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Revenue Recognition
 9 Months Ended
Apr. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 3—Revenue Recognition

 

The Company earns revenue from contracts with customers, primarily through the provision of retail telecommunications and payment offerings as well as wholesale international voice and SMS termination. BOSS Money, NRS, and net2phone are technology-driven, synergistic businesses that leverage the Company’s core assets. BOSS Money’s and NRS’ revenues are primarily recognized at a point in time, and net2phone’s revenue is mainly recognized over time. Traditional Communications’ offerings are mostly minute-based, paid-voice communications services, and revenue is primarily recognized at a point in time. The Company’s most significant revenue streams are from IDT Digital Payments, BOSS Revolution, and IDT Global. IDT Digital Payments and BOSS Revolution are sold direct-to-consumer and through distributors and retailers.

 

Disaggregated Revenues

 

The following table shows the Company’s revenues disaggregated by business segment and service offered to customers:

 

   2025   2024   2025   2024 
  

Three Months Ended

April 30,

  

Nine Months Ended

April 30,

 
   2025   2024   2025   2024 
   (in thousands) 
National Retail Solutions  $31,145   $25,712   $94,483   $74,930 
                     
BOSS Money   34,411    27,593    101,608    76,871 
Other   4,208    3,933    10,919    9,205 
                     
Total Fintech   38,619    31,526    112,527    86,076 
                     
net2phone   21,990    20,677    65,099    60,957 
                     
IDT Digital Payments   102,620    101,608    309,333    301,313 
BOSS Revolution   51,733    63,196    161,882    201,021 
IDT Global   50,044    50,067    153,701    150,843 
Other   5,834    6,857    17,876    21,806 
                     
Total Traditional Communications   210,231    221,728    642,792    674,983 
                     
Total  $301,985   $299,643   $914,901   $896,946 

 

 

The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location:

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Three Months Ended April 30, 2025                         
United States  $31,145   $37,278   $12,758   $157,577   $238,758 
Outside the United States:                         
United Kingdom   —    —    —    45,858    45,858 
Other   —    1,341    9,232    6,796    17,369 
                          
Total outside the United States   —    1,341    9,232    52,654    63,227 
                          
Total  $31,145   $38,619   $21,990   $210,231   $301,985 

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Three Months Ended April 30, 2024                         
United States  $25,712   $30,469   $11,330   $166,093   $233,604 
Outside the United States:                         
United Kingdom   —    —    —    48,441    48,441 
Other   —    1,057    9,347    7,194    17,598 
                          
Total outside the United States   —    1,057    9,347    55,635    66,039 
                          
Total  $25,712   $31,526   $20,677   $221,728   $299,643 

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Nine Months Ended April 30, 2025                         
United States  $94,483   $108,786   $37,534   $481,752   $722,555 
Outside the United States:                         
United Kingdom   —    —    —    139,604    139,604 
Other   —    3,741    27,565    21,436    52,742 
                          
Total outside the United States   —    3,741    27,565    161,040    192,346 
                          
Total  $94,483   $112,527   $65,099   $642,792   $914,901 

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Nine Months Ended April 30, 2024                         
United States  $74,930   $83,204   $32,718   $492,935   $683,787 
Outside the United States:                         
United Kingdom   —    —    —    157,673    157,673 
Other   —    2,872    28,239    24,375    55,486 
                          
Total outside the United States   —    2,872    28,239    182,048    213,159 
                          
Total  $74,930   $86,076   $60,957   $674,983   $896,946 

 

 

Remaining Performance Obligations

 

The following table includes revenue by business segment expected to be recognized in the future from performance obligations that were unsatisfied or partially unsatisfied as of April 30, 2025. The table excludes contracts that had an original expected duration of one year or less.

 

(in thousands)  National Retail Solutions   net2phone   Total 
Twelve-month period ending April 30:               
2026  $8,713   $41,738   $50,451 
2027   7,279    22,163    29,442 
Thereafter   7,391    8,340    15,731 
                
Total  $23,383   $72,241   $95,624 

 

 

Accounts Receivable and Contract Balances

 

The timing of revenue recognition may differ from the time of billing to the Company’s customers. Trade accounts receivable in the Company’s consolidated balance sheets represent unconditional rights to consideration. The Company would record a contract asset when revenue is recognized in advance of its right to bill and receive consideration. The Company has not currently identified any contract assets.

 

Contract liabilities arise when the Company receives consideration or bills its customers prior to providing the goods or services promised in the contract. The Company’s contract liability balance is primarily payments received for prepaid BOSS Revolution. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in the Company’s consolidated balance sheets as “Deferred revenue”.

 

The following table presents information about the Company’s contract liability balance:

 

   2025   2024   2025   2024 
  

Three Months Ended

April 30,

  

Nine Months Ended

April 30,

 
   2025   2024   2025   2024 
   (in thousands) 
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period  $12,180   $15,231   $17,801   $20,477 

 

Deferred Customer Contract Acquisition and Fulfillment Costs

 

The Company recognizes as an asset its incremental costs of obtaining a contract with a customer that it expects to recover. The Company’s incremental costs of obtaining a contract with a customer are sales commissions paid to employees and third parties on sales to end users. If the amortization period were one year or less for the asset that would be recognized from deferring these costs, the Company applies the practical expedient whereby the Company charges these costs to expense when incurred.

 

The Company’s costs to fulfill its contracts do not meet the criteria to be recognized as an asset, therefore these costs are charged to expense as incurred.

 

The Company’s deferred customer contract acquisition costs were as follows:

 

   April 30, 2025   July 31, 2024 
   (in thousands) 
Deferred customer contract acquisition costs included in “Other current assets”  $6,543   $4,823 
Deferred customer contract acquisition costs included in “Other assets”   4,782    4,276 
           
Total  $11,325   $9,099 

 

The Company’s amortization of deferred customer contract acquisition costs during the periods were as follows:

 

   2025   2024   2025   2024 
  

Three Months Ended

April 30,

  

Nine Months Ended

April 30,

 
   2025   2024   2025   2024 
   (in thousands) 
Amortization of deferred customer contract acquisition costs  $1,401   $1,167   $4,334   $3,576