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.
The successful operations of IDT have had a constant during its 34-year history; that constant is the leadership of Howard Jonas, the visionary founder, self-made billionaire and current Chairman of IDT. The Jonas family owns +20% of the company and his son Shmuel Jonas is the CEO. The stake of the family through class A shares provides them control of the company. The CFO Marcelo Fisher (who we interviewed for this writeup) has been with IDT for nearly 20 years.
We have been saying that Fiscal Year 2025 (ended in July 2025) was going to be the year when the value of IDT’s high growth business was going to blossom and finally become glaring to investors. As of September 2025 (right before IDT publishes its 10-K), we can confirm that this was definitely the case, IDT is up 75% in the last year.
Now the questions savvy investors have are:
How is IDT going to spend its more than $200m in cash?
When is the next spin-off going to happen?
What M&A targets does IDT have in mind?
What are the true economics and average customer value of NRS?
What if the biggest risk to IDT’s remittance business isn’t regulation, but something no one is talking about?
What is the hidden asset that is going to become the 4th high-growth and high-margin business of IDT?
The write-up today has the purpose of answering the following questions and provide much more data about IDT that has not been provided anywhere else.