IDT Corporation (IDT): A Bull Case Theory

We came across a bullish thesis on IDT Corporation on Polymath Investor substack by Polymath Investor. In this article, we will summarize the bulls’ thesis on IDT. IDT Corporation’s share was trading at $66.08 as of 18^th June. IDT’s trailing and forward P/E was 17.4 according to Yahoo Finance.

IDT Corporation is quietly undergoing a significant transformation, evolving from a legacy telecom operator into a high-growth fintech and B2B services platform. At the heart of this shift are its two standout segments: National Retail Solutions (NRS) and BOSS Money.

These businesses are driving explosive year-over-year growth, significantly boosting the company’s overall profitability. Last quarter, gross margins reached a record 37.1%, with fintech gross profit rising 31%, underscoring the momentum behind IDT’s earnings surge—GAAP EPS jumped to $0.86 in Q3 FY25 from just $0.22 a year prior. While the company’s total revenue appears flat, this masks the rapid expansion of its fintech operations and the relative decline of its traditional telecom business, which is increasingly fading into the background.

There is a growing belief that these high-growth fintech segments could unlock considerable shareholder value if separated, given their potential to command significantly higher valuation multiples on a standalone basis. Management’s history of successful spin-offs adds credibility to this possibility, suggesting a strategic separation or sale of the fintech assets could be on the horizon. However, key risks remain, including whether telecom revenue erosion will outpace digital growth and whether management will ultimately follow through with a spin or monetization strategy.

Despite these uncertainties, the underlying growth in NRS, BOSS Money, and a third emerging segment points to a compelling story that is still largely underappreciated by the market. For investors seeking asymmetric upside, IDT’s pivot offers multiple potential catalysts for a rerating, and the stock merits a closer look.

Previously we covered a bullish thesis on IDT Corporation by LittleBarnSparrow in January 2025, which highlighted the company’s strong operational performance, high-growth segments like NRS and BOSS Money, and a solid balance sheet supporting strategic reinvestments. The company’s stock price has appreciated approximately 41% since our coverage. This is because the fintech segments continued their rapid expansion, driving earnings growth. The thesis still stands as IDT’s growth runway in NRS and BOSS Money remains intact, with rising margins and market penetration. Polymath Investor shares a similar view but emphasizes a potential spin-off or sale of the fintech segments as a key rerating catalyst.

IDT Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held IDT at the end of the first quarter which was 20 in the previous quarter. While we acknowledge the risk and potential of IDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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