How Investors Are Reacting To IDT (IDT) Strong Q1 2025 Results, Legal Win and Fintech Momentum

• IDT Corporation has reported past first-quarter 2025 results showing sales of US$322.75 million and net income of US$22.36 million, alongside continued dividends and completion of a multi‑year share buyback totaling 3,976,037 shares for US$66.28 million.
• Investors also saw a legal cloud lifted as the Delaware Supreme Court resolved the Straight Path class action in IDT’s favor while its Fintech arm nearly doubled income from operations and adjusted EBITDA.
• We’ll now examine how IDT’s stronger earnings, Fintech momentum, and legal overhang removal reshape the company’s investment narrative.

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IDT Investment Narrative Recap

IDT’s story still comes down to whether you believe its Fintech and software platforms can keep lifting earnings while capital needs and competition remain manageable. The latest quarter’s higher revenue and net income, plus the removal of the Straight Path legal overhang, support that earnings‑led thesis, but do not materially reduce short term risks around working capital intensity in BOSS Money or potential pressure on operating cash flows.

Among the recent announcements, the completion of a multi year buyback of 3,976,037 shares for US$66.28 million stands out, since it amplifies the impact of Q1 EPS growth on each remaining share. Combined with ongoing US$0.06 quarterly dividends, this capital return profile ties directly into the near term catalyst of earnings per share momentum, while also sharpening investor focus on whether cash outlays for repurchases and dividends limit future reinvestment capacity.

Yet investors should also be aware that heavier cash use on buybacks and dividends could start to matter if...

Read the full narrative on IDT (it's free!)

IDT's narrative projects $1.3 billion revenue and $104.9 million earnings by 2028. This implies a 0.7% yearly revenue decline and an earnings increase of about $8.9 million from $96.0 million today.

Uncover how IDT's forecasts yield a $80.00 fair value, a 57% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span roughly US$80 to over US$56,000, underlining how far apart individual views can be. Against that backdrop, IDT’s heavier cash use on buybacks and dividends raises important questions about how different investors weigh capital returns against funding future growth, so it is worth exploring several of these alternative viewpoints before deciding where you stand.

Explore 7 other fair value estimates on IDT - why the stock might be a potential multi-bagger!

Build Your Own IDT Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your IDT research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free IDT research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IDT's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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