Financial Analysis

Note 2 Business Combination On May 1, 2026, NRS completed an asset purchase agreement (the Agreement) under which it acquired certain assets and assumed certain liabilities of Oncore Digital, Inc. and its wholly owned subsidiaries (the Acquired Business). The Acquired Business is a digital media brokerage operation engaged in digital advertising and monetization. In connection with the transaction, the Acquired Business was contributed to a newly formed entity (NRS OnCore), in which the sellers retained a 20% noncontrolling interest and NRS obtained an 80% controlling interest. Accordingly, NRS consolidates NRS OnCore under the voting interest model in accordance with ASC 810, Consolidation . The aggregate purchase consideration was approximately $4.8 million, consisting of $3.3 million in cash and shares of IDT Class B common stock with an aggregate value of $1.5 million, subject to customary post-closing adjustments. In addition, NRS assumed liabilities of $0.1 million in connection with the transaction, resulting in a total acquisition date fair value of $4.9 million. The consideration also includes contingent earnouts and bonuses with no maximum payment because they are based on the IDT share price and are contingent upon the achievement of revenue, gross profit, and net income milestones, which the Company currently believes are not probable to be achieved. Therefore, no liability was recorded for the contingent earnouts and bonuses. The Company has determined that the a …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Note 23 Commitments and Contingencies Legal Proceedings On July 5, 2017, plaintiff JDS1, LLC, on behalf of itself and all other similarly situated stockholders of Straight Path, and derivatively on behalf of Straight Path as nominal defendant, filed a putative class action and derivative complaint in the Court of Chancery of the State of Delaware (the Court of Chancery) against the Company, The Patrick Henry Trust (a trust formed by Howard S. Jonas that held record and beneficial ownership of certain shares of Straight Path he formerly held), Howard S. Jonas, and each of Straight Paths directors. The complaint alleged that the Company aided and abetted Straight Path Chairman of the Board and Chief Executive Officer Davidi Jonas, and Howard S. Jonas in his capacity as controlling stockholder of Straight Path, in breaching their fiduciary duties to Straight Path in connection with the settlement of claims between Straight Path and the Company related to potential indemnification claims concerning Straight Paths obligations under the Consent Decree it entered into with the Federal Communications Commission (FCC), as well as the sale of Straight Paths subsidiary Straight Path IP Group, Inc. to the Company in connection with that settlement. The Plaintiffs sought, among other things, (i) a declaration that the action may be maintained as a class action or in the alternative, that demand on the Straight Path Board is excused; (ii) that the term sheet is invalid; (iii) awarding dama …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 15 Revolving Credit Facility IDT Telecom, Inc. (IDT Telecom), a subsidiary of the Company, maintains a revolving credit facility with TD Bank, N.A. The commitment under the facility was initially $25.0 million. Effective August 11, 2026, the facility, which was scheduled to mature on August 16, 2026, was amended to extend the maturity date to July 15, 2029. The amendment also increased the facility to provide additional seasonal borrowing capacity, raising the commitment to $50.0 million during the months of May and December of each year (from $25.0 million during all other months). IDT Telecom may use the proceeds to finance working capital requirements. The facility is secured by substantially all of the Company's assets and bears interest at the term secured overnight financing rate plus 10 basis points, plus a margin of 125 to 175 basis points depending on IDT Telecoms leverage ratio as of the most recently completed fiscal quarter. Interest is payable monthly, and all outstanding principal and accrued and unpaid interest is due upon the maturity date of the facility. IDT Telecom pays a quarterly unused commitment fee of 10 basis points on the average daily unused balance of the commitment. At July 31, 2026 and July 31, 2025 , there were no amounts outstanding under this facility. During fiscal 2026 , fiscal 2025 , and fiscal 2024 , IDT Telecom borrowed and repaid $21.4 million, $24.6 million, and $32.9 million, respectively, under this facility. IDT Telecom is requi …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

(in thousands) Year ended July 31, 2026 2025 2024 NRS $ 159,399 $ 128,793 $ 103,141 Fintech BOSS Money 156,670 139,828 108,332 Other 19,324 14,782 12,389 Total Fintech 175,994 154,610 120,721 net2phone 96,639 87,875 82,325 Traditional Communications IDT Digital Payments 429,160 416,312 407,430 BOSS Revolution 180,300 211,163 263,215 IDT Global 231,519 209,609 201,119 Other 24,949 23,133 27,827 Total Traditional Communications 865,928 860,217 899,591 TOTAL $ 1,297,960 $ 1,231,495 $ 1,205,778

DisaggregationOfRevenueTableTextBlock

Note 9 Fair Value Measurements The following table presents the balance of assets and liabilities measured at fair value on a recurring basis: (in thousands) Level 1 Level 2 Level 3 Total July 31, 2026 Debt securities $ 25,942 $ 12,670 $ $ 38,612 Equity investments included in current assets 12,642 12,642 Equity investments included in noncurrent assets 500 383 883 TOTAL $ 38,584 $ 13,170 $ 383 $ 52,137 Acquisition consideration included in: Other current liabilities $ $ $ 323 $ 323 Other noncurrent liabilities TOTAL $ $ $ 323 $ 323 July 31, 2025 Debt securities $ 12,926 $ 8,723 $ $ 21,649 Equity investments included in current assets 5,637 5,637 Equity investments included in noncurrent assets 2,500 902 3,402 TOTAL $ 18,563 $ 11,223 $ 902 $ 30,688 Acquisition consideration included in: Other current liabilities $ $ $ $ Other noncurrent liabilities (610 ) (610 ) TOTAL $ $ $ (610 ) $ (610 ) At July 31, 2026 and 2025 , the Company had $4.3 million and $3.0 million, respectively, in investments in hedge funds, which were included in noncurrent Equity investments in the accompanying consolidated balance sheets. The Companys investments in hedge funds were accounted for using the equity method and were therefore not measured at fair value. The following tables summarize the change in the balance of the Companys assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3 ): (in thousands) Year ended July 31, 2026 2025 2024 Balance, beginning of …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 19 Income Taxes The components of income before income taxes are as follows: (in thousands) Year ended July 31, 2026 2025 2024 Domestic $ 112,130 $ 96,891 $ 56,316 Foreign 17,847 8,947 5,594 INCOME BEFORE INCOME TAXES $ 129,977 $ 105,838 $ 61,910 The significant components of the Companys deferred income tax assets are as follows: (in thousands) July 31, 2026 2025 Deferred income tax assets: Bad debt reserve $ 1,572 $ 1,699 Accrued expenses 3,384 4,239 Stock-based compensation 2,413 301 Charitable contributions 781 Depreciation 1,879 591 Unrealized gains 5,781 5,867 Net operating loss 14,608 20,217 Total deferred income tax assets 29,637 33,695 Valuation allowance (11,635 ) (14,905 ) NET DEFERRED INCOME TAX ASSETS $ 18,002 $ 18,790 The components of the (provision for) benefit from income taxes consist of the following: (in thousands) Year ended July 31, 2026 2025 2024 Current: Federal $ (26,416 ) $ (1,272 ) $ (38 ) State and local (6,161 ) (4,598 ) (2,716 ) Foreign (1,552 ) (2,611 ) (724 ) (34,129 ) (8,481 ) (3,478 ) Deferred: Federal (2,684 ) (19,493 ) 9,725 State and local 208 511 (261 ) Foreign 1,722 2,764 368 (754 ) (16,218 ) 9,832 (PROVISION FOR) BENEFIT FROM INCOME TAXES $ (34,883 ) $ (24,699 ) $ 6,354 A reconciliation of the provision for income taxes to the amount computed by applying the U.S. federal statutory income tax rate of 21% to income before income taxes following the adoption of ASU 2023 - 09, is as follows: (in thousands) Year ended July 31, 2026 Amou …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 5 Leases The Companys leases primarily consist of operating leases for office space. These leases have remaining terms from less than one year to approximately five years. Certain of these leases contain renewal options that may be exercised and/or options to terminate the lease prior to expiration. The Company has concluded that it is not reasonably certain that it would exercise any of these options. The Company has also elected to apply the practical expedient for short-term leases under which it does not recognize a lease liability or a right-of-use asset for leases with a term of 12 months or less. The Company recognizes short-term leases on a straight-line basis. Supplemental disclosures related to the Companys operating leases were as follows: (in thousands) Year ended July 31, 2026 2025 2024 Operating lease cost $ 1,025 $ 2,081 $ 2,557 Short-term lease cost 2,106 1,367 924 TOTAL LEASE COST $ 3,131 $ 3,448 $ 3,481 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,026 $ 2,147 $ 2,588 July 31, 2026 2025 Weighted-average remaining lease term-operating leases 2.8 years 2.7 years Weighted-average discount rate-operating leases 6.2 % 5.2 % In fiscal 2026 , fiscal 2025 , and fiscal 2024 , the Company obtained right-of-use assets of $0.5 million, $0.6 million, and $0.9 million, respectively, in exchange for new operating lease liabilities. The Companys aggregate operating lease liability was as follows: …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Standards In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The Company adopted this update prospectively in this Annual Report on Form 10 -K for the fiscal year ended July 31, 2026, which includes further disaggregation of the income tax expense into federal, state, and foreign categories, enhanced detail in the effective tax rate reconciliation, and disclosure of income taxes paid by significant jurisdictions. In July 2025, the FASB issued ASU 2025 - 05 Financial Instruments Credit Losses (Topic 326 ): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which amends ASC 326 - 20 to provide a practical expedient related to the estimation of current expected credit losses (""CECL"") for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The amendments are effective for annual and interim reporting periods beginning on August 1, 2026. The practical expedient in ASU 2025 - 05 allows the Company to simplify estimating current expected credit losses for current accounts receivable and contract assets by as …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 25 Defined Contribution Plans The Company maintains a 401 (k) Plan available to all U.S.-based employees meeting certain eligibility criteria. The plan permits participants to contribute up to the maximum amount allowed by law. The plan provides for discretionary matching contributions that vest over the first five years of employment. In fiscal 2026 , fiscal 2025 , and fiscal 2024 , the Companys expense related to the plan was $1.0 million, $1.0 million, and $1.0 million, respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 24 Related Party Transactions Rafael Holdings, Inc. In connection with the spin-off of Rafael Holdings, Inc. (Rafael) in March 2018, the Company and Rafael entered into a transition services agreement, which provides for certain services to be provided by the Company and Rafael. This constitutes a related person transaction because Howard Jonas is the chairman of the Company's Board of Directors and executive chairman of Rafael. The Company charged Rafael $0.3 million, $0.3 million, and $0.3 million in each of fiscal 2026 , fiscal 2025 , and fiscal 2024 , respectively, for services provided, net of the amounts charged by Rafael to the Company. At both July 31, 2026 and 2025 , other current assets reported in the Companys consolidated balance sheets included net receivables from Rafael of nil. Genie Energy Ltd. In connection with the spin-off of Genie Energy Ltd. (""Genie"") in October 2011, the Company and Genie entered into a transition services agreement, which provides for certain services to be performed by the Company and Genie. This constitutes a related person transaction because Howard Jonas is a chairman of Genie. The Company charged Genie $0.1 million, $0.9 million, and $0.9 million in fiscal 2026 , fiscal 2025 , and fiscal 2024 , respectively, for services provided and other items, net of the amounts charged by Genie to the Company. At both July 31, 2026 and 2025 , other current assets reported in the Companys consolidated balance sheets included receivables …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 4 Revenue Recognition Contracts with Customers The Company earns revenue from contracts with customers, primarily through the provision of retail telecommunications, mobile top-up, and payment offerings, as well as wholesale international voice and SMS termination services. NRS generates revenue primarily from point-of-sale (""POS"") terminal sales, Software as a Service (""SaaS"") plans, payment processing, digital advertising, and data and analytics 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, including unified communications as a service (UCaaS), contact center as a service (CCaaS) and AI Agent and Coach solutions, which are recognized over time as services are provided. BOSS Money's 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. IDT Digital Payments IDT Digital Payments is sold direct-to-consumer and through distributors and retailers in the same manner as BOSS Revolution (see below). The Company does not terminate the minutes in its IDT Digital Payments transactions. The Companys performance obligation is to recharge (top-up) the airtime balance of a mobile account on …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 3 Business Segment Information The Companys 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 Companys chief operating decision maker (CODM), which is a group of the Companys executives that includes the Chairman of the Board of Directors, Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer. The Companys 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 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 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 20 Equity Class A Common Stock and Class B Common Stock The rights of holders of Class A common stock and Class B common stock are identical except for certain voting and conversion rights and restrictions on transferability. The holders of Class A common stock and Class B common stock receive identical dividends per share when and if declared by the Companys Board of Directors. In addition, the holders of Class A common stock and Class B common stock have identical and equal priority rights per share in liquidation. The Class A common stock and Class B common stock do not have any other contractual participation rights. The holders of Class A common stock are entitled to three votes per share and the holders of Class B common stock are entitled to one - tenth of a vote per share. Each share of Class A common stock may be converted into one share of Class B common stock, at any time, at the option of the holder. Shares of Class A common stock are subject to certain limitations on transferability that do not apply to shares of Class B common stock. Dividend Payments In March 2024, the Companys Board of Directors initiated a quarterly cash dividend of $0.05 per share on the Companys Class A and Class B common stock. In March 2025, the Companys Board of Directors increased the quarterly cash dividend on the Companys Class A and Class B common stock to $0.06 per share from $0.05 per share. In May 2026, the Companys Board of Directors increased the quarterly cash dividend on …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 2 Business Combination On April 16, 2026, NRS entered into an asset purchase agreement (the Agreement) to acquire certain assets and assume certain liabilities of Oncore Digital, Inc. and its wholly owned subsidiaries (the Acquired Business). The Acquired Business is a digital media brokerage operation engaged in digital advertising and monetization. The acquisition closed on May 1, 2026. In connection with the transaction, the Acquired Business was contributed to a newly formed entity (NRS OnCore), in which the sellers retained a 20% noncontrolling interest and NRS obtained an 80% controlling interest. As a result, NRS consolidates NRS OnCore under the voting interest model. The aggregate preliminary purchase consideration, which is subject to finalization, is currently estimated to be approximately $4.8 million, consisting of $3.3 million in cash and shares of IDT Class B common stock with an aggregate value of $1.5 million, subject to customary post-closing adjustments, as well as contingent earnouts upon certain milestones being achieved. The Company has determined that the acquired set represents a business and is accounting for the transaction as a business combination under ASC 805, Business Combinations . The acquired assets consist primarily of customer relationships and vendor relationships, and the assumed liabilities include certain operating liabilities. The Company is in the process of determining the fair value of the assets acquired and liabilities assume …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Note 17 Commitments and Contingencies Legal Proceedings As disclosed in the 2025 Form 10 -K, the Company and other parties were named in a putative class action and derivative complaint related to Straight Path Communications Inc. filed in the Court of Chancery of the State of Delaware. The Court dismissed all claims against the Company, and found that, contrary to the plaintiffs allegations, the class suffered no damages. The plaintiffs filed an appeal to which the Company answered. Oral argument was held on October 22, 2025, and on December 3, 2025, the Delaware Supreme Court affirmed the favorable decision of the Court of Chancery that dismissed all claims against the Company and found that Plaintiff and the class suffered no damages. In addition to the foregoing, the Company is subject to other legal proceedings that have arisen in the ordinary course of business and have not been finally adjudicated. Although there can be no assurance in this regard, the Company believes that none of the other legal proceedings to which the Company is a party will have a material adverse effect on the Companys results of operations, cash flows, or financial condition. Sales Tax Contingency 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 e …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 Revolving Credit Facility IDT Telecom, Inc. (IDT Telecom), a subsidiary of the Company, maintains a $25.0 million revolving credit facility with TD Bank, N.A. which was scheduled to mature on May 16, 2026. Effective May 12, 2026, the Company obtained an extension of the maturity date to July 15, 2026, and is currently in the process of renewing the facility. The revolving credit facility is secured by substantially all of IDT Telecoms assets and bears interest at the secured overnight financing rate (SOFR) plus a margin of 125-175 basis points, depending on leverage. Interest is payable monthly, and all outstanding principal and any accrued and unpaid interest. At April 30, 2026 and July 31, 2025 , there were no amounts outstanding under this facility. During the nine months ended April 30, 2026 and 2025 , IDT Telecom borrowed and repaid $21.4 million and $24.6 million, respectively. 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 April 30, 2026 and July 31, 2025 , IDT Telecom was in compliance with all of the covenants. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended April 30, Nine Months Ended April 30, (in thousands) 2026 2025 2026 2025 NRS $ 38,000 $ 31,145 $ 114,421 $ 94,483 Fintech Boss Money 39,665 34,411 114,224 101,608 Other 5,339 4,208 14,694 10,919 Total Fintech 45,004 38,619 128,918 112,527 net2phone 24,368 21,990 71,717 65,099 Traditional Communications IDT Digital Payments 103,855 102,620 315,294 309,333 IDT Global 55,610 50,044 175,393 153,701 BOSS Revolution 43,393 51,733 136,115 161,882 Other 5,483 5,834 17,123 17,876 Total Traditional Communications 208,341 210,231 643,925 642,792 Total $ 315,713 $ 301,985 $ 958,981 $ 914,901

DisaggregationOfRevenueTableTextBlock

"Note 9 Fair Value Measurements The following table presents the balance of assets and liabilities measured at fair value on a recurring basis: April 30, 2026 (in thousands) Level 1 Level 2 Level 3 Total Assets: Debt securities $ 15,784 $ 10,773 $ - $ 26,557 Equity investments in current assets 9,913 - - 9,913 Equity investments in noncurrent assets - 500 346 846 Total $ 25,697 $ 11,273 $ 346 $ 37,316 Acquisition consideration included in: Other current liabilities $ - $ - $ (343 ) $ (343 ) Other noncurrent liabilities - - (267 ) (267 ) Total $ - $ - $ (610 ) $ (610 ) July 31, 2025 (in thousands) Level 1 Level 2 Level 3 Total Assets: Debt securities $ 12,926 $ 8,723 $ - $ 21,649 Equity investments in current assets 5,637 - - 5,637 Equity investments in noncurrent assets - 2,500 902 3,402 Total $ 18,563 $ 11,223 $ 902 $ 30,688 Acquisition consideration included in: Other current liabilities $ - $ - $ - $ - Other noncurrent liabilities - - (610 ) (610 ) Total $ - $ - $ (610 ) $ (610 ) Level 1 quoted prices in active markets for identical assets or liabilities Level 2 observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 no observable pricing inputs in the market At April 30, 2026 and July 31, 2025 , the Company had $4.2 million and $3.0 million, respectively, in investments in hedge funds, which were included in noncurrent Equity investments in the accompanying condensed consolidated balance sheets. The Companys investments in …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 19 Income Taxes The Companys provision for income taxes as a percentage of pretax earnings (effective tax rate) was mainly due to differences in the amount of taxable income earned in various taxing jurisdictions. For the nine months ended April 30, 2026 and 2025 , the Companys effective tax rate was 24.4% and 25.5%, respectively. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Note 5 Leases The Companys leases primarily consist of operating leases for office space. These leases have remaining terms ranging from less than one year to approximately five years. Certain of these leases contain renewal options that may be exercised and/or options to terminate the lease prior to expiration. The Company has concluded that it is not reasonably certain that it would exercise any of these options. Supplemental disclosures related to the Companys operating leases were as follows: Three Months Ended April 30, Nine Months Ended April 30, (in thousands) 2026 2025 2026 2025 Operating lease cost $ 239 $ 588 $ 764 $ 1,779 Short-term lease cost 638 300 1,423 806 Total lease cost $ 877 $ 888 $ 2,187 $ 2,585 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 245 $ 611 $ 759 $ 1,838 April 30, 2026 July 31, 2025 Weighted-average remaining lease term - operating leases (years) 2.3 2.7 Weighted-average discount rate - operating leases 5.7 % 5.2 % In the nine months ended April 30, 2026 and 2025 , the Company obtained right-of-use assets of $0.1 million and $0.4 million, respectively, in exchange for new operating lease liabilities. The Companys aggregate operating lease liability was as follows: (in thousands) April 30, 2026 July 31, 2025 Operating lease liabilities included in ""Other current liabilities"" $ 757 $ 842 Operating lease liabilities included in noncurrent liabilities 621 1,103 Total $ 1,378 $ …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standards In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The adoption of this update will be applied on a prospective basis and will require the Company to expand its income tax disclosures beginning with its Annual Report on Form 10 -K for fiscal year ending July 31, 2026 , which includes further disaggregation of the income tax expense into federal, state, and foreign categories, enhanced detail in the effective tax rate reconciliation, and disclosure of income taxes paid by significant jurisdictions. In July 2025, the FASB issued ASU 2025 - 05 Financial Instruments Credit Losses (Topic 326 ): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which amends ASC 326 - 20 to provide a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The amendments are effective for annual and interim reporting periods beginning on August 1, 2026. The practical expedient in ASU 2025 - 05 allows the Company to simplify estimating expected cre …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 20Defined Contribution Plan The Company maintains a 401 (k) Plan available to all employees meeting certain eligibility criteria. The plan permits participants to contribute up to the maximum amount allowed by law. The plan provides for discretionary matching contributions that vest over the first five years of employment. The Company contributed cash of $1.1 million in the three and nine months ended April 30, 2026 and 2025 to the Companys 401 (k) Plan for matching contributions. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 4 Revenue Recognition The Company earns revenue from contracts with customers primarily through the provision of retail telecommunications, mobile top-up, payment offerings, as well as wholesale international voice and SMS termination services. NRS generates revenue primarily from point-of-sale (""POS"") terminal sales, Software as a Service (""SaaS"") plans, payment processing, digital advertising, and data and analytics 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), contact center as a service (CCaaS) solution and AI Agent and Coach 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 Companys revenues disaggregated by business segment and service offered to customers: Three Months Ended April 30, Nine Months Ended April 30, (in thousands) 2026 2025 2026 2025 NRS $ 38,000 $ 31,145 $ 114,421 $ 94,483 Fintech Boss Money 39,665 34,411 114,224 101,608 Other 5,339 4,208 14,694 10,919 Total Fintech 45,004 38,619 1 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 3 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; (ii) IDT Financial Services Limited (IDT Financial Services), a Gibraltar-based bank; (iii) IDT Services Limited (IDTS), a Malta-based electronic money institution; and (iv) other, significantly smaller, financial services businesses, including a variable interest entity (VIE) that processes disbursement payments (the Disbursement Payments VIE). 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. net2phones 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 includ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 14 Equity Dividend Payments In the nine months ended April 30, 2026 and 2025 , the Company paid aggregate cash dividends of $0.19 and $0.16 per share, respectively, on the Companys Class A and Class B common stock. In the nine months ended April 30, 2026 and 2025 , the Company paid aggregate cash dividends of $4.8 million and $4.0 million, respectively. On May 29, 2026, the Companys Board of Directors declared a cash dividend on its Class A and Class B common stock of $0.07 per share payable on or about June 18, 2026 to stockholders of record as of the close of business on June 9, 2026. Stock Repurchases The Company has an existing stock repurchase program authorized by its Board of Directors for the repurchase of shares of the Companys Class B common stock. In January 2016, the Board of Directors authorized the repurchase of up to 8.0 million shares in the aggregate. In the nine months ended April 30, 2026 , the Company repurchased 391,186 shares of its Class B common stock for an aggregate purchase price of $19.0 million. In the nine months ended April 30, 2025, the Company repurchased 221,823 shares of its Class B common stock for an aggregate purchase price of $10.1 million. At April 30, 2026 , 3.8 million shares remained available for repurchase under the stock repurchase program. Shares Withheld for Employee Taxes In the nine months ended April 30, 2026 and 2025 , the Company withheld 10,852 and 157,180 shares, valued at $0.5 million and $7.7 million, respectively, …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing