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Revenue Recognition
 3 Months Ended
Oct. 31, 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 services. NRS and net2phone are technology-driven, synergistic businesses that leverage the Company’s core assets. NRS generates revenue primarily from point-of-sale terminal sales, payment processing, software subscriptions, advertising, and data services, which are generally recognized at a point in time when control of the goods or services transfers, except for subscription services that are recognized over time. net2phone earns revenue primarily from cloud-based communications, unified communications as a service (“UCaaS”), and contact center as a service (“CCaaS”) solutions, which are recognized over time as services are provided. BOSS Money and IDT Digital Payments revenues are recognized at a point in time when transactions are completed. Traditional Communications offerings consist primarily of minute-based, paid-voice services, with revenue recognized at a point in time as usage occurs.

 

Disaggregated Revenues

 

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

 

   2025   2024 
  

Three Months Ended

October 31,

 
   2025   2024 
   (in thousands) 
National Retail Solutions  $37,083   $30,362 
           
BOSS Money   38,295    33,693 
Other   

4,434

    3,377 
           
Total Fintech   42,729    37,070 
           
net2phone   23,454    21,620 
           
IDT Digital Payments   107,081    105,119 
BOSS Revolution   46,983    56,842 
IDT Global   59,573    52,375 
Other   5,849    6,178 
           
Total Traditional Communications   219,486    220,514 
           
Total  $322,752   $309,566 

 

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 October 31, 2025                         
United States  $37,083   $41,085   $13,557   $161,815   $253,540 
Outside the United States:                         
United Kingdom   —    —    —    44,074    44,074 
Other   —    1,644    9,897    13,597    25,138 
                          
Total outside the United States   —    1,644    9,897    57,671    69,212 
                          
Total  $37,083   $42,729   $23,454   $219,486   $322,752 

 

(in thousands)  National Retail Solutions  

Fintech

   net2phone   Traditional Communications   Total 
Three Months Ended October 31, 2024                         
United States  $30,362   $35,889   $12,293   $165,221   $243,765 
Outside the United States:                         
United Kingdom   —    —    —    47,957    47,957 
Other   —    1,181    9,327    7,336    17,844 
                          
Total outside the United States   —    1,181    9,327    55,293    65,801 
                          
Total  $30,362   $37,070   $21,620   $220,514   $309,566 

 

 

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 October 31, 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 October 31:               
2026  $10,033   $45,029   $55,062 
2027   7,862    24,864    32,726 
Thereafter   7,084    9,507    16,591 
                
Total  $24,979   $79,400   $104,379 

 

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 condensed 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 condensed consolidated balance sheets as “Deferred revenue”.

 

The following table presents revenue recognized during the period from amounts included in the Company’s contract liability balance at the beginning of the period:

 

       
  

Three Months Ended

October 31,

 
   2025   2024 
   (in thousands) 
Revenue recognized  $11,540   $13,600 

 

Receivables and contract balances from contracts with customers during the three months ended October 31, 2025 and 2024 were as follows:

  

(in thousands)  Account Receivables, net   Deferred Revenue 
   2025   2024   2025   2024 
Beginning of period  $44,932   $42,215   $27,726   $30,364 
End of period  $42,562   $41,566   $28,627   $29,321 

 

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:

 

  

October 31, 2025

  

July 31, 2025

 
   (in thousands) 
Deferred customer contract acquisition costs included in “Other current assets”  $6,781   $6,547 
Deferred customer contract acquisition costs included in “Other assets”   4,881    4,789 
           
Total  $11,662   $11,336 

 

 

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

 

  

2025

  

2024

 
  

Three Months Ended

October 31,

 
  

2025

  

2024

 
   (in thousands) 
Amortization  $1,395   $1,498