply with existing or future requirements, and/or that they or we will continue in compliance with any requirements. Our failure or the failure of those with whom we transact business to comply with these requirements could materially adversely affect our business, financial condition, and results of operations.

While we expect additional regulation of our industry in some or all of these areas, and we expect continuing changes in the regulatory environment as new and proposed regulations are reviewed, revised and amended, we cannot predict with certainty what impact new laws in these areas will have on us, if any.

net2phone’s VoIP services are subject to regulation in the United States and Canada. Future legislative, regulatory, or judicial actions could adversely affect net2phone’s business and expose it to liability and limit its growth potential.

The United States and Canada have applied some traditional telephone company regulations to VoIP and continue to evaluate how VoIP should be regulated, as are other countries as we expand globally. The effects of future regulatory developments are uncertain. At the federal level in the United States, the FCC has imposed certain telecommunications regulations on VoIP services including, but not limited to:

	■	Requirements to provide E-911 service;
	■	Communications Assistance for Law Enforcement Act obligations;
	■	Obligation to support Universal Service;
	■	Customer Proprietary Network Information, or CPNI, requirements;
	■	Disability access obligations;
	■	Local Number Portability requirements; and
	■	Consumer protection, including protection from unwanted telemarketing and other calls.

In Canada, the CRTC regulates VoIP Service. These regulated services are similar to those regulated in the United States discussed above. We are subject to a variety of other federal, state and international laws and regulations as well as oversight from a variety of governmental agencies and public service commissions. The laws governing our business may change in ways that harm our business. Federal, state, or international governmental agencies administering and enforcing such laws may also choose to interpret and apply them in ways that harm our business. These interpretations are also subject to change. Regulatory action could materially impair or force us to change our business model and may adversely affect our revenue, increase our compliance costs, and reduce our profitability. In addition, governmental agencies such as the Securities and Exchange Commission, Internal Revenue Service, FTC, FCC, and state taxing authorities may conclude that we have violated federal laws, state laws or other rules and regulations, and we could be subject to fines, penalties or other actions that could adversely impact our financial results or our ability to conduct business.

We are subject to legal proceedings in the ordinary course of business that may have a material adverse effect on our business, results of operations, cash flows, or financial condition.

Various legal proceedings that have arisen or may arise in the ordinary course of business have not been finally adjudicated, which may have a material adverse effect on our results of operations, cash flows, or financial condition (see Note 2322 to our Consolidated Financial Statements in Item 8 to Part II of this Annual Report).

Our telecommunications services are required to comply with industry standards, FCC regulations, privacy laws as well as certain state and local jurisdiction specific regulations. Failure to comply with existing laws and any new laws that may become applicable to us may subject us to penalties, increase our operating costs, and may also require us to modify existing products and/or service.

The acceptance of telecommunications services is dependent upon our meeting certain industry standards. We are required to comply with certain rules and regulations of the FCC regarding safety standards. Standards are continuously being modified and replaced. As standards evolve, we may be required to modify our existing products or develop and support new versions of our products. We must comply with certain federal, state, and local requirements regarding how we interact with our customers, including marketing practices, consumer protection, privacy, and billing issues, the provision of emergency 911 service, and the quality of service we provide to our customers. The failure of our products and services to comply, or delays in compliance with various existing and evolving standards could delay future offerings and impact our revenues and profitability. Changes to the Universal Service Fund by the FCC or various state Universal Service Funds may require us to increase our costs which could negatively affect revenue and profitability.

We are subject to Federal laws and FCC regulations that require us to protect customer information. While we have protections in place to protect customer information there is no assurance that our systems will not be subject to failure or intentional fraudulent attack. The failure to protect required information could subject us to penalties and diminish the confidence our customers have in our systems, which could negatively affect results. While we try to comply with all applicable data protection laws, regulations, standards, and codes of conduct, as well as our own posted privacy policies and contractual commitments to the extent possible, any failure by us to protect our customers’ privacy and data, including as a result of our systems being compromised by hacking or other malicious or surreptitious activity, could result in a loss of customer confidence in our services and ultimately in a loss of customers, which could materially and adversely affect our business as well as subject us to law suits, civil fines and criminal penalties.

Governmental entities, class action lawyers, and consumer advocates are reviewing the data collection and use by companies that must maintain such data. Our own requirements as well as regulatory codes of conduct, enforcement actions by regulatory agencies, and lawsuits by other parties could impose additional compliance costs on us as well as subject us to unknown potential liabilities. These evolving laws, rules, and practices may also curtail our current business activities, which may delay or affect our ability to become profitable as well as affect customers and other business opportunities.

In addition, several foreign countries and governmental bodies, including the EU, Brazil, and Canada, have laws and regulations concerning the collection and use of personally identifiable information obtained from their residents, including payment card information, which are often more restrictive than those in the U.S. Laws and regulations in these jurisdictions apply broadly to the collection, use, storage, disclosure, and security of personally identifiable information, including payment card information identifying, or which may be used to identify, an individual, such as names, email addresses, and, in some jurisdictions, IP addresses, device identifiers, and other data. As we conduct business or become deemed to conduct business in foreign jurisdictions, including through websites that we host that may be available in these locations, we may become subject to those laws and regulations.

We are also subject to privacy and data protection-related obligations in our contracts with our customers and other third parties. Any failure, or perceived failure, to comply with federal, state, or international laws, or to comply with our contractual obligations related to privacy, could result in proceedings or actions against us which could result in significant liability to us as well as harm to our reputation. Additionally, third parties with whom we contract may violate or appear to violate laws or regulations which could subject us to the same risks. Any new laws, regulations, other legal obligations or industry standards, or any changed interpretation of existing laws, regulations or other standards may require us to incur additional costs and restrict our business operations.

Our collection, processing, storage, use, and transmission of personal data could give rise to liabilities because of governmental regulation, conflicting legal requirements, differing views on data privacy, or security breaches.

We engage in electronic billing and processing of our customers using secure transmission of sometimes confidential information over public networks. We have systems and processes in place that are designed to protect consumer information and prevent fraudulent credit card transactions and other security breaches. However, there is no guarantee that such systems and processes will not experience a failure. Our failure to protect against fraud or breaches may subject us to costly breach notification and other mitigation obligations, class action lawsuits, investigations, fines, forfeitures, or penalties from governmental agencies that could adversely affect our operating results. We may be unable to prevent our customers from fraudulently receiving goods and services. Personal data is increasingly subject to legal and regulatory protections around the world, which vary widely in approach and which possibly conflict with one another. In recent years, for example, U.S. legislators and regulatory agencies, such as the FTC, as well as U.S. states have increased their focus on protecting personal data by law and regulation and have increased enforcement actions for violations of privacy and data protection requirements. The CCPA requires, among other things, covered companies to provide new disclosures to California consumers, and afford such consumers new abilities to opt-out of certain sales of personal information. While we believe that we are not a covered entity under the law, the effects of the CCPA potentially are significant, and may require us to modify our data processing practices and policies and to incur substantial costs and expenses ~~in an effort~~ to comply. We may also from time to time be subject to, or face assertions that we are subject to, additional obligations relating to personal data by contract or due to assertions that self-regulatory obligations or industry standards apply to our practices.

We may also experience losses due to customer fraud and theft of service, such as fraudulent credit card transactions. Customers have, in the past, obtained access to our service without paying for monthly service and international toll calls by unlawfully using fraudulently obtained codes. If our existing anti-fraud procedures are not adequate or effective, consumer fraud and theft of service could have a material adverse effect on our business, financial condition, and operating results.

The GDPR and the Data Protection Act in the United Kingdom are intended to protect the privacy and security of personal data, including credit card information that is collected, processed, and transmitted in or from the relevant jurisdiction. We stopped hosting websites in GDPR-complaint countries or countries from which the bulk of business came from countries subject to GDPR. We also took steps to block those countries from accessing any other sites we host. While we do not currently provide services in countries where compliance would be required and are therefore not required to be compliant, if we did provide those services or otherwise were required to become complaint, implementation of and compliance with these laws and regulations may be more costly or take longer than we anticipate, or could otherwise adversely affect our business operations, which could negatively impact our financial position or cash flows.

Additionally, media coverage of data breaches has escalated, in part because of the increased number of enforcement actions, investigations, and lawsuits. As this focus and attention on privacy and data protection increases, we also risk exposure to potential liabilities and costs resulting from compliance with or any failure to comply with applicable legal requirements, conflicts among these legal requirements, or differences in approaches to privacy.

We could fail to comply with requirements for debit card, credit card, and other digital payment methods, which could have a material adverse effect on our revenues, results of operations, and financial condition.

A significant and increasing portion of our transactions are processed using debit cards, credit cards, and other digital payment methods. The banks, credit card companies, networks, and other payment processing providers impose strict regulatory, compliance, system, and other requirements to participate in such parties’ payment systems. We are required to comply with the privacy provisions of various federal and state privacy statutes and regulations, and the PCI DSS, each of which is subject to change at any time. Compliance with PCI DSS does not guarantee a completely secure environment and notwithstanding the results of this assessment there can be no assurance that payment card brands will not request further compliance assessments or set forth additional requirements to maintain access to credit card processing services. Compliance with PCI DSS is an ongoing effort, and the requirements evolve as new threats are identified. Compliance with these requirements is often difficult and costly, and our failure, or our counterparty’s failure, to comply may result in significant fines or civil penalties, regulatory enforcement action, or liability under or termination of necessary agreements, each of which could have a material adverse effect on our financial position and/or operations and that of our distributors who could be liable as well.

Further, our payment services are subject to stringent requirements by regulators and trade organizations in various jurisdictions. Our payment services unit is subject to federal and state banking regulations, and we are also subject to further regulation by those states in which we are licensed as a money transmitter. We may not be able to comply with all such requirements in a timely manner or remain in compliance. If we are not in compliance, we could be subject to penalties or the termination of our rights to participate in such payment systems or provide such services, which could have a material negative impact on our ability to grow our businesses and our revenues and profits.

We face risks in our sales to certain market segments including, but not limited to, sales subject to HIPAA Regulations.

Our customers can use our services to store contact and other personal or identifying information, and to process, transmit, receive, store, and retrieve a variety of communications and messages, including information about their own customers and other contacts. In addition, customers may use our services to store protected health information, or PHI, that is protected under the Health Insurance Portability and Accountability Act, or HIPAA. We have sold and will continue to attempt to sell to certain customer segments which may have requirements for additional privacy or security. In addition, sales may be made to customers that are subject to additional security requirements. Selling into segments with additional requirements increases potential liability that in some instances may be unlimited. While we believe we meet or exceed all requirements for sales to such segments, there is no assurance that our systems fully comply with all requirements. Noncompliance with laws and regulations relating to privacy and HIPAA may lead to significant fines, penalties, or civil liability.

Our ability to offer services outside the United States is subject to different regulations which may be unknown and uncertain.

Regulatory treatment of VoIP providers outside the United States varies from country to country, and local jurisdictions. Many times, the laws are vague, unclear and regulations are not enforced uniformly. We are licensed as a VoIP seller in our international markets and are considering expanding to other countries. We also cannot control if our customers take their devices out of the United States and use them abroad. Our resellers may sell to customers who maintain facilities outside the United States. The failure by us or our customers and resellers to comply with laws and regulations could reduce our revenue and profitability. As we expand to additional countries there may be additional regulations that we are required to comply with, the failure to comply or properly assess regulations may subject us to penalties, fines, and other actions that could materially affect our business.

Examinations by relevant tax authorities may result in material changes in related tax reserves for tax positions taken in previously filed tax returns or may impact the valuation of certain deferred income tax assets, such as net operating loss carry-forwards.

Based on the outcome of examinations by relevant tax authorities, or because of the expiration of statutes of limitations for specific jurisdictions, it is reasonably possible that the related tax reserves for tax positions taken regarding previously filed tax returns will materially change from those recorded in our financial statements. In addition, the outcome of examinations may impact the valuation of certain deferred income tax assets (such as net operating loss carry-forwards) in future periods. It is not possible to estimate the impact of the amount of such changes, if any, on previously recorded uncertain tax positions.

There may be a negative effect on our business going forward because of changes to net neutrality.

The principle that Internet service providers should treat all Internet communications equally, and not charge users different rates for ~~various~~ various tiers of service or prioritize certain traffic while blocking or slowing down others, is called net neutrality. On January 4, 2018, the FCC released an order that largely repealed prior FCC rules that prevented broadband internet access providers from degrading or otherwise disrupting a broad range of services provisioned over consumers’ and enterprises’ broadband internet access lines. ~~Many~~In ~~of the largest providers of broadband services, like cable companies and traditional telephone companies, have publicly stated~~January ~~that they will not degrade or disrupt their customers’ use of applications and services~~2025, ~~like ours. However, there was no guarantee that they would not do so in~~ the ~~future~~U. ~~If such providers were to degrade, impair, or block our services, it would negatively impact our ability to provide services to our customers, and we would likely lose revenue and profits~~S. WeCourt ~~would~~of ~~probably~~Appeals ~~incur~~for legal fees in an attempt to restore our customers’ access to our services. Broadband internet access providers may also attempt to charge us or our customers additional fees to access services like ours that may result in the ~~loss~~Sixth ofCircuit ~~customers~~struck ~~and~~down revenue, or increase our costs thereby reducing our profitability, or make our services less competitive if we increase our rates to our customers. President Biden and numerous Senators have criticized the ~~status~~FCC’s ofJanuary ~~net~~2018 ~~neutrality, at this time we are not aware if there will be legislation that might reimpose the prior regulations~~order.

~~Following~~Many of the ~~adoption~~largest providers of ~~the~~broadband ~~January 4~~services, ~~2018~~like ~~order,~~cable acompanies ~~number~~and oftraditional ~~states~~telephone ~~passed~~companies, ~~laws~~have ~~establishing~~publicly ~~rules~~stated ~~similar~~that tothey will ~~those~~not ~~that~~degrade ~~existed~~or ~~prior~~disrupt totheir ~~the effective~~customers’ ~~date~~use of ~~the~~applications ~~January~~and 4services, ~~2018~~like ~~order~~ours. However, wethere ~~cannot~~was ~~rely~~no onguarantee ~~those~~that they ~~state~~would ~~laws~~not ~~because~~do ofso in the ~~uncertainty~~future. asIf such providers were to ~~whether~~degrade, ~~states have~~impair, ~~the~~or ~~authority~~block toour ~~establish~~services, ~~rules~~it ~~that~~would ~~could~~negatively beimpact ~~interpreted~~our ability to ~~conflict~~provide ~~with~~services ~~the~~to ~~January~~our 4customers, ~~2018~~and ~~order.~~we ~~The~~would Ulikely lose revenue and profits.S. ~~Department~~We ofwould ~~Justice~~probably incur legal fees in an ~~has~~attempt ~~taken~~to ~~the~~restore ~~position~~our ~~that~~customers’ ~~local~~access ~~authorities~~to doour ~~not~~services. ~~have~~Broadband ~~the~~internet ~~authority~~access providers may also attempt to ~~contradict~~charge us or our customers additional fees to access services like ours that may result in the ~~FCC’s~~loss ~~January~~of 4customers and revenue, ~~2018~~or ~~order.~~increase Weour ~~cannot~~costs ~~predict~~thereby ~~the~~reducing ~~ultimate~~our ~~outcome~~profitability, ofor ~~these~~make ~~disputes~~our services less competitive if we increase our rates to our customers.

Following the adoption of the FCC’s January 2018 order, several states passed state-level net neutrality laws. However, we cannot rely on those state laws because of potential opposition from the federal government. We cannot predict the ultimate outcome of these disputes.

States are adding regulations for VoIP providers which could increase our costs and change certain aspects of our service.

Certain states take the position that offerings by VoIP providers may include intrastate communications and should therefore be subject to state regulation including state taxes or surcharges. We have registered as an interconnected VoIP provider in those states where registration is required; however, our rates are not regulated in the same manner as traditional telephone service providers. We believe that the FCC has pre-empted states from regulating VoIP providers in the same manner as providers of traditional telecommunications services. We cannot predict how this issue will be resolved or its impact on our business at this time.

Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value added, or similar taxes, and any such assessments could adversely affect our business, financial condition, and results of operations.

Jurisdictions in which we do not collect sales, use, value added, or similar taxes on VoIP services or other products may assert that such taxes are applicable, which could result in tax assessments, penalties, and interest, and we may be required to collect such taxes in the future. Such tax assessments, penalties, interest, or future requirements could adversely affect our financial condition and results of operations. Further, in June 2018, the Supreme Court held in South Dakota v. Wayfair, Inc. that states could impose sales tax collection obligations on out-of-state sellers even if those sellers lack any physical presence within the states imposing the sales taxes. Under Wayfair, a person requires only a “substantial nexus” with the taxing state before the state may subject the person to sales tax collection obligations therein. An increasing number of states (both before and after the publication of Wayfair) have considered or adopted laws that attempt to impose sales tax collection obligations on out-of-state sellers. The Supreme Court’s Wayfair decision has removed a significant impediment to the enactment and enforcement of these laws, and it is possible that states may seek to tax out-of-state sellers on sales that occurred in prior tax years, which could create additional administrative burdens for us, put us at a competitive disadvantage if such states do not impose similar obligations on our competitors, and decrease our future sales, which would adversely impact our business, financial condition, and results of operations.

Risks Related to Our Capital Structure

Holders of our Class B common stock have significantly less voting power than holders of our Class A common stock.

Holders of our Class B common stock are entitled to one-tenth of a vote per share on all matters on which our stockholders are entitled to vote, while holders of our Class A common stock are entitled to three votes per share. As a result, the ability of holders of our Class B common stock to influence our management is limited.

We are controlled by our principal stockholder, which limits the ability of other stockholders to affect the management of the Company.

Howard S. Jonas, our Chairman and Chairman of the Board of Directors, controls a majority of the voting power of our capital stock. As of ~~October~~September 724, ~~2024~~2025, Mr. Jonas has voting power over 1,574,326 shares of our Class A common stock (which are convertible into shares of our Class B common stock on a 1-for-1 basis) and 2,~~645~~630,~~360~~045 shares of our Class B common stock, representing approximately 70.43% of the combined voting power of our outstanding capital stock. Mr. Jonas will be able to control all matters requiring approval by our stockholders, ~~including~~ including the election of all of the directors and the approval of significant corporate matters, including any merger, consolidation or sale of all or substantially all of our assets. As a result, the ability of any of our other stockholders to influence our management is limited.

Item 1B. Unresolved Staff Comments.

None.

Item 1C. Cybersecurity.

Cybersecurity risk management and strategy

Our cybersecurity risk management is based on recognized cybersecurity industry frameworks and standards, including those of the National Institute of Standards and Technology, the Center for Internet Security Controls, and the International Organization for Standardization. We use these frameworks, together with information collected from internal assessments, to develop policies for the use of our information assets (for example, business information and information resources such as mobile phones, computers and workstations), access to specific intellectual property or technologies, and protection of personal information. We protect these information assets through industry-standard techniques, such as multifactor authentication and malware defenses. We also work with internal stakeholders across the company to integrate foundational cybersecurity principles throughout our organization’s operations, including the employment of multiple layers of cybersecurity defenses, restricted access based on business needs, and integrity of our business information. We also regularly train our employees on cybersecurity awareness, confidential information protection and simulated phishing attacks.

We regularly engage third-party assessors to conduct penetration testing and measure our program to industry standard frameworks. We also have standing engagements with incident response experts and external counsel. We frequently collaborate with industry experts and cybersecurity practitioners at other companies to exchange information about potential cybersecurity threats, best practices and trends.

Our cybersecurity risk management extends to risks associated with our use of third-party service providers. For instance, we conduct risk and compliance assessments of third-party service providers that request access to our information assets.

Our cybersecurity risk management is an important part of our comprehensive business continuity program and enterprise risk management. Our global information security team periodically engages with a cross-functional group of subject matter experts and leaders to assess and refine our cybersecurity risk posture and preparedness. For example, we regularly evaluate and update contingency strategies for our business in the event that a portion of our information resources were to be unavailable due to a cybersecurity incident. We practice our response to potential cybersecurity incidents through regular tabletop exercises, threat hunting and red team exercises.

Governance of cybersecurity risk management

Our Board of Directors, as a whole, has oversight responsibility for our strategic and operational risks. Our Audit Committee of our Board of Directors assists the Board of Directors with this responsibility by reviewing and discussing our risk assessment and risk management practices, including cybersecurity risks, with members of management. The Audit Committee, in turn, periodically reports on its review with the Board of Directors.

Management is responsible for day-to-day assessment and management of cybersecurity risks and reports regularly to our Audit Committee.

Item 2. Properties.

Our headquarters is ~~in a building~~ located at 520 Broad Street, Newark, New Jersey. We occupy approximately 5742,~~000~~300 square feet of ~~office~~ space in this building and have parking rights in a parking garage located across the street at 36 Atlantic Street, Newark, New Jersey~~, both of which were previously owned by Rafael Holdings~~. ~~We also lease approximately 3,600 square feet of office space in Jerusalem, Israel that is owned by Rafael Holdings. The Newark lease expires in April 2025 and the Israel lease expires in July 2025.~~

41We also occupy approximately 3,600 square feet of office space in Jerusalem, Israel that is owned by Rafael Holdings.

We lease space in New York, New York for corporate purposes as well as a number of other locations in metropolitan areas. These leased spaces are utilized primarily to house telecommunications equipment and retail operations.

We maintain our European headquarters in London, England. We also maintain other international office locations and telecommunications facilities in regions of Europe, Latin America, the Middle East, Asia, and Africa where we conduct operations.

Item 3. Legal Proceedings.

Legal proceedings disclosure is presented in Note 2322 to our Consolidated Financial Statements in Item 8 to Part II of this Annual Report.

Item 4. Mine Safety Disclosures.

Not applicable.

Part II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our Class B common stock trades on the New York Stock Exchange under the symbol “IDT.”

On ~~October~~September 722, ~~2024~~2025, there were ~~268~~254 holders of record of our Class B common stock and one holder of record of our Class A common stock. ~~All~~ All shares of Class A common stock are beneficially owned by Howard S. Jonas, our Chairman and the Chairman of the Board. The number of holders of record of our Class B common stock does not include the number of persons whose shares are in nominee or in “street name” accounts through brokers. On ~~October~~September 722, ~~2024~~2025, the last sales price reported on the New York Stock Exchange for our Class B common stock was $3868.1030 per share.

In fiscal 2018, our Board of Directors discontinued our quarterly dividend, electing instead to repurchase shares of our Class B common stock when warranted by market conditions, available resources, and our business outlook and results, as well as to invest in our growth business initiatives. Accordingly, no dividends were paid since fiscal 2018 until fiscal 2024.

In March 2024, our Board of Directors initiated a quarterly cash dividend of $0.05 per share on our Class A and Class B common stock. In fiscal 2024, we paid aggregate cash dividends of $2.5 million on our Class A and Class B common stock.

WeIn fiscal 2025, we paid a dividend of $0.05 per share on our Class A and Class B common stock on each of October 7, 2024 toand ~~stockholders~~December 31, 2024 and a dividend of ~~record~~$0.06 asper share on our Class A and Class B common stock on each of ~~the~~March ~~close~~25, 2025 and June 18, 2025. In fiscal 2025, we paid aggregate cash dividends of ~~business~~$5.6 million on ~~September~~our ~~30,~~Class ~~2024~~A and Class B common stock.

~~The~~In ~~information~~September ~~required~~2025, bywe ~~Item~~declared ~~201(d)~~a dividend of ~~Regulation~~$0.06 ~~S-K~~per ~~will~~share beon ~~contained in~~ our ~~Proxy~~Class ~~Statement~~A ~~for~~and ~~our~~Class ~~Annual~~B ~~Stockholders~~common ~~Meeting,~~stock ~~which we~~that ~~will~~is ~~file~~payable ~~with~~on ~~the~~October ~~Securities and Exchange Commission within 120 days after July 31~~10, ~~2024, and which is incorporated by reference herein~~2025.

42The information required by Item 201(d) of Regulation S-K will be contained in our Proxy Statement for our Annual Stockholders Meeting, which we will file with the Securities and Exchange Commission within 120 days after July 31, 2025, and which is incorporated by reference herein.

Performance Graph of Stock

Issuer Purchases of Equity Securities

The following table provides information with respect to purchases by us of our shares during the fourth quarter of fiscal ~~2024~~2025.

	Total Number of Shares Purchased		Average Price per Share		Total Number of Shares Purchased as part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(1)
May 1 – 31, 2024		1,479	$	36.09		1,479		4,496,621
May 1 – 31, 2025		—		—		—		4,496,621
June 1 – 30, 2024		80,507	$	36.13		80,507		4,416,114
June 1 – 30, 2025		—		—		—		4,416,114
July 1 – 31, 2024		12,328	$	36.22		12,328		4,403,786
July 1 – 31, 2025		—		—		—		4,403,786
Total		~~94,314~~—	$	~~36.15~~—		~~94,314~~—

(1)	On January 22, 2016, our Board of Directors approved a stock repurchase program to purchase up to 8.0 million shares of our Class B common stock.

4344

Item 6. [Reserved]

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that contain the words “believes,” “anticipates,” “expects,” “plans,” “intends” and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, those discussed under Item 1A to Part I “Risk Factors” in this Annual Report. The forward-looking statements are made as of the date of this Annual Report, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth in this report and the other information set forth from time to time in our reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including our ~~reports~~periodic and current reports on Forms 10-Q and 8-K.

The following discussion should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Annual Report.

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Annual Report generally discusses fiscal ~~2024~~2025 and fiscal ~~2023~~2024 items and year-to-year comparisons between fiscal ~~2024~~2025 and fiscal ~~2023~~2024. Discussions of fiscal ~~2022~~ 2023 items and year-to-year comparisons between fiscal 2024 ~~2023~~ and fiscal ~~2022~~2023 that are not included in this Annual Report can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31, ~~2023~~ 2024.

CRITICAL ACCOUNTING ESTIMATES

Our financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses as well as the disclosure of contingent assets and liabilities. Critical accounting estimates are estimates made in accordance with U.S. GAAP that involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. Our critical accounting estimates include those related to goodwill impairment testing, valuation of long-lived assets, allowance for credit losses, and income taxes, sales taxes, and regulatory agency fees. See Note 1 to the Consolidated Financial Statements in Item 8 to Part II of this Annual Report for a complete discussion of our significant accounting policies.

Goodwill Impairment Testing

Under U.S. GAAP, goodwill is not amortized but is reviewed annually for impairment at a level of reporting referred to as a reporting unit. A reporting unit is an operating segment, or one level below the operating segment, depending on whether certain criteria are met.

Our annual assessment date is May 1. An interim impairment test would be required whenever events or circumstances make it more likely than not that an impairment may have occurred. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount. We would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill. Additionally, we consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.

We have the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. However, we may elect to perform the quantitative goodwill impairment test even if no indications of a potential impairment exist.

The carrying amount of our goodwill by reporting unit was as follows:

(in millions) July 31	~~2024~~2025		~~2023~~2024
Retail Communications	$	11.23	$	11.2
net2phone		9.89		9.98
Fintech		3.2		3.2
IDT Digital Payments		2.1		2.21
TOTAL	$	26.35	$	26.53

4445

For our annual goodwill impairment test as of May 1, ~~2024~~2025, we performed ~~quantitative assessments of our Retail Communications and net2phone reporting units and~~ qualitative assessments for ~~our~~all ~~Fintech~~of ~~and~~our ~~IDT Digital Payments~~ reporting units. ~~Our~~that ~~assessments~~indicated ~~did~~that ~~not~~it ~~indicate any~~was ~~goodwill~~more ~~impairment~~likely asthan ofnot ~~May~~that ~~1, 2024. For~~ the ~~quantitative assessments, we calculated the~~ fair ~~value~~values of ~~the~~our reporting ~~unit~~units ~~using a~~exceeded ~~discounted~~their ~~cash~~respective ~~flow~~carrying ~~method~~values ~~as a form of the income approach. The discounted cash flow method is based on the present value of projected cash flows~~ and, atherefore, ~~terminal~~did ~~value.~~not ~~The~~result ~~terminal~~in ~~value~~an ~~represents the expected normalized future cash flows of the reporting unit beyond the projection period~~impairment. We use a discount rate based on the weighted-average cost of capital of comparable companies by Global Industry Classification Standard code that represents our estimate of the expected return a marketplace participant would have required.

For our annual goodwill impairment test as of May 1, ~~2023~~2024, we performed ~~qualitative~~quantitative assessments ~~for all~~ of our Retail Communications and net2phone reporting units ~~that~~and ~~indicated~~qualitative assessments ~~that~~for itour ~~was~~Fintech ~~more~~and ~~likely~~IDT ~~than~~Digital Payments reporting units. Our assessments did not ~~that~~indicate any goodwill impairment as of May 1, 2024. For the quantitative assessments, we calculated the fair ~~values~~value of ~~our~~the reporting ~~units~~unit ~~exceeded~~using ~~their~~a ~~respective~~discounted ~~carrying~~cash ~~values~~flow method as a form of the income approach. The discounted cash flow method is based on the present value of projected cash flows and, ~~therefore,~~a terminal value. The ~~did~~terminal ~~not~~value ~~result~~represents inthe anexpected ~~impairment~~normalized future cash flows of the reporting unit beyond the projection period. We used a discount rate based on the weighted-average cost of capital of comparable companies by Global Industry Classification Standard code that represented our estimate of the expected return a marketplace participant would have required.

We do not believe we are currently at risk of goodwill impairment based on qualitative assessments of our reporting units for the three months ended July 31, ~~2024~~2025. We considered several factors in these qualitative assessments including (i) the business enterprise value of the reporting unit from the last quantitative test and the excess of the fair value over carrying value, (ii) macroeconomic conditions including changes in interest rates and discount rates, (iii) industry and market considerations including industry revenue, EBITDA margins, and multiples based on business enterprise value to revenues and to EBITDA, and (iv) the recent financial performance and budget of the reporting unit.

Calculating the fair value of a reporting unit requires significant estimates and assumptions by management. The key assumptions and judgments underlying our quantitative assessment include the discount rates and terminal growth rates used in our discounted cash flow analysis, the revenue and EBITDA projections for our reporting units, and estimates of future levels of gross and operating profits and capital expenditures. Should the estimates and assumptions regarding the fair value of the reporting units prove to be incorrect, we may be required to record impairments to goodwill in future periods.

Valuation of Long-Lived Assets

We test the recoverability of our long-lived assets whenever events or changes in circumstances indicate that the carrying value of any such asset may not be recoverable. Such events or changes in circumstances include:

■§ significant actual underperformance relative to expected performance or projected future operating results; ■ significant changes in the manner or use of the asset or the strategy of our overall business; ■ significant adverse changes in the business climate in which we operate; and ■ loss of a significant contract.

~~There were~~§ nosignificant ~~such events or~~ changes in ~~circumstances~~the inmanner ~~fiscal 2024~~ or ~~fiscal~~use ~~2023. If we determine that events or changes in circumstances indicate the carrying value~~ of ~~certain long-lived assets may not be recoverable, we test for impairment based on~~ the ~~projected undiscounted cash flows to be derived from such~~ asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, we will record an impairment loss based on the difference between the estimated fair value and the carrying value of the asset. We generally measure fair value by considering sale prices for similar assets or ~~by discounting estimated future cash flows from~~ the ~~asset~~strategy ~~using an appropriate discount rate. Cash flow projections for specific assets and fair value estimates~~ of ~~assets require significant estimates and assumptions by management that have a significant level of estimation uncertainty. Should~~ our ~~estimates~~overall ~~and assumptions prove to be incorrect, we may be required to record impairments in future periods and such impairments could be material.~~business;

significant adverse changes in the business climate in which we operate; and

loss of a significant contract.

There were no such events or changes in circumstances in fiscal 2025 or fiscal 2024. If we determine that events or changes in circumstances indicate the carrying value of certain long-lived assets may not be recoverable, we test for impairment based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, we will record an impairment loss based on the difference between the estimated fair value and the carrying value of the asset. We generally measure fair value by considering sale prices for similar assets or by discounting estimated future cash flows from the asset using an appropriate discount rate. Cash flow projections for specific assets and fair value estimates of assets require significant estimates and assumptions by management that have a significant level of estimation uncertainty. Should our estimates and assumptions prove to be incorrect, we may be required to record impairments in future periods and such impairments could be material.

Allowance for Credit Losses on Accounts Receivable

Our allowance for credit losses was $9.1 million and $6.4 million at July 31, ~~2024~~2025 and ~~our~~2024, ~~allowance~~respectively, ~~for~~partially ~~doubtful~~due ~~accounts~~to ~~was~~an ~~$5.6~~increase ~~million~~in atcredit ~~July~~losses ~~31,~~related ~~2023~~to ads and data. The allowance as a percentage of gross trade accounts receivable ~~decreased~~ increased to 1317.15% at July 31, ~~2024~~2025 from 1513.01% at July 31, ~~2023~~2024 because, at July 31, ~~2024~~2025 compared to July 31, ~~2023~~2024, gross trade accounts receivable increased ~~28.~~7.0% and the allowance increased 1243.62%. The most significant ~~increases~~increase in the trade accounts receivable balance at July 31, 2025 ~~2024~~ compared to July 31, ~~2023~~2024 ~~were~~was in NRS ~~and IDT Global~~.

~~On August~~For 1,our ~~2023,~~allowance wefor ~~adopted~~trade ~~Accounting~~accounts ~~Standards Update~~receivable, ~~or ASU, No. 2016-13, Financial Instruments—Credit Losses (Topic 326),~~ ~~Measurement of Credit Losses on Financial Instruments. Effective with the adoption of ASU 2016-13,~~ we record an expense based on a forward-looking current expected credit loss model to maintain our allowance for credit losses. ~~When~~We ~~determining the allowance for trade accounts receivable, we~~ consider the probability of recoverability of accounts receivable based on past experience, ~~taking~~considering ~~into account~~ current collection trends and general economic factors, including bankruptcy rates. We also consider future economic trends to estimate expected credit losses over the lifetime of the asset. Credit risks are assessed based on historical write-offs, net of recoveries, as well as an analysis of the aged accounts receivable balances with allowances generally increasing as the receivable ages. Accounts receivable may be fully reserved for when specific collection issues are known to exist, such as pending bankruptcies. Account balances are written off against the allowance when it is determined that the receivable will not be recovered.

4546

Our allowance for credit losses estimate is subject to change due to new developments, changes in assumptions or changes in our strategy. We continually assess the likelihood of potential amounts or ranges of recoverability and adjust our allowance accordingly,; however, actual collections and write-offs of trade accounts receivables may materially differ from our estimates.

Income Taxes, Sales Taxes, and Regulatory Agency Fees

Our current and deferred income taxes and associated valuation allowance, accruals for sales taxes, and telecom regulatory agency fee accruals, are impacted by events and transactions arising in the normal course of business as well as in connection with special and non-routine items. Assessment of the appropriate amount of income taxes, sales taxes, and regulatory agency fees is dependent on several factors, including estimates of the timing and realization of deferred income tax assets, judgments about the potential results of audits and applicability of regulatory agency rules and regulations, as well as judgments and assumptions about changes in income tax, sales tax, and regulatory agency laws, rules, or regulations.

AsThe valuation allowance on our deferred income tax ofassets was $14.9 million and $13.6 million at July 31, 2025 and 2024, ~~net2phone had U~~respectively.S. ~~federal~~In ~~net~~fiscal ~~operating~~2025, ~~loss~~we ~~carryforwards~~decreased ofthe ~~approximately~~valuation allowance by $113.4 million, ~~which~~due ~~will~~to ~~expire~~profitability ~~through fiscal~~in ~~2027.~~the ~~With~~United ~~our~~Kingdom, ~~reacquisition~~offset by $4.7 million of ~~net2phone~~additions in ~~March~~other ~~2006,~~jurisdictions. ~~its~~In ~~losses~~fiscal ~~were~~2024, ~~limited~~we ~~under~~increased ~~Internal~~the ~~Revenue~~valuation ~~Code,~~allowance orby ~~IRC~~$3.0 million, ~~Section~~which ~~382~~included tothe ~~approximately~~establishment of a valuation allowance of $73.5 million ~~per~~for ~~year.~~deferred Inincome ~~fiscal~~tax ~~2024,~~assets wethat ~~had~~were annot ~~IRC~~more ~~Section~~likely ~~382~~than ~~study~~not going ~~conducted~~to onbe ~~the~~utilized ~~reacquisition~~prior ~~and~~to ~~the~~expiration, ~~limitation was~~net ~~adjusted~~of toa decrease of $90.2 million ~~per~~due ~~year.~~to Wethe ~~recorded~~utilization aor ~~tax~~disposal ~~benefit~~of ~~related~~previously tovalued ~~the~~deferred income ~~adjusted~~tax ~~amount~~assets and a release of $230.63 million for profitability in ~~fiscal~~the ~~2024~~United Kingdom.

The valuation allowance on our deferred income tax assets was $13.6 million and $10.6 million at July 31, 2024 and 2023, respectively. In fiscal 2024, we increased the valuation allowance by $3.0 million, which included the establishment of a valuation allowance of $3.5 million for deferred income tax assets that were not more likely than not going to be utilized prior to expiration, net of a decrease of $0.2 million due to the utilization or disposal of previously valued deferred income tax assets and a release of $0.3 million for profitability in the United Kingdom. In fiscal 2023, we decreased the valuation allowance by $1.0 million, which included a decrease of $2.8 million due to the utilization or disposal of previously valued deferred income tax assets and a release of $0.7 million for profitability in the United Kingdom, net of an establishment of $2.5 million for deferred income tax assets that were not more likely than not going to be utilized prior to expiration.

On June 21, 2018, the United States Supreme Court rendered a decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning certain existing court precedent. It is possible that one or more jurisdictions may assert that we have liability for periods for which we have not collected sales, use or other similar taxes, and if such an assertion or assertions were successful it could materially and adversely affect our business, financial position, and operating results. One or more jurisdictions may change their laws or policies to apply their sales, use or other similar taxes to our operations, and if such changes were made it could materially and adversely affect our business, financial position, and operating results.

Our 2017 FCC Form 499-A, which reported our calendar year 2016 revenue, was audited by the USAC. The USAC’s final decision imposed a $2.9 million charge on us for the Federal Telecommunications Relay Service, or TRS, Fund. We have appealed the USAC’s final decision to the FCC and we do not intend to remit payment for the TRS Fund fees unless and until a negative decision on our appeal has been issued. We have made certain changes to our filing policies and procedures for years that remain potentially under audit. At July 31, ~~2024~~2025 and ~~2023~~ 2024, our accrued expenses included $2521.91 million and $2625.89 million, respectively, for FCC-related regulatory fees for the year covered by the audit, as well as prior and subsequent years.

RECENTLY ISSUED ACCOUNTING ~~STANDARDS~~STANDARD NOT YET ADOPTED

In ~~December~~ ~~2023~~September 2025, the ~~Financial Accounting Standards Board, or~~ FASB, issued ASU ~~No. 2023~~2025-~~09,~~06 ~~Income~~– ~~Taxes~~Intangibles ~~(Topic~~– ~~740),~~Goodwill ~~Improvements to~~and ~~Income~~Other ~~Tax~~– ~~Disclosures,~~Internal-Use Software ~~primarily~~(Subtopic ~~related~~350-40): Targeted Improvements to the ~~rate~~Accounting ~~reconciliation~~for ~~and~~Internal-Use ~~income~~Software, ~~taxes~~which ~~paid~~simplifies ~~disclosures~~the ascapitalization ~~well~~guidance by asremoving ~~certain~~all ~~other amendments~~references to ~~income~~software ~~tax~~development ~~disclosures.~~project ~~Entities~~stages ~~will~~so bethat ~~required~~the onguidance anis ~~annual~~neutral ~~basis~~ to ~~consistently~~different ~~categorize~~software ~~and~~development ~~provide greater disaggregation~~methods. ofThe ~~rate~~amendments ~~reconciliation~~in ~~information~~this ~~and~~ASU ~~further~~are ~~disaggregate~~effective ~~their~~for ~~income~~annual ~~taxes~~reporting ~~paid.~~periods Webeginning ~~will~~after ~~adopt~~December ~~the~~15, ~~amendments~~2027, inand ~~this~~interim ~~ASU~~reporting ~~for our~~periods ~~fiscal~~within ~~year~~those ~~beginning~~annual onreporting ~~August 1~~periods, ~~2025~~with early adoption permitted. The amendments in this ~~ASU~~update ~~should~~permit bean ~~applied~~entity onto apply the new guidance using a prospective ~~basis~~, ~~although~~ retrospective ~~application~~ isor ~~permitted~~modified transition approach. We are ~~evaluating~~currently in the ~~impact~~process ~~that~~of ~~this~~evaluating ~~ASU~~the ~~will~~effects of ~~have~~this pronouncement on our consolidated financial statements.

In ~~December~~ ~~2023~~November 2024, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. ~~2023~~2024-0803, Income ~~Intangibles~~Statement-~~Goodwill~~Reporting ~~and~~Comprehensive ~~Other~~Income-~~Crypto~~Expense Disaggregation ~~Assets~~Disclosures (Subtopic ~~350~~220-6040), ~~Accounting for~~to ~~and~~improve ~~Disclosure~~the ofdisclosures ~~Crypto~~about ~~Assets,~~an ~~that~~entity’s ~~changes~~expenses ~~the~~including ~~accounting~~more ~~for~~detailed information ~~crypto~~about ~~assets~~the ~~from~~types aof ~~cost-less-impairment~~expenses ~~model~~in tocommonly ~~fair~~presented ~~value, with~~expense ~~changes~~captions. ~~recognized~~At ineach ~~net~~interim ~~income~~and ~~each~~annual reporting period., ~~The~~entities will ~~ASU~~disclose ~~also~~in ~~requires~~tabular ~~enhanced~~format ~~disclosures~~disaggregating ~~including,~~information ~~among~~about ~~other~~prescribed ~~things, the~~categories ~~name,~~underlying ~~cost~~relevant ~~basis,~~income ~~fair~~statement ~~value~~captions, as ~~and~~well ~~number~~as ofthe ~~units~~total ~~for~~amount ~~each~~of ~~significant~~selling ~~holding,~~expense and a ~~rollforward~~description of ~~annual~~the ~~activity~~composition ~~including~~of ~~additions, dispositions,~~its ~~gains,~~selling ~~and losses~~expense. We will adopt the amendments in this ASU for our fiscal year beginning on August 1, ~~2025~~2027. ~~The ASU requires a cumulative-effect adjustment to the opening balance of retained earnings as of adoption.~~ We are evaluating the impact that this ASU will have on our consolidated financial statements.

RESULTS OF OPERATIONS

We evaluate the performance of our business segments based primarily on income (loss) from operations. Accordingly, the income and expense line items below income (loss) from operations are only included in our discussion of consolidated results of operations.

As of July 31, ~~2024~~2025, we owned 94.0% of the outstanding shares of our subsidiary, net2phone 2.0, Inc., or net2phone 2.0, which owns and operates the net2phone segment, and 81.56% of the outstanding shares of NRS,. ~~and,~~On on a fully diluted basis assuming all the vesting criteria related to various rights granted have been met, we would own 90.01% of the equity of net2phone 2.0 and 79.35% of the equity of NRS.

Reclassifications

From and after August 1, ~~2023~~2024, we ~~include~~reclassified ~~depreciation~~certain customer ~~and~~funds ~~amortization~~for inpending ~~“Direct~~money ~~cost~~transfers ofin ~~revenues”~~our ~~and~~consolidated ~~“Selling,~~financial ~~general and~~statements. ~~administrative”~~In ~~expense.~~the ~~Prior~~consolidated tobalance ~~August~~sheet 1at July 31, ~~2023~~2024, $8.9 million ~~depreciation~~previously ~~and~~included ~~amortization~~in “Settlement liabilities” was areclassified ~~separate~~to ~~caption~~“Customer funds deposits,” and in the consolidated statements of ~~income.~~cash Inflows ~~addition,~~in ~~from~~fiscal 2024 and ~~after~~fiscal ~~August~~2023, 1cash provided by “Trade accounts payable, ~~2023~~accrued expenses, wesettlement ~~are~~liabilities, ~~reporting~~other ~~gross~~current ~~profit~~liabilities, and ~~gross~~other ~~profit~~liabilities” ~~margin~~of in$1.6 million ~~accordance with~~and U$2.S.0 ~~GAAP~~million, inrespectively, was ~~our~~reclassified to cash used in “~~Results~~Customer offunds ~~Operations.~~deposits”. These amounts were reclassified to conform to the current year’s presentation.

From and after February 1, 2024, we reclassified most of our technology and development expenses from “Selling, general and administrative” expense to a new “Technology and development” expense caption in the consolidated statements of income and reclassified an amount that was immaterial in all periods to “Direct cost of revenues.” “Technology and development” expense consists primarily of personnel-related expenses for employees involved in the research, design, development, and maintenance of both new and existing technology products and services, including salaries, benefits, and stock-based compensation. “Technology and development” expense also includes costs for software licenses, subscription services, and other companywide technology tools dedicated for use by our technology and development teams. The costs of third-party contractors that support our technology and development are also included. “Technology and development” expense also includes the costs of product and engineering teams used to support the development of both internal infrastructure and internal-use software, to the extent such costs do not qualify for capitalization. The expenses reclassified to “Direct cost of revenues” are the costs of cloud computing arrangements hosted by a vendor in the production environment incurred by the net2phone segment and NRS, and net2phone’s colocation costs for data centers where net2phone is not fully operational in the cloud. Finally, depreciation and amortization of capitalized internal use software costs was reclassified from “Selling, general and administrative” expense to “Technology and development” expense.

The following table shows the amounts that were reclassified in fiscal 2023 and fiscal 2022 to conform to the current year’s presentation:

Year ended July 31 (in millions)	2023		2022
Selling, general and administrative expense reclassified to:
Direct cost of revenues	$	1.4	$	1.1
Technology and development expense	$	35.2	$	34.9
Depreciation and amortization expense reclassified to:
Direct cost of revenues	$	4.5	$	3.5
Selling, general and administrative expense	$	2.9	$	2.5
Technology and development expense	$	12.8	$	12.1

Concentration of Customers

~~Our most significant customers typically include telecom operators to whom we provide wholesale services and distributors of our retail calling products.~~ While they may vary from quarter to quarter, our five largest customers collectively accounted for 108.39%, 10.83%, and 1210.58% of our consolidated revenues in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively. Our customers with the five largest receivables balance collectively accounted for 2220.74% and 1622.7% of our consolidated gross trade accounts receivable at July 31, ~~2024~~2025 and ~~2023~~2024, respectively. This concentration of customers increases our risk associated with nonpayment by those customers. In an effort to reduce our risk, we perform ongoing credit evaluations of our significant customers, and in some cases, do not offer credit terms to customers, choosing instead to require prepayment. Historically, when we have issued credit, we have not required collateral to support trade accounts receivable from our customers. However, when necessary, we have imposed stricter credit restrictions on our customers. In some cases, this has resulted in our sharply curtailing, or ceasing completely, sales to certain customers. We attempt to mitigate our credit risk related to specific IDT Global customers by also buying services from the customer, in order to create an opportunity to offset our payables and receivables with the customer. In this way, we can continue to sell services to these customers while reducing our receivable exposure risk. When it is practical to do so, we will increase our purchases from IDT Global customers with receivable balances that exceed our applicable payables in order to maximize the offset and reduce our credit risk.

Explanation of Performance Metrics

Our results of operations discussion include the following performance metrics:

■§ for NRS, active POS terminals, payment processing accounts, and recurring revenue, ■§ for net2phone, seats and subscription revenue, and ■§ for Traditional Communications, minutes of use.

NRS uses ~~two~~three key metrics to measure the size of its customer base, including two that are non-GAAP measures: active POS terminals and payment processing accounts. Active POS terminals are the number of POS terminals that have completed at least one transaction in the calendar month. It excludes POS terminals that have not been fully installed by the end of the month. Payment processing accounts are ~~NRS PAY~~ accounts that can generate revenue. It excludes accounts that have been approved but not activated. In addition to the foregoing, NRS’ uses recurring revenue isas a performance metric, which consist of NRS’ revenue in accordance with U.S. GAAP, excluding its revenue from POS terminal sales.

net2phone’s cloud communications offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. net2phone’s subscription revenue is its revenue in accordance with U.S. GAAP excluding its equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil.

The trends and comparisons between periods for the number of active POS terminals, ~~NRS~~payment ~~PAY~~processing accounts, seats served, recurring revenue, and subscription revenue are used in the analysis of NRS’ or net2phone’s revenues and direct cost of revenues and are strong indications of the top-line growth and performance of the business.

Minutes of use is a nonfinancial metric that measures aggregate customer usage during a reporting period. Minutes of use is an important factor in BOSS Revolution’s and IDT Global’s revenue recognition since satisfaction of our performance obligation occurs when the customer uses our service. Minutes of use trends and comparisons between periods are used in the analysis of revenues and direct cost of revenues.

Year Ended July 31, ~~2024~~2025 compared to Year Ended July 31, ~~2023~~2024

The following table sets forth certain items in our statements of income as a percentage of our total revenues:

Year ended July 31	~~2024~~2025			~~2023~~2024			~~2022~~2023
REVENUES:
National Retail Solutions		810.65	%		68.26	%		36.82	%
Fintech		1012.06			710.0			4.7.0
net2phone		67.81			56.8			45.38
Traditional Communications		7469.68			8174.06			8781.20
TOTAL REVENUES		100.0			100.0			100.0
DIRECT COST OF REVENUES		6763.68			7167.26			7671.2
GROSS PROFIT		3236.42			2832.84			2328.8
OPERATING EXPENSES:
Selling, general and administrative		2223.4			1922.64			1519.96
Technology and development		4.21			34.92			3.49
Severance		~~0.1~~—			—0.1			—
Other operating expense, net		0.35			0.43			0.14
TOTAL OPERATING EXPENSES		2728.0			2327.90			1923.49
INCOME FROM OPERATIONS		58.42			45.94			4.49
Interest income, net		0.45			0.34			—0.3
Other expense, net		(0.71	)		(0.37	)		(10.83	)
INCOME BEFORE INCOME TAXES		58.16	%		45.91	%		24.69	%

National Retail Solutions Segment

NRS, which represented 810.65%, 68.26%, and 36.82% of our total revenues in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively, is an operator of a nationwide POS network providing independent retailers with POS equipment, store management software, electronic payment processing, and other ancillary merchant services. NRS’ POS platform also provides marketers with digital out-of-home advertising and transaction data.

(in millions)										~~2024~~2025 change from ~~2023~~2024						~~2023~~2024 change from ~~2022~~2023
Year ended July 31	~~2024~~2025			~~2023~~2024			~~2022~~2023			$/#			%			$/#			%
Revenues:
Recurring	$	96122.96		$	7196.49		$	4571.34		$	25.57			3526.6	%	$	2625.15			5735.86	%
Other		6.2			56.72			65.07			~~0.5~~—			10(1.5	)		(0.35	)		(610.05	)
Total revenues		~~103~~128.18			77103.1			5177.31			2625.07			3324.79			2526.80			5033.37
Direct cost of revenues		(11.69	)		(1011.76	)		(710.97	)		0.93			82.36			20.89			368.03
Gross profit		91116.59			6691.45			4366.4			25.14			3727.97			2325.01			5237.9
Selling, general and administrative		(6278.60	)		(4762.06	)		(2847.30	)		15.64			3324.35			1815.76			6533.83
Technology and development		(78.17	)		(57.01	)		(35.90	)		2.1.6			4222.58			12.1			2842.85
Other operating expense		(0.2.4	)		—(0.2	)		—			02.2			nm			—0.2			—nm
Income from operations	$	2127.68		$	1421.46		$	1114.24		$	76.2			5028.23	%	$	37.2			2850.52	%
Gross margin percentage		8890.7	%		8688.17	%		8486.61	%		2.60	%					12.56	%

nm—not meaningful

(in thousands)							~~2024~~2025 change from ~~2023~~2024					~~2023~~2024 change from ~~2022~~2023
July 31	~~2024~~2025		~~2023~~2024		~~2022~~2023		#		%			#		%
Active POS terminals		3237.12		2532.71		1925.47		65.41		2515.18	%		6.34		3225.61	%
Payment processing accounts		2126.35		1521.83		1015.38		5.52		3524.31	%		5.5		5235.93	%

Revenues. Revenues increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 driven primarily by revenue growth from NRS’ merchant services, as ~~well~~ well as the expansion of NRS’ POS network.

Direct Cost of Revenues. Direct cost of revenues increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily due to the ~~increase~~ increases in the direct costs of NRS’ merchant services and advertising, partially offset by a decrease in the direct costs of NRS’ POS terminal sales.

Selling, General and Administrative. Selling, general and administrative expense increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily due to increases in sales commissions, bad debt expense, employee compensation, and marketing expense. The increase in bad debt expense was related to a large programmatic advertising partner. As a percentage of NRS’ revenue, NRS’ selling, general and administrative expense was 60.76%, 6160.07%, and 5561.30% in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively.

Technology and Development. Technology and development expense increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily due to increases in employee compensation and depreciation and amortization expense, partially offset by a decrease in consulting expense.

Other Operating Expense. In fiscal ~~2024~~2025, ~~NRS~~we recorded an aggregate expense of $04.0 million related to the settlement of litigation, of which $2.4 million ~~for~~was ~~capitalized~~included ~~internal~~in ~~use~~the ~~software~~NRS ~~costs~~segment ~~for~~and ~~software that~~$1.6 million was ~~taken~~included ~~out~~in ofCorporate. ~~service~~In fiscal 2024, asNRS ~~well~~recorded asexpense of $0.2 million for the cost of capitalized internal use software and certain other assets that were no longer in use.

Fintech Segment

Fintech, which represented 1012.06%, 710.0%, and 4.7.0% of our total revenues in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively, is comprised of: (i) BOSS Money, a provider of international money remittance and related value/payment transfer services; and (ii) other, significantly smaller, financial services businesses, including a variable interest entity, or (“VIE”), that ~~operates~~processes ~~money~~disbursement ~~transfer~~payments, ~~businesses~~which we refer to as the Disbursement Payments VIE, ~~and~~(iii) ~~IDTFS~~IDT Financial Services Limited, or IDT Financial ~~our~~Services, a Gibraltar-based bank and (iv) IDT Services Limited (“IDTS”), a Malta-based electronic money institution.

(in millions)										~~2024~~2025 change from ~~2023~~2024						~~2023~~2024 change from ~~2022~~2023
Year ended July 31	~~2024~~2025			~~2023~~2024			~~2022~~2023			$/#			%			$/#			%
Revenues:
BOSS Money	$	~~108~~139.38		$	76108.93		$	5576.69		$	31.45		~~40.8~~	29.1	%	$	2131.34		~~38.5~~	40.8	%
Other		1214.48			912.74			9.07			2.74			2819.03			02.7			728.20
Total revenues		~~120~~154.76			86120.67			6486.6			3433.19			3928.41			2234.01			3439.14
Direct cost of revenues		(5363.49	)		(3653.64	)		(2636.26	)		1610.85			4519.96			1016.48			3945.89
Gross profit		6790.37			5067.03			3850.40			1723.34			34.68			1117.63			3034.26
Selling, general and administrative		(5966.62	)		(4759.26	)		(3947.52	)		126.46			2611.30			712.74			1926.43
Technology and development		(9.51	)		(79.25	)		(5.7.2	)		2(0.34	)		30(4.6	)		12.53			2730.56
Severance		—			—			(0.1	)		—			—			(0.1	)		(100.0	)
Other operating gain, net		—			1.7			1.9			(1.7	)		(100.0	)		(0.2	)		(13.2	)
Other operating gain, net		1.7			1.9			—			(0.2	)		(13.2	)		(1.9	)		nm
Income (loss) from operations	$	15.4		$	(0.1	)	$	(2.5	)	$	15.5			nm		$	2.4			94.9	%
Loss from operations	$	(0.1	)	$	(2.5	)	$	(6.9	)	$	2.4			94.9	%	$	4.4			63.2	%
Gross margin percentage		58.7	%		55.8	%		57.7	%		2.9	%					(1.9	)%
Gross margin percentage		55.8	%		57.7	%		59.5	%		(1.9	)%					(1.8	)%

nm—not meaningful

Revenues. Revenues ~~from BOSS Money~~ increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily because of increased transaction volume inat BOSS ~~Money’s~~ ~~retail and digital channels. BOSS~~ Money ~~continues to benefit from cross-marketing to BOSS Revolution customers~~, ~~the~~which ~~expansion~~included ofincreases ~~its~~in ~~retail~~both ~~agent~~its ~~network,~~digital and ~~enhanced~~retail ~~user-experience~~channel ~~within the BOSS Money and BOSS Revolution apps~~transactions.

~~Fintech’s~~Direct ~~other~~Cost of Revenues. Direct cost of revenues increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily ~~because~~due ofto an increase in BOSS ~~IDTFS~~Money’s direct cost of revenues, which reflected the increase in BOSS Money’s revenue.

~~Direct~~Selling, ~~Cost~~General ofand ~~Revenues~~Administrative. ~~Direct~~Selling, ~~cost~~general ofand ~~revenues~~administrative expense increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily due to increases in debit and credit card processing charges, employee compensation, bank fees, and marketing expenses. The increase in card processing charges was the result of increased credit and debit card transactions through our BOSS Money’s app and ~~IDTFS’~~other ~~direct~~digital channels. ~~cost~~As a percentage of ~~revenues~~Fintech’s revenue, ~~which~~Fintech’s ~~reflected~~selling, ~~the~~general ~~increases~~and administrative expense was 42.8%, 49.4%, and 54.5% in ~~revenues~~fiscal 2025, fiscal 2024, and fiscal 2023, respectively.

~~Selling,~~Technology ~~General~~ and ~~Administrative~~Development. Technology ~~Selling, general~~ and ~~administrative~~development expense ~~increased~~decreased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily due to a ~~increases~~decrease in ~~debit and credit card processing charges,~~ employee compensation, ~~bank fees~~expense, ~~and~~partially ~~marketing~~offset ~~expenses.~~by ~~The~~increases ~~increase~~ in ~~card~~depreciation ~~processing charges was the result of increased credit~~ and ~~debit~~amortization ~~card transactions through our BOSS Money app and other digital channels. As a percentage of Fintech’s revenue~~expense, ~~Fintech’s~~software ~~selling, general~~ license and ~~administrative~~maintenance expense ~~was 49.4%~~, ~~54.5%,~~ and ~~61.2%~~ incloud ~~fiscal~~services ~~2024, fiscal 2023, and fiscal 2022, respectively~~expense.

~~Technology~~Other ~~and~~Operating ~~Development~~Gain, net. In ~~Technology~~fiscal ~~and~~2024, ~~development~~we ~~expense~~determined ~~increased~~that the requirements for contingent consideration payments related to the Leaf Global Fintech Corporation, or Leaf, acquisition would not be met. We recognized a gain of $1.8 million on the write-off of these contingent consideration payment obligations. In addition, in fiscal 2024, ~~compared~~we tocompleted ~~fiscal~~a ~~2023~~portion ~~primarily~~of ~~due~~the tointegration ~~increases~~of inthe ~~employee~~Leaf ~~compensation~~Wallet ~~and~~platform ~~depreciation~~into ~~and~~the ~~amortization~~BOSS ~~expense~~Money app, including replacing the Leaf tradename with BOSS Money. The Leaf tradename balance of $0.1 million was written off in fiscal 2024.

Other Operating Gain, net. In fiscal 2024 and fiscal 2023, we determined that the requirements for the contingent consideration payments related to the Leaf Global Fintech Corporation, or Leaf, acquisition would likely not be met. We recognized gains of $1.8 million and $1.6 million in fiscal 2024 and fiscal 2023, respectively, on the write-off of these contingent consideration payment obligations. In addition, in fiscal 2024, we completed a portion of the integration of the Leaf Wallet platform into the BOSS Money app, including replacing the Leaf tradename with BOSS Money. The Leaf tradename balance of $0.1 million was written-off in fiscal 2024. In fiscal 2023, Leaf received $0.4 million from government grants for the development and commercialization of blockchain-backed financial technologies.

net2phone Segment

The net2phone segment, which represented 67.81%, 56.8%, and 45.38% of our total revenues in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively, is comprised of net2phone’s integrated cloud communications and contact center services.

(in millions)										~~2024~~2025 change from ~~2023~~2024						~~2023~~2024 change from ~~2022~~2023
Year ended July 31	~~2024~~2025			~~2023~~2024			~~2022~~2023			$/#			%			$/#			%
Revenues:
Subscription	$	7885.47		$	6678.84		$	5366.68		$	117.63			179.34	%	$	1311.26			2417.83	%
Other		32.92			53.69			45.6			(1.7	)		(2846.90	)		(1.07	)		20(28.39	)
Total revenues		8287.39			7282.43			5872.24			95.96			136.7			149.29			2413.47
Direct cost of revenues		(1718.2	)		(1517.32	)		(1215.83	)		1.90			125.94			21.59			1912.19
Gross profit		6569.17			5765.1			4557.41			84.06			147.01			118.70			2514.90
Selling, general and administrative		(52.64	)		(4952.76	)		(4749.57	)		2(0.92	)		5(0.84	)		2.29			45.68
Technology and development		(1011.87	)		(10.08	)		(910.30	)		0.89			8.13			0.78			7.8.1
Severance		(0.1	)		(0.1	)		—(0.1	)		—			725.17			~~0.1~~—			nm72.1
Other operating gain (expense), net		0.1			(0.1	)		0.3			0.2			142.3			(0.4	)		(145.4	)
Other operating (expense) gain, net		(0.6	)		0.1			(0.1	)		(0.7	)		nm			0.2			142.3
Income (loss) from operations	$	14.79		$	(21.87	)	$	(112.18	)	$	43.52			~~161~~194.04	%	$	84.35			75161.30	%
Gross margin percentage		79.13	%		7879.91	%		78.09	%		0.2	%					0.92	%

nm—not meaningful

(in thousands)

~~2024~~2025 change from ~~2023~~2024

~~2023~~2024 change from ~~2022~~2023

July 31

~~2024~~2025

~~2023~~2024

~~2022~~2023

Seats served

~~396~~422

~~352~~396

~~291~~352

4426

~~12.~~6.4

6144

2112.16

Revenues. net2phone’s revenues increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 ~~driven~~due ~~primarily~~to by the growth in subscription revenue, most significantly in the U.S. market, and ~~Latin~~from ~~American~~its ~~markets~~contact center services’ revenue, which reflected the increase in seats served at July 31, ~~2024~~ 2025 compared to July 31, ~~2023~~2024.

Direct Cost of Revenues. Direct cost of revenues increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily due to the increase in revenues, with the largest increase in the U.S. market. net2phone’s ~~focus on mid-sized businesses, multi-channel strategies, and localized offerings generated~~ revenue growth ~~that~~ exceeded the increase in direct cost of revenues.

Selling, General and Administrative. Selling, general and administrative expense ~~increased~~slightly decreased in fiscal ~~2024~~2025 compared to fiscal 2024 ~~2023~~ primarily due to ~~increases~~decreases in ~~employee~~marketing, ~~compensation~~bad debt, and consulting expenses, partially offset by increases in sales commissions and depreciation and amortization expenses. As a percentage of net2phone’s revenues, net2phone’s selling, general and administrative expense decreased to 6359.96% from 6863.79% and 8168.7% in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively.

Technology and Development. Technology and development expense increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily due to increases in in employee compensation, software license and maintenance, cloud services, and depreciation and amortization ~~expense~~expenses.

Other Operating ~~Gain~~ (Expense) Gain, net. In fiscal 2025 and fiscal 2023, we recorded expense of $0.6 million and $0.1 million, respectively, for telephone equipment used in operations that was taken out of service. In fiscal 2024, we determined that the requirement for a contingent consideration payment related to an acquisition in a prior period would not be met. We recognized a gain of $0.1 million on the write-off of this contingent consideration payment obligation. ~~In fiscal 2023, we recorded an expense of $0.1 million for telephone equipment that was taken out of service.~~

Traditional Communications Segment

The Traditional Communications segment, which represented 74 69.68%, 8174.06%, and 8781.20% of our total revenues in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively, includes: (i) IDT Digital Payments, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts; (ii) BOSS Revolution, an international long-distance calling service marketed primarily to immigrant communities in the United States and Canada; and (iii) IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide. Traditional Communications also includes other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

Traditional Communications’ most significant revenue streams are from IDT Digital Payments, BOSS Revolution, and IDT Global. IDT Digital Payments and BOSS Revolution are sold directly to consumers and through distributors and retailers. We receive payments for BOSS Revolution and IDT Digital Payments prior to providing the services. We recognize the revenue when services are provided to the customer. Traditional Communications’ revenues tend to be somewhat seasonal, with the second fiscal quarter (which contains Christmas and New Year’s Day) and the fourth fiscal quarter (which contains Mother’s Day and Father’s Day) typically showing higher minute volumes.

Traditional Communications’ most significant revenue streams are from IDT Digital Payments, BOSS Revolution, and IDT Global. IDT Digital Payments and BOSS Revolution are sold directly to consumers and through distributors and retailers. We receive payments for BOSS Revolution, traditional calling cards, and IDT Digital Payments prior to providing the services. We recognize the revenue when services are provided to the customer. Traditional Communications’ revenues tend to be somewhat seasonal, with the second fiscal quarter (which contains Christmas and New Year’s Day) and the fourth fiscal quarter (which contains Mother’s Day and Father’s Day) typically showing higher minute volumes.

(in millions)										2025 change from 2024						2024 change from 2023
Year ended July 31	2025			2024			2023			$/#			%			$/#			%
Revenues:
IDT Digital Payments	$	416.3		$	407.4		$	417.1		$	8.9			2.2	%	$	(9.7	)		(2.3	)%
BOSS Revolution		211.2			263.2			322.1			(52.0	)		(19.8	)		(58.9	)		(18.3	)
IDT Global		209.6			201.1			230.3			8.5			4.2			(29.2	)		(12.7	)
Other		23.1			27.9			33.2			(4.8	)		(16.9	)		(5.3	)		(16.4	)
Total revenues		860.2			899.6			1,002.7			(39.4	)		(4.4	)		(103.1	)		(10.3	)
Direct cost of revenues		(691.3	)		(733.4	)		(819.0	)		(42.1	)		(5.7	)		(85.6	)		(10.5	)
Gross profit		168.9			166.2			183.7			2.7			1.6			(17.5	)		(9.5	)
Selling, general and administrative		(79.9	)		(84.9	)		(89.9	)		(5.0	)		(5.9	)		(5.0	)		(5.6	)
Technology and development		(21.5	)		(23.1	)		(25.7	)		(1.6	)		(7.0	)		(2.6	)		(10.2	)
Severance		(0.8	)		(1.6	)		(0.9	)		(0.8	)		(53.0	)		0.7			78.6
Other operating expense, net		(0.2	)		(0.2	)		(5.9	)		—			(11.6	)		(5.7	)		(96.9	)
Income from operations	$	66.5		$	56.4		$	61.3		$	10.1			17.9	%	$	(4.9	)		(7.9	)%

Gross margin percentage		19.6	%		18.5	%		18.3	%		1.1	%					0.2	%

Minutes of use:
BOSS Revolution		1,303			1,772			2,299			(469	)		(26.4	)%		(527	)		(22.9	)%
IDT Global		5,681			5,702			6,328			(21	)		(0.4	)		(626	)		(9.9	)

(in millions)										2024 change from 2023						2023 change from 2022
Year ended July 31	2024			2023			2022			$/#			%			$/#			%
Revenues:
IDT Digital Payments	$	407.4		$	417.1		$	473.2		$	(9.7	)		(2.3	)%	$	(56.1	)		(11.9	)%
BOSS Revolution		263.2			322.1			387.9			(58.9	)		(18.3	)		(65.8	)		(17.0	)
IDT Global		201.1			230.3			292.4			(29.2	)		(12.7	)		(62.1	)		(21.2	)
Other		27.9			33.2			36.5			(5.3	)		(16.4	)		(3.3	)		(8.8	)
Total revenues		899.6			1,002.7			1,190.0			(103.1	)		(10.3	)		(187.3	)		(15.7	)
Direct cost of revenues		(733.4	)		(819.0	)		(992.2	)		(85.6	)		(10.5	)		(173.2	)		(17.5	)
Gross profit		166.2			183.7			197.8			(17.5	)		(9.5	)		(14.1	)		(7.1	)
Selling, general and administrative		(84.9	)		(89.9	)		(93.6	)		(5.0	)		(5.6	)		(3.7	)		(3.9	)
Technology and development		(23.1	)		(25.7	)		(28.2	)		(2.6	)		(10.2	)		(2.5	)		(8.7	)
Severance		(1.6	)		(0.9	)		(0.1	)		0.7			78.6			0.8			nm
Other operating expense, net		(0.2	)		(5.9	)		(0.1	)		(5.7	)		(96.9	)		5.8			nm
Income from operations	$	56.4		$	61.3		$	75.8		$	(4.9	)		(7.9	)%	$	(14.5	)		(19.2	)%
Gross margin percentage		18.5	%		18.3	%		16.6	%		0.2	%					1.7	%
Minutes of use:
BOSS Revolution		1,772			2,299			2,926			(527	)		(22.9	)%		(627	)		(21.4	)%
IDT Global		5,702			6,328			7,720			(626	)		(9.9	)		(1,392	)		(18.0	)

Revenues. Revenues from IDT Digital Payments increased in fiscal 2025 compared to fiscal 2024 primarily due to increases in revenues from the direct-to-consumer and enterprise and wholesale channels, partially offset by a decrease in revenues from the retail channel.

~~nm—not~~Revenues and minutes of use from BOSS Revolution ~~meaningful~~decreased in fiscal 2025 compared to fiscal 2024. BOSS Revolution continues to be impacted by persistent, market-wide trends, including the proliferation of unlimited calling plans offered by wireless carriers and mobile virtual network operators, and the increasing penetration of free and paid over-the-top voice, video conferencing, and messaging services.

Revenues~~. Revenues~~ from IDT ~~Digital~~Global ~~Payments~~increased in fiscal 2025 compared to fiscal 2024, although IDT Global’s minutes of use decreased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024. ~~primarily~~IDT ~~from~~Global mitigated the ~~deterioration~~impacts of the ongoing industry-wide declines in paid-minute voice through a ~~key~~traffic ~~international~~mix shift to higher margin routes and new service ~~corridor~~offerings. ~~that~~However, ~~was~~we ~~particularly~~expect ~~impactful~~IDT Global to ~~revenues~~continue into ~~the~~be ~~wholesale~~adversely ~~channel,~~impacted ~~however,~~by this ~~corridor~~industry-wide ~~has~~trend, ~~not~~and ~~been~~minutes aof ~~significant~~use ~~factor~~and revenues ~~since~~will ~~the~~likely ~~second~~continue to decline from quarter-to-quarter, as we seek to maximize economics rather than necessarily sustain minutes of use ~~fiscal~~or ~~2024~~revenues.

~~Revenues~~Direct ~~and~~Cost ~~minutes~~ of ~~use~~Revenues. ~~from~~Direct ~~BOSS~~cost ~~Revolution~~of revenues decreased in fiscal ~~2024~~2025 compared to fiscal ~~2023.~~2024 ~~BOSS~~primarily ~~Revolution~~due ~~continues~~ to bethe ~~impacted by~~decreases ~~persistent,~~in ~~market-wide~~BOSS ~~trends,~~Revolution’s ~~including~~minutes ~~the proliferation~~ of ~~unlimited~~use ~~calling plans offered by wireless carriers~~ and ~~mobile~~direct ~~virtual network~~cost ~~operators, and the increasing penetration~~ of ~~free and paid over-the-top voice, video conferencing, and messaging services~~revenues.

~~Revenues~~Selling, General and ~~minutes~~Administrative. ofSelling, ~~use~~general ~~from~~and ~~IDT~~administrative ~~Global~~expense decreased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 asprimarily due ~~communications globally continued~~ to ~~transition away~~decreases ~~from~~in ~~international~~stock-based ~~voice~~compensation, ~~calling.~~sales ~~This~~commissions, ~~trend~~and ~~was~~debit ~~accelerated~~and bycredit ~~the~~card ~~impact~~processing ofcharges, ~~COVID-19~~partially asoffset ~~business~~by ~~communications shifted from calling~~an toincrease ~~video~~in ~~conferencing~~bad ~~and~~debt ~~other collaboration platforms~~expense. WeAs ~~expect~~a ~~that~~percentage ~~IDT~~of ~~Global~~Traditional ~~will~~Communications’ ~~continue~~revenue, toTraditional beCommunications’ ~~adversely impacted by these trends~~selling, ~~and~~general ~~minutes of use~~ and ~~revenues~~administrative ~~will~~expense ~~likely~~was ~~continue~~9.3%, ~~to decline from quarter-to-quarter~~9.4%, asand we9.0% ~~seek~~in tofiscal ~~maximize~~2025, ~~economics~~fiscal ~~rather~~2024, ~~than necessarily~~and ~~sustain~~fiscal ~~minutes~~2023, ~~of use or revenues~~respectively.

~~Direct~~Technology ~~Cost~~and ~~of Revenues~~Development. ~~Direct~~Technology ~~cost~~and ofdevelopment ~~revenues~~expense decreased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily due to decreases in ~~minutes of~~employee ~~use~~compensation, cloud services expense, and ~~revenues~~depreciation and amortization expense.

~~Selling,~~Severance ~~General and Administrative~~Expense. Selling, general and administrative expense decreased in fiscal 2024 compared to fiscal 2023 primarily due to decreases in sales commissions, employee compensation, and debit and credit card processing charges, partially offset by an increase in stock-based compensation. As a percentage of Traditional Communications’ ~~revenue,~~incurred ~~Traditional~~severance ~~Communications’ selling, general and administrative~~ expense ~~was~~of 9$0.~~4%,~~8 ~~9.0%,~~million and 7$1.9%6 million in fiscal ~~2024,~~2025 ~~fiscal 2023,~~ and fiscal ~~2022~~ 2024, respectively.

~~Technology~~Other ~~and~~Operating ~~Development~~Expense, net. ~~Technology~~In ~~and~~fiscal ~~development~~2025, Traditional Communications recorded expense ~~decreased~~of in$0.2 ~~fiscal~~million ~~2024~~for ~~compared~~certain toequipment that was taken out of service. In fiscal ~~2023~~2024, ~~primarily~~Traditional ~~due~~Communications torecorded ~~decreases~~expenses ~~in depreciation~~of ~~and~~$0.2 ~~amortization~~million ~~expense,~~for ~~software~~internal ~~license~~use ~~and~~software that ~~maintenance~~was ~~expense,~~taken ~~and~~out ~~employee~~of ~~compensation~~service.

Severance Expense. Traditional Communications incurred severance expense of $1.6 million and $0.9 million in fiscal 2024 and fiscal 2023, respectively.

Other Operating Expense, net. In fiscal 2024 and fiscal 2023, Traditional Communications recorded expense of $0.2 million and $1.4 million, respectively, for internal use software that was taken out of service. In addition, in fiscal 2023, other operating expense, net included $3.9 million for the indemnification of one of our cable telephony customers related to patent infringement claims brought against the customer. On May 8, 2023, we and the customer agreed to a release from the indemnification agreement in exchange for $3.9 million. Also, in fiscal 2023, we increased the estimated fair value of acquisition-related contingent consideration by $0.2 million.

Corporate

(in millions)										~~2024~~2025 change from ~~2023~~2024						~~2023~~2024 change from ~~2022~~2023
Year ended July 31	~~2024~~2025			~~2023~~2024			~~2022~~2023			$			%			$			%
General and administrative	$	(1011.51	)	$	(910.45	)	$	(7.9.4	)	$	10.16			126.23	%	$	1.51			1812.12	%
Other operating expense, net		(43.41	)		(04.34	)		(1.0.3	)		4.(1.3	)		nm(28.8	)		(04.71	)		~~(67.2~~nm	)
Loss from operations	$	(14.92	)	$	(914.79	)	$	(8.9.7	)	$	(50.27	)		~~(53~~4.93	)%	$	(05.82	)		(853.29	)%

nm—not meaningful

Corporate costs mainly include compensation, consulting fees, treasury, tax and accounting services, human resources, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, and other corporate-related general and administrative expenses. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

General and Administrative. Corporate general and administrative expense increased in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024 primarily ~~because~~ because of increases in ~~audit~~employee ~~and~~compensation ~~accounting fees~~ and ~~employee~~legal ~~compensation~~fees. As a percentage of our consolidated revenues, Corporate general and administrative expense was 0.9%, 0.89%, and 0.68% in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively.

Other Operating Expense, net. AsIn ~~discussed~~fiscal ~~in Note 23 to the Consolidated Financial Statements included in Item 8 to Part II of this Annual Report~~2025, we ~~(as~~recorded ~~well~~an asaggregate ~~other~~expense ~~defendants)~~of ~~were~~$4.0 ~~named~~million inrelated ato ~~class action on behalf of~~ the ~~stockholders~~settlement of ~~our former subsidiary Straight~~litigation, ~~Path. We incurred legal fees~~ of which $71.26 million ~~and~~was ~~$5.8~~included ~~million~~ in ~~fiscal~~Corporate ~~2024~~ and ~~fiscal 2023, respectively, related to this action. Also, we recorded offsetting gains from insurance claims for this matter of~~ $2.94 million ~~and~~was ~~$3.8~~included ~~million~~ in ~~fiscal 2024 and fiscal 2023, respectively. In fiscal 2024, we received~~ the ~~final~~NRS ~~payment from our insurance policy for these claims~~segment. On October 3, 2023, the Court of Chancery of the State of Delaware dismissed all claims against us, and found that, contrary to the plaintiffs’ allegations, the class suffered no damages. The plaintiffs will have 30 days from entry of the final order to file an appeal.

InAs discussed in Note 22 to the Consolidated Financial ~~September~~Statements ~~2017~~included in Item 8 to Part II of this Annual Report, we ~~and~~(as ~~certain~~well ofas ~~our~~other ~~subsidiaries~~defendants) were ~~certified~~named byin a class action on behalf of the ~~New~~stockholders ~~Jersey~~of ~~Economic~~our ~~Development~~former ~~Authority,~~subsidiary orStraight ~~NJEDA,~~Path. asWe ~~having met~~incurred ~~the~~legal ~~requirements~~fees of ~~the~~$0.5 ~~Grow~~million ~~New~~and ~~Jersey~~$7.2 ~~Assistance~~million ~~Act~~in ~~Tax~~fiscal ~~Credit~~2025 ~~Program~~and fiscal 2024, respectively, related to this action. ~~The~~Also, ~~program~~we ~~provides~~recorded offsetting gains from insurance claims for ~~credits~~this ~~against~~matter aof ~~corporation’s~~nil and ~~New~~$2.9 ~~Jersey~~million ~~corporate~~in ~~business~~fiscal ~~tax~~2025 ~~liability~~and fiscal 2024, respectively. In fiscal 2024, we received the final payment from our insurance policy for these ~~maintaining~~claims. aOn ~~minimum~~October ~~number~~3, 2023, the Court of ~~employees~~Chancery inof ~~New~~the ~~Jersey~~State of Delaware dismissed all claims against us, and found that, ~~tax~~contrary to ~~credits~~the ~~may~~plaintiffs’ ~~be sold~~allegations, ~~subject~~the toclass ~~certain~~suffered ~~conditions~~no damages. On ~~June~~January 514, ~~2023~~2025, wethe ~~received~~plaintiff filed a ~~2019~~notice ~~tax~~of ~~credit~~appeal ~~certificate~~of ~~for~~the Final ~~$1.8~~Order ~~million~~and ~~from~~Judgment to the ~~NJEDA~~Supreme Court of the State of Delaware to appeal the Final Order and Judgment. InOn ~~August 2023~~April 22, 2025, we filed ~~sold~~our answering brief to the ~~certificate~~appeal. ~~for~~Oral ~~cash~~argument ofis ~~$1.6~~scheduled ~~million~~for October 2025.

Consolidated

The following is a discussion of our consolidated stock-based compensation expense, and our consolidated income and expense line items below income from operations.

Stock-Based Compensation Expense. Total stock-based compensation expense included in consolidated selling, general and administrative ~~expense~~ expense and technology and development expense was $73.41 million and $47.54 million in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively. The ~~increase in~~decrease in stock-based compensation expense was primarily due to a decrease in expense related to certain equity grants tomade ~~Bill~~in ~~Pereira,~~fiscal ~~our~~2024 ~~President~~to an executive officer, and ~~Chief~~a ~~Operating~~decrease ~~Officer,~~ in ~~the~~stock-based ~~second~~compensation ~~quarter~~expense offrom ~~fiscal~~the ~~2024,~~grant ~~including~~of deferred stock units, or DSUs, that, ~~upon vesting, represent~~ entitle the ~~right~~grantees to receive shares of our Class B common stock~~, and shares of Class B common stock of net2phone 2~~.0, asAs ~~well as a contingent bonus subject to the completion~~ of ~~certain~~July ~~financial milestones that may be paid~~31, ~~at Mr. Pereira’s option~~2025, inthere ~~either~~was ~~shares of the Company’s Class B common stock or cash~~$0.4 Inmillion ~~fiscal 2024, two~~ of ~~these~~total ~~milestones~~unrecognized ~~were~~compensation cost ~~achieved,~~related ~~for which we issued~~ to ~~Mr.~~non-vested ~~Pereira 39~~DSUs,~~155~~ ~~shares~~which ofis ~~our~~being ~~Class~~recognized ~~B common~~on ~~stock~~a ingraded ~~fiscal~~vesting ~~2024~~basis ~~with~~over anthe ~~issue~~requisite ~~date~~service ~~value~~periods ofthat ~~$1.5~~end ~~million, and we will issue an additional 39,155 shares of our Class B common stock~~ in ~~the first quarter of fiscal 2025~~October 2027.

As Effective as of ~~July~~June 3130, ~~2024~~2022, ~~there~~restricted ~~was~~shares of ~~$0.6~~NRS’ ~~million~~Class ofB ~~total~~common ~~unrecognized~~stock ~~compensation~~were ~~cost~~granted ~~related~~ to ~~non-vested~~certain ~~DSUs~~NRS ~~under~~employees. ~~our~~The ~~equity~~restrictions ~~incentive program adopted~~ on ~~November 30, 2022, which is being recognized on a graded vesting basis over~~ the ~~requisite~~shares ~~service~~lapse ~~periods~~in ~~that~~three ~~end~~installments, inthe ~~February~~first ~~2025.~~was Onon ~~February~~June 211, 2024, and the ~~second~~others ~~vesting~~are ~~date~~June ~~under the program~~1, in2026 ~~accordance~~and ~~with~~June ~~the~~1, ~~program~~2027. ~~and~~As ~~based~~of onJuly ~~certain elections~~31, ~~made by grantees~~2025, weunrecognized ~~issued~~compensation ~~53,706~~cost related ~~shares~~to ofNRS’ ~~our~~non-vested Class B common stock ~~for~~was ~~vested~~an ~~DSUs.~~aggregate ~~Subject~~of to$1.2 ~~continued~~million. ~~full~~The ~~time~~unrecognized ~~employment or~~compensation ~~other~~cost ~~services~~is expected to ~~us,~~be recognized over the remaining ~~147,540~~vesting ~~DSUs~~period ~~are~~that ~~scheduled~~ends toin ~~vest~~fiscal ~~on February 25, 2025~~2027.

As of July 31, 2025, there was an aggregate of $0.5 million in unrecognized compensation cost related to non-vested stock options and restricted stock, which is expected to be recognized over the remaining vesting periods that end in fiscal 2028.

Effective as of June 30, 2022, restricted shares of NRS’ Class B common stock were granted to certain NRS employees. The restrictions on the shares lapse in three installments, the first was on June 1, 2024, and the others are June 1, 2026 and June 1, 2027. The estimated fair value of the restricted shares on the grant date was $3.3 million, which is being recognized over the vesting period. As of July 31, 2024, unrecognized compensation cost related to NRS’ non-vested Class B common stock was an aggregate of $1.9 million. The unrecognized compensation cost is expected to be recognized over the remaining vesting period that ends in fiscal 2027.

(in millions)										2025 change from 2024						2024 change from 2023
Year ended July 31	2025			2024			2023			$			%			$			%
Income from operations	$	100.4		$	64.7		$	60.7		$	35.7			55.1	%	$	4.0			6.6	%
Interest income, net		6.1			4.8			3.2			1.3			28.5			1.6			51.5
Other expense, net		(0.7	)		(7.6	)		(3.1	)		6.9			90.6			(4.5	)		(146.9	)
(Provision for) benefit from income taxes		(24.7	)		6.4			(16.4	)		(31.1	)		(488.7	)		22.8			138.6
Net income		81.1			68.3			44.4			12.8			18.9			23.9			53.9
Net income attributable to noncontrolling interests		(5.0	)		(3.8	)		(3.9	)		(1.2	)		(32.4	)		0.1			1.7
Net income attributable to IDT Corporation	$	76.1		$	64.5		$	40.5		$	11.6			18.1	%	$	24.0			59.2	%

(in millions)										2024 change from 2023						2023 change from 2022
Year ended July 31	2024			2023			2022			$			%			$			%
Income from operations	$	64.7		$	60.7		$	60.1		$	4.0			6.6	%	$	0.6			1.1	%
Interest income, net		4.8			3.2			0.2			1.6			51.5			3.0			nm
Other expense, net		(7.6	)		(3.1	)		(25.4	)		(4.5	)		(146.9	)		22.3			87.8
Benefit from (provision for) income taxes		6.4			(16.4	)		(5.9	)		22.8			138.6			(10.5	)		(179.7	)
Net income		68.3			44.4			29.0			23.9			53.9			15.4			53.0
Net income attributable to noncontrolling interests		(3.8	)		(3.9	)		(2.0	)		0.1			1.7			(1.9	)		(96.0	)
Net income attributable to IDT Corporation	$	64.5		$	40.5		$	27.0		$	24.0			59.2	%	$	13.5			49.8	%

nm—not meaningful

Other Expense, net. Other expense, net consists of the following:

(in millions) Year ended July 31	~~2024~~2025			~~2023~~2024			~~2022~~2023
Foreign currency transaction (losses) gains	$	(3.8	)	$	3.3		$	(1.7	)
Foreign currency transaction gains (losses)	$	0.3		$	(3.8	)	$	3.3
Equity in net loss of investee		(32.57	)		(3.15	)		(3.01	)
Gains (losses) on investments		01.26			(20.62	)		(192.36	)
Other		(0.51	)		(0.75	)		(10.47	)
TOTAL	$	(70.67	)	$	(37.16	)	$	(253.41	)

We have an investment in shares of convertible preferred stock of a communications company (the equity method investee, or EMI). As of both July 31, ~~2024~~2025 and ~~2023~~2024, our ownership was 33.4% ~~and 33.3%, respectively,~~ of the EMI’s outstanding shares on an as converted basis. We account for this investment using the equity method since we can exercise significant influence over the operating and financial policies of the EMI but do not have a controlling interest. We determined that on the dates of the acquisitions of the EMI’s shares, there were differences between our investment in the EMI and our proportional interest in the equity of the EMI of an aggregate of $8.2 million, which represented the share of the EMI’s customer list on the dates of the acquisitions attributed to our interest in the EMI. These basis differences are being amortized over the 6-year estimated life of the customer list. “Equity in the net loss of investee” includes the amortization of equity method basis difference.

~~Benefit from~~ (Provision for) Benefit from Income Taxes. With our reacquisition of net2phone in March 2006, its losses were limited under IRC Section ~~382~~ 382 to approximately $7 million per year. In fiscal 2024, we had an IRC Section 382 study conducted on the reacquisition and the limitation was adjusted to $9 million per year. We recorded a tax benefit related to the adjusted amount of $23.6 million in fiscal 2024. The change in income tax expense in fiscal ~~2024~~2025 compared to fiscal ~~2023~~2024, excluding the income tax benefit in fiscal 2024, was primarily due to differences in the amount of taxable income earned in the various taxing jurisdictions.

Net Income Attributable to Noncontrolling Interests. The change in the net income attributable to noncontrolling interests in ~~fiscal~~ ~~2024~~fiscal 2025 compared to fiscal ~~2023~~2024 was primarily due to ~~changes~~increases in ~~amounts~~net income attributable to the noncontrolling interests in ~~the VIE and net2phone~~NRS, net2phone 2.0, and the Disbursement Payments VIE, partially offset by the change in the amounts attributable to the noncontrolling interests in ~~NRS~~Sochitel.

LIQUIDITY AND CAPITAL RESOURCES

As of the date of this Annual Report, we expect our cash from operations and the balance of cash, cash equivalents, debt securities, and current equity investments that we held on July 31, ~~2024~~2025 will be sufficient to meet our currently anticipated working capital and capital expenditure requirements during fiscal ~~2025~~2026.

At July 31, ~~2024~~2025, we had cash, cash equivalents, debt securities, and current equity investments of $~~193~~253.08 million and working capital (current assets in excess of current liabilities) of $~~143~~227.23 million.

We treat unrestricted cash and cash equivalents held by IDT Payment Services, Inc. and IDT Payment Services of New York, LLC as substantially restricted and unavailable for other purposes. At July 31, 2024, “Cash and cash equivalents” in our consolidated balance sheet included an aggregate of $55.9 million held by IDT Payment Services, Inc. and IDT Payment Services of New York, LLC that was unavailable for other purposes.

Contractual Obligations and Commitments

The following table includes our anticipated material cash requirements from contractual obligations and other commitments at July 31, ~~2024~~2025:

Payments due by period (in millions)	Total		Less than 1 year		1—3 years		4—5 years		After 5 years
Purchase commitments	$	214.95	$	24.62	$	08.36	$	—1.7	$	—
Connectivity obligations under service agreements		1.49		01.72		0.76		—0.1		—
Operating leases including short-term leases		42.76		21.73		1.50		0.43		~~0.1~~—
TOTAL(1)	$	919.0	$	6.07	$	210.52	$	02.41	$	~~0.1~~—

(1) The above table does not include up to $10 million for the potential redemption of shares of NRS’ Class B common stock, an aggregate of $3233.48 million in performance bonds, and up to $32.07 million for potential contingent consideration payments related to a business ~~acquisitions~~acquisition, due to the uncertainty of the amount and/or timing of any such payments.

Consolidated Financial Condition

(in millions) Year ended July 31	~~2024~~2025			~~2023~~2024			~~2022~~2023
Cash flows provided by (used in):
Operating activities	$	78127.21		$	5478.12		$	2952.4
Investing activities		(020.87	)		(330.48	)		(33.84	)
Financing activities		(1723.24	)		(1517.82	)		(1514.61	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents		(3.64	)		4(3.46	)		~~(17~~4.4	)
Increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents	$	56.6		$	9.3		$	(37.4	)
Increase in cash, cash equivalents, and restricted cash and cash equivalents	$	86.4		$	56.6		$	9.3

Operating Activities

Our cash flows from operations vary significantly from quarter to quarter and from year to year, depending on our operating results and the timing of operating cash receipts and payments, ~~specifically~~generally trade accounts receivable, ~~and~~ trade accounts payable, and disbursements prefunding.

Gross trade accounts receivable increased to $4852.6 0 million at July 31, ~~2024~~2025 from $3748.76 million at July 31, ~~2023~~2024 primarily due to amounts billed in fiscal ~~2024~~2025 that were greater than collections during fiscal ~~2024~~2025, partially offset by ~~changes~~uncollectible inaccounts ~~foreign~~written ~~currency exchange rates~~off.

Deferred revenue arises from sales of prepaid products and varies from period to period depending on the mix and the timing of revenues. Deferred revenue decreased to $3027.47 million at July 31, ~~2024~~2025 from $3530.34 million at July 31, ~~2023~~2024 primarily due to ~~decreases~~a decrease in ~~the~~ BOSS Revolution ~~and~~’s ~~IDT Digital Payments~~ deferred revenue ~~balances~~balance.

Customer ~~deposit~~ ~~liabilities~~funds atdeposits ~~IDTFS~~liabilities ~~decreased~~increased to $83114.07 million at July 31, ~~2024~~2025 from $8691.59 million at July 31, ~~2023~~2024. Our restricted cash and cash equivalents included an aggregate of $83115.32 million and $8790.37 million at July 31, ~~2024~~2025 and ~~2023~~2024, respectively, held by ~~the~~IDT ~~bank~~Financial Services and our Disbursement Payments VIE for these customer funds.

In September 2017, we and certain of our subsidiaries were certified by the New Jersey Economic Development Authority, or NJEDA, as having met the requirements of the Grow New Jersey ~~Assistance~~ Assistance Act Tax Credit Program. The program provides for credits against a corporation’s New Jersey corporate business tax liability ~~for~~ for maintaining a minimum number of employees in New Jersey, and that tax credits may be sold subject to certain conditions. On June 5, 2023, we received a 2019 tax credit certificate for $1.8 million from ~~the~~ NJEDA. In August 2023, we sold the certificate for cash of $1.6 million.

Beginning in June 2019, as part of a commercial resolution, we indemnified one of our cable telephony customers related to patent infringement claims brought against the customer. On May 8, 2023, we and the customer agreed to a release from the indemnification agreement in exchange for $3.9 million, of which $1.9 million was paid on May 10, 2023, and the remainder was paid in five monthly invoice deductions of $0.4 million each.

As discussed in Note 2322 to the Consolidated Financial Statements included in Item 8 to Part II of this Annual Report, we (as well as other defendants) were named in a class action on behalf of the stockholders of our former subsidiary Straight Path. On October 3, 2023, the Court of Chancery of the State of Delaware dismissed all claims against us, and found that, contrary to the plaintiffs’ allegations, the class suffered no damages. ~~The~~On ~~plaintiffs~~January ~~will~~14, ~~have~~2025, the 30plaintiff ~~days~~filed ~~from~~a ~~entry~~notice of appeal of the ~~final~~Final ~~order~~Order and Judgment to ~~file~~the anSupreme Court of the State of Delaware to appeal the Final Order and Judgment. On April 22, 2025, we filed our answering brief to the appeal. Oral argument is scheduled for October 2025.

Investing Activities

Our capital expenditures were $1820.98 million in fiscal 2025 ~~2024~~ and $2218.09 million in fiscal ~~2023~~2024. We currently anticipate that total capital expenditures in fiscal ~~2025~~2026 will be $1819 million to $2021 million. We expect to fund our capital expenditures with ~~our~~ net cash provided by operating activities and cash, cash equivalents, debt securities, and current equity investments on hand.

In ~~fiscal~~ ~~2024~~February ~~and fiscal 2023~~2025, ~~each~~we ofentered ~~the~~into ~~EMI’s~~a ~~shareholders~~loan ~~including~~agreement with ~~us agreed to purchase additional shares of~~ the EMI~~’s convertible~~ ~~preferred~~for ~~stock.~~a Inrevolving ~~fiscal~~credit ~~2024~~facility. ~~and~~The ~~fiscal~~aggregate ~~2023,~~principal weamount ~~paid~~available anunder ~~aggregate~~the offacility is $2.0 million ~~and $0~~.8 ~~million,~~The ~~respectively, to~~loans ~~purchase~~will ~~the~~incur ~~additional~~interest ~~shares.~~at On12% ~~April~~per 6,annum ~~2023,~~payable insemiannually ~~accordance with an Agreement~~ and ~~Plan~~are ofdue ~~Merger dated as of April 5, 2023, the EMI merged with~~ and ~~into~~payable ~~its~~in ~~subsidiary,~~February ~~with the subsidiary being the surviving corporation~~2027. ~~Effective~~In ~~with~~fiscal ~~the merger~~2025, ~~among~~we ~~other~~loaned ~~things,~~ the ~~notes receivable from the~~ EMI ~~that we held with~~ an aggregate ~~principal and accrued interest~~ of $41.09 million ~~were~~under ~~converted into shares of~~ the ~~EMI’s~~revolving ~~convertible~~credit ~~preferred stock~~facility.

~~As of~~In ~~August~~fiscal ~~22,~~2025 and fiscal 2024, each of the EMI’s shareholders, including us, ~~agreed~~purchased ~~to purchase~~ additional shares of the EMI’s convertible preferred stock. We ~~subscribed~~paid ~~to purchase additional shares through January 2025 for~~ an aggregate of $0.9 million and $2.0 Inmillion ~~August~~in ~~2024,~~fiscal we2025 ~~paid~~and ~~$0.4 million~~fiscal 2024, respectively, to purchase additional shares.

Purchases of debt securities and equity investments were $2933.95 million and $5929.9 million in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively. Proceeds from maturities and sales of debt securities and redemptions of equity investments were $5036.13 million and $4950.21 million in fiscal ~~2024~~ 2025 and fiscal ~~2023~~2024, respectively.

Financing Activities

In March ~~2024~~2025, our Board of Directors ~~initiated~~increased a our quarterly cash dividend ofon our Class A and Class B common stock to $0.06 per share from $0.05 per share. In fiscal 2025 and fiscal 2024, we paid aggregate cash dividends per share of $0.22 and $0.10, respectively, on our Class A and Class B common stock. In fiscal 2025 and fiscal 2024, we paid aggregate cash dividends of $5.6 million and $2.5 million, respectively, on our Class A and Class B common stock. In September ~~2024~~2025, our Board of Directors declared a cash dividend ofon ~~$0.05 per share to holders of~~ our Class A and Class B common stock. ~~The~~of ~~dividend~~$0.06 ~~was~~per ~~paid~~share payable on or about October 7 10, ~~2024~~2025 to stockholders of record as of the close of business on September 30, ~~2024~~2025.

We distributed cash of $0.1 million and $0.31 million in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively, to the noncontrolling interests in certain of our subsidiaries.

InOur subsidiary, IDT Telecom, Inc., or IDT Telecom, ~~fiscal~~entered ~~2023~~into a credit agreement, wedated ~~received~~as ~~proceeds~~of ~~from~~May ~~notes~~17, ~~payable~~2021, with TD Bank, N.A. for a revolving credit facility for up to a maximum principal amount of $025.30 million. As of July 15, 2024, and weJuly 28, 2023, IDT Telecom and TD Bank, N.A. amended certain terms of the credit agreement. IDT Telecom may use the proceeds to finance working capital requirements and for certain closing costs of the facility. At July 31, 2025 and 2024, there were no amounts outstanding under this facility. In fiscal 2025 and fiscal 2024, IDT Telecom borrowed and repaid ~~notes~~an aggregate of $24.6 million and $32.9 million, respectively, under the facility. The revolving credit facility is secured by primarily all of IDT Telecom’s assets. The principal outstanding bears interest per annum at the secured overnight financing rate published by the Federal Reserve Bank of New York plus 10 basis points, plus, depending upon IDT Telecom’s leverage ratio as computed for the most recent fiscal quarter, 125 to 175 basis points. Interest is payable monthly, and all outstanding principal and any accrued and unpaid interest is due on May 16, 2026. IDT Telecom pays a quarterly unused commitment fee of 10 basis points on the average daily balance of the unused portion of the $225.0 million commitment. IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain targets based on financial ratios during the term of the revolving credit facility. As of July 31, 2025, IDT Telecom was in compliance with all the covenants.

~~Our subsidiary,~~In ~~IDT~~the ~~Telecom,~~first ~~Inc.,~~quarter ~~or IDT Telecom, entered into a credit agreement, dated as~~ of ~~May~~fiscal ~~17,~~2026 ~~2021,~~through ~~with TD Bank, N.A. for a revolving~~September ~~credit facility for up to a maximum principal amount of $25.0 million. As of July 15~~29, ~~2024 and July 28~~2025, ~~2023,~~ IDT Telecom and TD Bank, N.A. amended certain terms of the credit agreement. IDT Telecom may use the proceeds to finance working capital requirements and for certain closing costs of the facility. At July 31, 2024 and 2023, there were no amounts outstanding under this facility. In fiscal 2024 and fiscal 2023, IDT Telecom borrowed and repaid an aggregate of $3212.97 million ~~and $27.4 million, respectively,~~ under the facility. The revolving credit facility is secured by primarily all of IDT Telecom’s assets. The principal outstanding bears interest per annum at the secured overnight financing rate published by the Federal Reserve Bank of New York plus 10 basis points, plus depending upon IDT Telecom’s leverage ratio as computed for the most recent fiscal quarter, 125 to 175 basis points. Interest is payable monthly, and all outstanding principal and any accrued and unpaid interest is due on May 16, 2026. IDT Telecom pays a quarterly unused commitment fee of 10 basis points on the average daily balance of the unused portion of the $25.0 million commitment. IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain targets based on financial ratios during the term of the revolving credit facility. As of July 31, 2024, IDT Telecom was in compliance with all of the covenants.

In the first quarter of fiscal 2025 through October 7, 2024, IDT Telecom borrowed and repaid an aggregate of $14.2 million under the facility.

In January 2024, the restrictions lapsed on the 0.5 million restricted shares of net2phone 2.0 Class B common stock that were granted in December 2020 to each of Howard S. Jonas and Shmuel Jonas, our Chief Executive Officer, and Bill Pereira was granted 50,000 shares of net2phone 2.0 Class B common stock. We repurchased a portion of these shares representing an aggregate of 4.5% of the outstanding shares of net2phone 2.0 with an aggregate fair value of $3.6 million to satisfy the grantees’ tax withholding obligations in connection with the lapsing of restrictions on restricted stock or the grant of shares. In addition, in connection with the vesting of restricted shares of NRS Class B common stock on June 1, 2024, we repurchased a portion of the shares representing an aggregate of 0.17% of the outstanding shares of NRS with an aggregate fair value of $0.6 million to satisfy the grantees’ tax withholding obligations in connection with the lapsing of restrictions on restricted stock.

In ~~each~~ of fiscal 2024 ~~and fiscal 2023~~, we received cash from the exercise of stock options of $0.2 million for which we issued 12,500 shares of our Class B common stock. inThere ~~each~~were ofno ~~the~~stock ~~periods~~option exercises in fiscal 2025.

We have an existing stock repurchase program authorized by our Board of Directors for the repurchase of shares of our Class B common stock. The Board of Directors authorized the repurchase of up to 8.0 million shares in the aggregate. In fiscal 2024, we repurchased 298,421 shares of Class B common stock for an aggregate purchase price of $9.1 million, and in fiscal 2023, we repurchased 511,546 shares of Class B common stock for an aggregate purchase price of $13.1 million. At July 31, 2024, 4.4 million shares remained available for repurchase under the stock repurchase program.56

InWe have an existing stock repurchase program authorized by our Board of Directors for the ~~first~~repurchase ~~quarter~~of shares of ~~fiscal~~our ~~2025~~Class B ~~through~~common ~~October~~stock. 7In January 2016, ~~2024~~the Board of Directors authorized the repurchase of up to 8.0 million shares in the aggregate. In fiscal 2025, we repurchased 37221,~~714~~823 shares of our Class B common stock for an aggregate purchase price of $10.1 million, and in fiscal 2024, we repurchased 298,421 shares of Class B common stock for an aggregate purchase price of $9.1 million.3 At July 31, 2025, 4.2 million shares remained available for repurchase under the stock repurchase program.

In fiscal ~~2024~~2025 and fiscal ~~2023~~2024, we paid $17.57 million and $01.85 million, respectively, to repurchase 41157,~~994~~180 and 2841,~~227~~994 shares, respectively, of our Class B common stock that were tendered by employees of ours to satisfy the employees’ tax withholding obligations in connection with the vesting of DSUs, the lapsing of restrictions on restricted stock ~~shares~~, and shares issued for bonus payments. Such shares were repurchased by us based on their fair market value as of the close of business on the trading day immediately prior to the vesting date.

In April 2025, we exchanged an aggregate of 8,589 shares of our Class B common stock with a value of $0.4 million for shares of NRS’ Class B common stock that were held by employees of NRS representing an aggregate of 0.09% of NRS’ outstanding shares. In June 2024, we exchanged an aggregate of 12,267 shares of our Class B common stock with a value of $0.4 million for shares of NRS’ Class B common stock that were held by employees of NRS representing an aggregate of 0.09% of NRS’ outstanding shares. In January 2024, we exchanged an aggregate of 192,433 shares of our Class B common stock with a value of $6.3 million for shares of NRS’ Class B common stock that were held by management employees of NRS representing an aggregate of 1.25% of NRS’ outstanding shares.

Other Sources and Uses of Resources

~~We are~~From ~~considering~~time to time, we consider spin-offs and other potential dispositions of certain of our subsidiaries. ~~Some of the transactions under consideration are in early stages and others are more advanced.~~ A spin-off may include the contribution of a significant amount of cash, cash equivalents, debt securities, and/or equity securities to the subsidiary prior to the spin-off, which would reduce our capital resources. There is no assurance that ~~any~~a oftransaction ~~these transactions~~ will be completed.

We intend to, where appropriate, make strategic investments and acquisitions to complement, expand, and/or enter into new businesses. In considering acquisitions and investments, we search for opportunities to profitably grow our existing businesses and/or to add qualitatively to the range and diversification of businesses in our portfolio. We cannot guarantee that we will be presented with acquisition opportunities that meet our return-on-investment criteria, or that our efforts to make acquisitions that meet our criteria will be successful.

Item 7A. Quantitative and Qualitative Disclosures about Market Risks.

Foreign Currency Risk

Revenues from our international operations were 2321%, 28 23%, and 2928% of our consolidated revenues in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively. A significant portion of our revenues is in currencies other than the U.S. Dollar. Our foreign currency exchange risk is somewhat mitigated by our ability to offset a portion of these non-U.S. Dollar-denominated revenues with operating expenses that are paid in the same currencies. While the impact from fluctuations in foreign exchange rates affects our revenues and expenses denominated in foreign currencies, the net amount of our exposure to foreign currency exchange rate changes at the end of each reporting period is generally not material.

Investment Risk

We hold a portion of our assets in debt and equity securities, ~~including hedge funds,~~ for strategic and speculative purposes. At July 31, ~~2024~~ 2025 and ~~2023~~2024, the value of our debt and equity security holdings was an aggregate of $3533.09 million and $5835.50 million, respectively, which represented 65% and 116% of our total assets at July 31, ~~2024~~2025 and ~~2023~~2024, respectively. Investments in debt and equity securities carry a degree of risk and depend to a great extent on correct assessments of the future course of price movements of securities and other instruments. There can be no assurance that our investment managers will be able to accurately predict these price movements. The securities markets have in recent years been characterized by great volatility and unpredictability. Accordingly, the value of our investments may go down as well as up and we may not receive the amounts originally invested upon redemption.

Item 8. Financial Statements and Supplementary Data.

The Consolidated Financial Statements of the Company and the report of the independent registered public accounting firm thereon starting on page F-1 are included herein.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended), as of the end of the period covered by this Annual Report on Form 10-K. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of July 31, ~~2024~~2025.

Report of Management on Internal Control over Financial Reporting

We, the management of IDT Corporation and subsidiaries (the “Company”), are responsible for establishing and maintaining adequate internal control over financial reporting of the Company.

The Company’s internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with generally accepted accounting principles in the United States and includes those policies and procedures that:

1. Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the Company; 2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and 3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

~~Management has~~2. ~~assessed~~Provide ~~the~~reasonable ~~effectiveness~~assurance ofthat ~~the~~transactions ~~Company’s~~are ~~internal~~recorded ~~control~~as ~~over~~necessary ~~financial~~to ~~reporting~~permit aspreparation of ~~July~~financial ~~31,~~statements ~~2024.~~in Inaccordance ~~making~~with ~~this~~generally ~~assessment~~accepted accounting principles, ~~the~~ ~~Company’s~~and ~~management~~that ~~used~~receipts ~~the~~and ~~criteria~~expenditures ~~established~~of inthe ~~Internal~~Company ~~Control-Integrated~~are ~~Framework~~being ~~(2013)~~made ~~issued~~only byin ~~the~~accordance ~~Committee~~ with authorizations of ~~Sponsoring~~management ~~Organizations~~and directors of the ~~Treadway~~Company; ~~Commission (“COSO”).~~and

~~Under the~~3. ~~supervision~~Provide ~~and~~reasonable ~~with~~assurance ~~the~~regarding ~~participation~~prevention ofor ~~our~~timely ~~management,~~detection ~~including our principal executive officer and principal financial officer, we conducted an evaluation~~ of ~~our~~unauthorized ~~internal control over financial reporting~~acquisition, asuse ~~prescribed~~or ~~above,~~disposition as of ~~July 31, 2024. Based on our evaluation, our principal executive officer and principal financial officer concluded that~~ the Company’s ~~internal~~assets ~~control~~that ~~over~~could ~~financial~~have ~~reporting as~~a ofmaterial ~~July~~effect ~~31, 2024 was effective based~~ on the ~~criteria~~financial ~~established in the Internal Control-Integrated Framework (2013) issued by COSO~~statements.

Management has assessed the effectiveness of the Company’s internal control over financial reporting as of July 31, 2025. In making this assessment, the Company’s management used the criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our internal control over financial reporting, as prescribed above, as of July 31, 2025. Based on our evaluation, our principal executive officer and principal financial officer concluded that the Company’s internal control over financial reporting as of July 31, 2025 was effective based on the criteria established in the Internal Control-Integrated Framework (2013) issued by COSO.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Grant Thornton, LLP has provided an attestation report on the Company’s internal control over financial reporting as of July 31, ~~2024~~2025.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the fourth quarter of fiscal ~~2024~~2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

IDT Corporation

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of IDT Corporation (a Delaware corporation) and subsidiaries (the “Company”) as of July 31, ~~2024~~2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of July 31, ~~2024~~2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended July 31, ~~2024~~2025, and our report dated ~~October~~September 1529, ~~2024~~ 2025 expressed an unqualified opinion on those financial statements.

Basis for opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and limitations of internal control over financial reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

New York, New York

~~October 15~~September 29, ~~2024~~2025

Item 9B. Other Information.

None.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

Part III

Item 10. Directors, Executive Officers and Corporate Governance.

The following is a list of our directors and executive officers along with the specific information required by Rule 14a-3 of the Securities Exchange Act of 1934:

Executive Officers

Shmuel Jonas—Chief Executive Officer

Howard S. Jonas—Chairman

Marcelo Fischer—Chief Financial Officer

Bill Pereira—President and Chief Operating Officer

Mitch Silberman—Chief Accounting Officer and Controller

Joyce J. Mason—Executive Vice President, General Counsel and Corporate Secretary

Menachem Ash—Executive Vice President of Strategy and Legal Affairs

Nadine Shea – Executive Vice President of Global Human Resources

David Wartell —Chief Technology Officer

Directors

Howard S. Jonas—Chairman of the Board

Elaine Yatzkan —Member of the Board

Michael Chenkin—Certified Public Accountant; previously worked in the Audit Department of Coopers and Lybrand and as a consultant to the securities industry

Eric F. Cosentino—Former Rector of the Episcopal Church of the Divine Love, Montrose, New York

Irwin Katsof— Rabbi and former Director of The Jerusalem Fund, author of four best-selling books on business and spirituality, somatic psychotherapist, and President of trademissions.org, a business networking initiative that assists tech startups and alternative asset fund managers raise capital internationally

Judah Schorr—Founder of Judah Schorr MD PC, an anesthesia provider to hospitals, ambulatory surgery centers and medical offices, and has been its President and owner since its inception

Bill Pereira – Ex Officio (non-voting) member of the Board

The remaining information required by this Item will be contained in our Proxy Statement for our Annual Stockholders Meeting, which will be filed with the Securities and Exchange Commission within 120 days after July 31, ~~2024~~2025, and which is incorporated by reference herein.

Insider Trading Policies and Procedures

We have insider trading policies and procedures that govern the purchase, sale, and other dispositions of its securities by directors, officers, employees, and consultants, as well as our own. We believe these policies and procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations and applicable listing standards. See “Index of Exhibits” within this Annual Report on Form 10-K for our Insider Trading Policy.

Corporate Governance

We have included as exhibits to this Annual Report on Form 10-K certificates of our Chief Executive Officer and Chief Financial Officer certifying the quality of our public disclosure.

We make available free of charge through the investor relations page of our web site (www.idt.net/ir) our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports, and all beneficial ownership reports on Forms 3, 4, and 5 filed by directors, officers and beneficial owners of more than 10% of our equity, as soon as reasonably practicable after such reports are electronically filed with the Securities and Exchange Commission. We have adopted codes of business conduct and ethics for all of our employees, including our principal executive officer, principal financial officer and principal accounting officer. Copies of the codes of business conduct and ethics are available on our web site.

Our web site and the information contained therein or incorporated therein are not intended to be incorporated into this Annual Report on Form 10-K or our other filings with the Securities and Exchange Commission.

Item 11. Executive Compensation.

The information required by this Item will be contained in our Proxy Statement for our Annual Stockholders Meeting, which will be filed with the Securities and Exchange Commission within 120 days after July 31, ~~2024~~2025, and which is incorporated by reference herein.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Item 14. Principal Accountant Fees and Services.

Part IV

Item 15. Exhibit and Financial Statement Schedules.

(a) The following documents are filed as part of this Report: 1. Report of Management on Internal Control Over Financial Reporting Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements Consolidated Financial Statements covered by Report of Independent Registered Public Accounting Firm 2. Financial Statement Schedule. All schedules have been omitted since they are either included in the Notes to Consolidated Financial Statements or not required or not applicable. 3. Exhibits. Exhibit Numbers 10.01, 10.02 and 10.03 are management contracts or compensatory plans or arrangements. The exhibits listed in paragraph (b) of this Item are filed, furnished, or incorporated by reference as part of this Form 10-K. Certain of the agreements filed as exhibits to this Form 10-K contain representations and warranties by the parties to the agreements that have been made solely for the benefit of the parties to the agreement. These representations and warranties:

■1. ~~may~~Report ~~have been qualified by disclosures that were made to the other parties in connection with the negotiation~~ of ~~the~~Management ~~agreements,~~on ~~which~~Internal ~~disclosures~~Control ~~are~~Over ~~not~~Financial necessarily reflected in the agreements; ■ may apply standards of materiality that differ from those of a reasonable investor; and ■ were made only as of specified dates contained in the agreements and are subject to subsequent developments and changed circumstances.Reporting

Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting

Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements

Consolidated Financial Statements covered by Report of Independent Registered Public Accounting Firm

2.	Financial Statement Schedule.

All schedules have been omitted since they are either included in the Notes to Consolidated Financial Statements or not required or not applicable.

3.	Exhibits. Exhibit Numbers 10.01, 10.02, 10.03 and 10.4 are management contracts or compensatory plans or arrangements.

The exhibits listed in paragraph (b) of this Item are filed, furnished, or incorporated by reference as part of this Form 10-K.

Certain of the agreements filed as exhibits to this Form 10-K contain representations and warranties by the parties to the agreements that have been made solely for the benefit of the parties to the agreement. These representations and warranties:

■

may have been qualified by disclosures that were made to the other parties in connection with the negotiation of the agreements, which disclosures are not necessarily reflected in the agreements;

■

may apply standards of materiality that differ from those of a reasonable investor; and

■

were made only as of specified dates contained in the agreements and are subject to subsequent developments and changed circumstances.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date that these representations and warranties were made or at any other time. Investors should not rely on them as statements of fact.

(b)

Exhibits.

Exhibit Number		Description of Exhibits
3.01(1)		Third Restated Certificate of Incorporation of the Registrant.
3.02(2)		Eighth Amended and Restated By-laws of the Registrant.
4.2(3)		Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.
10.01(4)		Fifth Amended and Restated Employment Agreement, dated December 16, 2020, between the Registrant and Howard S. Jonas.
10.02(5)		2015 Stock Option and Incentive Plan, as amended and restated, of IDT Corporation.
10.03(6)		~~Amended~~2024 ~~and~~Equity ~~Restated~~Incentive ~~Agreement,~~Plan ~~dated~~of ~~December 21, 2023, between~~ IDT Corporation ~~and Bill Pereira~~.
10.04(7)		Amended and Restated Agreement, dated December 21, 2023, between IDT Corporation and Bill Pereira.
19.01*		Insider Trading Policy
21.01*		Subsidiaries of the Registrant.
23.01*		Consent of Grant Thornton, LLP
31.01*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01*		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.02*		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
97*		Compensation Clawback Policy.
97(8)		Compensation Clawback Policy.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*	filed herewith.

(1)	Incorporated by reference to Form 8-K, filed April 5, 2011.
(2)	Incorporated by reference to Form 8-K, filed September 23, 2022.
(3)	Incorporated by reference to Form 10-K/A, filed December 22, 2020.
(4)	Incorporated by reference to Form 8-K, filed December 22, 2020.
(5)	Incorporated by reference to Form S-8, filed October 16, 2023.
(6)	Incorporated by reference to Form 8-K, filed December 28, 2023.

(1)	Incorporated by reference to Form 8-K, filed April 5, 2011.

(2)	Incorporated by reference to Form 8-K, filed September 23, 2022.

(3)	Incorporated by reference to Form 10-K/A, filed December 22, 2020.

(4)	Incorporated by reference to Form 8-K, filed December 22, 2020.

(5)	Incorporated by reference to Form S-8, filed October 16, 2023.

(6)	Incorporated by reference to Form S-8, filed October 15, 2024.

(7)	Incorporated by reference to Form 8-K, filed December 28, 2023.

(8)	Incorporated by reference to Form 10-K, filed October 15, 2024.

Item 16. Form 10-K Summary.

None.

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

	IDT CORPORATION

	By:	/s/ Shmuel Jonas
		Shmuel Jonas
		Chief Executive Officer

Date: ~~October~~September 1529, ~~2024~~2025

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature	Titles	Date
/s/ Shmuel Jonas	Chief Executive Officer	~~October~~September 1529, ~~2024~~2025
Shmuel Jonas	(Principal Executive Officer)
/s/ Marcelo Fischer	Chief Financial Officer	~~October~~September 1529, ~~2024~~2025
Marcelo Fischer	(Principal Financial Officer)
/s/ Mitch Silberman	Chief Accounting Officer and Controller	~~October~~September 1529, ~~2024~~2025
Mitch Silberman	(Principal Accounting Officer)
/s/ Howard S. Jonas	Chairman of the Board	~~October~~September 1529, ~~2024~~2025
Howard S. Jonas
/s/ Elaine Yatzkan	Director	~~October~~September 1529, ~~2024~~2025
Elaine Yatzkan
/s/ Michael Chenkin	Director	October 15, 2024
/s/ Eric F. Cosentino	Director	September 29, 2025
Michael Chenkin
/s/ Eric F. Cosentino	Director	October 15, 2024
Eric F. Cosentino
/s/ Judah Schorr	Director	October 15, 2024
/s/ Irwin Katsof	Director	September 29, 2025
Irwin Katsof
/s/ Judah Schorr	Director	September 29, 2025
Judah Schorr

IDT Corporation

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID 248)	F-2
Consolidated Balance Sheets as of July 31, 2024 and 2023	F-3
Consolidated Balance Sheets as of July 31, 2025 and 2024	F-3
Consolidated Statements of Income for the years ended July 31, 2024, 2023 and 2022	F-4
Consolidated Statements of Income for the years ended July 31, 2025, 2024 and 2023	F-4
Consolidated Statements of Comprehensive Income for the years ended July 31, 2024, 2023 and 2022	F-5
Consolidated Statements of Comprehensive Income for the years ended July 31, 2025, 2024 and 2023	F-5
Consolidated Statements of Equity for the years ended July 31, 2024, 2023 and 2022	F-6
Consolidated Statements of Equity for the years ended July 31, 2025, 2024 and 2023	F-6
Consolidated Statements of Cash Flows for the years ended July 31, 2024, 2023 and 2022	F-7
Consolidated Statements of Cash Flows for the years ended July 31, 2025, 2024 and 2023	F-7
Notes to Consolidated Financial Statements	F-8

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

IDT Corporation

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of IDT Corporation (a Delaware corporation) and subsidiaries (the “Company”) as of July 31, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of the three years in the period ended July 31, ~~2024~~2025, and the related notes (collectively referred to as the “~~financial~~consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of July 31, ~~2024~~ 2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the three years in the period ended July 31, ~~2024~~2025, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of July 31, ~~2024~~2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated ~~October~~September 1529, ~~2024~~2025 expressed an unqualified opinion.

Basis for opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical audit matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2020.

New York, New York

~~October~~September 1529, ~~2024~~2025

F-2

IDT CORPORATION

CONSOLIDATED BALANCE SHEETS

July 31 (in thousands, except per share data)	~~2024~~2025			~~2023~~2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	~~164~~226,~~557~~505		$	~~103~~164,~~637~~557
Restricted cash and cash equivalents		90115,~~899~~327			9590,~~186~~899
Debt securities		2321,~~438~~649			4223,~~414~~438
Equity investments		5,~~009~~637			65,~~198~~009
Trade accounts receivable, net of allowance for credit losses of $6,352 at July 31, 2024 and allowance for doubtful accounts of $5,642 at July 31, 2023		42,215			32,092
Trade accounts receivable, net of allowance for credit losses of $9,097 and $6,352 at July 31, 2025 and 2024, respectively		42,867			42,215
Settlement assets, net of reserve of $1,866 and $1,143 at July 31, 2024 and 2023, respectively		22,186			32,396
Settlement assets, net of reserve of $1,367 and $1,866 at July 31, 2025 and 2024, respectively		28,014			22,186
Disbursement prefunding		3037,~~736~~097			30,~~113~~736
Prepaid expenses		1714,~~558~~505			1617,~~638~~558
Other current assets		2528,~~927~~702			2825,~~394~~927
TOTAL CURRENT ASSETS		~~422~~520,~~525~~303			~~387~~422,~~068~~525
Property, plant, and equipment, net		38,~~652~~869			38,~~655~~652
Goodwill		26,~~288~~488			26,~~457~~288
Other intangibles, net		65,~~285~~056			86,~~196~~285
Equity investments		6,~~518~~658			96,~~874~~518
Operating lease right-of-use assets		31,~~273~~878			53,~~540~~273
Deferred income tax assets, net		3518,~~008~~790			2435,~~101~~008
Other assets		118,~~546~~161			1011,~~919~~546
TOTAL ASSETS	$	~~550~~626,~~095~~203		$	~~510~~550,~~810~~095
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
CURRENT LIABILITIES:
Trade accounts payable	$	2419,~~773~~435		$	2224,~~231~~773
Accrued expenses		~~103~~97,~~176~~295			~~110~~103,~~796~~176
Deferred revenue		3027,~~364~~726			3530,~~343~~364
Customer deposits		83,003			86,481
Customer funds deposits		114,708			91,893
Settlement liabilities		2113,~~654~~922			2112,~~495~~764
Other current liabilities		1619,~~374~~910			1716,~~761~~374
TOTAL CURRENT LIABILITIES		~~279~~292,~~344~~996			~~294~~279,~~107~~344
Operating lease liabilities		1,~~533~~103			21,~~881~~533
Other liabilities		21,~~662~~688			32,~~354~~662
TOTAL LIABILITIES		~~283~~295,~~539~~787			~~300~~283,~~342~~539
Commitments and contingencies		-			-
Redeemable noncontrolling interest		1011,~~901~~459			10,~~472~~901
EQUITY:
IDT Corporation stockholders’ equity:
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued		—			—
Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2024 and 2023		33			33
Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2025 and 2024		33			33
Class B common stock, $.01 par value; authorized shares—200,000; 28,177 and 27,851 shares issued and 23,684 and 23,699 shares outstanding at July 31, 2024 and 2023, respectively		282			279
Class B common stock, $.01 par value; authorized shares—200,000; 28,528 and 28,177 shares issued and 23,656 and 23,684 shares outstanding at July 31, 2025 and 2024, respectively		285			282
Common stock, value
Common stock		285			282
Additional paid-in capital		~~303~~308,~~510~~111			~~301~~303,~~408~~510
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,493 and 4,152 shares of Class B common stock at July 31, 2024 and 2023, respectively		(126,080	)		(115,461	)
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,872 and 4,493 shares of Class B common stock at July 31, 2025 and 2024, respectively		(143,853	)		(126,080	)
Accumulated other comprehensive loss		(1816,~~142~~569	)		(1718,~~192~~142	)
Retained earnings		86157,~~580~~124			2486,~~662~~580
Total IDT Corporation stockholders’ equity		~~246~~305,~~183~~131			~~193~~246,~~729~~183
Noncontrolling interests		913,~~472~~826			69,~~267~~472
TOTAL EQUITY		~~255~~318,~~655~~957			~~199~~255,~~996~~655
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY	$	~~550~~626,~~095~~203		$	~~510~~550,~~810~~095

See accompanying notes to consolidated financial statements.

F-3

IDT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

Year ended July 31 (in thousands, except per share data)	~~2024~~2025			~~2023~~2024			~~2022~~2023
REVENUES	$	1,~~205~~231,~~778~~495		$	1,~~238~~205,~~854~~778		$	1,~~364~~238,~~057~~854
DIRECT COST OF REVENUES		~~815~~785,~~621~~300			~~881~~815,~~614~~621			1881,~~039,059~~614
GROSS PROFIT		~~390~~446,~~157~~195			~~357~~390,~~240~~157			~~324~~357,~~998~~240
OPERATING EXPENSES:
Selling, general and administrative (i)		~~270~~287,~~207~~567			~~243~~270,~~159~~207			~~216~~243,~~922~~159
Technology and development (i)		50,~~554~~964			4750,~~988~~554			47,~~045~~988
Severance		~~1,698~~898			~~935~~1,698			~~116~~935
Other operating expense, net (see Note 14)		2,945			4,415			826
Other operating expense, net (see Note 13)		6,342			2,945			4,415
TOTAL OPERATING EXPENSES		~~325~~345,~~404~~771			~~296~~325,~~497~~404			~~264~~296,~~909~~497
Income from operations		64100,~~753~~424			6064,~~743~~753			60,~~089~~743
Interest income, net		46,~~769~~127			34,~~147~~769			~~146~~3,147
Other expense, net		(~~7,612~~713	)		(37,~~083~~612	)		(253,~~352~~083	)
Income before income taxes		61105,~~910~~838			6061,~~807~~910			3460,~~883~~807
Benefit from (provision for) income taxes		6,354			(16,441	)		(5,878	)
(Provision for) benefit from income taxes		(24,699	)		6,354			(16,441	)
NET INCOME		6881,~~264~~139			4468,~~366~~264			2944,~~005~~366
Net income attributable to noncontrolling interests		(35,~~810~~045	)		(3,~~874~~810	)		(13,~~977~~874	)
NET INCOME ATTRIBUTABLE TO IDT CORPORATION	$	6476,~~454~~094		$	4064,~~492~~454		$	2740,~~028~~492
Earnings per share attributable to IDT Corporation common stockholders:
Basic	$	23.5502		$	12.5955		$	1.0559
Diluted	$	23.5401		$	12.5854		$	1.0358
Weighted-average number of shares used in calculation of earnings per share:
Basic		25,~~241~~188			25,~~517~~241			25,~~791~~517
Diluted		25,~~398~~295			25,~~577~~398			2625,~~356~~577
(i) Stock-based compensation included in:
(i) Stock-based compensation included in total operating expenses	$	3,074		$	7,397		$	4,518
Selling, general and administrative expense	$	7,015		$	3,913		$	1,871
Technology and development expense	$	382		$	605		$	59

(i) Stock-based compensation included in: Technology and development expense & Selling, general and administrative expense

See accompanying notes to consolidated financial statements.

F-4

IDT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year ended July 31 (in thousands)	~~2024~~2025			~~2023~~2024			~~2022~~2023
NET INCOME	$	6881,~~264~~139		$	4468,~~366~~264		$	2944,~~005~~366
Other comprehensive income (loss):
Change in unrealized loss on available-for-sale securities		~~265~~155			~~(99~~265	)		(~~537~~99	)
Foreign currency translation adjustments		(1,~~215~~418	)		(51,~~788~~215	)		(~~585~~5,788	)
Other comprehensive loss		(950	)		(5,887	)		(1,122	)
Other comprehensive income (loss)		1,573			(950	)		(5,887	)
COMPREHENSIVE INCOME		6782,~~314~~712			3867,~~479~~314			2738,~~883~~479
Comprehensive income attributable to noncontrolling interests		(35,~~810~~045	)		(3,~~874~~810	)		(13,~~977~~874	)
COMPREHENSIVE INCOME ATTRIBUTABLE TO IDT CORPORATION	$	6377,~~504~~667		$	3463,~~605~~504		$	2534,~~906~~605

See accompanying notes to consolidated financial statements.

F-5

IDT CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY (in thousands)

	~~Shares~~	Shares	~~Amount~~	Amount	~~Shares~~	Shares	~~Amount~~	Amount	Capital			Stock			Loss			Earnings			Interests			Equity
	IDT Corporation Stockholders
	Class A Common Stock				Class B Common Stock				Additional Paid-In			Treasury			Accumulated Other Comprehensive			(Accumulated Deficit) Retained			Noncontrolling			Total
	~~Shares~~	Shares	~~Amount~~	Amount	~~Shares~~	Shares	~~Amount~~	Amount	Capital			Stock			Loss			Earnings			Interests			Equity
BALANCE AT JULY 31, 2021		3,272	$	33		26,379	$	264	$	278,021		$	(60,413	)	$	(10,183	)	$	(42,858	)	$	1,750		$	166,614
BALANCE AT JULY 31, 2022		3,272	$	33		27,725	$	277	$	296,005		$	(101,565	)	$	(11,305	)	$	(15,830	)	$	3,022		$	170,637
Exercise of stock options by Howard S. Jonas		—		—		1,000		10		14,920			(18,788	)		—			—			—			(3,858	)
Exercise of stock options		—		—		10		—		137			—			—			—			—			137
Repurchases of Class B common stock through repurchase program		—		—		—		—		—			(13,390	)		—			—			—			(13,390	)
Restricted Class B common stock purchased from employees		—		—		—		—		—			(8,974	)		—			—			—			(8,974	)
Business acquisition		—		—		28		—		1,000			—			—			—			—			1,000
Stock-based compensation		—		—		308		3		1,927			—			—			—			—			1,930
Distributions to noncontrolling interests		—		—		—		—		—			—			—			—			(514	)		(514	)
Other comprehensive loss		—		—		—		—		—			—			(1,122	)		—			—			(1,122	)
Net income for the year ended July 31, 2022		—		—		—		—		—			—			—			27,028			1,786			28,814
BALANCE AT JULY 31, 2022		3,272		33		27,725		277		296,005			(101,565	)		(11,305	)		(15,830	)		3,022			170,637
Exercise of stock options		—		—		13		—		172			—			—			—			—			172
Repurchases of Class B common stock through repurchase program		—		—		—		—		—			(13,082	)		—			—			—			(13,082	)
Restricted Class B common stock purchased from employees		—		—		—		—		—			(814	)		—			—			—			(814	)
Stock issued to certain executive officers for bonus payments		—		—		25		1		614			—			—			—			—			615
Business acquisition		—		—		3		—		100			—			—			—			—			100
Stock-based compensation		—		—		85		1		4,517			—			—			—			—			4,518
Distributions to noncontrolling interests		—		—		—		—		—			—			—			—			(348	)		(348	)
Other comprehensive loss		—		—		—		—		—			—			(5,887	)		—			—			(5,887	)
Net income for the year ended July 31, 2023		—		—		—		—		—			—			—			40,492			3,593			44,085
BALANCE AT JULY 31, 2023		3,272		33		27,851		279		301,408			(115,461	)		(17,192	)		24,662			6,267			199,996
Balance		3,272		33		27,851		279		301,408			(115,461	)		(17,192	)		24,662			6,267			199,996
Dividends declared ($0.10 per share)		—		—		—		—		—			—			—			(2,536	)		—			(2,536	)
Exercise of stock options		—		—		13		—		172			—			—			—			—			172
Repurchases of Class B common stock through repurchase program		—		—		—		—		—			(9,087	)		—			—			—			(9,087	)
Restricted Class B common stock purchased from employees		—		—		—		—		—			(1,532	)		—			—			—			(1,532	)
Restricted net2phone and National Retail Solutions common stock purchased from employees		—		—		—		—		(4,163	)		—			—			—			32			(4,131	)
Exchange of National Retail Solutions shares for Class B common stock		—		—		205		2		94			—			—			—			(96	)		—
Stock issued/to be issued to an executive officer for bonus payment		—		—		39		—		1,494			—			—			—			—			1,494
Business acquisition holdback payment		—		—		3		—		100			—			—			—			—			100
Stock-based compensation		—		—		66		1		4,405			—			—			—			—			4,406
Distributions to noncontrolling interests		—		—		—		—		—			—			—			—			(112	)		(112	)
Other comprehensive loss		—		—		—		—		—			—			(950	)		—			—			(950	)
Net income for the year ended July 31, 2024		—		—		—		—		—			—			—			64,454			3,381			67,835
Net income		—		—		—		—		—			—			—			64,454			3,381			67,835
BALANCE AT JULY 31, 2024		3,272		33		28,177		282		303,510			(126,080	)		(18,142	)		86,580			9,472			255,655
BALANCE AT JULY 31, 2024		3,272	$	33		28,177	$	282	$	303,510		$	(126,080	)	$	(18,142	)	$	86,580		$	9,472		$	255,655
Balance		3,272		33		28,177		282		303,510			(126,080	)		(18,142	)		86,580			9,472			255,655
Balance		3,272	$	33		28,177	$	282	$	303,510		$	(126,080	)	$	(18,142	)	$	86,580		$	9,472		$	255,655
Dividends declared ($0.22 per share)		—		—		—		—		—			—			—			(5,550	)		—			(5,550	)
Dividends declared		—		—		—		—		—			—			—			(5,550	)		—			(5,550	)
Repurchases of Class B common stock through repurchase program		—		—		—		—		—			(10,097	)		—			—			—			(10,097	)
Restricted Class B common stock purchased from employees		—		—		—		—		—			(7,676	)		—			—			—			(7,676	)
Exchange of National Retail Solutions shares for Class B common stock		—		—		9		—		33			—			—			—			(33	)		—
Stock issued to an executive officer for bonus payment		—		—		39		—		1,824			—			—			—			—			1,824
Stock-based compensation		—		—		303		3		2,744			—			—			—			—			2,747
Distributions to noncontrolling interests		—		—		—		—		—			—			—			—			(100	)		(100	)
Other comprehensive income		—		—		—		—		—			—			1,573			—			—			1,573
Net income for the year ended July 31, 2025		—		—		—		—		—			—			—			76,094			4,487			80,581
Net income for the year ended		—		—		—		—		—			—			—			76,094			4,487			80,581
BALANCE AT JULY 31, 2025		3,272	$	33		28,528	$	285	$	308,111		$	(143,853	)	$	(16,569	)	$	157,124		$	13,826		$	318,957
Balance		3,272	$	33		28,528	$	285	$	308,111		$	(143,853	)	$	(16,569	)	$	157,124		$	13,826		$	318,957

See accompanying notes to consolidated financial statements.

F-6

IDT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended July 31 (in thousands)	~~2024~~2025			~~2023~~2024			~~2022~~2023
OPERATING ACTIVITIES
Net income	$	6881,~~264~~139		$	4468,~~366~~264		$	2944,~~005~~366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2021,~~351~~008			20,~~136~~351			1820,~~115~~136
Deferred income taxes		~~(10~~16,~~907~~217	)		12(10,~~601~~907	)		412,~~801~~601
Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets		47,~~390~~090			24,~~198~~390			2,~~330~~198
Net unrealized loss from marketable securities		1,435			3,368			18,960
Stock-based compensation		3,074			7,397			4,518
Stock-based compensation		7,397			4,518			1,930
Other		2,199			4,579			6,543
Other		3,144			3,175			3,379
Changes in assets and liabilities:
Trade accounts receivable		(126,~~701~~459	)		4(12,~~726~~701	)		(84,~~279~~726	)
Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets		12(8,~~735~~556	)		~~(17~~12,~~503~~735	)		(2117,~~046~~503	)
Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities		(74,~~459~~814	)		(179,~~216~~081	)		(121,~~110~~001	)
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank)		(3,442	)		(4,200	)		(15,966	)
Customer funds deposits		19,235			(1,820	)		(2,152	)
Deferred revenue		(53,~~016~~072	)		(25,~~029~~016	)		(2,~~712~~029	)
Net cash provided by operating activities		78127,~~191~~061			5478,~~140~~191			2952,~~407~~403
INVESTING ACTIVITIES
Capital expenditures		(1820,~~922~~770	)		(2118,~~958~~922	)		(21,~~879~~958	)
Payments for acquisitions, net of cash acquired		—			—			(7,552	)
Notes receivable from equity method investment		(1,900	)		—			—
Purchase of convertible preferred stock in equity method investment		(~~2,017~~926	)		(~~840~~2,017	)		(~~1,051~~840	)
Purchases of debt securities and equity investments		(2933,~~921~~453	)		(5929,~~872~~921	)		(2459,~~454~~872	)
Proceeds from maturities and sales of debt securities and redemption of equity investments		5036,~~112~~310			4950,~~211~~112			2149,~~157~~211
Net cash used in investing activities		(~~748~~20,739	)		(~~33,459~~748	)		(33,~~779~~459	)
FINANCING ACTIVITIES
Dividends paid		(25,~~536~~550	)		—(2,536	)		—
Distributions to noncontrolling interests		(~~112~~100	)		(~~348~~112	)		(~~514~~348	)
Proceeds from notes payable		—			300			2,301
Proceeds from borrowings under revolving credit facility		24,551			32,864			27,383
Repayment of notes payable		—			(2,037	)		(1,319	)
Repayments of borrowings under revolving credit facility		(24,551	)		(32,864	)		(27,383	)
Proceeds from sale of redeemable equity in subsidiary		—			—			10,000
Purchase of restricted shares of net2phone and National Retail Solutions common stock		—			(4,131	)		—
Proceeds from borrowings under revolving credit facility		32,864			27,383			2,566
Proceeds from exercise of stock options		—			172			172
Repayments of borrowings under revolving credit facility		(32,864	)		(27,383	)		(2,566	)
Repurchases of Class B common stock		(17,773	)		(10,619	)		(13,896	)
Purchase of restricted shares of net2phone and National Retail Solutions common stock		(4,131	)		—			—
Net cash used in financing activities		(23,423	)		(17,226	)		(14,072	)
Proceeds from exercise of stock options		172			172			137
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents		3,477			(3,584	)		4,389
Repurchases of Class B common stock		(10,619	)		(13,896	)		(26,222	)
Net increase in cash, cash equivalents, and restricted cash and cash equivalents		86,376			56,633			9,261
Net cash used in financing activities		(17,226	)		(15,809	)		(15,617	)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year		255,456			198,823			189,562
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents		(3,584	)		4,389			(17,365	)
Cash, cash equivalents, and restricted cash and cash equivalents at end of year	$	341,832		$	255,456		$	198,823
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents		56,633			9,261			(37,354	)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year		198,823			189,562			226,916
Cash, cash equivalents, and restricted cash and cash equivalents at end of year	$	255,456		$	198,823		$	189,562
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for interest	$	~~429~~110		$	~~536~~429		$	~~461~~536
Cash payments made for income taxes	$	~~527~~279		$	~~777~~527		$	~~109~~777
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Value of the Company’s Class B common stock exchanged for National Retail Solutions shares	$	~~6,696~~442		$	—6,696		$	—
Conversion of equity method investment’s secured promissory notes into convertible preferred stock	$	—		$	~~4,038~~—		$	—4,038
Shares of the Company’s Class B common stock issued to certain executive officers for bonus payments	$	1,~~494~~824		$	~~615~~1,494		$	—615
Liabilities incurred for acquisitions	$	—		$	—		$	7,849
Shares of the Company’s Class B common stock issued for business acquisitions	$	-		$	100		$	100
Shares of the Company’s Class B common stock issued for business acquisitions	$	100		$	100		$	1,000
Cashless exercise of stock options in exchange for shares of the Company’s Class B common stock	$	—		$	—		$	14,930

See accompanying notes to consolidated financial statements.

F-7

IDT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1—Description of Business and Summary of Significant Accounting Policies

Description of Business

IDT ~~Corporation~~ ~~(the “Company”)~~ is a provider of ~~point-of-sale~~fintech ~~(“POS”)~~and ~~terminal-based~~communications solutions, ~~international money~~focused ~~remittances~~on ~~and~~certain ~~other~~under-served ~~financial~~consumer ~~technology,~~and orB2B ~~fintech,~~markets. Our offerings, ~~cloud~~were ~~communications~~built around, and ~~traditional~~continue ~~communications services.~~to ~~The~~leverage, ~~Company~~a ~~has~~common ~~four reportable~~core ~~business~~of ~~segments~~strategic assets, ~~National~~and ~~Retail~~we ~~Solutions~~seek ~~(“NRS”),~~to ~~Fintech,~~maximize ~~net2phone~~the ~~(which~~synergies ~~comprises~~among them ~~our~~to ~~cloud~~achieve ~~communications~~exceptional ~~offerings),~~growth and ~~Traditional Communications~~profitability.

As of July 31, ~~2024~~2025, the Company owned 94.0% of the outstanding shares of its subsidiary, net2phone 2.0, Inc. (“net2phone 2.0”), which owns and operates the net2phone segment, and 81.56% of the outstanding shares of NRS,. ~~and,~~On on a fully diluted basis assuming all ~~the~~ the vesting criteria related to various rights granted have been met, the Company would own 90.01% of the equity of net2phone 2.0 and 79.35% of the equity of NRS.

Basis of Consolidation

The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the entity in which the Company owns an interest and includes the identification of any variable interests in which the Company is the primary beneficiary. The consolidated financial statements include the Company’s controlled subsidiaries and the variable interest entity in which the Company is the primary beneficiary (see Note 13 12). All significant intercompany accounts and transactions between the consolidated entities are eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Reclassifications

From and after August 1, ~~2023~~2024, the Company ~~includes~~reclassified ~~depreciation~~certain ~~and~~customer ~~amortization~~funds infor ~~“Direct~~pending ~~cost~~money oftransfers ~~revenues”~~in ~~and~~its ~~“Selling,~~consolidated financial statements. ~~general~~In ~~and~~the ~~administrative”~~consolidated ~~expense~~balance ~~and~~sheet isat ~~reporting~~July ~~gross~~31, ~~profit~~2024, $8.9 million previously included in ~~accordance~~“Settlement ~~with~~liabilities” ~~U.S.~~was ~~GAAP~~reclassified to “Customer funds deposits,” and in the consolidated statements of ~~income.~~cash ~~Prior~~flows toin ~~August~~fiscal 1,2024 and fiscal 2023, ~~depreciation~~cash provided by “Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and ~~amortization~~other liabilities” of $1.6 million and $2.0 million, respectively, was areclassified ~~separate~~to ~~caption~~cash used in ~~the~~“Customer ~~consolidated~~funds ~~statements~~deposits”. ofThese ~~income~~amounts were reclassified to conform to the current year’s presentation.

From and after February 1, 2024, the Company reclassified most of its technology and development expenses from “Selling, general and administrative” expense to a new “Technology and development” expense caption in the consolidated statements of income and reclassified an amount that was immaterial in all periods to “Direct cost of revenues.” “Technology and development” expense consists primarily of personnel-related expenses for employees involved in the research, design, development, and maintenance of both new and existing technology products and services, including salaries, benefits, and stock-based compensation. “Technology and development” expense also includes costs for software licenses, subscription services, and other companywide technology tools dedicated for use by the Company’s technology and development teams. The costs of third-party contractors that support the Company’s technology and development are also included. “Technology and development” expense also includes the costs of product and engineering teams used to support the development of both internal infrastructure and internal-use software, to the extent such costs do not qualify for capitalization. The expenses reclassified to “Direct cost of revenues” are the costs of cloud computing arrangements hosted by a vendor in the production environment incurred by the net2phone segment and NRS, and net2phone’s colocation costs for data centers where net2phone is not fully operational in the cloud. Finally, depreciation and amortization of capitalized internal use software costs was reclassified from “Selling, general and administrative” expense to “Technology and development” expense.

F-8

The following table shows the amounts that were reclassified in fiscal 2023 and fiscal 2022 to conform to the current year’s presentation:

Schedule of Amount that were Reclassified

Year ended July 31 (in thousands)	2023		2022
Selling, general and administrative expense reclassified to:
Direct cost of revenues	$	1,364	$	1,113
Technology and development expense	$	35,230	$	34,935
Selling, general and administrative expense		35,230		34,935
Depreciation and amortization expense reclassified to:
Direct cost of revenues	$	4,516	$	3,516
Selling, general and administrative expense	$	2,862	$	2,489
Technology and development expense	$	12,758	$	12,110
Depreciation and amortization expense	$	12,758	$	12,110

Accounting for Investments

Investments in businesses that the Company does not control, but in which the Company has the ability to exercise significant influence over operating and financial matters, are accounted for using the equity method. Investments in which the Company does not have the ability to exercise significant influence over operating and financial matters are accounted for using the cost method. Investments in hedge funds are accounted for using the equity method unless the Company’s interest is so minor that it has virtually no influence over operating and financial policies, in which case these investments are accounted for using the cost method. The Company periodically evaluates its equity and cost method investments for impairment due to declines considered to be other than temporary. If the Company determines that a decline in fair value is other than temporary, then a charge to earnings is recorded in “Other expense, net” in the accompanying consolidated statements of income, and a new basis in the investment is established.

Revenue Recognition

The Company recognizes revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services, in accordance with a five-step process as follows: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the Company satisfies a performance obligation.

Direct Cost of Revenues

Direct cost of revenues consists primarily of termination and origination costs, toll-free costs, and network costs—including customer/carrier interconnect charges and fiber circuit charges. These costs include an estimate of charges for which invoices have not yet been received, and estimated amounts for pending disputes with other carriers. Direct cost of revenues also includes the cost of airtime top-up minutes, the cost of NRS’ POS terminals sold, the costs of cloud computing arrangements hosted by a vendor in the production environment incurred by the net2phone segment and NRS, net2phone’s colocation costs for data centers where net2phone is not fully operational in the cloud, net2phone’s cost of equipment sold, and commissions paid to disbursement agents, sales agents, and retailers for BOSS Money’s originations and distributions.

F-8

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Debt Securities

The Company’s investments in debt securities are classified as “available-for-sale.” Available-for-sale debt securities are required to be carried at their fair value, with unrealized gains that are considered temporary in nature recorded in “Accumulated other comprehensive loss” in the accompanying consolidated balance sheets. ~~On August 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.~~ For available-for-sale debt securities with unrealized losses, ~~ASU 2016-13 replaced~~ the ~~concept of “other-than-temporary” impairment with a determination whether any impairment is a result of a credit loss or other factors. The~~ portion of the unrealized loss that is the result of a credit loss is recognized as an allowance and a corresponding expense is recorded in “Other expense, net” in the consolidated statement of income., ~~Unrealized~~and unrealized loss that is not the result of a credit loss is recorded in “Accumulated other comprehensive loss” in the consolidated balance sheets. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements, and it was not necessary to record a cumulative-effect adjustment to retained earnings as of August 1, 2023.

The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of debt securities.

Equity Investments

Investments in equity securities (except those accounted for under the equity method or that result in consolidation) are measured at fair value, with changes in fair value recognized in net income. For investments in equity securities without a readily determinable fair value, the Company elects the measurement alternative and measures these investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. At each reporting date, the Company reassesses whether the investment still qualifies for this measurement alternative. Further, at each reporting date, the Company performs a qualitative assessment to evaluate whether the investment is impaired. If the qualitative assessment indicates that the investment is impaired and the fair value of the investment is less than its carrying value, the carrying amount of the investment will be reduced and the resulting loss recognized in “Other expense, net” in the accompanying consolidated statements of income in the period the impairment is identified.

F-9

On August 1, 2024, the Company adopted ASU No. 2022-03, Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, that clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU also requires specific disclosures related to equity securities that are subject to contractual sales restrictions. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements.

Settlement Assets and Settlement Liabilities

Settlement assets represent funds to be received for unsettled international money remittance and related value/payment transfer services. The receivables are due from financial institutions and agents for payment instruments sold and amounts advanced by the Company to certain agents for operational and local regulatory purposes. These receivables are outstanding from the day of the sale of the payment instrument until the financial institution or agent remits the funds to the Company. The Company provides an allowance for the portion of the receivable estimated to become uncollectible based on its history of collection experience, known collection issues, consumer credit card chargebacks and insufficient funds, and other matters the Company identifies in its routine collection monitoring.

Settlement liabilities represent obligations relating to amounts payable under international money remittance and related value/payment transfer services. These obligations are recognized by the Company at the time the underlying transaction occurs. The Company records corresponding settlement assets for the funds to be received.

Disbursement Prefunding

The Company maintains relationships with disbursement partners in various countries for its BOSS Money and IDT Digital Payments services. The Company maintains prefunding balances with these disbursement partners, so they can satisfy the Company’s customer liabilities. The Company does not earn interest on these balances. The balances are not compensating balances and are not legally restricted.

Inventory

Inventory consists of NRS’ POS terminals that it sells to retailers. Inventory is measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory is included in Other current assets on the consolidated balance sheets.

Property, Plant, and Equipment and Intangible Assets

Equipment, computer software, and furniture and fixtures are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives, which are as follows: equipment—5 and 7 years; computer software—3 years; and furniture and fixtures—5 years. Leasehold improvements are recorded at cost and are depreciated on a straight-line basis over the term of their lease or their estimated useful lives, whichever is shorter.

~~Non~~F-~~compete agreements, customer relationships, and tradenames are amortized over their estimated useful lives (see Notes 6 and 12).~~9

Non-compete agreements, customer relationships, and tradenames are amortized over their estimated useful lives (see Note 11).

The Company tests the recoverability of its property, plant, and equipment and intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company tests for recoverability based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less than the carrying value of the asset, the Company will record an impairment loss, if any, based on the difference between the estimated fair value and the carrying value of the asset. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows from such asset using an appropriate discount rate. Cash flow projections and fair value estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the Company may be required to record impairments in future periods and such impairments could be material.

Goodwill

Goodwill is the excess of the consideration paid for a business over the fair value of the identifiable net assets acquired. Goodwill and other indefinite lived intangible assets are not amortized. Instead, these assets are reviewed annually (or more frequently under various conditions) for impairment. The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. However, the Company may elect to perform the quantitative goodwill impairment test even if no indications of a potential impairment exist.

F-10

When performing its quantitative annual, or an interim (when conditions warrant), goodwill impairment test the Company compares the fair value of its reporting units with their carrying amounts. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit. Additionally, the Company considers income tax effects from any tax-deductible goodwill on the carrying amount of its reporting unit when measuring the goodwill impairment loss, if applicable. The fair value of the reporting units is estimated using discounted cash flow methodologies, as well as considering third party market value indicators. The Company’s use of a discounted cash flow methodology includes estimates of future revenue based upon budgets and projections. The Company also develops estimates for future levels of gross and operating profits and projected capital expenditures. The Company’s methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. Calculating the fair value of the reporting units requires significant estimates and assumptions by management. Should the estimates and assumptions regarding the fair value of the reporting units prove to be incorrect, the Company may be required to record impairments to its goodwill in future periods and such impairments could be material.

Advertising Expense

Cost of advertising is charged to selling, general and administrative expense in the period in which it is incurred. In fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, advertising expense was $1920.09 million, $1719.90 million, and $17.09 million, respectively.

Capitalized Internal Use Software Costs

The Company capitalizes the cost of internal-use software that has a useful life in excess of one year. These costs consist of payments made to third parties and the salaries of employees working on such software development. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are charged to expense in the period in which they are incurred. Capitalized internal use software costs are amortized on a straight-line basis over their estimated useful lives. Amortization expense related to such capitalized software in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023 was $1213.8 2 million, $1312.2 8 million, and $1213.2 million, respectively. Unamortized capitalized internal use software costs at July 31, ~~2024~~2025 and ~~2023~~2024 were $18.65 million and $18.8 6 million, respectively.

Repairs and Maintenance

The Company charges the cost of repairs and maintenance, including the cost of replacing minor items not constituting substantial betterment, to selling, general and administrative expense or technology and development expense as these costs are incurred.

Foreign Currency Translation

Assets and liabilities of foreign subsidiaries denominated in foreign currencies are translated to U.S. Dollars at end-of-period rates of exchange, and their monthly results of operations are translated to U.S. Dollars at the average rates of exchange for that month. Gains or losses resulting from such foreign currency translations are recorded in “Accumulated other comprehensive loss” in the accompanying consolidated balance sheets. Foreign currency transaction gains and losses are reported in “Other expense, net” in the accompanying consolidated statements of income.

F-10

Income Taxes

The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in its assessment of a valuation allowance. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change.

The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. Tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of tax benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability.

The Company classifies interest and penalties on income taxes as a component of income tax expense.

F-11

Contingencies

The Company accrues for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the Company records its best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred.

Earnings Per Share

Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is determined in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive.

The weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company’s common stockholders consists of the following:

Year ended July 31 (in thousands)

~~2024~~2025

~~2023~~2024

~~2022~~2023

Basic weighted-average number of shares

25,~~241~~188

25,~~517~~241

25,~~791~~517

Effect of dilutive securities:

Stock options

~~434~~9

Non-vested restricted Class B common stock

~~156~~105

51156

~~131~~51

Diluted weighted-average number of shares

25,~~398~~295

25,~~577~~398

2625,~~356~~577

There were no shares excluded from the calculation of diluted earnings per share in fiscal ~~2024~~2025, fiscal ~~2023~~2024, or fiscal ~~2022~~2023.

Stock-Based Compensation

The Company recognizes compensation expense for its grants of stock-based awards based on the estimated fair value on the grant date. Compensation cost for awards is recognized using the straight-line method over the requisite service period, which is usually the vesting period. Stock-based compensation is included in selling, general and administrative expense and technology and development expense.

F-11

Vulnerability Due to Certain Concentrations

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, restricted cash and cash equivalents, debt securities, equity investments, and trade accounts receivable. The Company holds cash and cash equivalents at several major financial institutions, which often exceed FDIC insurance limits. Historically, the Company has not experienced any losses due to such concentration of credit risk. The Company’s temporary cash investments policy is to limit the dollar amount of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows, or financial condition.

The concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers in various geographic regions and industry segments comprising the Company’s customer base. NoRevenue from no single customer accounted for more than 10% of consolidated revenues in fiscal ~~2024~~2025, fiscal ~~2023~~2024 or fiscal ~~2022~~2023. However, revenue from the Company’s five largest customers collectively accounted for 108.39%, 10.83%, and 1210.58% of its consolidated revenues in fiscal ~~2024~~2025, fiscal ~~2023~~2024, and fiscal ~~2022~~2023, respectively. The Company’s customers with the five largest receivable balances collectively accounted for 2220.74% and 1622.7% of the consolidated gross trade accounts receivable at July 31, ~~2024~~2025 and ~~2023~~2024, respectively. This concentration of customers increases the Company’s risk associated with nonpayment by those customers. In an effort to reduce such risk, the Company performs ongoing credit evaluations of its significant customers. In addition, the Company attempts to mitigate the credit risk related to specific IDT Global customers by also buying services from the customer, in order to create an opportunity to offset its payables and receivables and reduce its net trade receivable exposure risk. When it is practical to do so, the Company will increase its purchases from IDT Global customers with receivable balances that exceed the Company’s applicable payables in order to maximize the offset and reduce its credit risk.

~~F-12~~Allowance for Credit Losses

~~Allowance~~For its allowance for ~~Credit~~trade ~~Losses~~accounts ~~and~~receivable, ~~Allowance~~the Company records an expense based on a forward-looking current expected credit loss model to maintain its allowance for ~~Doubtful~~credit losses. The Company considers the probability of recoverability of accounts receivable based on experience, taking into account current collection trends and general economic factors, including bankruptcy rates. The Company also considers future economic trends to estimate expected credit losses over the lifetime of the asset. Credit risks are assessed based on historical write-offs, net of recoveries, as well as an analysis of the aged accounts receivable balances with allowances generally increasing as the receivable ages. Accounts receivable may be fully reserved for when specific collection issues are known to exist, such as pending bankruptcies. Account balances are written off against the allowance when it is determined that the receivable will not be recovered.

Effective with the adoption of ASU 2016-13 on August 1, 2023, the Company records an expense based on a forward-looking current expected credit loss model to maintain its allowance for credit losses, which replaced the allowance for doubtful accounts. When determining its allowance for trade accounts receivable, the Company considers the probability of recoverability of accounts receivable based on experience, taking into account current collection trends and general economic factors, including bankruptcy rates. The Company also considers future economic trends to estimate expected credit losses over the lifetime of the asset. Credit risks are assessed based on historical write-offs, net of recoveries, as well as an analysis of the aged accounts receivable balances with allowances generally increasing as the receivable ages. Accounts receivable may be fully reserved for when specific collection issues are known to exist, such as pending bankruptcies. Account balances are written off against the allowance when it is determined that the receivable will not be recovered. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements, and it was not necessary to record a cumulative-effect adjustment to retained earnings as of August 1, 2023.

Prior to the adoption of ASU 2016-13, the Company estimated the balance of its allowance for doubtful accounts by analyzing accounts receivable balances by age and applying historical write-off and collection trend rates. The Company’s estimates included separately providing for customer receivables based on specific circumstances and credit conditions, and when it was deemed probable that the balance was uncollectible.

The changes in the allowance and reserves deducted from asset accounts is as follows:

Year ended July 31 (in thousands)	Balance at beginning of year		Additions charged to costs and expenses		Deductions (1)			Balance at end of year
2025
Deducted from asset accounts:
Allowance for credit losses	$	6,352	$	6,980	$	(4,235	)	$	9,097
Reserve for losses on settlement assets		1,866		110		(609	)		1,367
Total	$	8,218	$	7,090	$	(4,844	)	$	10,464
2024
Deducted from asset accounts:
Allowance for credit losses	$	5,642	$	3,402	$	(2,692	)	$	6,352
Reserve for losses on settlement assets		1,143		988		(265	)		1,866
Total	$	6,785	$	4,390	$	(2,957	)	$	8,218
2023
Deducted from asset accounts:
Allowance for doubtful accounts	$	5,328	$	1,578	$	(1,264	)	$	5,642
Reserve for losses on settlement assets		554		620		(31	)		1,143
Total	$	5,882	$	2,198	$	(1,295	)	$	6,785
2022
Deducted from asset accounts:
Allowance for doubtful accounts	$	4,129	$	1,982	$	(783	)	$	5,328
Reserve for losses on settlement assets		309		348		(103	)		554
Total	$	4,438	$	2,330	$	(886	)	$	5,882

(1)	Primarily uncollectible accounts written off, net of recoveries.

F-12

Fair Value Measurements

Fair value of financial and non-financial assets and liabilities is defined as an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used to measure fair value, which prioritizes the inputs to valuation techniques used to measure fair value, is as follows:

Level 1	–	quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2	–	quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.
Level 3	–	unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value.

A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

F-13

Leases

The Company determines whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset which the Company has the right to control. The Company records a right-of-use (“ROU”) asset and a lease liability on the balance sheet on the lease commencement date for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The ROU asset and lease liability are recorded based on the present value of the Company’s obligation to make payments over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company recognizes lease cost for its leases on a straight-line basis over the lease term.

Recently Adopted Accounting Standard~~—Segment Reporting~~

OnAs ~~August~~of May 1, ~~2024~~2025, the Company adopted ASU No. 2023-0708, ~~Segment~~Intangibles-Goodwill ~~Reporting~~and Other-Crypto Assets (~~Topic~~Subtopic ~~280~~350-60), ~~Improvements~~Accounting tofor ~~Reportable~~and ~~Segment~~Disclosure ~~Disclosures, that~~of isCrypto ~~intended~~Assets, tothat ~~improve~~changed the ~~disclosures~~accounting ~~about~~for ~~reportable~~crypto ~~segments~~assets ~~and add more detailed information about~~ from a ~~reportable~~cost-less-impairment ~~segment’s expenses.~~model ~~These~~to ~~changes~~fair ~~will~~value, ~~affect the Company’s segment reporting beginning~~ with ~~its~~changes ~~Annual~~recognized ~~Report for fiscal 2025 and its Quarterly Reports~~ in ~~fiscal~~net ~~2026~~income ~~applied~~each ~~retrospectively~~reporting ~~to all prior periods presented~~period. The ~~amendments in the~~ ASU ~~require~~also ~~public~~requires ~~entities to disclose~~enhanced ondisclosures anincluding, ~~annual~~among ~~and~~other ~~interim~~things, ~~basis significant segment expenses that are regularly provided to~~ the ~~chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss~~name, ~~other~~cost ~~segment items by reportable segment~~basis, ~~the~~fair ~~title and position of the CODM~~value, and annumber ~~explanation~~ of ~~how~~units ~~the~~for ~~CODM~~each ~~uses~~significant ~~the~~holding, ~~reported~~and ~~measures~~a rollforward of ~~segment~~annual ~~profit~~activity orincluding ~~loss~~additions, indispositions, ~~assessing~~gains, ~~segment performance~~ and ~~deciding how to allocate resources~~losses. The ~~ASU~~Company does not ~~change~~hold, ~~the~~nor ~~definition~~has ofit aheld ~~segment,~~during the ~~method~~period ~~for determining segments~~presented, ~~the criteria~~any ~~for~~significant ~~aggregating~~amounts ~~operating~~of ~~segments into reportable segments,~~ cryptocurrency or ~~the~~other ~~current~~digital ~~specifically~~assets ~~enumerated~~and ~~segment~~as ~~expenses~~such, ~~that are required to be disclosed. The~~ the adoption of this ASU did not impact the Company’s results of operations, cash flows, or financial condition.

~~Recently Issued~~In November 2023, the Financial Accounting Standards Board ~~Not~~(“FASB”) ~~Yet~~issued ~~Adopted~~ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements, primarily through disclosures of significant segment expenses. The Company adopted the new guidance in its annual financial statements for its fiscal year ended July 31, 2025. The adoption of this ASU did not have an impact on the Company’s consolidated financial statements but required additional disclosures.

InRecently ~~December~~Issued ~~2023, the Financial~~ Accounting ~~Standards~~Standard ~~Board~~Not ~~(“FASB”)~~Yet issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, primarily related to the rate reconciliation and income taxes paid disclosures as well as certain other amendments to income tax disclosures. Entities will be required on an annual basis to consistently categorize and provide greater disaggregation of rate reconciliation information and further disaggregate their income taxes paid. The Company will adopt the amendments in this ASU for its fiscal year beginning on August 1, 2025. The amendments in this ASU should be applied on a prospective basis, although retrospective application is permitted. The Company is evaluating the impact that this ASU will have on its consolidated financial statements.Adopted

In ~~December~~ ~~2023~~September 2025, the FASB issued ASU ~~No. 2023~~ 2025-~~08,~~06 – Intangibles- – Goodwill and Other – Internal-~~Crypto~~Use ~~Assets~~Software (Subtopic 350-6040),: ~~Accounting for~~Targeted ~~and~~Improvements ~~Disclosure~~to ofthe Accounting ~~Crypto~~for ~~Assets~~Internal-Use Software, ~~that~~which ~~changes~~simplifies the ~~accounting~~capitalization ~~for~~guidance ~~crypto~~by ~~assets~~removing ~~from~~all areferences ~~cost-less-impairment model~~ to ~~fair~~software ~~value,~~development ~~with~~project ~~changes~~stages ~~recognized~~so inthat ~~net~~the ~~income~~guidance ~~each~~is ~~reporting~~neutral ~~period.~~to ~~The~~different ~~ASU~~software ~~also~~development ~~requires~~methods. ~~enhanced~~The ~~disclosures~~amendments ~~including,~~in ~~among~~this ~~other~~ASU ~~things, the~~are ~~name,~~effective ~~cost~~for annual ~~basis,~~reporting ~~fair~~periods ~~value,~~beginning ~~and~~after ~~number~~December of15, ~~units for each significant holding~~2027, and ainterim ~~rollforward~~reporting ofperiods ~~annual~~within ~~activity~~those ~~including~~annual ~~additions, dispositions,~~reporting ~~gains~~periods, ~~and~~with early ~~losses~~adoption permitted. The ~~Company will adopt the~~ amendments in this ~~ASU~~update ~~for~~permit ~~its~~an ~~fiscal~~entity ~~year~~to ~~beginning~~apply onthe ~~August~~new 1,guidance ~~2025.~~using ~~The ASU~~a ~~requires~~prospective, aretrospective or ~~cumulative-effect~~modified ~~adjustment~~transition toapproach. ~~the~~The ~~opening~~Company ~~balance~~is ofcurrently ~~retained~~in ~~earnings~~the asprocess of ~~adoption. The Company is~~ evaluating the ~~impact~~ ~~that~~effects of this ~~ASU~~pronouncement ~~will have~~ on its consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), to improve the disclosures about an entity’s expenses including more detailed information about the types of expenses in commonly presented expense captions. At each interim and annual reporting period, entities will disclose in tabular format disaggregating information about prescribed categories underlying relevant income statement captions, as well as the total amount of selling expense and a description of the composition of its selling expense. The Company will adopt the amendments in this ASU for its fiscal year beginning on August 1, 2027. The Company is evaluating the impact that this ASU will have on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which enhances income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This guidance also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the Company in its annual financial statements for its fiscal year ended 2026 and should be applied on a prospective basis, with retrospective application permitted. The amendments in this update do not change interim disclosure requirements. The Company is evaluating the impact this ASU will have on its consolidated financial statements.

Note 2—Business Segment Information

The Company’s reportable segments are distinguished by types of service, customers, and methods used to provide their services. The operating results of ~~these~~the business segments are regularly reviewed by the Company’s chief operating decision maker (“CODM”), which is a group of the Company’s executives that includes the Chairman of the Board of Directors, Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer. The Company’s CODM uses actual and budgeted income (loss) from operations to evaluate the performance of the business segments and allocate resources, including capital allocations, primarily by monitoring actual results compared to prior periods and expected results. The accounting policies of the segments are the same as the accounting policies of the Company as a whole. There are no significant asymmetrical allocations to segments. ~~The Company evaluates the performance of its business segments based primarily on income (loss) from operations.~~

The NRS segment is an operator of a nationwide POS network providing independent retailers with store management software, electronic payment processing, and other ancillary merchant services. NRS’ POS platform provides marketers with digital outF-~~of-home advertising and transaction data.~~13

The ~~Fintech~~NRS segment is ~~comprised~~an operator of: ~~(i) BOSS Money,~~ a ~~provider~~nationwide ofPOS ~~international~~network ~~money~~providing ~~remittance~~independent ~~and~~retailers ~~related~~with ~~value/payment~~POS ~~transfer services; and (ii) other~~equipment, ~~significantly~~store ~~smaller~~management software, ~~financial~~electronic ~~services~~payment ~~businesses~~processing, ~~including~~and aother ~~variable~~ancillary ~~interest~~merchant ~~entity~~services. ~~that~~NRS’ ~~operates~~POS ~~money~~platform ~~transfer businesses,~~provides ~~and~~marketers ~~IDT~~with digital ~~Financial~~out-of-home ~~Services~~advertising ~~Limited~~and ~~(“IDT~~transaction ~~Financial Services”), the Company’s Gibraltar-based bank~~data.

FThe Fintech segment is comprised of: (i) BOSS Money, a provider of international money remittance and related value/payment transfer services; and (ii) other, significantly smaller, financial services businesses, including a variable interest entity (“VIE”) that processes disbursement payments (the “Disbursement Payments VIE”), (iii) IDT Financial Services Limited (“IDT Financial Services”), a Gibraltar-14based bank and (iv) IDT Services Limited (“IDTS”), a Malta-based electronic money institution.

The net2phone segment is comprised of net2phone’s integrated cloud ~~communications~~-based Unified Communications as a Service (“UCaaS”) and ~~contact~~Contact ~~center~~Center ~~services~~as a Service (“CCaaS”) offerings.

The Traditional Communications segment includes: (i) IDT Digital Payments, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts; (ii) BOSS Revolution ~~(formerly BOSS Revolution Calling)~~, an international long-distance calling service marketed primarily to immigrant communities in the United States and Canada; and (iii) IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide. Traditional Communications also includes other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

Operating results for the business segments of the Company ~~were~~are asincluded ~~follows:~~in the tables below. The significant expense categories align with the segment-level information that is regularly provided to the CODM. The significant expense categories include depreciation and amortization. Other segment items, which is the difference between segment revenues less the segment expenses disclosed and segment income (loss) from operations, includes severance expense and other operating expense, net. The reconciliation of the total income (loss) from operations to income before income taxes is reflected in the consolidated statements of income.

(in thousands)	National Retail Solutions			Fintech			net2phone			Traditional Communications			Corporate			Total
Year ended July 31, 2024
Year ended July 31, 2025
Revenues	$	~~103~~128,~~141~~793		$	~~120~~154,~~721~~610		$	8287,~~325~~875		$	~~899~~860,~~591~~217		$	—		$	1,~~205~~231,~~778~~495
Income (loss) from operations		21,626			(130	)		1,681			56,435			(14,859	)		64,753
Direct cost of revenues		(11,933)			(63,868	)		(18,165	)		(691,334	)		—			(785,300	)
Depreciation and amortization		(3,200	)		(2,872	)		(6,133	)		(8,064	)		(82	)		(20,351	)
Selling, general and administrative expense		(78,015	)		(66,209	)		(52,354	)		(79,875	)		(11,114	)		(287,567	)
Year ended July 31, 2023
Technology and development expense		(8,682	)		(9,064	)		(11,671	)		(21,540	)		(7	)		(50,964	)
Revenues	$	77,115		$	86,610		$	72,388		$	1,002,741		$	—		$	1,238,854
Other segment items		(2,410	)		(49	)		(736	)		(942	)		(3,103	)		(7,240	)
Income (loss) from operations	$	1427,~~400~~753		$	(215,~~533~~420	)	$	(24,~~755~~949	)	$	6166,~~288~~526		$	(914,~~657~~224	)	$	60100,~~743~~424
Depreciation and amortization		(24,~~363~~071	)		(2,~~683~~932	)		(56,~~608~~382	)		(97,~~428~~561	)		~~(54~~62	)		~~(20~~21,~~136~~008	)
Year ended July 31, 2022
Capital expenditures	$	5,367		$	3,501		$	6,608		$	5,279		$	15		$	20,770
Revenues	$	51,299		$	64,593		$	58,185		$	1,189,980		$	—		$	1,364,057
Income (loss) from operations		11,208			(6,887	)		(11,132	)		75,826			(8,926	)		60,089
Depreciation and amortization		(906	)		(2,231	)		(5,374	)		(9,527	)		(77	)		(18,115	)

(in thousands)	National Retail Solutions			Fintech			net2phone			Traditional Communications			Corporate			Total
Year ended July 31, 2024
Revenues	$	103,141		$	120,721		$	82,325		$	899,591		$	—		$	1,205,778
Direct cost of revenues		(11,625	)		(53,387	)		(17,236	)		(733,373	)		—			(815,621	)
Selling, general and administrative expense		(62,652	)		(59,650	)		(52,588	)		(84,864	)		(10,453	)		(270,207	)
Technology and development expense		(7,070	)		(9,505	)		(10,777	)		(23,153	)		(49	)		(50,554	)
Other segment items		(168	)		1,691			(43	)		(1,767	)		(4,356	)		(4,643	)
Income (loss) from operations	$	21,626		$	(130	)	$	1,681		$	56,434		$	(14,858	)	$	64,753

Depreciation and amortization		3,200			2,872			6,133			8,064			82			20,351

Capital expenditures	$	3,606		$	3,650		$	6,334		$	5,332		$	—		$	18,922

F-14

(in thousands)	National Retail Solutions			Fintech			net2phone			Traditional Communications			Corporate			Total
Year ended July 31, 2023
Revenues	$	77,115		$	86,610		$	72,388		$	1,002,741		$	—		$	1,238,854
Direct cost of revenues		(10,734	)		(36,599	)		(15,272	)		(819,009	)		—			(881,614	)
Selling, general and administrative expense		(47,017	)		(47,213	)		(49,711	)		(89,901	)		(9,317	)		(243,159	)
Technology and development expense		(4,961	)		(7,278	)		(9,969	)		(25,780	)		—			(47,988	)
Other segment items		(3	)		1,947			(190	)		(6,764	)		(340	)		(5,350	)
Income (loss) from operations	$	14,400		$	(2,533	)	$	(2,754	)	$	61,287		$	(9,657	)	$	60,743

Depreciation and amortization		2,363			2,683			5,608			9,428			54			20,136

Capital expenditures	$	4,252		$	3,856		$	6,652		$	7,198		$	—		$	21,958

Total assets for the reportable segments are not provided because a significant portion of the Company’s assets service multiple segments and the Company does not track such assets separately by segment.

Geographic Information

Net long-lived assets and total assets held outside of the United States, which are located primarily in Western Europe, were as follows:

(in thousands)	United States		Other Countries		Total
July 31, 2025
Long-lived assets, net	$	28,306	$	12,441	$	40,747
Total assets		345,218		280,985		626,203
July 31, 2024
Long-lived assets, net	$	28,825	$	13,100	$	41,925

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