IDT Corporation (IDT): A Bull Case Theory
We came across a bullish thesis on IDT Corporation on Polymath Investor’s Substack by Polymath Investor and James Emanuel. In this article, we will summarize the bulls’ thesis on IDT. IDT Corporation's share was trading at $57.36 as of July 28th. IDT’s trailing P/E was 15.13 according to Yahoo Finance.
A customer making a purchase at a modern retail store terminal, showing the ubiquity of the company’s payment solutions.
IDT Corporation (NYSE: IDT) is a holding company undergoing a structural transformation from a low‑margin legacy telecom to a portfolio of high‑growth, high‑margin technology platforms. The legacy Traditional Communications business, though in managed decline, funds the expansion of three rapidly scaling ventures: National Retail Solutions (NRS), a fintech point‑of‑sale platform for independent retailers; BOSS Money, an international remittance service; and net2phone, a cloud communications provider.
NRS, the standout growth driver, operates a high‑margin two‑sided platform serving over 35,000 retailers, with 70%+ CAGR in recurring revenue built on powerful network effects and sticky customer relationships. BOSS Money has reached a $6.5 billion annualized transfer run rate, growing transactions ~30% annually, with a trusted brand, regulatory moat, and a digital‑first shift driving margin expansion. net2phone has grown subscriptions at a 26% CAGR and turned profitable, with further upside from CCaaS and AI‑enabled services.
Consolidated margins are expanding rapidly: Q3 FY25 gross margins rose to 37%, EBITDA grew 57% YoY, and operating income more than doubled, underpinned by disciplined reinvestment and a pristine, debt‑free balance sheet with $220 million in cash. Founder Howard Jonas’s 70% voting control and proven spin‑off record underpin shareholder alignment, with further value‑unlocking separations likely.
Risks include legacy decline, regulatory exposure, competition, and customer concentration, but the growth engines’ scaling and margin profile are reshaping unit economics. Valuation remains complex, with the market potentially pricing in stronger near‑term performance than conservative models suggest. With multiple catalysts, IDT offers exposure to three high‑growth, cash‑efficient businesses at a critical strategic inflection point.
Previously, we covered a bullish thesis on IDT Corporation by LittleBarnSparrow in January 2025, highlighting its pivot from legacy telecom to high‑growth units NRS and BOSS Money. Shares have appreciated by about 22% as fintech growth and operating leverage exceeded expectations. The thesis remains valid as the transformation accelerates. Polymath Investor and James Emanuel share a similar view but stress valuation complexity and spin‑off potential.
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