IDT's Fintech and Cloud Ventures Reshape Legacy Telecom Firm

As of July 2025, IDT Corporation (NYSE: IDT) is in the midst of a major structural transformation, transitioning from a low-margin legacy telecom business to a diversified portfolio of high-growth, high-margin technology platforms. The company's three rapidly scaling ventures – National Retail Solutions (NRS), BOSS Money, and net2phone – are fueling this strategic shift and driving impressive financial results.

NRS, the standout growth driver, operates a fintech point-of-sale platform serving over 35,000 independent retailers, with a 70%+ CAGR in recurring revenue. BOSS Money, IDT's international remittance service, has reached a $6.5 billion annualized transfer run rate, growing transactions by around 30% annually. Meanwhile, net2phone, the cloud communications provider, has grown subscriptions at a 26% CAGR and turned profitable, with further upside from its CCaaS and AI-enabled services.

Underpinning this transformation is IDT's founder, Howard Jonas, whose 70% voting control and proven spin-off record have aligned shareholder interests. The company's pristine, debt-free balance sheet with $220 million in cash has also enabled disciplined reinvestment and rapid margin expansion, with Q3 FY25 gross margins rising to 37% and EBITDA growing 57% year-over-year.

While the company faces risks such as legacy decline, regulatory exposure, and competition, the scaling and margin profile of its growth engines are reshaping its unit economics. With multiple catalysts on the horizon, including potential further value-unlocking separations, IDT offers investors exposure to three high-growth, cash-efficient technology businesses at a critical strategic inflection point.