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Business Segment Information
 3 Months Ended
Oct. 31, 2025
Segment Reporting [Abstract]  
Business Segment Information

Note 2—Business Segment Information

 

The Company has four reportable business segments, NRS, Fintech, net2phone, and Traditional Communications.

 

The NRS segment is an operator of a nationwide point-of-sale (“POS”) network providing independent retailers with POS equipment, store management software, electronic payment processing, and other ancillary merchant services. NRS’ POS platform provides marketers with digital out-of-home advertising and transaction data.

 

The 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-based bank and (iv) IDT Services Limited (“IDTS”), a Malta-based electronic money institution.

 

 

The net2phone segment is an AI powered business communications solutions provider focused on optimizing customer interactions, with a focus on small enterprise and mid-market customers across North and South America. net2phone’s key offerings include: UNITE - an AI-powered communications platform; uContact – an omnichannel contact center platform; AI Agent – an agentic AI service that automates customer interactions; and Coach AI – a provider of real-time agent guidance and conversational intelligence.

 

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, 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.

 

The Company’s reportable segments are distinguished by types of service, customers, and methods used to provide their services. The operating results of these 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.

 

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.

 

Operating results for the business segments of the Company are included 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 condensed consolidated statements of income.

 

Operating results for the business segments of the Company were as follows:

 

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Corporate   Total 
Three Months Ended October 31, 2025                              
Revenues  $37,083   $42,729   $23,454   $219,486   $—   $322,752 
Direct cost of revenues   (3,621)   (17,193)   (4,718)   (179,041)   —   (204,573)
Selling, general and administrative expense   (21,865)   (16,663)   (13,750)   (19,036)   (2,693)   (74,007)
Technology and development expense   (2,655)   (2,476)   (3,031)   (5,469)   —   (13,631)
Other segment items   (33)   (11)   (14)   (95)   537   385
Income (loss) from operations  $8,909   $6,386   $1,941   $15,845   $(2,157)  $30,926 
                               
Depreciation and amortization  $(1,138)  $(743)  $(1,648)  $(1,775)  $(2)  $(5,305)
                               
Capital expenditures  $(1,628)  $(815)  $(1,777)  $(1,544)  $

(57

)  $(5,821)
                               
Three Months Ended October 31, 2024                              
Revenues  $30,362   $37,070   $21,620   $220,514   $—   $309,566 
Direct cost of revenues   (2,726)   (15,502)   (4,544)   (179,167)   —    (201,939)
Selling, general and administrative expense   (19,017)   (16,055)   (13,143)   (19,978)   (2,858)   (71,051)
Technology and development expense   (1,999)   (2,277)   (2,954)   (5,508)   (21)   (12,759)
Other segment items   —    (7)   20    (190)   —    (177)
Income (loss) from operations  $6,620   $3,229   $999   $15,671   $(2,879)  $23,640 
                               
Depreciation and amortization  $960   $735   $1,557   $1,972   $17   $5,241 
                               
Capital expenditures  $1,233   $1,060   $1,622   $1,363   $—   $5,278