IDT Corporation - 2Q25 Performance
Strong Financial Growth and Increased Shareholder Returns
IDT is a family-owned US conglomerate of companies that has produced an amazing return since it was founded 1990. If one had held IDT and its spinoffs during the decade from 2010-2020, one would have a CAGR of +50%. IDT acts as a business incubator before spinning off the successful businesses they grow organically.
The current IDT is a mix of 3 high-growth, asset-light and high-margin companies in the tech sector and a set of declining legacy asset-heavy communications businesses belonging to the old economy that in 2024 still generated most of the revenue and EBITDA.
Understanding IDT is not a simple exercise, which added to the fact that there it has no analyst coverage on IDT, allows IDT to fly under the radar of most value investors. Its complex reporting and structure hide the tremendous economics behind the 3 rapid-growth businesses. This conglomerate structure also allows IDT to reinvest the cash flows of the legacy business in a tax efficient manner with high ROIs into NRS, N2P and BOSS Money (the 3 fast-growth businesses in the POS, UCaaS and Money Transfer industries, respectively), allowing to compound their intrinsic value at a superior pace than their respective competitors.
This is not the first time we have written about IDT. In fact, the IDT thesis is the longest we have written. We even had to split it into two parts, analyzing the company on one side and its main subsidiary (National Retail Solutions) on the other.
As we said at the time, we believe there is nothing like it on the internet about this promising company.