Business Segment Information

9 Months Ended

Apr. 30, 2024

Segment Reporting [Abstract]

Business Segment Information

Note 2—Business Segment Information

The Company has four reportable business segments, NRS, Fintech, net2phone, and Traditional Communications. Any items not included within, or allocated to, one of the segments is presented under “Corporate.”

The NRS segment is an operator of a nationwide point-of-sale (“POS”) network providing independent retailers with 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: and (ii) other, significantly smaller, financial services businesses, including Leaf Global Fintech Corporation (“Leaf”), a provider of digital wallet services in emerging markets, a variable interest entity that operates money transfer businesses, and IDT Financial Services Limited (“IDT Financial Services”), the Company’s Gibraltar-based bank.

The net2phone segment is comprised of net2phone’s integrated cloud communications and contact center services.

The Traditional Communications segment includes: (i) IDT Digital Payments, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts: (ii) BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the United States and Canada: and (iii) IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide. Traditional Communications also includes other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

The Company’s 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 Company’s chief operating decision maker. 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.

Corporate costs mainly include compensation, consulting fees, treasury, tax and accounting services, human resources, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, and other corporate-related general and administrative expenses. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

Operating results for the business segments of the Company were as follows:

(in thousands)	National Retail Solutions		Fintech			net2phone			Traditional Communications		Corporate			Total
Three Months Ended April 30, 2024
Revenues	$	25,712	$	31,526		$	20,677		$	221,728	$	—		$	299,643
Income (loss) from operations		4,768		(553	)		476			12,467		(5,726	)		11,432
Depreciation and amortization:
Included in “Direct cost of revenues”		501		47			600			168		—			1,316
Included in “Selling, general and administrative” expense		33		33			274			214		17			571
Included in “Technology and development” expense		285		643			700			1,596		—			3,224
Three Months Ended April 30, 2023
Revenues	$	18,073	$	21,787		$	18,392		$	241,043	$	—		$	299,295
Income (loss) from operations		2,079		(1,318	)		(377	)		12,924		(2,931	)		10,377
Depreciation and amortization:
Included in “Direct cost of revenues”		384		21			558			187		—			1,150
Included in “Selling, general and administrative” expense		29		317			213			227		—			786
Included in “Technology and development” expense		203		374			631			2,041		—			3,249
Nine Months Ended April 30, 2024
Revenues	$	74,930	$	86,076		$	60,957		$	674,983	$	—		$	896,946
Income (loss) from operations		15,578		(2,673	)		836			42,491		(11,617	)		44,615
Depreciation and amortization:
Included in “Direct cost of revenues”		1,433		132			1,799			538		—			3,902
Included in “Selling, general and administrative” expense		96		361			709			592		65			1,823
Included in “Technology and development” expense		801		1,648			2,056			5,026		—			9,531
Nine Months Ended April 30, 2023
Revenues	$	57,208	$	61,995		$	53,136		$	762,708	$	—		$	935,047
Income (loss) from operations		12,684		(613	)		(2,008	)		47,195		(8,475	)		48,783
Depreciation and amortization:
Included in “Direct cost of revenues”		1,061		65			1,592			571		—			3,289
Included in “Selling, general and administrative” expense		88		955			762			294		36			2,135
Included in “Technology and development” expense		539		970			1,790			6,263		—			9,562