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 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 Washington,
D.C. 20549

 FORM

Annual report pursuant to section 13 or 15(d) of the securities exchange act of 1934 for the fiscal year ended July 31, 2025.

 or

Transition report pursuant to section 13 or 15(d) of the securities exchange act of 1934.

 Commission
File Number: 1-16371

 IDT
Corporation

 (Exact
name of registrant as specified in its charter)

 Delaware

 22-3415036

 (State
 or other jurisdiction of

 incorporation or organization)

 (I.R.S.
 Employer

 Identification No.)

Broad Street, Newark, New Jersey 07102
 (Address of principal executive offices, zip code)

 (973) 438-1000
 (Registrant's telephone number, including area code)

 Securities
registered pursuant to Section 12(b) of the Act:

 Title
 of each class

 Trading
 Symbol

 Name
of each exchange on which registered

 Class
 B common stock, par value $0.01 per share

 IDT

 New
 York Stock Exchange

 Securities
registered pursuant to section 12(g) of the Act: None

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files). Yes No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company,
or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller
reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large
 accelerated filer

 Accelerated
 filer

 Non-accelerated
 filer

 Smaller
 reporting company

 Emerging
 growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

 The
aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant, based on the adjusted closing price
on January 31, 2025 (the last business day of the registrant's most recently completed second fiscal quarter) of the Class B common
stock of $47.18 per share, as reported on the New York Stock Exchange, was approximately $ 884.8 million.

 As
of September 24, 2025, the registrant had outstanding 23,656,689 shares of Class B common stock and 1,574,326 shares of Class A common
stock. Excluded from these numbers are 4,872,006 shares of Class B common stock and 1,698,000 shares of Class A common stock held in
treasury by IDT Corporation.

 DOCUMENTS
INCORPORATED BY REFERENCE

 The
definitive proxy statement relating to the registrant's Annual Meeting of Stockholders, to be held December 11, 2025, is incorporated
by reference into Part III of this Form 10-K to the extent described therein.

 IDT
Corporation

 Annual
Report on Form 10-K

 Item
 1.

 Business.

 Item
 1A.

 Risk Factors.

 Item
 1B.

 Unresolved Staff Comments.

 Item
 1C.

 Cybersecurity.

 Item
 2.

 Properties.

 Item
 3.

 Legal Proceedings.

 Item
 4.

 Mine Safety Disclosures.

 Item
 5.

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 Item
 6.

 [Reserved]

 Item
 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations.

 Item
 7A.

 Quantitative and Qualitative Disclosures about Market Risks.

 Item
 8.

 Financial Statements and Supplementary Data.

 Item
 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

 Item
 9A.

 Controls and Procedures.

 Item
 9B.

 Other Information.

 Item
 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item
 10.

 Directors, Executive Officers and Corporate Governance.

 Item
 11.

 Executive Compensation.

 Item
 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

 Item
 13.

 Certain Relationships and Related Transactions, and Director Independence.

 Item
 14.

 Principal Accountant Fees and Services.

 Item
 15.

 Exhibit and Financial Statement Schedules.

 Item
 16.

 Form 10-K Summary.

 Signatures

 i

 Part
I

 As
used in this Annual Report, unless the context otherwise requires, the terms the "Company," "IDT," "we,"
"us," and "our" refer to IDT Corporation, a Delaware corporation, and its subsidiaries, collectively. Each reference
to a fiscal year in this Annual Report refers to the fiscal year ending in the calendar year indicated (for example, fiscal 2025 refers
to the fiscal year ended July 31, 2025).

 Item
1. Business.

 OVERVIEW

 IDT
is a provider of fintech and communications solutions focused on certain under-served consumer and B2B markets. Our offerings were built
around, and continue to leverage, a common core of strategic assets, and we seek to maximize the synergies among them to achieve exceptional
growth and profitability.

 IDT's
key businesses are:

 Retail Solutions (NRS): Operates a leading point-of-sale, or POS, terminal-based platform for independent retailers in the United
 States including convenience stores, bodegas, liquor, small-format grocery, and tobacco stores. NRS' purpose-built integrated
 POS hardware and software solutions enable these stores to operate more effectively. Through its payment processing offerings, NRS
 enables these retailers to accept and process credit, debit, and electronic benefit transfer payments. NRS' nationwide network
 of customer-facing screens and its transaction data and analytics provide advertisers and marketers with unprecedented reach into urban,
 multi-cultural consumer markets across the United States.;

 BOSS
 Money: Provides fintech-based services featuring cross-border money transfers to customers in the United States. BOSS Money makes
 it easy and convenient to share resources with friends and family in 50 destination countries in Latin America and the Caribbean, Africa,
 Europe, and Asia. BOSS Money transactions are initiated predominantly through its digital channel including the popular BOSS Money
 and BOSS Revolution apps, and also through its nationwide network of licensed BOSS Money retail agents who accept cash payments;

 net2phone:
 Provides businesses with AI-powered communications solutions that analyse, inform, and manage communications for enhanced productivity.
 net2phone's offerings include unified communications as a service (UCaaS), contact center as a service (CCaaS), and autonomous
 agentic solutions, net2phone Coach and net2phone AI Agent. net2phone's services are available worldwide with a focus on North
 and South America;

 IDT
 Digital Payments: Provides prepaid digital offerings including mobile airtime top-up, mobile data bundles, digital gift cards,
 eSIMs and other offerings directly to consumers through BOSS' retail and digital channels. (Mobile airtime top-up, or simply
 mobile top-up, enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile
 accounts.) IDT Digital Payments' B2B prepaid-as-a-service platform, Zendit, enables businesses, entrepreneurs, and developers
 to offer prepaid digital offerings;

 BOSS
 Revolution: Provides international long-distance voice calling marketed primarily to immigrant communities in the United States
 and Canada. BOSS Revolution is provisioned through the popular BOSS Revolution app and prepaid 'hard cards' sold by a nationwide
 network of over 30,000 BOSS Revolution retail agents; and

 IDT
 Global: Provides wholesale international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide.
 Through its IDT Express branded self-provisioning portal, IDT Global also serves small and medium businesses.

 IDT
also operates other, smaller businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

 Our
headquarters is located at 520 Broad Street, Newark, New Jersey 07102. The main telephone number at our headquarters is (973) 438-1000
and our corporate website's home page is www.idt.net.

 SEGMENT
REPORTING

 We
have four reportable business segments: (1) National Retail Solutions, or NRS; (2) Fintech; (3) net2phone; and (4) Traditional Communications.

 The
NRS segment, which contributed revenue of $128.8 million in fiscal 2025 and $103.1 million in fiscal 2024 (10.5% and 8.6% of our total
revenues, respectively) comprises our NRS business.

 The
Fintech segment, which contributed revenue of $154.6 million in fiscal 2025 and $120.7 million in fiscal 2024 (12.6% and 10.0% of our
total revenues, respectively), comprises our BOSS Money remittance business and other, significantly smaller, financial services businesses.

 The
net2phone segment, which contributed revenue of $87.9 million in fiscal 2025 and $82.3 million in fiscal 2024 (7.1% and 6.8% of our total
revenues, respectively), offers AI-driven communications solutions to businesses primarily in North and South America.

 The
Traditional Communications segment, which contributed revenue of $860.2 million in fiscal 2025 and $899.6 million in fiscal 2024 (69.8%
and 74.6% of our total revenues, respectively) includes IDT Digital Payments, BOSS Revolution, and IDT Global, as well as other small
businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.

 Financial
information by segment is presented in Note 2 to our Consolidated Financial Statements in Item 8 to Part II of this Annual Report.

 We
make available free of charge our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments
to these reports, and all beneficial ownership reports on Forms 3, 4 and 5 filed by directors, officers and beneficial owners of more
than 10% of our equity through the investor relations page of our website ( as soon as reasonably practicable after
such material is electronically filed with the Securities and Exchange Commission. Our website also contains information not incorporated
into this Annual Report on Form 10-K or our other filings with the Securities and Exchange Commission.

 KEY
EVENTS IN OUR HISTORY

 1990
– Howard S. Jonas, our founder, launches International Discount Telephone to provide international call re-origination services.

 1996
– We successfully complete an initial public offering of our common stock.

 2000
– We complete the sale of a stake in our net2phone subsidiary, a pioneer in the development and commercialization of Voice over
Internet Protocol, or VoIP, technologies and services, to AT&T for approximately $1.1 billion in cash. We subsequently repurchased
net2phone from AT&T.

 2001
– Our common stock is listed on the New York Stock Exchange, or NYSE.

 2007
– We complete the sale of IDT Entertainment to Liberty Media for $220.0 million in cash, stock and other considerations.

 2008
–We launch BOSS Revolution, a pay-as-you-go international calling service. BOSS Revolution has since become our flagship brand,
and the BOSS Revolution platform has expanded to include payment offerings.

 2009
– We spin-off our CTM Media Holdings subsidiary to our stockholders. CTM Media Holdings was subsequently renamed IDW Media Holdings,
Inc.

 2011
– We spin-off our Genie Energy Ltd. subsidiary to our stockholders. Genie Energy's common stock is listed on the NYSE with
the ticker symbol "GNE".

 2013
– We spin-off our subsidiary, Straight Path Communications, Inc., or Straight Path, including its wireless spectrum holdings, to
our stockholders. Straight Path was purchased in February 2018 by Verizon Communications Inc.

 –
We introduce our BOSS Revolution app for Android and iOS.

 –
We launch our BOSS Money international remittance service.

 2015
– net2phone launches its UCaaS offering in the United States.

 2016
– We spin-off our Zedge subsidiary to our stockholders. Zedge's stock is listed on the NYSE American with the ticker symbol
"ZDGE".

 –
We launch NRS to provide POS-based services to independent retailers in the United States.

 2017
– We introduce our BOSS Money app for Android and iOS.

 2018
– We spin-off our Rafael Holdings, Inc. subsidiary to our stockholders. Rafael Holdings' stock is listed on the NYSE with
the ticker symbol "RFL".

 2019
– NRS launches NRS PAY, enabling retailers to accept credit cards and other forms of digital payment.

 2022
– net2phone acquires Integra CCS, or Integra, a CCaaS provider operating in the Americas and Europe.

 2024
– We initiate payment of a regular quarterly dividend to holders of our Common Stock.

 2025
– net2phone launches net2phone AI Agent, a customizable, AI-powered offering delivering exceptional customer experiences across
sales, support and administrative tasks, and Coach, an AI-driven workforce intelligence and coaching platform.

 –
NRS surpasses 37,000 active terminals operating at over 32,000 independent retailers.

 –
BOSS Money handles 2.3 million remittances for customers in May, 2025.

 OUR
STRATEGY

 We
are a fintech and communications solutions provider with synergistic offerings focused on underserved, fragmented consumer and B2B markets.
Many of our offerings leverage one or more of our core strategic assets – assets that we have carefully built during the thirty-five
years since our inception. These assets include:

 Our
 popular BOSS consumer brands (BOSS Money and BOSS Revolution) and our leading B2B brands NRS, NRS Pay, NRS Digital Media, NRS Insights,
 net2phone, IDT Global and Zendit;

 Our
 nationwide network of over 32,000 independent retailers who operate NRS' POS-based platform and approximately 25,000 BOSS Revolution
 and BOSS Money retailers who utilize our digital retailer platform;

 Our
 customer base of more than seven million people, predominantly first and second-generation immigrants within the U.S.;

 Our
 global technology infrastructure and high-capacity transaction platforms;

 Extensive
 VoIP and cloud services expertise; and

 Our
 staff of approximately 2,400 dedicated personnel working in over 30 countries on five continents including in-house technology and
 product development teams.

 The
development of each of our current high margin growth businesses – NRS, BOSS Money, and net2phone - has been principally organic
and financed with the cash flows generated by our mature businesses. Consequently, we have avoided debt financing and dilutive capital
raises. Today, each of these high-margin growth businesses is cash-flow positive, and in combination with our efforts to maximize the
cash generation of our lower margin, mature offerings, have enabled us to improve our consolidated bottom-line performance in recent
years, to further strengthen our balance sheet, and to return value to stockholders through purchases of our Class B common stock and
payment of a quarterly dividend. We expect that this trend will continue as the three high-margin businesses steadily become larger contributors
to our top and bottom-line results.

 We
seek to accelerate and extend this rotation by developing new offerings organically and through acquisitions that leverage our balance
sheet. Broadly speaking, these efforts are focused on, but not limited to, our POS, fintech and AI businesses, and typically involve
development or application of new technologies, expansion to new markets, or both.

 BUSINESS
DESCRIPTION

Retail Solutions

 NRS
generated $128.8 million in revenues and income from operations of $27.8 million in fiscal 2025, as compared with revenues of $103.1
million and income from operations of $21.6 million in fiscal 2024.

 NRS
operates a network of POS terminals at independent retailers throughout the United States and has a small but growing presence in Canada.
The NRS solutions include integrated hardware and software tools that enable these retailers to operate more efficiently and compete
more effectively against larger retail chains.

 The
POS terminal's hardware includes a cash register, barcode scanner, retailer and customer-facing hi-definition screens, a receipt
printer, and a credit card reader. NRS' integrated, proprietary software is offered to retailers as a service and provides operational
tools including inventory management, sales tracking, price book management, and other useful features. NRS technology teams continuously
enhance the software and develop new features to better serve existing customers and facilitate expansion into additional retail market
segments.

 The
primary market for NRS' POS terminals is the independently owned convenience, bodega, liquor, grocery, and tobacco stores, many
of which primarily serve foreign-born communities in urban areas.

 NRS
continues to increase the number of POS terminals active in its network. As of July 31, 2025, the NRS POS network included approximately
37,200 terminals, an increase from 32,100 a year earlier. We believe that our network of NRS retailers comprises the largest POS network
serving independent convenience store retailers in the U.S. by a significant margin.

 NRS
markets through three channels:

 wholesale
 distributors;

 dedicated
 sales agents including exclusive agents and BOSS agents; and

 in-house
 telemarketing.

 NRS
generates revenue from a portfolio of services for both retailers and third parties. The majority of revenue is generated by recurring
services including:

 Merchant Services.
 Merchant services revenue is generated by enabling retailers to accept and process payments made by credit cards, debit cards, electronic
 benefits transfer and other forms of electronic payment. The NRS offering is attractive to retailers for several reasons:

 For new customers / retailers,
 NRS incentivizes retailers to also enroll in NRS payment processing by reducing the cost of the NRS POS hardware;

 NRS' payment processing
 pricing model is straightforward and easily understood. NRS does not charge hidden fees – a frequent sore point for retailers
 under contract to other providers;

 NRS provides the payment
 processing equipment at no cost to the retailer; and

 NRS offers several credit
 card processing plans that include a cash discount offering, a standard plan and customized pricing.

 NRS
operates as an independent service organization (ISO), acting as an essential, retailer-facing intermediary between NRS retailers and
its payment facilitator.

 At
July 31, 2025, NRS had approximately 26,500 NRS payment processing customers compared to approximately 21,300 a year earlier.

 Display Advertising.
 NRS' offerings participate in the retail media network advertising market. Through its NRS Digital Media brand, NRS operates
 a nationwide, digital retail media platform. The platform leverages the 15-inch digital consumer facing display screens on each NRS
 terminal enabling advertisers to engage customers at the time of purchase. NRS Digital Media offers its large inventory of static and
 video advertisements, including video accompanying third-party provisioned content, extensive reach into the predominantly urban, multicultural
 consumer market served by NRS retailers. NRS Digital Media goes to market through both programmatic advertising platforms that match
 buyers with sellers in real time, and, to a lesser extent, through direct channels to consumer package-good sellers and other brand
 marketers, government agencies and non-profits.

 Data and Analytics:
 NRS licenses its first party retail data from merchants operating the NRS POS system to consumer-packaged goods brands, marketers,
 and other third-parties under its NRS Insights brand. This data captures product sales processed through the NRS POS at the transaction
 level including all scannable products identified with a universal product code (UPC) as well as items prepared or packaged in-house,
 i.e., brewed coffee, bakery, and food service. The data are provisioned based on the client's formatting and business requirements
 and are typically ingested into broader sales and marketing data warehouses. NRS Insights' data typically fill a blind spot in
 overall retail sales, as the independent retailer market that NRS serves is often either under-represented through common data syndicators
 or not included in their "tracked channels". Additionally, because NRS retailers' stores predominantly serve urban
 consumers, their shoppers over-index to multicultural demographics – a view that may be diluted or unavailable through other
 data providers and aggregators.

 The
NRS Insights data are used by licensees both tactically and strategically. Common tactical applications of the data include sales enablement
activities such as identifying core item distribution voids and monitoring speed to shelf and adoption of new product launches. Popular
strategic applications of the data include gaining competitive intelligence, informing research and development activities, and informing
acquisition and merger strategies.

 NRS
Insights also provides analytical services to third parties, leveraging its data to answer high impact business questions including,
but not limited to, advertising measurement, market-basket studies, inventory (SKU) optimization, and price elasticity.

 Terminal-based software
 services. NRS offers retailers several Software as a Service (SaaS) plans for its proprietary terminal software. These plans offer
 differentiated packages of features and functionalities including advanced business operations tools, e-commerce functionalities, and
 loyalty program management, many of which can be purchased separately. Additional services are offered to retailers on an a la carte
 basis.

 In
addition to these recurring sources of revenue, NRS sells its POS terminals to retailers. Discounted terminal pricing is available to
retailers who sign up for NRS Pay.

 We
believe that NRS' competitive advantages include:

 Our purpose-built package
 of hardware and software is tailored specifically to the needs of independent retailers;

 Our established direct sales
 and marketing capabilities focused on independent retailers including our relationships with the wholesale distributors who supply
 these stores;

 Our POS terminal's
 15 inch hi-definition customer-facing screen for displaying advertising and promotions provisioned via the NRS platform, and established
 relationships with supply side advertising platforms;

 Our ability to accept and
 target advertising and content in multiple formats to meet the needs of a diverse variety of potential advertising inventory buyers;

 For our data analytics business,
 the scale of our network and unique reach into the urban consumer convenience store market;

 Our focus on urban markets
 with high concentrations of first- and second-generation immigrants that provides advertisers and marketers with unprecedented reach
 and insight into these communities;

 For NRS payment processing,
 we are ideally positioned to supply payment processing services to retailers who purchase, or already utilize, our terminals, and appeal
 to many more potential customers through simplified, transparent pricing plans with credit card terminals, no hidden fees and lower
 total cost to operate than most competitors;

 n certain states, NRS'
 payment processing solution is licensed to accept governmental electronic benefit transfers that certain competitors may not be licensed
 to accept;

 Because of our large scale
 compared to newcomers and smaller competitors, we can attractively price our software-as-a-service fees at levels that are generally
 well below theirs;

 Our ability to leverage new
 offerings for retailers through third party providers who are attracted by our scale and the flexibility of our platform; and

 Our experienced and proven
 management team, many of whom have been with NRS since inception.

 NRS'
growth strategy includes:

 Expansion of our POS terminal
 network into new retail verticals, enabled in some markets, by the development of new POS hardware formats and software functionalities;

 Subsidize the POS hardware,
 particularly for retailers who also enroll in NRS payment processing;

 For NRS payment processing,
 conversion of current NRS terminal customers, particularly as contracts with their existing credit card processors expire, and conversion
 of existing NRS payment processing customers to higher margin pricing plans;

 For NRS advertising, integrations
 with new programmatic advertisers and the development of differentiated offerings that enable us to more effectively leverage the unique
 strengths of our platform;

 Develop partnerships to provide
 NRS retailers with robust home delivery service options; and

 Build out the NRS digital
 wholesale supply channel to provide NRS retailers with new cost-effective supply options.

 Currently,
nationwide POS platform service providers, including Square, Toast, Lightspeed, Clover, and NCR, primarily serve retail chains or are
focused on other retail segments, such as sit-down restaurant chains.

 NRS
markets its POS platform offerings primarily to independent convenience stores, including bodegas, and other small format retailer store
owners including liquor and tobacco stores. A large majority of new NRS customers did not previously use a POS system. In the minority
of cases where potential customers are using, or are considering using, an alternative solution, we believe that NRS' suite of
proprietary software solutions, affordable and discounted POS equipment and free credit card terminals are key drivers behind its success
versus the competition.

 NRS
expects to encounter more frequent direct competition from local and/or national POS networks as it expands to new adjacent target markets.

is comprised of BOSS Money and other, significantly smaller, financial services businesses. Fintech revenues were $154.6 million in fiscal
2025 compared to $120.7 million in fiscal 2024. Fintech's income from operations was $15.4 million in fiscal 2025 compared to a
loss from operations of $0.1 million in fiscal 2024. BOSS Money revenues were $139.8 million in fiscal 2025, an increase of 29.1% from
revenues of $108.3 million in fiscal 2024.

 BOSS
Money enables customers in the United States to send money conveniently and affordably to third parties around the world. International
remittances are a primary economic activity for the tens of millions of first- and second-generation immigrants in the United States.
At July 31, 2025, BOSS Money provided its remittance service to 50 countries through approximately 1,800 disbursement partners and its
payout network included over 250,000 cash payout locations worldwide in addition to a growing number of bank deposits, mobile money wallets,
debit cards, and home delivery payout options.

 BOSS
Money is offered directly to consumers via our digital channel — the BOSS Money app and the BOSS Revolution app. To utilize our
digital channel, customers can use their debit or credit cards or authorize ACH transfers from their bank accounts.

 Our
retail channel network comprises licensed and authorized BOSS Money agents nationwide. Customers can initiate transfers through a BOSS
Money agent with cash as well as with their debit or credit cards.

 We
continue to build our retail origination network by using our internal sales force to recruit new BOSS Money retailers, primarily focusing
on retailers that already provision BOSS Revolution and IDT Digital Payments services. To qualify to provide our service, BOSS Money
retailers must meet stringent financial and other regulatory qualifications. We also continue to enhance the BOSS Money retailer portal
and platform to make transaction execution more convenient for retailers, the majority of whom host multiple remittance providers.

 We
continue to expand our BOSS Money customer base at rates well above the domestic remittance industry's average by marketing our
service to the large base of customers who utilize our BOSS Revolution voice calling and IDT Digital Payments offering. We offer new
customers attractive fee and foreign exchange rate offers, through both our digital and retail channels, and through online, media and
events advertising.

 BOSS
Money generates revenues from a per-transaction fee charged to the customer and from foreign exchange differentials. Our transaction
costs include commissions paid when the transaction is initiated by a retail agent, payment to the international disbursing agent, banking,
compliance and foreign currency exchange costs, and, for digital transfers, credit and debit card processing fees.

 BOSS
Money's gross margins are typically higher on remittances initiated through our digital channels compared to retail channel transactions,
as we pay retail agents transaction-based commissions on the latter.

and Competitive Strengths

 The
money transfer industry is intensely competitive, with participants ranging from banks, digital remittance providers, fintech startups
and traditional remitters. Digital competitors such as Xoom (a subsidiary of PayPal), Wise, Remitly, and Sendwave along with traditional
money remitters, including Western Union, Ria, MoneyGram, Intermex and Viamericas compete in the remittance space.

 We
continue to compete successfully in part by migrating customers of our other BOSS offerings from their current remittance providers to
BOSS Money leveraging our highly regarded BOSS brand, insights into our customers, and cross-marketing capabilities. We compete for customers
outside the BOSS ecosystem primarily based on brand reputation, low fees, and competitive foreign exchange rates. We believe that BOSS
Money's competitive strengths include:

 Our BOSS name is an established
 and trusted brand that has served immigrant communities in the United States for well over a decade. We spend significantly on BOSS-branded
 marketing to support BOSS Revolution and BOSS Money. Through the nationwide network of over 30,000 BOSS Revolution retailers, the BOSS
 brand has a high-visibility storefront presence in many communities with significant immigrant populations;

 The BOSS customer eco-system
 includes the large customer bases of BOSS Revolution and IDT Digital Payments. We are able to significantly lower BOSS Money's
 customer acquisition costs, and therefore grow more efficiently, through our intensive cross-product marketing efforts within our eco-system;

 The BOSS Money and BOSS Revolution
 apps, which are used for the substantial majority of our transactions, are based on a proprietary, internally developed, scalable platform
 that has earned high marks from customers for its ease of use, reliability, and customer service;

 Our internal sales force,
 which serves our 30,000 BOSS Revolution retailers;

 Our nationwide retail channel
 that enables underbanked and unbanked customers to initiate cash transactions;

 Our comprehensive compliance
 processes and procedures;

 Our ready access to capital
 leveraging IDT's strong balance sheet including robust levels of cash and cash equivalents; and

 Our experienced management
 team.

 BOSS
Money's growth strategy includes:

 Expansion of our international
 payout network with a focus on growth in Latin America, Africa and Asia;

 Continued migration of our
 BOSS Revolution and IDT Digital Payments customers from competitors to BOSS Money;

 Further enhancements to our
 BOSS Money app, BOSS Revolution app and retailer portal;

 Increasing the number of
 BOSS Money retail agents; and

 Addition of new features
 and offerings including the deployment of a wallet to receive, hold and pay for remittances and other Boss products.

revenues were $87.9 million in fiscal 2025 compared to $82.3 million in fiscal 2024. net2phone's income from operations was $4.9
million in fiscal 2025 compared to $1.7 million in fiscal 2024.

enables its customers to transform their communications by leveraging its cloud platform to provide solutions that enable more intelligent,
flexible and adaptive communications. net2phone operates in the United States, Canada, Mexico, Central and South America and Spain.

offerings include:

 Unified Communications
 as a Service (UCaaS): net2phone's UCaaS service utilizes its cloud platform to provide conversational continuity across channels
 from any connected device – tethered or mobile – and to measure, manage and analyze those communications for enhanced insight
 and productivity. net2phone provides its UCaaS customers that convert from on-premise PBXs with advanced Internet Protocol, or IP,
 desktop phones and/or with a bring-your-own-device solution accessed through its integrated web portal and through net2phone's
 mobile app. net2phone's UCaaS service includes multi-channel communications with voice management features, unlimited domestic
 and international calling to over 40 countries, robust messaging and chat tools, voicemail to email transcription, client analytics,
 AI-powered functionalities including instant call summaries and transcripts, internal team chat, the net2phone Huddle video conferencing
 service, and reporting and system management capabilities accessed through its online console. net2phone's UCaaS service integrates
 seamlessly with business communication platforms (such as Microsoft Teams and Slack), leading customer relationship management, or
 CRM, services (such as SalesForce, Zoho and others) and text-based communications platforms. net2phone adds features, enhancements
 and integrations on a regular basis leveraging its agile development philosophy.

 Contact Center as a Service
 (CCaaS): net2phone offers robust and integrated cloud CCaaS solutions under its uContact brand. uContact provides omnichannel contact
 center solutions including workflows, forms, reports, dashboards, CRM alerts, and monitoring for inbound, outbound, or blended contact
 centers. uContact also offers gamification components to improve employee efficiency and engagement. uContact is sold either as a stand-alone
 offer or as a bundled solution with net2phone's UCaaS, SIP Trunking and AI Agent offerings.

 net2phone AI: net2phone's
 autonomous, customer-facing AI agent expertly handles both routine and complex sales, support and administrative tasks for customers
 across their website, phone, and chat channels. net2phone's AI Agent can be reached via text or voice.

 net2phone Coach: net2phone's
 workforce intelligence and coaching platform uses real-time AI-powered insights to support employee performance. net2phone Coach resolves
 the biggest drawback of remote work – a lack of supervision and coaching– with real-time employee monitoring, performance
 tracking, and coaching. The platform examines multiple channels of communication, including calls, SMS, chats, emails, and video meetings.
 It analyses response time, tone, sentiment, and performance trends and other tendencies to develop and deliver suggestions for improvement
 and productivity gains. net2phone Coach includes an AI Assistant which can be customized to respond to unique business questions for
 the business owner.

 Other
net2phone differentiators include white glove customer service, integrations with third-party software and deep localization. net2phone's
global infrastructure, locally based sales and customer support teams and native language support, enable net2phone clients to retain
the look and feel of localized customer and user experiences.

focuses primarily on an indirect go-to-market strategy in most of its markets, utilizing extensive networks of channel partners including
Technology Solutions Brokerages (TSBs), Technology Services Distributors (TSDs), Managed Service Providers (MSPs), and Value-Added Resellers
(VARs). This channel-centric approach enables net2phone to efficiently reach its extensive target market of midsize businesses, which
rely heavily on these types of service providers to address their IT needs. net2phone's partner channel is overseen by regional
channel sales managers employed by net2phone.

is developing direct to end-user capabilities to market primarily its AI offerings, net2phone AI Agent and Coach, in the small and medium-sized
business market.

 Both
net2phone's channel partners and direct business customers choose its solutions because of our user-friendly offerings, availability
of in-house support agents, value proposition, and track record of reliability and stability. Channel partners value net2phone for its
extensive customization capabilities, frictionless and rapid quote generation, and competitive compensation – backed by its dedicated
channel sales team.

direct marketing to channel partners and end users includes search engine marketing, search engine optimization, third-party lead generation
platforms, social media marketing, webinars, industry focused events, and other forms of demand generation.

indirect marketing funnels through its network of partners, technology distributors, and affiliates and includes tradeshows and local
events, marketing development support for partners and other forms of demand generation, layered with ongoing channel sales training,
proof of concepts and demos.

closely tracks its acquisition costs across both channels to ensure it is acquiring customers in a cost-efficient manner and consistent
with its targets for return on investment.

growth strategy includes:

 Further development and distribution
 of net2phone AI Agent and net2phone Coach through both indirect and direct channels.

 Refine net2phone AI agent
 to offer industry vertical specific variants that integrate with popular industry-specific CRMs to handle administrative, support and
 sales tasks while leveraging industry specific learnings and workflows.

 Within its UCaaS offerings,
 expand AI-powered functionalities to further leverage the large and improving capabilities of language models to drive quantifiable
 improvements in customer engagement and business performance.

 Across its offerings, net2phone
 plans to introduce burstable line capacity that allows a customer to temporarily increase their bandwidth to handle short-term traffic
 spikes, providing end users with the option to leverage net2phone's robust network capabilities to temporarily exceed stipulated
 line limits, thereby enabling them to effortlessly add additional capacity during periods of brief demand volatility.

 For its UCaaS customers in
 Mexico and Brazil, net2phone plans to provide integration with WhatsApp. With this integration – already available to uContact
 customers, clients will be able to send and receive WhatsApp messages on the net2phone portal.

 Premium plan tiers: net2phone
 offers multiple tiered plans with differentiated functionalities and pricing for its UCaaS and CCaaS offerings. To meet the needs of
 its customers and enhance revenue per customer, sales efforts will focus on upselling premium feature sets to existing customers as
 well as onboarding new customers on premium plans.

 Focus channel expansion on
 MSPs and resellers: net2phone's continuous product development makes its offerings increasingly attractive to larger, more complex
 organizations that demand more advanced feature sets. As a result, net2phone is focused on expanding its partnerships with both MSPs,
 who provision services to larger, more technologically demanding end users on a subscription basis, and resellers, who purchase services
 directly for subsequent resale, often under their own label, and who are responsible for customer onboarding and support.

 Expansion of CCaaS: net2phone's
 uContact branded CCaaS solution enables net2phone to expand its channel partner portfolio by adding partners that focus mainly or exclusively
 on the CCaaS space. uContact also expands net2phone's total addressable market by allowing it to target larger enterprise accounts,
 business process optimization, or BPO, providers (outsourced call centers), and international contact centers, as well as enterprises
 that want an integrated UCaaS and CCaaS solution. net2phone expects CCaaS-driven opportunities will continue to increase its average
 user per customer considerably beyond what it experiences in the UCaaS space. In addition, uContact is expected to generate higher
 revenue per customer, while commanding stickier, longer-term relationships with customers.

 Selectively pursue acquisitions
 and strategic investments: net2phone may continue to selectively pursue acquisitions and strategic investments to strengthen its platform
 with new capabilities and solutions as well as to expand its position in its existing markets or to establish a presence in new markets.

 Competitive
Strengths

 We
believe that net2phone's competitive strengths include:

 Proprietary communications-as-a-service
 product suite. net2phone provides a leading, proprietary cloud-based communications and collaboration platform for its customers.
 Key differentiators include net2phone's advanced feature sets, proprietary CCaaS offering, white glove customer service, integrations
 with third-party software, and deep localization. Through net2phone's platform, customers can access voice, video, chat and messaging
 services, softphone and mobile applications, customizable packages, and a partner portal. The seamlessly integrated solutions on net2phone's
 platform are delivered and centrally managed through an intuitive, 'single pane of glass' master portal that allows channel
 partners and customers to easily monitor and manage the product offering. net2phone's CCaaS offering provides software for customized
 campaign management, including inbound and outbound call management, messaging, gamification, reporting, and live monitoring. net2phone's
 CCaaS offering is tailored for call centers ranging from 20 to 1,000 agents. net2phone supports seamless product suite integrations
 with leading third-party CRMs and text-based business collaboration platforms including Google Meet, Microsoft Teams, Zoho, Slack,
 Zapier, and Salesforce, with new integrations added to meet demand.

 Platform built for our
 channel partners. net2phone has built its platform to both serve the needs of its customers and to empower its channel partners.
 We believe that net2phone's platform provides its partners with an effective way to market and sell its comprehensive solutions
 to new customers and manage its existing customers. In addition, net2phone's integrations with leading third-party applications
 enable its partners to offer more comprehensive solutions. net2phone's suite of solutions is delivered to the marketplace both
 quickly, intuitively, and precisely. net2phone has developed a proprietary partner portal exclusively for its growing partner community.
 net2phone's channel partners can easily quote and deliver a net2phone proposal and agreement proceeding directly to onboarding.

 One World, One Platform.
 net2phone is deploying a single cloud-based platform to provide its unified communications service globally. This single-platform approach
 enables a consistent, holistic approach to new feature deployment, service upgrades, and marketing. The platform has been deployed
 in the United States, Brazil, and Mexico to date. net2phone Canada is slated to go into production early in fiscal 2026.

 Distribution power of
 net2phone's more than 2,500 active channel partners enhanced with an emergent direct to consumer strategy. net2phone's'
 vast and growing partner network gives it tremendous leverage to grow its business customer base, increase revenue from its existing
 clients and expand its footprint to adjacent geographies. net2phone's platform is tailored to support channel partners and includes
 channel incentives built into its pricing structure, technology platform, and support services. net2phone puts its channel and customer
 priorities first. Channel partners are motivated to sell net2phone's offering due to its premier, localized channel partner support
 and marketing. While net2phone is primarily focused on strategically growing its channel sales, it has also been focusing on the expansion
 of its direct-to-business sales.

 Differentiated customer
 support and local market presence. net2phone offers channel partners and customers white glove customer service, integrations with
 third-party software, and deep localization. net2phone's on-the-ground presence in international markets accounted for approximately
 84% of its personnel at the end of fiscal 2025. Regional-based customer service and sales teams are a key differentiator and propel
 net2phone's international business.

 Track record and focus
 on innovative solutions. net2phone's long track record of innovation includes the development of its proprietary UCaaS platform,
 including the Huddle video conferencing service, as well as numerous patents around virtualized communication technologies. Recently,
 net2phone's leverage of AI include the Huddle video platform being upgraded with real-time AI summaries and reporting as well
 as the launch of net2phone AI Agent and net2phone Coach.

 Employee-friendly culture
 that allows net2phone to attract and retain talent. net2phone has sought to create a workplace and culture that is entrepreneurial,
 positive, employee-friendly and encourages its employees to work towards its shared goals of delivering innovative solutions to its
 customers and supporting its partners. As of July 31, 2025, net2phone had approximately 540 employees worldwide, with 84% located outside
 of the United States.

most significant competitors in the UCaaS space include RingCentral, 8x8, Crexendo, Vonage, Dialpad and Nextiva. Some AI agent focused
(only) companies such as Lindy or Phonely are also competitors. Many of these companies offer more widely recognized brands, larger and
more developed marketing and sales forces and/or channel agent networks, and more advanced product sets and solutions customized for
specific market segments or verticals. These competitors' offerings typically also support integration of their services with other
well-known, third-party CRM vendors as well as with various Google and Microsoft applications.

 The
CCaaS market is fragmented, highly competitive and evolving rapidly in response to shifting consumer behavior, especially the rapid adoption
of AI, mobile devices and social media. This proliferation is driving change in contact center technology, as customers expect seamless
communication across any channel according to their preference and needs. net2phone competes with large legacy vendors that offer on-premises
contact center systems, such as Avaya and Cisco. These legacy telephony vendors are increasingly supplementing and replacing their traditional
contact center systems with competing cloud offerings, through a combination of acquisitions, partnerships, and in-house development.
Additionally, net2phone competes with vendors that historically provided other contact center services and technologies and expanded
to offer cloud contact center software such as NICE, Five9, and Genesys. net2phone also faces competition from many smaller contact center
service providers such as Talkdesk and Seranova, as well as vendors offering both unified communications and contact center solutions.
In addition, Amazon and Twilio have introduced solutions aimed at companies who wish to build their own contact centers with in-house
developers. CRM vendors are also increasingly offering features and functionality that were traditionally provided by contact center
service providers. CRM vendors also continue to partner with contact center service providers to provide integrated solutions and may,
in the future, acquire competitive contact center service providers.

Communications

 Our
Traditional Communications segment generated $860.2 million in revenues and income from operations of $66.5 million in fiscal 2025, as
compared with revenues of $899.6 million and income from operations of $56.4 million in fiscal 2024.

Communications comprises the following businesses:

 IDT Digital Payments, which
 includes certain consumer prepaid offerings – primarily mobile top-up, which enables customers to transfer airtime and bundles
 of airtime, messaging, and data to international and domestic mobile accounts, and Zendit, its cloud-based prepaid-as-a-service platform,
 which enables businesses and developers to offer prepaid digital offerings globally through their apps and websites;

 BOSS Revolution, an international
 long-distance calling service marketed primarily to immigrant communities in the United States and Canada;

 IDT Global, a wholesale provider
 of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide; and

 Other small businesses and
 offerings including early-stage business initiatives and mature businesses in harvest mode.

 IDT
Digital Payments

 IDT
Digital Payments' revenues were $416.3 million in fiscal 2025 compared to $407.4 million in fiscal 2024 (48.4% and 45.3% of Traditional
Communications' revenues in fiscal 2025 and fiscal 2024, respectively). The substantial majority of IDT Digital Payments'
revenue is from sales of international mobile top-up services. IDT Digital Payments offers mobile top-up for approximately 194 different
carriers in more than 113 countries, primarily in Latin America, the Caribbean and Africa. IDT Digital Payments leverages our platform
capabilities, our distribution reach into foreign-born communities and our relationships with mobile operators around the world.

 IDT
Digital Payments is sold through the BOSS platform primarily through three channels:

 direct-to-consumer, through
 the BOSS digital channel, including our BOSS Revolution and BOSS Money apps, and the BOSS Revolution website;

 retail, through our BOSS
 Revolution retail network including direct provisioning by retailers using our BOSS Revolution retailer platform, NRS terminals and
 through mobile operator-branded top-up cards; and

 enterprise and wholesale,
 in which we provision international offerings for other businesses through Zendit's cloud-based prepaid-as-a-service platform.

 IDT
Digital Payments' growth drivers include deployment of additional data-centric bundles to meet the growing demand for data from
mobile phone customers in developing countries worldwide, the introduction of digital gift cards and e-sims, cross selling to our current
BOSS Revolution and BOSS Money customers, expansion of the Zendit prepaid platform, and further expansion into the enterprise and wholesale
market as well as other regions.

 IDT
Digital Payments' major competitors include:

 international mobile operators,
 who seek to control more of their own distribution channel or create their own products that directly compete with IDT Digital Payments;
 and

 other service providers,
 distributors, and wholesalers, including Western Union, Ria, Viamericas, DT One, Ding, and Recharge.com.

 We
believe that IDT Digital Payments' competitive advantages include:

 our direct connection to
 most of the Tier 1 and Tier 2 mobile carriers worldwide;

 the strength of IDT's
 balance sheet, which allows us to compete effectively in capital intensive prepaid markets;

 our extensive distribution
 and retail networks that provide us with a strong presence in communities of foreign-born residents, a significant portion of which
 purchase our services with cash; and

 our strong omni channel approach,
 which includes the BOSS Revolution retailer network, the BOSS digital platform, including the BOSS Money and BOSS Revolution apps and
 the BOSS Revolution website, and the enterprise and wholesale channel.

 BOSS
Revolution

 BOSS
Revolution's revenues were $211.2 million in fiscal 2025 compared to $263.2 million in fiscal 2024 (24.6% and 29.3% of Traditional
Communications' revenues in fiscal 2025 and fiscal 2024, respectively).

 BOSS
Revolution is a prepaid international long-distance calling service marketed primarily to foreign-born and under-banked consumers in
the United States and Canada, and a digital-only offering in Europe and Australia.

 BOSS
Revolution includes our flagship 'BOSS Revolution' branded international long-distance prepaid calling service as well as
disposable hard cards sold under a variety of brands. In the United States, BOSS Revolution served, as of July 31, 2025, approximately
1.4 million customers per month.

 BOSS
Revolution is offered through our digital channels – the BOSS Revolution app and website, and through our extensive national network
of BOSS Revolution retailers.

 BOSS
Revolution allows users to place international long-distance calls at affordable rates from the BOSS Revolution app or by calling an
access number. Regardless of how the call originates, our customers must first establish and top-up a prepaid BOSS Revolution account
that is linked to their phone. Customers can open a BOSS Revolution account for free and top-up with a debit or credit card using the
BOSS Revolution app, through the BOSS Revolution website (www.bossrevolution.com) or by phone, or with cash at any BOSS Revolution retailer.
Once the account is established and a call is placed, our platform recognizes the customer's phone through its network-provided
automatic number identification and seamlessly links each call to the corresponding BOSS Revolution account. Callers then enter their
destination phone numbers. BOSS Revolution customers' account balances are debited at a fixed rate per minute or at a fixed amount
for calling plans to a specific country over a specified time period. In contrast to certain of our competitors, BOSS Revolution does
not charge connection, usage or breakage fees. BOSS Revolution's per minute rates vary by the destination country, city, and whether
the call is placed to a landline or mobile phone. Rates are published on the BOSS Revolution website and within the BOSS Revolution app.

 Users
of the BOSS Revolution app constitute the majority of our customers to date. At July 31, 2025, approximately 1.0 million customers per
month utilized the BOSS Revolution app.

 In
the United States, we distribute our BOSS Revolution hard cards and other retail products primarily through our network of distributors
that, either directly or through sub-distributors, sell to retail locations. In addition, our internal sales force sells BOSS Revolution
and other platform products directly to retailers.

 At
July 31, 2025, approximately 30,000 retailers per month utilized our digital retailer platform to provision customers, the substantial
majority of whom pay the retailer in cash. In addition, we estimate that approximately 1,700 retailers resell our disposable hard cards
without utilizing our retailer portal. BOSS Revolution retailers are typically independent retailers serving foreign-born communities
with significant unbanked or under-banked populations.

 The
BOSS Revolution retailer portal can be accessed by any broadband enabled device. Through the portal, retailers can access our platform
to create accounts for new customers, add funds to existing customer balances and execute sales transactions. The platform provides us
with a direct, real-time interface with our BOSS Revolution retailers to create a cost-effective and adaptable distribution model that
allows us to target and promote services directly to distributors and retailers, to introduce and cross-sell new offerings, and to rapidly
adapt to changes in the business environment.

 In
the United States, the BOSS Revolution brand is supported by national, regional, and local marketing programs that include television
and radio advertising, online advertising and grass roots marketing at community and sporting events. In addition, we work closely with
distributors and retailers on in-store promotional programs and events.

 BOSS
Revolution's retail sales have traditionally been, and continue to be, strongest in the Northeastern United States and in Florida
because of our extensive local distribution network. We continue to grow BOSS Revolution's distributor relationships and expand
BOSS Revolution's retail network in other areas of the United States and Canada, including the Southwest and West Coast.

 BOSS
Revolution is subject to fierce competition. While virtually any company offering communication services is a competitor, we face particularly
strong competition from Tier 1 mobile network operators who offer flat-rate international calling plans, other PIN-less prepaid voice
offerings, prepaid calling card providers, mobile virtual network operators, and VoIP and other "over the top", or OTT, service
providers. Outside the United States, we also compete with large state-owned or state-sanctioned telephone companies.

 Many
of these companies, including AT&T, Verizon, and T-Mobile, are substantially larger and have greater financial, technical, engineering,
personnel, and marketing resources, longer operating histories, greater name recognition, and larger customer bases than we do.

 In
addition to these larger competitors, we face significant competition from smaller prepaid calling providers.

 From
time to time, competitors may offer rates that are substantially below ours, in an attempt to gain market share. In some instances, these
rates are below what we believe to be the cost to provide the service. This predatory pricing can adversely affect our revenues and our
gross margins.

 The
continued growth of OTT calling and messaging services such as WhatsApp, Messenger, FaceTime, and others have adversely affected the
sales of BOSS Revolution and our other prepaid calling services. We expect the popularity of these IP-based services—many of which
offer free voice and/or video communications—to continue to increase, which will increase substitution for, and pricing pressure
on, our BOSS Revolution and other international prepaid calling offerings. However, free services typically require both the caller and
recipient to have a broadband connection. BOSS Revolution utilizes telephone networks to enable voice communications even when neither
party has broadband connectivity.

 Many
mobile operators offer unlimited international long-distance plans that include international destinations to which customers can place
direct calls from their mobile phones without time limitation. These plans now include some of our most popular international destinations.
The growth of these "international unlimited" plans adversely affects our revenues as these operators gain subscriber market
share.

 Our
ability to compete successfully against these various operators and service providers stems from several factors, including:

 our interconnect and termination
 agreements, network infrastructure, and least-cost-routing system enable us to offer low-cost, high-quality services;

 our continued innovation
 with new plans tailored to the specific needs of different corridors and finding new ways of delivering more value to consumers striving
 to connect with family and friends around the globe;

 our extensive distribution
 and retail networks provide us with a strong presence in communities of foreign-born residents, a significant portion of which purchase
 our services with cash;

 our BOSS Revolution brand
 is often highly visible in these communities and has a reputation for quality service and competitive, transparent pricing;

 our continued migration of
 our existing customers to our digital platform including the BOSS Revolution app; and

 our offering of synergistic
 IDT Digital Payments and BOSS Money over the BOSS Revolution platform that customers can conveniently access from their accounts.

 Our
ability to maintain and/or to capture additional market share will remain dependent upon our ability to continue to provide competitively
priced services, to maintain our distribution and retail networks, to increase usage through the BOSS Revolution app, and to innovate
new products and services to fit the evolving needs of our customers.

 IDT
Global

 IDT
Global's revenues were $209.6 million in fiscal 2025 compared to $201.1 million in fiscal 2024, contributing 24.4% and 22.4% of
Traditional Communications' revenues in fiscal 2025 and fiscal 2024, respectively.

 IDT
Global is one of the larger wholesale carriers of international long-distance minutes in the world.

 IDT
Global's telecommunications network is comprised of interconnections and commercial relationships that reach virtually every significant
global telecom operator. These relationships enable us to carry international telecommunications traffic to more than 200 countries around
the world. IDT Global's customers include our BOSS Revolution and net2phone businesses, major and niche carriers around the globe,
mobile network operators, and other service providers such as call aggregators. For many of these customers, particularly the major carriers,
we engage in buy-sell relationships, terminating their customers' traffic in exchange for terminating our traffic with them.

 IDT
Global offers competitively priced international termination rates at several quality levels. We can offer competitively priced termination
services in part because of the large volumes of originating minutes generated by our BOSS Revolution business, our global platform powered
by proprietary software, our team of professional and experienced account managers and market makers, and our global network of interconnections
and relationships with other telecom operators. IDT Global's services are marketed and sold through our internal account management
team and the IDT Express digital portal. IDT Express focuses on delivering wholesale voice and direct inward dialing, or DID, services
to small and medium size businesses domestically and internationally.

Communications terminated 7.4 billion minutes in fiscal 2025, as compared to 8.0 billion minutes in fiscal 2024. IDT Global accounted
for 5.68 billion minutes and 5.70 billion minutes of the total Traditional Communications' minutes in fiscal 2025 and fiscal 2024,
respectively.

 IDT
Global has a significant number of direct connections to Tier 1 providers in North America, Latin America, Asia, Africa, Europe, and
the Middle East. Tier 1 providers are the largest recognized licensed carriers in the country. Direct connections improve the quality
of the telephone calls and reduce the cost, thereby enabling us to generate more traffic with higher margins to the associated foreign
locales. We also have direct relationships with mobile network operators, reflecting their growing share of the voice traffic market.

 Termination
rates charged by Tier 1 and other providers of international long-distance traffic have been declining for many years. Nevertheless,
termination rates charged to us by individual Tier 1 carriers and mobile operators can be volatile. Termination price volatility on heavily
trafficked routes can significantly impact our minutes of use and wholesale revenues.

 In
addition to offering competitive rates to our carrier customers, we emphasize our ability to offer the high-quality connections that
these providers often require. To that end, we offer higher-priced services in which we provide higher-quality connections, based upon
a set of predetermined quality of service criteria. These services meet a growing need for higher-quality connections for some of our
customers who provide services to high-value, quality-conscious retail customers. As of July 31, 2025, IDT Global, through its wholesale
carrier organization and IDT Express channel had more than 1,450 customers, including more than 280 carrier relationships globally.

 IDT
Global's revenues are generated by sales to both postpaid and prepaid customers. Postpaid customers typically include Tier 1 carriers,
mobile network operators, and our most creditworthy customers. The majority of IDT Global's prepaid customers connect via our IDT
Express portal. IDT Express offers the convenience of a mobile self-service portal paired with dedicated account managers backed by customer
support. Prepaid customers are typically smaller telecommunication companies as well as independent call aggregators.

 IDT
Global also offers outsourcing services to help fixed and mobile telephony operators enhance the profitability and value of their international
voice operations. IDT Global offers these operators customized solutions, including full outsourcing, handing all inbound and outbound
calls with or without switch management, and hybrid arrangements whereby the operator retains certain routes or customers directly. Pursuant
to these deals, IDT Global collaborates with the operators to provide a full range of international long-distance services to their respective
customers in-country and overseas.

 IDT
Global is subject to intense revenue and margin pressure as communications globally continues to transition away from international voice
calling to video conferencing and other collaboration platforms, low-cost or free messaging services, free peer-to-peer voice calls available
when both parties utilize broadband connections, and flat-rate international long-distance plans offered both by the largest mobile network
operators and niche mobile virtual network operators.

 The
wholesale carrier industry has numerous entities competing for the same customers, primarily based on price and quality of service.

 IDT
Global participates in a global marketplace with:

 interexchange carriers and
 other long-distance resellers and providers, including large carriers such as T-Mobile, AT&T, and Verizon;

 historically state-owned
 or state-sanctioned telephone companies such as Telefonica, Orange SA, and KDDI;

 on-line, spot-market trading
 exchanges for voice minutes;

 OTT internet telephony providers;

 other VoIP providers;

 other providers of international
 long-distance services; and

 alliances between large multinational
 carriers that provide wholesale carrier services.

 We
believe that IDT Global derives a competitive advantage over some participants on certain routes from several inter-related factors:

 our BOSS Revolution business
 generates originating minutes, which represents a desirable, negotiable asset that helps us win return traffic and obtain beneficial
 pricing which we can offer in the wholesale marketplace;

 the proprietary technologies
 powering our IDT Global platform and, in particular, the software that drives VoIP enables us to scale up or down at a lower cost than
 many of our competitors;

 our professional, dedicated
 and experienced account management team; and

 our extensive network of
 interconnects around the globe, with the ability to connect in whichever format (IP or time-division multiplexing, or TDM) is most
 feasible.

 Communications
and Payment Network Infrastructure and Technology Development

 Our
products and services utilize a combination of proprietary software as well as technologies and services provided by third parties. We
have developed intuitive user interfaces, customer tools and transaction processing, and database and network applications that enable
our users to reliably and securely complete transactions and help our customers and partners utilize our suite of services. Our technology
infrastructure simplifies the storage and processing of large amounts of data, eases the deployment and operation of large-scale global
products and services, and automates much of the administration of large-scale clusters of computers.

 Our
technology infrastructure has been designed around industry-standard architectures to reduce downtime in the event of outages or catastrophic
occurrences. We strive to continually improve our technology infrastructure to enhance the customer experience and to increase efficiency,
scalability, and security. Our platforms' architecture enables us to connect parties regardless of whether the transaction is occurring
at a traditional physical location, online, or through a mobile device. Our platforms incorporate multiple layers of protection, both
for continuity purposes and to address cybersecurity challenges. We engage in multiple efforts to protect our software platforms against
these challenges, including regularly testing our systems to address potential vulnerabilities.

 Our
product and technology organization is responsible for the design, development, testing, and delivery of new software, technologies,
and features of our products and services, as well as the continued improvement and iteration of our existing products and services.
Our technology employees are distributed globally in our Newark, Jerusalem, Guatemala, Warsaw, and Minsk offices. Our technology team
consists of our software engineering, voice engineering, quality engineering, data warehousing, ML (Machine Learning) and AI development,
data engineering, systems, NOC (Network Operations Center), and operations teams. We intend to continue to invest in our research and
development capabilities to extend our products and services.

 Our
technology organization uses several key performance indicators to track service quality that meet or exceed industry standards for SaaS
and technology enabled services. Our technology organization maintained an aggregate service uptime of approximately 99.995% in fiscal
2025. The software defect escape ratio, a measure of quality engineering for our flagship BOSS Revolution brand, was 3% in fiscal 2025,
meaning more than 97% of product defects were detected and fixed internally before being released to our customers. Furthermore, this
high level of quality was achieved utilizing suites of proprietary tests of which the majority are fully automated by a combination of
proprietary software and technologies provided by third parties.

 Our
product offerings and go-to-market strategy continue to evolve, and we expect our product offerings to continue to become available to
customers at more frequent intervals than our historical release cycles. Our Agile development methodology is characterized by a dynamic
development process with more frequent revisions to a product release's features and functions as the software is being developed.
In addition, we have implemented a holistic portfolio management process, which has improved transparency and efficiency across the portfolio
through a recurring cadence of business reviews.

 REGULATION

 The
following summary of regulatory developments and legislation is intended to describe what we believe to be the most important, but not
all, current and proposed international, federal, state, and local laws, regulations, orders, and legislation that are likely to materially
affect us.

of Telecom in the United States

 Telecommunications
services are subject to extensive government regulation at both the federal and state levels in the United States. Any violations of
the regulations may subject us to enforcement actions, including interest and penalties. The Federal Communications Commission, or FCC,
has jurisdiction over all telecommunication's common carriers to the extent they provide interstate or international communications
services, including the use of local networks to originate or terminate such services. Each state regulatory commission has jurisdiction
over the same carriers with respect to their provision of local and intrastate communications services. Local governments often indirectly
regulate aspects of our communications business by imposing zoning requirements, taxes, permit or right-of-way procedures or franchise
fees. Significant changes to the applicable laws or regulations imposed by any of these regulators could have a material adverse effect
on our business, operating results and financial condition.

of Telecom by the Federal Communications Commission

 In
1997, the FCC issued an order, referred to as the Universal Service Order, that requires all telecommunications carriers providing interstate
telecommunications services to contribute to universal service support programs administered by the FCC (known as the Universal Service
Fund). In addition, beginning in October 2006, interconnected VoIP providers, such as our subsidiary net2phone, are required to contribute
to the Universal Service Fund. These periodic contributions are currently assessed based on a percentage of each contributor's
interstate and international end user telecommunications revenues reported to the FCC. We also contribute to several other regulatory
funds and programs, most notably Telecommunications Relay Service, or TRS, FCC Regulatory Fees, and Local Number Portability (collectively,
the Other Funds). We and most of our competitors pass through Universal Service Fund and Other Funds contributions as part of the price
of our services, either as part of the base rate or, to the extent allowed, as a separate surcharge on customer bills. Due to the manner
in which these contributions are calculated, we cannot be assured that we fully recover from our customers all of our contributions.
In addition, based on the nature of our current business, we receive certain exemptions from Universal Service Fund contributions. Changes
in our business could eliminate our ability to qualify for some or all of these exemptions. As a result, our ability to pursue certain
new business opportunities in the future may be constrained in order to maintain these exemptions, the elimination of which could materially
affect the rates we would need to charge for existing services. Changes in regulation may also have an impact on the availability of
some or all of these exemptions. If even some of these exemptions become unavailable, they could materially increase our Universal Service
Fund or Other Funds' contributions and have a material adverse effect on the cost of our operations and, therefore, on our ability
to continue to operate profitably, and to develop and grow our business. We cannot be certain of the stability of the contribution factors
for the Other Funds. Significant increases in the contribution factor for the Other Funds in general and the TRS Fund in particular can
impact our profitability. Whether these contribution factors will be stable in the future is unknown, but it is possible that we will
be subject to significant increases.

of Telecom by State Public Utility Commissions

 Our
telecommunications services that originate and terminate within the same state, including both local and in-state long distance services
are subject to the jurisdiction of that state's public utility commission, or PUC. The Communications Act of 1934, as amended,
generally pre-empts state statutes and regulations that prevent the provision of competitive services but permits state PUCs to regulate
the rates, terms and conditions of intrastate services, so long as such regulation is not inconsistent with the requirements of federal
law. We are certified to provide facilities-based and/or resold long-distance service in all 50 states and facilities-based and resold
local exchange service in 45 states. In addition to requiring certification, state regulatory authorities may impose tariff and filing
requirements, consumer protection measures, and obligations to contribute to the Universal Service Fund and Other Funds. Rates for intrastate
switched access services, which we both pay to local exchange companies and collect from long-distance companies for terminating in-state
toll calls, are subject to the jurisdiction of the state commissions. State commissions also have jurisdiction to approve negotiated
rates, or establish rates through arbitration, for interconnection, including rates for unbundled network elements. Changes in those
access charges or rates for unbundled network elements could have a substantial and material impact on our business.

of Telecom—International

 In
connection with our international operations, we have obtained licenses or are otherwise authorized to provide telecommunications services
in various foreign countries. We have obtained licenses or authorizations in Argentina, Australia, Belgium, Brazil, Canada, Chile, Denmark,
Germany, Hong Kong, Italy, Japan, Mexico, the Netherlands, Peru, Singapore, South Africa, Spain, Sweden, Switzerland, the United Kingdom,
and Uruguay. In numerous countries where we operate or plan to operate, we are subject to many local laws and regulations that, among
other things, may restrict or limit the ability of telecommunications companies to provide telecommunications services in competition
with state-owned or state-sanctioned dominant carriers.

of Internet Telephony

 The
use of the Internet and private IP networks to provide voice communications services is generally less regulated than traditional switch-based
telephony within the United States and abroad and, in many markets, is not subject to the imposition of certain taxes and fees that increase
our costs. As a result, we are able, in many markets, to offer VoIP communications services at rates that are more attractive than those
applicable to traditional telephone services. However, in the U.S. and abroad, there have been efforts by legislatures and regulators
to harmonize the regulatory structures between traditional switch-based telephony and VoIP. This could result in additional fees, charges,
taxes, and regulations on IP communications services that could materially increase our costs and may limit or eliminate our competitive
pricing advantages. Additionally, several foreign governments have adopted laws and/or regulations that could restrict or prohibit the
provision of voice communications services over the Internet or private IP networks. These efforts could likewise harm our ability to
offer VoIP communications services.

 Money
Transmitter and Payment Instrument Laws and Regulations

 Our
consumer payment services offerings include BOSS Money and various network branded, also called "open loop," prepaid card
offerings. These industries are heavily regulated. Accordingly, we, and the products and services that we market in consumer payment
services, are subject to a variety of federal and state laws and regulations, including:

 Banking laws and regulations;

 Money transmitter and payment
 instrument laws and regulations;

 Anti-money laundering laws;

 Privacy and data security
 laws and regulations;

 Consumer protection laws
 and regulations;

 Unclaimed property laws;
 and

 Card association and network
 organization rules.

 In
connection with the development of our money transmission services and the expansion of our network branded prepaid card offerings, we
have actively pursued our own money transmitter licenses. At July 31, 2025, we had received a money transmitter license in 48 of the
49 U.S. states that require such a license, as well as in Washington, D.C.

of Other Businesses

 We
operate other smaller or early-stage initiatives and operations, which may be subject to federal, state, local or foreign law and regulation.

 INTELLECTUAL
PROPERTY

 We
own numerous patents, trademarks, domain names and other intellectual property rights necessary to conduct our business. We actively
pursue the filing and registration of patents, domain names, trademarks, and service marks to protect our intellectual property rights
within the United States and abroad; in particular our registered trademarks and brands: IDT, BOSS Revolution, BOSS Money,
net2phone and zendit. From time to time, we have also acquired or licensed intellectual property relating to present and future
business strategy. We believe that our technological position significantly depends on the technical experience, expertise, and creative
ability of our employees to maintain both our current businesses and pursue future business development. Our corporate policies require
all employees to assign intellectual property rights developed in the scope of, or in relation to our business to us, and to protect
all intellectual property and proprietary information and materials as confidential.

 Our
global telecommunications switching and transmission infrastructure enables us to provide an array of telecommunications, internet access
and internet telephony services to our customers worldwide. We rely upon domestic and foreign patents, patent applications, and other
intellectual property rights, regarding our infrastructure and global telecommunication network for our international telecommunications
traffic and the international traffic of other telecommunications companies.

 EMPLOYEES
AND HUMAN CAPITAL RESOURCES

 Attracting
and retaining qualified personnel familiar with our businesses and who lead our different business units and functions is critical to
our success. As of September 1, 2025, we had a total of 1,925 employees, of which 1,915 were full-time employees.

 Our
human capital resources' objectives include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating
our existing and new employees, advisors and consultants. To accomplish that, our compensation practices are designed to attract and
retain qualified and motivated personnel and align their interests with our goals and with the best interests of our stockholders. Our
compensation philosophy is to provide compensation to attract the individuals necessary for our current needs and growth initiatives
and provide them with the proper incentives to motivate those individuals to achieve our long-term plans, which includes among other
things, equity and cash incentive plans that attract, retain and reward personnel through the granting of stock-based and cash-based
compensation awards.

 We
believe that talent attraction and retention are critical to our ability to achieve our strategy and that a trained, diverse and inspired
workforce is integral to delivering our objectives. Our recruiting process reaches a wide array of potential employees, and we employ
a rigorous screening process to ensure that we identify and hire quality professionals.

 We
are committed to a policy of non-discriminatory treatment and respect of human rights for all current and prospective employees. We do
not permit discrimination based on an individual's race, religion, creed, color, sex, sexual orientation, age, marital status,
disability, national origin or veteran's status, which is illegal in many jurisdictions. We respect the human rights of all employees
and strive to treat them with dignity consistent with standards and practices recognized by the international community.

 Item
1A. Risk Factors.

 RISK
FACTORS

 Investing
in our Class B common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below,
together with all the other information in this Annual Report on Form 10-K, including the section titled "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes, before
making a decision to invest in our Class B common stock. The risks and uncertainties described below may not be the only ones we face.
If any of the risks occur, our business, financial condition, operating results, cash flows and prospects could be materially and adversely
affected. In that event, the market price of our common stock could decline, and you could lose part or all of your investment.

 Risk
Factor Summary

 Our
business operations are subject to numerous risks and uncertainties, including those outside of our control, that could cause our business,
financial condition or operating results to be harmed, including, but not limited to, risks regarding the following:

 Risks
Related to our Businesses and Operations

 changes to immigrant populations
 could negatively impact certain of our businesses;

 cyberattacks impacting our
 networks or systems;

 network disruptions, security
 breaches, or other significant disruptions or failures of our IT infrastructure and related systems or of those we operate for certain
 of our customers;

 the failure, or perceived
 failure, of one or more of our products;

 our international operations
 subject us to geopolitical and other risks including ongoing developments in Belarus, Ukraine and Israel;

 failures in our data center
 or services;

 our dependence on industry
 standard protocols and third-party software, including but not limited to open-source software;

 our dependence on a single
 supplier or small group of suppliers;

 changes to rates by our suppliers
 and increasing regulatory charges or tariffs;

 our customers, particularly
 our IDT Global customers, and partners could experience financial difficulties;

 technologies could affect
 our ability to track the results of ads and/or could block ads online;

 Risks
Related to Our NRS Business

 substantial
 and increasing competition in the POS industry and payment space;

 a
 decline in advertising on the NRS platform due to macro-economic factors or otherwise;

 the
 ability of NRS to develop products and services to address the market for POS products and services;

 Risks
Related to Our BOSS Money Business

 BOSS Money faces a complex
 and dynamic regulatory landscape;

 BOSS Money depends on a licensed
 network of agents for its retail money remittance business;

 adverse fluctuations in exchange
 rates can materially impact revenue and profitability;

 money transfer services can
 be vulnerable to illegal activities and fraud schemes;

 BOSS Money has less brand
 recognition in the money remittance space compared to larger players, which could make it harder to attract and retain customers;

 Risks
Related to Our net2phone Business

 competition against established
 well-financed alternative voice communication providers, who may provide comparable services at comparable or lower pricing;

 the capacity, reliability,
 and performance of several third-party providers and their network infrastructure;

 scaling the business efficiently
 or quickly enough to meet customers' growing needs;

 Risks
Related to Our Traditional Communications Segment

 each
 of our BOSS Revolution and IDT Global businesses is highly sensitive to declining demand and prices;

 obtaining
 sufficient or cost-effective termination capacity to particular destinations;

 the
 termination of our carrier agreements with partners or our inability to enter into carrier agreements in the future;

 Risks
Related to Our Financial Condition

 we hold cash, cash equivalents,
 debt securities and equity investments that are subject to various market risks;

 if we fail to maintain an
 effective system of internal control over financial reporting, we may not be able to accurately report our financial results;

 Intellectual
Property, Tax, Regulatory, and Litigation Risks

 protecting our proprietary
 technology;

 claims of infringement of
 intellectual property rights of others;

 tax and regulatory audits;

 legal proceedings;

 our disbursement partners'
 and our payment processors' ability to comply with a wide range of laws and regulations intended to help detect and prevent illegal
 or illicit activity;

 licensing and other requirements
 imposed by regulators and governments;

 our collection, processing,
 storage, use, and transmission of personal data;

 collection of sales and use,
 value added, or similar taxes;

 certain imminent FCC Orders
 and rules that effect the telecommunications marketplace;

 our ability to comply with
 requirements for debit card, credit card, and other digital payment methods;

 Risks
Related to Our Capital Structure

 holders of our Class B common stock have significantly
 less voting power than holders of our Class A common stock; and

 Howard S. Jonas, our Chairman and Chairman of the Board,
 holds shares that, in the aggregate, represent more than a majority of the combined voting power of our outstanding capital stock.

 Risks
Related to Our Businesses and Operations

 Errors
in our technology or technological issues outside our control could cause delays or interruptions to our customers.

 Our
services can be disrupted by issues with our networks, platforms, technology, and systems, including malfunctions in our servers, processors,
software or facilities. In addition, there may be service interruptions for reasons outside of our control. Our customers and potential
customers subscribing to our services have experienced such interruptions in the past and may experience such interruptions in the future
because of these types of problems or others which may or may not be in our control. Such interruptions may cause us to lose customers
and/or offer customer credits, which could adversely affect our revenue and profitability. Network and telecommunication interruptions
may also impair our ability to sign-up new customers.

 Cyberattacks
impacting our networks or systems could have an adverse effect on our business.

 Cyberattacks,
including the use of malware, ransomware, computer viruses, denial of services attacks, credential harvesting, social engineering and
other means for obtaining unauthorized access to or disrupting the operation of our networks and systems and those of our suppliers,
vendors and other service providers, could have an adverse effect on our business. Cyberattacks may cause equipment failures, loss of
information (including sensitive personal information of customers or employees or valuable technical and marketing information), or
disruptions to our or our customers' operations. Furthermore, ransomware could potentially deny the use of our systems until a
ransom is paid. Cyberattacks against companies, including us, have increased in frequency, scope, and potential harm in recent years.
They may occur alone or in conjunction with physical attacks, especially where disruption of service is an objective of the attacker.
The development and maintenance of systems to prevent such attacks is costly and requires ongoing monitoring and updating to address
their increasing prevalence and sophistication. While, to date, we have not been subject to cyberattacks that, individually or in the
aggregate, have been material to our operations or financial condition, the preventive actions we take to reduce the risks associated
with cyberattacks, including protection of our systems and networks, may be insufficient to repel or mitigate the effects of a cyberattack
in the future.

 The
inability to operate or use our networks and systems or those of our suppliers, vendors, and other service providers because of cyberattacks,
even for a limited period of time, may result in significant expenses to us and/or a loss of revenue and market share. The costs associated
with a major cyberattack on us could include expensive incentives offered to existing customers and business partners to retain their
business, increased expenditures on cybersecurity measures and the use of alternate resources, lost revenues from business interruption,
and litigation. Further, certain of our businesses, such as those offering cloud services to business customers, could be negatively
affected if our ability to protect our own networks and systems is called into question because of a cyberattack. In addition, a compromise
of security or a theft or other compromise of valuable information, such as financial data and sensitive or private personal information,
could result in lawsuits and government claims, investigations, or proceedings. Any of these occurrences could damage our reputation,
adversely impact customer and investor confidence and result in a material adverse effect on our results of operation or financial condition.

 Changes
to immigrant populations could negatively impact certain of our businesses.

of our businesses, particularly Boss Money' Boss Revolution and IDT Digital Payments, rely in large part on immigrant communities
in the United States and elsewhere. Migration of immigrants and their spending patterns are affected by (among other factors) overall
economic conditions, the availability of job opportunities, changes in immigration laws and their enforcement, including the potential
for large scale deportations, restrictions on immigration and travel, and political or other events (such as civil unrest, war, terrorism,
natural disasters, or public health emergencies or epidemics) that would make it more difficult for workers to migrate or work outside
of the their countries of origin. Changes to these factors could materially and adversely affect our business, financial condition, results
of operations, and cash flows.

 We
could be harmed by network disruptions, security breaches, or other significant disruptions or failures of our IT infrastructure and
related systems or of those we operate for certain of our customers.

 To
be successful, we need to continue to have available, for our and our customers' use, a high capacity, reliable and secure network.
We face the risk, as does any company, of a security breach, whether through cyberattack, malware, computer viruses, sabotage, or other
significant disruption of our IT infrastructure. As such, there is a risk of a security breach or disruption of the systems we operate,
including possible unauthorized access to our and our customers' proprietary or classified information. We are also subject to
breaches of our respective networks resulting in unauthorized utilization of our services or products, which subject us to the costs
of providing those products or services, which are likely not recoverable. The secure maintenance and transmission of our and our customers'
information is a critical element of our operations. Our information technology and other systems that maintain and transmit customer
information, or those of service providers or business partners, may be compromised by a malicious third-party penetration of our network
security, or that of a third-party service provider or business partner, or impacted by advertent or inadvertent actions or inactions
by our employees, or those of a third-party service provider or business partner. As a result, our or our customers' information
may be lost, disclosed, accessed, or taken without our or our customers' consent, or our product and service may be used without
payment.

 Although
we make significant efforts to maintain the security and integrity of these types of information and systems, there can be no assurance
that our respective security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful
or damaging, especially in light of the growing sophistication of cyberattacks and intrusions sponsored by state or other interests.
We may be unable to anticipate all potential types of attacks or intrusions or to implement adequate security barriers or other preventative
measures. Certain of our business units have been the subject of attempted and successful cyberattacks in the past. We have researched
these situations and do not believe any material internal, or customer information has been compromised.

 Network
disruptions, security breaches and other significant failures of the above-described systems could (i) disrupt the proper functioning
of our networks and systems and therefore our operations or those of certain of our customers; (ii) result in the unauthorized use of
our services or products without payment; (iii) result in the unauthorized access to, and destruction, loss, theft, misappropriation
or release of proprietary, confidential, sensitive or otherwise valuable information of ours or our customers, including trade secrets,
which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; and (iv) require
significant management attention or financial resources to remedy the damages that result or to change our systems and processes. We
could be subject to claims for contract breach, damages, credits, fines, penalties, termination, or other remedies from our customers,
and subject to additional scrutiny or litigation by regulators, as a result of network disruptions, security breaches and other significant
failures of the above-described systems, any or all of which could result in a loss of business, damage to our reputation among our customers
and the public generally and have a negative impact on our results of operations, financial condition, and cash flows.

 If
technology that drives one or more of our products fails, or is perceived to fail, or if there are technical defects, our reputation
could be harmed, our market share may decline, and we could be subject to various liability claims.

 The
technology that drives and supports our products may contain undetected errors or defects that may result in failures or otherwise cause
our products to fail to perform in accordance with customer expectations and contractual obligations. Moreover, our customers could incorrectly
implement or inadvertently misuse our products, which could result in customer dissatisfaction and harm the perceived utility of our
products and our brand. Because our customers use our products for mission-critical aspects of their business, any real or perceived
errors or defects in, or other performance problems with, our products may damage our customers' businesses and could significantly
harm our reputation. If that occurs, we could lose future sales, or our existing customers could cancel our services, seek payment credits,
seek damages against us, or delay or withhold payment to us, which could result in service credits that reduce our revenues, an increase
in collection cycles for accounts receivable, an increase in our provision for uncollectible accounts, and ultimately harm our financial
results. Product performance problems could result in loss of market share, reputational harm, failure to achieve market acceptance and
the diversion of development resources.

 In
addition, since telecommunications billing and associated telecom taxes, and the related calculations and billing of telecom taxes, are
inherently complex and require highly sophisticated information systems to administer, our billing system may experience errors or we
may improperly operate the system, which could result in the system incorrectly calculating the fees owed by our customers or related
taxes and administrative fees. Customers also may make indemnification or warranty claims against us, which could result in significant
expense and risk of litigation.

 Any
product liability, intellectual property, warranty, or other claims against us could damage our reputation and relationships with our
customers and could require us to spend significant time and money in litigation or pay significant settlements or damages. Although
we maintain general liability insurance, including coverage for errors and omissions, this coverage may not be sufficient to cover liabilities
resulting from such claims. Also, our insurers may disclaim coverage. Our liability insurance also may not continue to be available to
us on reasonable terms, in sufficient amounts, or at all. Any contract or product liability claims successfully brought against us would
harm our business.

 Failure
in our data centers or services could lead to significant costs and disruptions.

 All
data centers, including ours, are subject to various points of failure. Problems with cooling equipment, generators, uninterruptible
power supply, routers, switches, or other equipment, whether or not within our control, could result in service interruptions for our
customers as well as equipment damage. Any failure or downtime could affect a significant percentage of our customers. The destruction
or severe impairment of our data center facilities could result in significant downtime of our services and the loss of customer data.

 Our
ability to provide cloud-based communication services is dependent upon our physical and cloud-based infrastructure. While most of our
physical equipment required for providing these services is redundant in nature, certain types of failures or malfunctioning of critical
hardware/software equipment, including but not limited to fire, water or other physical damage may impact our ability to deliver continuous
service to our customers. Acts of God or terrorism or vandalism or negligence or gross negligence of person(s) currently or formerly
associated with us including failure to properly update and maintain infrastructure may result in loss of revenue, profitability, and
failure to retain and acquire new customers.

 Our
ability to recover from disasters or failures, if and when they occur, is paramount to offering continued service to our existing customers.
We maintain telecommunications points of presence in Brazil, Canada, and Spain. These network footprints do not guarantee continued reliability
if a catastrophic event occurs. Despite implementation of network security measures, our servers may be vulnerable to computer viruses,
break-ins, and similar disruptions from unauthorized tampering with our computer systems including, but not limited to, denial of service
attacks. In addition, if there is a breach or alleged breach of security or privacy involving our services, including but not limited
to data loss, or if any third party undertakes illegal or harmful actions using our communications or e-commerce services, our business
and reputation could suffer substantial adverse publicity and impairment. We have experienced interruptions in service in the past. We
have taken and continue to take steps to improve our infrastructure to prevent service interruptions.

 In
addition to our physical infrastructure, we have a cloud infrastructure deployment with Amazon Web Services, or AWS, and Google Cloud
that supplements and extends our physical infrastructure. We utilize AWS' and Google Cloud's high availability configurations
using multiple availability zones and, in some cases, we have services deployed in multiple AWS regions. However, we do not have cross
region redundancy, which means we cannot guarantee continued reliability if AWS or Google Cloud suffers a catastrophic event which disrupts
a region in which we have our services deployed. If there were a failure to respond quickly to problems, or such a catastrophic event
were to occur, our customers may experience service interruptions, and we may suffer customer losses.

 Our
revenues and profits will suffer if our distributors and sales representatives fail to effectively market and distribute our products
and services.

 We
rely on our distributors and representatives to market and distribute our BOSS products and services and NRS' POS terminals and
portfolio of services. We utilize a network of several hundred sub-distributors that sell our BOSS products and services to retail outlets
throughout most of the United States. NRS' POS terminal sales and marketing efforts are targeted, in part, to our nationwide network
of BOSS Revolution retailers. If our distributors or sales representatives fail to effectively market or distribute our products and
services, our ability to generate revenues and profits and grow our customer base for these products and services could be substantially
impaired.

 Our
global operations subjects us to geopolitical and other risks that may harm our results of operations and financial condition.

 We
have developers, product development personnel, other employees and senior management in different countries, and some business activities
may be concentrated in one or more geographic areas. As a result, our ability to design, develop or sell products and services may be
affected by:

 geopolitical concerns, such
 as armed conflict and civil or military unrest, crime, political instability, and terrorist activity;

 natural disasters and health
 concerns;

 inefficient and limited infrastructure
 and disruptions, such as supply chain interruptions and large-scale outages or interruptions of service from utilities, transportation,
 or telecommunications providers;

 restrictions on our operations
 by governments seeking to support local industries, nationalization of our operations, and restrictions on our ability to repatriate
 earnings;

 differing employment practices
 and labor issues; and

 local business and cultural
 factors that differ from our normal standards and practices, including business practices that we are prohibited from engaging in by
 the Foreign Corrupt Practices Act, or FCPA, and other anti-corruption laws and regulations.

 Legal
and regulatory requirements differ among jurisdictions worldwide. Violations of these laws and regulations could result in fines; criminal
sanctions against us, our officers, or our employees; prohibitions on the conduct of our business; and damage to our reputation. Although
we have policies, controls, and procedures designed to ensure compliance with these laws, our employees, contractors, or agents may violate
our policies.

 Our
global operations subject us to additional risks which could have an adverse effect on our business, operating results, and financial
condition.

 We
have attempted to control our operating expenses by operating in foreign countries such as Poland, Belarus, Guatemala, Costa Rica, Georgia,
Dominican Republic and Israel and we may in the future expand our reliance on offshore labor to other countries. Our employees in Poland,
Belarus, Georgia and Israel primarily help develop, test, and maintain certain of our technology. Our labor source in Guatemala, Costa
Rica and the Dominican Republic primarily perform certain call center, administrative, operational and customer acquisition functions.
We also have significant operations in Brazil, Uruguay, and Argentina as a result of net2phone's growth.

 Countries
outside of the United States may be subject to relatively higher degrees of political and social instability and may lack the infrastructure
to withstand political unrest or natural disasters. The occurrence of natural disasters, pandemics such as COVID-19, or political or
economic instability in these countries could interfere with work performed by these labor sources or could result in our having to replace
or reduce these labor sources. If countries in which we operate experience civil or political unrest or acts of terrorism, especially
when such unrest leads to an unseating of the established government, our operations in such countries could be materially impaired.
Our vendors in other countries could potentially shut down suddenly for any reason, including financial problems or personnel issues.
Such disruptions could decrease efficiency, increase our costs, and have an adverse effect on our business or results of operations.

 The
practice of utilizing labor based in foreign countries has come under increased scrutiny in the United States. Governmental authorities
could seek to impose financial costs or restrictions on foreign companies providing services to customers or companies in the United
States. Governmental authorities may attempt to prohibit or otherwise discourage us from sourcing services from offshore labor.

 The
FCPA and other applicable anti-corruption laws and regulations prohibit certain types of payments by our employees, vendors, and agents.
Any violation of the applicable anti-corruption laws or regulations by us, our subsidiaries or our local agents could expose us to significant
penalties, fines, settlements, costs, and consent orders that may curtail or restrict our business as it is currently conducted and could
have an adverse effect on our business, financial condition, or results of operations.

 Weakness
of the United States dollar in relation to the currencies used in these foreign countries may also reduce the savings achievable through
this strategy and could have an adverse effect on our business, financial condition, and results of operations.

 Our
technology and development("T&D") may be adversely affected by ongoing developments in Belarus and Ukraine.

 We
have a significant number of T&D personnel in Belarus. Belarus shares borders with both Russia and Ukraine. In February 2022, Russian
military personnel stationed in Belarus were part of an invasion force by Russian forces into Ukraine. In response to the support and
facilitation by Belarus for the invasion, the United States, the European Union, or EU, and various other nations imposed sanctions against
multiple individuals and entities in Belarus. Other potential retaliatory measures could be taken by the United States and other countries,
particularly if Belarus were to take a more active role in the conflict. While we continue to monitor the situation in Belarus closely,
any prolonged or expanded unrest, military activities, or sanctions could have an adverse effect on our product roadmap and T&D.
We cannot predict whether additional sanctions or other measures will be imposed, or the nature of severity of those measures, and whether
they will directly or indirectly impact our T&D in Belarus or elsewhere.

 Further,
our Belarussian T&D personnel could be impacted by retaliatory actions taken by third parties related to actual or perceived Belarussian
actions in support of the invasion, including cyberattacks.

 Should
the military conflict expand to Belarus, our operations there could likely be impacted, including due to availability of personnel, electrical
outages, cyberattacks, and actual battles in areas where we have personnel.

 Any
of the foregoing could have an adverse impact on our ability to develop technology, including corrections or enhancements of existing
platforms supporting our current products and services or development of new or complementary offerings.

 Global
and regional economic conditions could materially adversely affect our business, results of operations, financial condition, and growth.

 We
have international operations with revenues outside the United States representing a significant amount of our total revenues. As a result,
our operations and performance depend significantly on global and regional economic conditions. Adverse macroeconomic conditions, including
inflation, slower growth, or recession, new or increased tariffs or excise taxes and other barriers to trade, changes to fiscal and monetary
policy, tighter credit, higher interest rates, high unemployment, and currency fluctuations could materially adversely affect demand
for our products and services. In addition, consumer confidence and spending could be adversely affected in response to financial market
volatility, negative financial news, conditions in the real estate and mortgage markets, declines in income or asset values, changes
to fuel and other energy costs, labor and healthcare costs, and other economic factors.

 Our
financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to other currencies.

 Our
primary exposure to movements in foreign currency exchange rates relates to non–U.S. dollar–denominated revenues and operating
expenses. The strengthening of foreign currencies may increase our costs denominated in those currencies, thus adversely affecting our
earnings. The weakening of foreign currencies relative to the U.S. dollar adversely affects the U.S. dollar value of our foreign currency–denominated
revenues and earnings and could lead us to raise international pricing, potentially reducing demand for our products and services. In
some circumstances, for competitive or other reasons, we may decide not to raise international pricing to offset the U.S. dollar's
strengthening, which would adversely affect the U.S. dollar value of our foreign currency–denominated revenue and earnings.

 We
depend upon industry standard protocols and third-party software, including but not limited to open-source software.

 We
rely on non-proprietary third-party software, some of which may be open source. We may be subject to additional royalties, license or
trademark infringement costs or other unknown costs when one or more of these third-party technologies are affected or need to be replaced
due to end-of-support or end-of-sale of such third parties.

functions related to our business depend on a single supplier or small group of suppliers to carry out our business, and the inability
to do business with some or all of these suppliers could have a materially adverse effect on our business and financial results.

 If
the services of any of the single suppliers or small group of suppliers, including, without limitation, software from third-party service
providers used in certain of our products and services, that we depend on were unavailable, or available only in decreased capacity or
at less advantageous terms, this could result in interruptions to our ability to provide certain services, could cause reduction in service
and/or quality as the function is transitioned to an alternate provider, if an alternate provider is available, or could increase our
cost, which in the current competitive environment, we may not be able to pass along to customers. Accordingly, any of these events could
materially and negatively impact our business, our revenues, our profits, and our relationships with customers.

 Our
success depends in part upon our ability to provide customer service that effectively supports the needs of our customers.

 Providing
customer service effectively requires that our customer support personnel have industry-specific technical knowledge and expertise. Our
support personnel require extensive training on our products and services, which may make it difficult to scale up our support operations
rapidly or effectively. The importance of high-quality customer support will increase as we expand our business and pursue new customers.
If we do not help our customers quickly resolve post-implementation issues and provide effective ongoing support, our ability to sell
additional features and services to existing customers will suffer and our reputation may be harmed.

 Changes
to rates by our suppliers and increasing regulatory charges, tariffs or excise taxes may require us to raise prices, which could adversely
affect our financial result and business.

 Our
upstream carriers, suppliers and vendors may increase their prices thus directly impacting our direct cost of revenues, which would affect
our earnings. Future changes in tariffs by regulatory agencies or application of tariff requirements to currently un-tariffed products
or services could affect the price and sales of our products for a certain set of customers. Changes in our underlying direct costs of
revenues may cause us to increase the rates we charge our customers, which could make us less competitive and impact our sales and retention
of existing customers. On July 4, 2025, the One Big Beautiful Bill Act imposed a one percent excise tax on certain remittance transfers
that will take effect for transfers made after December 31, 2025. The imposition of these or similar excise taxes could adversely affect
our business and financial condition.

 Our
customers, particularly our IDT Global customers, could experience financial difficulties, which could adversely affect our revenues
and profitability if we experience difficulties in collecting our receivables.

 As
a provider of international long-distance services, we depend upon sales of transmission and termination of traffic to other long-distance
providers and the collection of receivables from these customers. The wholesale telecommunications market continues to feature many smaller,
less financially stable companies. If weakness in the telecommunications industry or the global economy reduces our ability to collect
our accounts receivable from our major customers, particularly our wholesale customers, our profitability may be substantially reduced.
While our most significant customers, from a revenue perspective, vary from quarter to quarter, our five largest IDT Global customers
collectively accounted for 4.2% and 4.7% of our total revenues in fiscal 2025 and fiscal 2024, respectively. Our IDT Global customers
with the five largest receivables balances collectively accounted for 8.0% and 1.6% of our total gross trade accounts receivable on July
31, 2025, and 2024, respectively. This concentration of revenues and receivables increases our exposure to non-payment by our larger
customers, and we may experience significant write-offs if any of our large customers fail to pay their outstanding balances, which could
adversely affect our cash flow and profitability.

 We
rely on highly skilled personnel and, if we are unable to retain or motivate key personnel, hire qualified personnel, or maintain our
corporate culture, we may not be able to grow effectively.

 We
believe that our corporate culture fosters innovation, creativity, and teamwork. Our performance largely depends on the talents and efforts
of highly skilled individuals. Our future success depends on our continuing ability to identify, hire, develop, motivate, and retain
highly skilled personnel for all areas of our organization, in particular our technology and software engineering organization. Competition
for qualified technology and engineering employees is intense, and our compensation arrangements may not always be successful in attracting
new employees and retaining and motivating our existing employees. Our continued ability to compete effectively depends on our ability
to attract new employees and to retain and motivate our existing employees.

 New
and existing technologies could affect our ability to track the results of ads and/or could block ads online, which would harm our business.

 A
significant portion of our revenues are derived from customers acquired in connection with the display of advertisements online. Technologies
have been developed to make tracking the results of our online advertisements more difficult or to block the display of advertisements
altogether and some providers of online services have integrated technologies that could potentially impair the core functionality of
third-party digital advertising. As a result, such technologies and tools could adversely affect our operating results.

 Risks
Related to Our NRS Business

 Substantial
and increasingly intense competition in the POS industry may harm NRS' business.

 NRS
competes in the POS market that is characterized by vigorous competition, changing technology, evolving industry standards, changing
customer needs, and frequent introductions of new products and services. We expect competition to intensify in the future as existing
and new competitors introduce new services or enhance existing services. NRS competes against many companies to attract customers, and
some of these companies have greater financial resources and substantially larger bases of customers than NRS does, which may provide
them with significant competitive advantages. These companies may devote greater resources to the development, promotion, and sale of
products and services, may achieve economies of scale due to the size of their customer bases, and may more effectively introduce their
own innovative products and services that adversely impacts NRS' growth. If some or all of NRS' competitors focus additional
resources on NRS' target markets, NRS' growth may slow, or we may lose customers due to the competition.

 NRS
may also face pricing pressures from competitors, which may result in the need for NRS to alter the pricing that it offers and could
reduce our profitability.

 If
NRS fails to increase advertising on its platform, our business could be adversely affected.

 NRS'
strategy includes increasing its revenues from brand advertising. Brands may not do business with NRS or may reduce the amounts they
are willing to spend to advertise if NRS does not deliver ads, and other commercial content and marketing programs in an effective manner,
or if they do not believe that their investment in advertising with NRS will generate a competitive return relative to other alternatives.
NRS' ability to increase the number of brands that use its brand advertising, and ultimately to generate advertising and marketing
services revenues, depends on several factors, many of which are outside of our control. If NRS fails to increase advertising on its
platform, our business could be adversely affected.

 The
long-term success of NRS depends on its ability to develop products and services to address the rapidly evolving market for POS products
and services, and, if it cannot implement successful enhancements and new features for its products and services, our business could
be materially and adversely affected.

 NRS'
success will depend, in part, on its ability to develop new technologies and to adapt to technological changes and evolving industry
standards. New services and technologies may be superior to, impair, or render obsolete the POS products and services that NRS currently
offers or the technologies NRS currently uses to provide them. Incorporating new technologies into NRS' POS products and services
may require substantial expenditures and take considerable time, and NRS may not be successful in realizing a return on these development
efforts in a timely manner or at all. NRS' ability to develop new products and services may be inhibited by industry-wide standards,
existing and future laws and regulations, resistance to change from its customers, or third parties' intellectual property rights.
If NRS is unable to provide enhancements and new features for its products and services or to develop new products and services that
achieve market acceptance or that keep pace with rapid technological developments and evolving industry standards, our business would
be materially and adversely affected.

 Risks
Related to Our BOSS Money Business

 BOSS
Money and its retailers face a complex and dynamic regulatory landscape; changes in laws and regulations can impact business operations,
and non-compliance or failure to comply with laws can result in hefty fines, penalties, operational restrictions and reputational damage.

 BOSS
Money and its retailers face a complex and dynamic regulatory landscape related to anti-money laundering (AML), know your customer (KYC),
consumer protection laws and data privacy. Changes in laws and regulations can impact business operations, and non-compliance or failure
to comply with laws can result in hefty fines, penalties, operational restrictions and reputational damage. For example, certain banks,
in an effort to comply with increasingly more challenging regulations, have gradually imposed stricter restrictions and limitations and
higher costs on money remittance retailers making deposits to bank accounts. This can negatively affect the business of the BOSS Money
retailers and, at times, disincentivize retailers from growing their BOSS Money business. As governments and regulatory bodies place
increasing emphasis on anti-money laundering, data privacy, consumer protection and financial transparency, BOSS Money and its retailers
may face rising costs to ensure compliance with, among others, customer due diligence, transaction monitoring, and consumer data privacy
protection and reporting, which can negatively affect, among other things, the ability of BOSS Money to maintain and grow its retailer
network.

 BOSS
Money depends on a licensed network of agents for its retail money remittance business.

 BOSS
Money depends on a licensed network of agents for its retail money remittance business. Maintaining good relationships with agents, ensuring
their compliance, and managing risks associated with their actions is critical but costly. Agents may not always act in BOSS Money's
best interest, engaging in fraudulent activities, regulatory violations, or causing reputational damage. In addition, agents could affect
BOSS Money's revenue and profitability due to non-payment of remittances collected or termination of the relationship.

 BOSS
Money has financial and business exposure to fluctuations in the foreign exchange markets.

 BOSS
Money's international remittance business is subject to daily fluctuations in U.S. dollar exchange rates, resulting from devaluation
or appreciation of currencies, exchange rate volatility, or currency restrictions, which can materially impact revenue and profitability.

 BOSS
Money can be vulnerable to illegal activities and fraud schemes.

 BOSS
Money's transfer services can be vulnerable to illegal activities and fraud schemes such as identity theft, account takeover, money
laundering, and terrorist financing. Failure to detect and mitigate these risks could lead to regulatory penalties, reputational harm
and significantly and adversely affect revenues and profitability.

 BOSS
Money's rapid growth can strain resources and internal controls which could potentially lead to, among other things, operational
inefficiencies, increased costs and reduced profitability.

 BOSS
Money is experiencing rapid growth, which can strain resources and internal controls, carrying inherent risks and uncertainties when
scaling operations or entering new markets, potentially leading to operational inefficiencies, increased costs and reduced profitability.
BOSS Money's growth depends on acquiring and retaining customers in a competitive market. BOSS Money invests significantly in marketing
to grow its customer base. Rising costs of customer acquisition, especially in competitive markets, could adversely affect profitability.

 The
rapid evolution of payment technologies and shifts in consumer preferences along with adoption of new technologies could disrupt the
money transfer industry.

 The
rapid evolution of payment technologies and shifts in consumer preferences along with adoption of new technologies such as mobile wallets,
real-time payment systems and blockchain-based cryptocurrencies could disrupt the money transfer industry and require significant investments
to stay competitive. Failure to innovate, adopt new technologies, or keep pace with industry advancements can potentially lead to market
share and revenue declines. In addition, the inability to adapt to changing customer needs could significantly and negatively impact
business growth.

 Disruptions
in mobile networks or changes in consumer preferences for mobile devices could impact our business.

 BOSS
Money relies heavily on mobile technology. Any disruptions in mobile networks or changes in consumer preferences for mobile devices could
adversely impact our business. The BOSS Money and BOSS Revolution mobile apps are distributed through Apple's App Store and Google
Play app store. Changes in app store policies or restrictions could negatively impact our ability to reach customers. BOSS Money's
direct to consumer channel relies on the performance and uptime of its digital platform which means that failures in technology or software
could impact transaction flow, customer satisfaction and ultimately revenues.

 BOSS
Money has less brand recognition than many of its competitors in the money remittance space which could make it harder to attract and
retain customers.

 Compared
to its larger competitors such as Western Union, Moneygram, Ria, Intermex, Xoom, Wise and Remitly, BOSS Money has less brand recognition
in the money remittance space which could make it harder to attract and retain customers. BOSS Money leverages the brand value and trust
built by BOSS Revolution. The remittance industry is highly sensitive to consumer trust. As such, negative publicity, such as being associated
with poor service, fraud or money laundering, could significantly and negatively harm BOSS Money's reputation, leading to a loss
of customers and revenue.

 BOSS
Money relies on partnerships with global banks and payout agents to process transactions in its receiving markets.

 BOSS
Money relies on partnerships with global banks and disbursement agents to process transactions in its receiving markets. If these partners
face operational, financial, or regulatory issues, it could severely and negatively impact the company's ability to conduct business.
BOSS Money's success depends, in part, on reliable access to international banking systems and payment infrastructure. Disruptions
in these systems due to political or economic issues, or regulatory changes, could severely and negatively impact the company's
ability to provide services.

 Risks
Related to Our net2phone Business

VoIP or cloud-based communications service competes against established well financed alternative voice communication providers who may
provide comparable services at comparable or lower pricing or deploy new services that net2phone is unable to offer.

 Pricing
in the telecommunications industry is very fluid and competitive. Price is often a substantial motivating factor in a customer's
decision to switch to net2phone's cloud-based communications products and services. net2phone's competitors may reduce their
rates, which may require it to reduce its rates, which would affect our revenues and profitability, or otherwise make our pricing non-competitive.
net2phone may be at a disadvantage compared with those competitors who have substantially greater resources than us or may otherwise
be better positioned to withstand an extended period of downward pricing pressure.

 Many
of net2phone's current and potential competitors have longer operating histories, significantly greater resources and brand awareness,
and a larger base of customers than net2phone has. As a result, these competitors may have greater credibility with net2phone's
existing and potential customers. net2phone's competitors may also offer bundled service arrangements that present a more differentiated
or better integrated product to customers. Certain of net2phone's competitors that have more significant R&D capabilities may
develop or deploy new value-added services that net2phone is unable to offer. Announcements, or expectations, as to the introduction
of new products and technologies by net2phone's competitors or net2phone could cause customers to defer purchases of net2phone's
existing products, which also could have a material adverse effect on our business, financial condition, or operating results.

depends in part upon the capacity, reliability, and performance of several third-party providers and their network infrastructure, the
failure of which could cause delays or interruptions of net2phone's service and impact our revenue and profitability.

depends on several third-party providers to provide service to maintain its operations. net2phone does not have control over these providers,
and some of these providers are also its competitors. net2phone may be subject to interruptions or delays in their service and its reputation
and business may be harmed. The failure of any of these third party service providers to properly maintain services may result in negative
consequences to net2phone, including but not limited to: (i) a loss of customers, (ii) adverse impact on its reputation, (iii) negative
publicity, (iv) negative impact on its ability to acquire customers, (v) negative impact on its revenue and profitability, (vi) potential
law suits for not reaching emergency E-911 services, and (vii) potential law suits for loss of business and loss of reputation.

 Internet
Bandwidth Providers. net2phone's cloud-based communications service requires its customers to have an operative broadband Internet
connection and an electrical power supply, which are provided by the customer's broadband Internet service provider and electric
utility company and not by net2phone. The quality of some broadband Internet connections may be too poor for customers to use net2phone's
services properly. In addition, if there is any interruption to a customer's broadband Internet service or electrical power supply,
that customer will be unable to make or receive calls, including emergency calls, using net2phone's service. In addition, Internet
backbone providers may be able to block, degrade or charge for access to, or the bandwidth use of certain of net2phone's products
and services which could have a negative effect on its services and could lead to additional expenses and the loss of users. Further,
customers who access net2phone's mobile application (or future applications) through their smartphones must have a high-speed connection
to use its services. This access is provided by companies that have significant and increasing market power in the broadband and Internet
access marketplace and some of these providers offer products and services that directly compete with net2phone's offerings, which
give them a significant competitive advantage.

 Tier
1 and non-Tier 1 Telecom suppliers for Telecom Origination and Termination Services. net2phone depends on these companies to provide
telecom services, sourcing of DID, porting of numbers, and delivering telephone calls from and to endpoints and devices on our network.
If net2phone fails to maintain reliable connectivity or performance with its upstream carriers it could significantly reduce customer
demand for its services and damage its business.

 E-911
and other emergency service providers. net2phone maintains an agreement with an E-911 provider to assist it in routing and terminating
emergency calls directly to an emergency service dispatcher at the public-safety answering point, or PSAP, in the customer's registered
location. net2phone also contract with a provider for the national call center that operates 24 hours a day, seven days a week to receive
certain emergency calls and with several companies that maintain PSAP databases for the purpose of deploying and operating E-911 services.
The dispatcher will have automatic access to the customer's telephone number and registered location information. If a customer
moves their service to a new location, the customer's registered location information must be updated and verified by the customer.
Until that takes place, the customer will have to verbally advise the emergency dispatcher of his or her actual location at the time
of an E-911 call. This can lead to delays in the delivery of emergency services. Interruptions in service from these vendors could also
cause failures in net2phone's customers' access to E-911 services and expose it to liability.

 Local
number portability providers. net2phone has agreements with companies that initiate its local number portability, which allows new
customers to retain their existing telephone numbers when subscribing to its services. net2phone needs to work with these companies to
properly port numbers. The failure to port numbers may cause net2phone to lose customers.

faces risks from the outsourcing of the manufacturing of its desktop telephones ("desktop devices").

primarily sells Polycom, Yealink and Grandstream-branded desktop devices, although, it supports other third-party devices as well. These
desktop devices are being manufactured by vendors in China. Recent supply-chain challenges in China and global ramifications of supply-chain
difficulties, the U.S. trade war with China, including trade protection measures such as tariffs, and the effects of any new wave of
COVID-19 infections or another pandemic may cause disruptions in obtaining its desktop devices. This may increase pricing, slow delivery
times or may force net2phone to find other third-party manufacturers for its branded desktop devices.

targets sales to small, mid-market and enterprise customers. Not properly managing these customers could negatively affect our business,
cash flow and operations.

 A
substantial percentage of net2phone's revenues comes from small and medium-sized businesses. These customers may be more adversely
affected by economic downturns than larger, more established businesses. The majority of net2phone's customers pay for subscriptions
with credit cards. Weakness in certain segments of the credit markets in the U.S. and global economies may result in increased numbers
of rejected credit and debit card payments, which could negatively affect net2phone's business. If small and medium-sized businesses
experience financial hardship because of a weakening economy, industry consolidation, or any other reason, the overall demand for net2phone's
products and services could be materially and adversely affected.

 Selling
to larger enterprise customers also contains inherent risks and uncertainties. The loss of a key customer or the failure of some to renew
or to continue to recommend net2phone's products may have a material negative impact on its results. net2phone has a limited history
of selling its services to larger businesses and may experience challenges in configuring and providing ongoing support for the products
it sells to large customers. Larger customers' networks are often more complex than those of smaller customers, and the configuration
of services for these customers usually requires customer assistance. There is no guarantee that the customer will make available to
net2phone the necessary personnel and other resources for a successful configuration of services. Lack of assistance from the customers
or lack of local resources may prevent net2phone from properly configuring its services for these customers, which can in turn adversely
impact the quality of services that it delivers over its customers' networks, and/or may result in delays in the implementation
of its services and impact the quality and ability to continue to provide the services. This could also create a public perception that
net2phone is unable to deliver high quality service to its customers, which could harm its reputation. In addition to the foregoing,
larger customers tend to require higher levels of customer service and individual attention, which may increase net2phone's costs
for implementing and delivering services.

 If
net2phone's existing customers terminate their subscriptions or reduce their subscriptions and related usage, its revenues and
earnings will be harmed, and we will be required to spend more money to grow net2phone's customer base.

expects to continue to derive a significant portion of its revenues from existing customers. As a result, retaining its existing customers
is critical to its future operating results. net2phone offers monthly, annual and multiple-year contracts to its customers, generally
with 30 days' notice required for reductions in the number of seats. Increases in the number of seats can be provisioned almost
immediately.

 Subscriptions
and related usage by existing customers may decrease if:

 customers are not satisfied
 with the services, prices or the functionality of net2phone's products;

 the stability, performance
 or security of net2phone's products are not satisfactory;

 the U.S. or global economy
 declines;

 net2phone's customers'
 business or demand for net2phone's services declines due to industry cycles, seasonality, business difficulties or other reasons;

 customers favor products
 offered by other providers, particularly as competition continues to increase;

 alternative technologies,
 products or features emerge or gain popularity that net2phone does not provide;

 net2phone's customers
 or potential customers experience financial difficulties; or

 fewer customers purchase
 services from net2phone.

 If
net2phone's existing customers' subscriptions and related usage decrease or are terminated, net2phone will need to spend
more money to acquire new customers and still may not be able to maintain its existing level of revenues. net2phone incurs significant
costs and expenses, including sales and marketing expenses, to acquire new customers, and those costs and expenses are an important factor
in determining our profitability. There can be no assurance that net2phone's efforts to acquire new customers will be successful.

must acquire new customers on an ongoing basis to maintain and increase its customers and revenues, and the significant costs to acquire
new customers may hinder profitability.

has to acquire new customers to increase revenues. net2phone incurs significant costs to acquire new customers, and those costs are an
important factor in determining our profitability. Therefore, if net2phone is unsuccessful in retaining customers or is required to spend
significant amounts to acquire new customers, its revenue and or profits may decrease, which would negatively affect profitability. Sales
and marketing expenditures are an ongoing requirement of net2phone's business as it strives to acquire more new customers.

customer churn rate may increase in future periods, which may adversely impact its revenue or require it to spend more money to grow
its customer base.

customers generally have initial service periods of between two and three years and may discontinue their subscriptions for services
after the expiration of their initial subscription period. In addition, net2phone's customers may renew for lower subscription
amounts or for shorter contract lengths. net2phone may not accurately predict cancellation rates for its customers. net2phone's
cancellation rates may increase or fluctuate because of several factors, including customer needs, pricing changes, number of applications
used by its customers, customer satisfaction with its service, the acquisition of net2phone's customers by other companies, and
deteriorating general economic conditions. If net2phone's customers do not renew their subscriptions for its service or decrease
the amount they spend with net2phone, its revenue will decline, and our business will suffer.

may not be able to scale its business efficiently or quickly enough to meet its customers' growing needs, in which case our operating
results could be harmed.

 As
usage of net2phone's cloud-based communications services by mid-market and larger distributed enterprises expands and as customers
continue to integrate its services across their enterprises, net2phone is required to devote additional resources to improving its application
architecture, integrating net2phone's products and applications across our technology platform as well as expanding integration
and performance. net2phone will need to appropriately scale its internal business systems and services organization, including its onboarding
and customer support services to serve a growing customer base. Any failure of or delay in these efforts could impair net2phone's
systems' performance and reduce customer satisfaction, which could result in decreased sales to new customers and lower renewal
rates by existing customers and eventually hurt net2phone's revenue growth and its reputation. We cannot guarantee that the expansion
and improvements to our infrastructure and systems will be fully or effectively implemented on a timely basis, if at all, which failure
may reduce our revenue and earnings and adversely impact our financial results.

 Risks
Related to Our Traditional Communications Segment

 Each
of our BOSS Revolution and IDT Global businesses is highly sensitive to declining prices, which may adversely affect our revenues and
profitability.

 The
worldwide telecommunications industry is characterized by intense price competition, which has resulted in declines in both our average
per-minute price realizations and our average per-minute termination costs. Many of our competitors continue to aggressively price their
services or offer them for free. The intense competition has led to continued erosion in our pricing power, in both our retail and wholesale
markets, and we have generally had to pass along all or some of the savings we achieve on our per-minute costs to our customers in the
form of lower prices. In the case of some international calling locations, indirect competitors, such as wireless carriers, may include
calls to those locations at no extra cost, which increases our risk of losing customers. Any price increase by either our BOSS Revolution
or IDT Global business may result in our prices becoming less attractive to customers, which may result in a reduction of revenue. If
these trends in pricing continue or accelerate, it could have a material adverse effect on the revenues generated by our BOSS Revolution
and IDT Global businesses and/or our profitability.

 We
may not be able to obtain sufficient or cost-effective termination capacity to particular destinations, which could adversely affect
our revenues and profits.

 Most
of our telecommunications' traffic is terminated through third-party providers. To support our minutes of use demand and geographic
footprint, we may need to obtain additional termination capacity or destinations. We may not be able to obtain sufficient termination
capacity from high-quality carriers to particular destinations or may have to pay significant amounts to obtain such capacity. This could
result in our not being able to support our minutes of use demands or in higher cost-per-minute to particular destinations, which could
adversely affect our revenues and profits.

 The
termination of our carrier agreements with partners or our inability to enter into carrier agreements in the future could materially
and adversely affect our ability to compete, which could reduce our revenues and profits.

 We
rely upon our carrier agreements with partners to provide our telecommunications services to our customers. These carrier agreements
are for finite terms and, therefore, there can be no guarantee that these agreements will be renewed at all or on favorable terms to
us. Our ability to compete would be adversely affected if our carrier agreements were terminated or we were unable to enter into carrier
agreements in the future to provide our telecommunications services to our customers, which could result in a reduction of our revenues
and profits.

 Risk
Related to Our Financial Condition

 We
hold cash, cash equivalents, debt securities and equity investments that are subject to various market risks.

 At
July 31, 2025, we had cash, cash equivalents, debt securities, and current equity investments of $260.4 million. Debt securities and
equity investments carry a degree of risk, as there can be no assurance that we can redeem them at any time and that our investment managers
will be able to accurately predict the course of price movements and, in general, the securities markets have in recent years been characterized
by great volatility and unpredictability. As a result of these different market risks, our holdings of cash, cash equivalents, debt securities,
and equity investments could be materially and adversely affected.

 If
we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial
results, and current and potential stockholders may lose confidence in our financial reporting which could have a negative effect on
the trading price of our stock.

 We
are required by the Securities and Exchange Commission to establish and maintain adequate internal control over financial reporting that
provides reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements in accordance
with accounting principles generally accepted in the United States. We are likewise required, on a quarterly basis, to evaluate the effectiveness
of our internal controls and to disclose any changes and material weaknesses in those internal controls. A material weakness is a deficiency,
or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

 We
cannot be certain that we will continue to maintain an effective system of internal control over our financial reporting in future periods.
Any failure to maintain such internal controls could adversely impact our ability to report our financial results on a timely and accurate
basis. If our financial statements are not accurate, investors may not have a complete understanding of our operations. Likewise, if
our financial statements are not filed on a timely basis as required by the Securities and Exchange Commission and The New York Stock
Exchange, we could face severe consequences from those authorities. In either case, there could be a material adverse effect on our business.
Inferior internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative
effect on the trading price of our stock.

 Intellectual
Property, Tax, Regulatory, and Litigation Risks

 Changes
in national policy, governmental actions related to tariffs or international trade agreements, as well as shifts in social, political,
regulatory, and economic conditions or laws and policies governing foreign trade, manufacturing, development, and investment in the regions
where we operate, can significantly impact our business. Such changes could lead to negative sentiments towards us, potentially depressing
economic activity or restricting access to suppliers or customers and thereby have a material adverse effect on our business, results
of operations and outlook.

 In
January 2025, the global tariff landscape began to quickly change with the United States implementing tariffs on goods from various foreign
countries, either generally or with respect to certain products, and certain of those foreign countries implementing rebalancing tariffs
on goods from the United States, either generally or with respect to certain products. In certain circumstances the United States and
certain foreign countries temporarily suspended tariffs they had recently implemented, either in whole or in part. Since then, the United
States has continued to impose tariffs on imported goods, and affected countries have often responded by imposing tariffs on U.S. goods.
In April 2025, the U.S. announced a baseline tariff of 10% on goods from all countries and instituted additional individualized reciprocal
tariffs for countries with which the United States has significant trade deficits. The United States continues to implement new, reinstated
or adjusted tariffs, and we expect that it will continue with this practice. Foreign countries subject to these U.S. tariffs continue
to implement new, reinstated or adjusted rebalancing tariffs, and we expect that foreign countries will continue with that practice.

 The
U.S. tariffs and rebalancing tariffs that were recently enacted or that may be enacted have contributed to uncertainty about current
global economic conditions. Sustained uncertainty could result in a global economic slowdown and long-term changes to global trade. Such
changes could lead to negative sentiments towards us, potentially depressing economic activity or restricting access to suppliers or
customers and thereby have a material adverse effect on our business, results of operations and outlook.

 We
provide communications and payment services to consumers and are therefore subject to various federal and state laws and regulations.

 As
a provider of communications and payment services to consumers, such as BOSS Revolution and BOSS Money, we are subject to various federal
and state laws and regulations relating to the way we advertise our services, describe and present the terms of our services, and communicate
with our customers and consumers in general. Compliance with these laws requires us to be constantly vigilant as they often vary from
state to state. Failure to comply with these laws could result in action being taken by federal and state agencies or offices responsible
for consumer protection, like the Federal Trade Commission, or FTC, which could have a material adverse effect on our results of operations,
financial condition, revenues, and profits.

 We
may be adversely affected if we fail to protect our proprietary technology.

 We
depend on proprietary technology and other intellectual property rights in conducting our various business operations. We rely on a combination
of patents, copyrights, trademarks and trade secret protection, and contractual rights to establish and protect our proprietary rights.
Circumstances outside our control could pose a threat to our intellectual property rights. For example, effective intellectual property
protection may not be available in every country in which our products and services are distributed. Also, the efforts we have taken
to protect our proprietary rights may not be sufficient or effective enough. Any significant impairment of our intellectual property
rights could harm our business or our ability to compete. Also, protecting our intellectual property rights is costly and time consuming.
Any increase in the unauthorized use of our intellectual property could make it more expensive to do business and harm our operating
results. Failure of our patents, copyrights, trademarks, and trade secret protection, non-disclosure agreements and other measures to
provide protection of our technology and our intellectual property rights could enable our competitors to compete with us more effectively
and have an adverse effect on our business, financial condition, and results of operations.

 Rapid,
significant, and disruptive technological changes impact the industries in which we operate, and we expect new services and technologies
to continue to emerge and evolve. We cannot predict the effects of technological changes on our businesses. Developing and incorporating
new technologies into our products and services may require significant investment, take considerable time, and ultimately may not be
successful.

 In
addition, we may be required to litigate in the future to enforce our intellectual property rights, to protect our trade secrets, to
determine the validity and scope of the proprietary rights of others, or to defend against claims of infringement or invalidity. Any
such litigation could result in substantial costs and diversion of resources and could have a material adverse effect on our business,
financial condition, or results of operations, and there can be no assurances that we will be successful in any such litigation.

 We
may incur costs in complying with, or face exposure from the failure to comply with, laws, regulation or initiatives regarding greenhouse
gas emissions or reporting of our direct and indirect emissions.

 Several
states have either passed (California) or are drafting (e.g. Washington, New York, Illinois, and Minnesota) what is being referred to
as "sustainability legislation." This class of legislation generally requires companies generating certain levels in annual
revenue (either globally or in the relevant state) and who have a presence in the relevant state to report data on the impact of the
company on the environment, including as to direct and indirect greenhouse gas emissions or other factors believed to impact climate.
Each company that meets the requirements will be required to report the data to a state regulator and may also be required to post the
data online. Significant monetary penalties may apply to companies that fail to report in a timely manner. We believe that we will be
required to report under the California legislation, and may also be subject to other states' legislation, if passed. We are currently
evaluating the resources necessary to comply with the law. While, barring unforeseen circumstances, we anticipate meeting the requirements
in a timely manner, there can be no assurance that we will do so.

 In
addition, many foreign jurisdictions have enacted laws and regulations mandating certain reporting related to direct and indirect greenhouse
gas emission by businesses operating in those areas. Our costs to comply with any legislation, regulations or initiatives may be significant
and we could be exposed to fines and penalties and other negative impacts on our businesses if we do not comply with the laws and regulations
that apply to us.

 We
may be subject to claims of infringement of intellectual property rights of others, which could have a material adverse effect on our
results of operations, financial condition, revenues, and profits.

 Companies
in the telecommunications industry and other industries in which we compete own large numbers of patents, copyrights and trademarks and
frequently enter into litigation based on allegations of infringement or other violations of intellectual property rights. As we face
increasing competition, the possibility of intellectual property claims against us grows. Although we do not believe that we infringe
upon the intellectual property rights of others, our technologies may not be able to withstand any third-party claims or rights against
their use. From time to time, we may be subject to claims and legal proceedings from third parties regarding alleged infringement by
us of trademarks, copyrights, patents, and other intellectual property rights. Such lawsuits can be expensive and time-consuming and
could distract us and our management from focusing on our businesses. Further, the loss of such lawsuits could result in financial burdens
and the requirement to modify our modes of operation, which could materially adversely affect our business.

 We
are subject to tax and regulatory audits which could result in the imposition of liabilities that may or may not have been reserved.

 We
are subject to audits by taxing and regulatory authorities with respect to certain of our income and operations. These audits can cover
periods for several years prior to the date the audit is undertaken and could result in the imposition of liabilities, interest, and
penalties if our positions are not accepted by the auditing entity.

 Our
2017 FCC Form 499-A, which reported our calendar year 2016 revenue was audited by the Universal Service Administrative Company, or USAC.
The USAC's final decision imposed a $2.9 million charge on us for the Federal TRS Fund. We have appealed the USAC's final
decision to the FCC and do not intend to remit payment for the TRS Fund fees unless and until a negative decision on our appeal has been
issued. We have made certain changes to our filing policies and procedures for years that remain potentially under audit. As of July
31, 2025, our accrued expenses included $21.1 million for FCC-related regulatory fees for the year covered by the audit, as well as prior
and subsequent years. If we do not properly calculate, or have not properly calculated, the amount payable by us to the FCC, we may be
subject to interest and penalties.

 We
are subject to value added tax, or VAT, audits from time-to-time in various jurisdictions. In the conduct of such audits, we may be required
to disclose information of a sensitive nature and, in general, to modify the way we have conducted business with our distributors until
the present, which may affect our business in an adverse manner.

 We
are also subject to audits in various jurisdictions for various other taxes, including utility excise tax, sales and use tax, communications
services tax, gross receipts tax, and property tax.

 Our
business is subject to strict regulation under federal law regarding anti-money laundering and anti-terrorist financing. Failure to comply
with such laws, or abuse of our programs for purposes of money laundering or terrorist financing, could have a material adverse impact
on our business, financial condition, and operating results.

 Provisions
of the USA PATRIOT Act, the Bank Secrecy Act and other federal laws impose substantial regulations on financial institutions that are
designed to prevent money laundering and the financing of terrorist organizations. Increasing regulatory scrutiny of our industry with
respect to money laundering and terrorist financing matters could result in more aggressive enforcement of these laws or the enactment
of more onerous regulation, which could have a material adverse impact on our business. In addition, abuse of our money transfer services
or prepaid card programs for purposes of money laundering or terrorist financing, notwithstanding our efforts to prevent such abuse through
our regulatory compliance and risk management programs, could cause reputational or other harm that would have a material adverse impact
on our business, financial condition, and operating results.

 Our
business is subject to a wide range of laws and regulations intended to help detect and prevent illegal or illicit activity and our failure,
or the failure of one of our disbursement partners or payment processors to comply with those laws and regulations could harm our business,
financial condition, and operating results.

 Our
BOSS Money and network branded prepaid card services are subject to a strict set of legal and regulatory requirements intended to help
detect and prevent money laundering, terrorist financing, fraud, and other illicit activity. The interpretation of those requirements
by judges, regulatory bodies and enforcement agencies is changing, often quickly and with little notice. Economic and trade sanctions
programs that are administered by the U.S. Treasury Department's Office of Foreign Assets Control prohibit or restrict transactions
to or from or dealings with specified countries, their governments, and in certain circumstances, with individuals and entities that
are specially designated nationals of those countries, narcotics traffickers and terrorists or terrorist organizations. As federal, state,
and foreign legislative regulatory scrutiny and enforcement action in these areas increase, we expect our costs to comply with these
requirements will increase, perhaps substantially. Failure to comply with any of these requirements by us, our regulated retailers or
our disbursement partners could result in the suspension or revocation of a money transmitter license, the limitation, suspension or
termination of our services, the seizure and/or forfeiture of our assets and/or the imposition of civil and criminal penalties, including
fines.

 Furthermore,
failure by us or our agents to comply with applicable laws and regulations could also result in termination of contracts with our banks
and/or merchant payment processors. Termination of services by one of our retail banks would seriously diminish our ability to collect
funds from our BOSS Revolution agents. Likewise, termination of services by our merchant processor would negatively impact our ability
to process payments in our digital channels.

 The
foregoing laws and regulations are constantly evolving, unclear, and inconsistent across various jurisdictions, making compliance challenging.
If we fail to update our compliance system to reflect legislative or regulatory developments, we could incur penalties. New legislation,
changes in laws or regulations, implementing rules and regulations, litigation, court rulings, changes in industry practices or standards,
changes in systems rules or requirements or other similar events could expose us to increased compliance costs, liability, reputational
damage, and could reduce the market value of our BOSS Money and network branded prepaid card services or render them less profitable
or obsolete.

 The
Dodd-Frank Act, as well as the regulations required by the Dodd-Frank Act and the Consumer Financial Protection Bureau could harm us
and the scope of our activities, and could harm our operations, results of operations, and financial condition.

 The
Dodd-Frank Act, which became law in the United States on July 21, 2010, enacted significant structural reforms and substantive regulation
across the financial services industry. In addition, the Dodd-Frank Act created the Consumer Financial Protection Bureau, or CFPB, whose
purpose is to issue and enforce consumer protection initiatives governing financial products and services, including money transfer services.

 We
may be subject to examination by the CFPB, which has broad authority to enforce consumer financial laws. The CFPB has a large budget
and staff and has broad authority with respect to our money transfer service and related business. It is authorized to collect fines
and provide consumer restitution in the event of violations, engage in consumer financial education, track consumer complaints, request
data, and promote the availability of financial services to underserved consumers and communities. In addition, the CFPB may adopt other
regulations governing consumer financial services, including regulations defining unfair, deceptive, or abusive acts or practices, and
new model disclosures. The CFPB's authority to change regulations adopted in the past by other regulators, or to rescind or alter
past regulatory guidance, could increase our compliance costs and litigation exposure.

 The
Dodd-Frank Act established a Financial Stability Oversight Council that is authorized to designate as "systemically important"
non-bank financial companies and payment systems. Companies designated under either standard will become subject to new regulation and
regulatory supervision. If we were designated under either standard, the additional regulatory and supervisory requirements could result
in costly new compliance burdens or may require changes in the way we conduct business that could harm our business, financial condition,
and operating results.

 We
are subject to licensing and other requirements imposed by U.S. state regulators, and the U.S. federal government. If we were found to
be subject to or in violation of any laws or regulations governing money transmitters, we could lose our licenses, be subject to liability
or be forced to change our business practices, which could harm our business, results of operations, and financial condition.

 Several
states and territories have enacted legislation regulating money transmitters, with 49 states requiring a license as of July 31, 2025.
At July 31, 2025, we had obtained licenses to operate as a money transmitter in 48 U.S. states and Washington, D.C. We are also registered
as money services businesses with the Financial Crimes Enforcement Network of the U.S. Department of the Treasury, or FinCEN. As a licensed
money transmitter, we are subject to bonding requirements, liquidity requirements, restrictions on our investment of customer funds,
reporting requirements, and inspection by state and foreign regulatory agencies. If we were found to be subject to and in violation of
any banking or money services laws or regulations, we could be subject to liability or additional restrictions, such as increased liquidity
requirements. In addition, our licenses could be revoked, or we could be forced to cease doing business or change our practices in certain
states or jurisdictions or be required to obtain additional licenses or regulatory approvals that could impose a substantial cost on
us. Regulators could also impose other regulatory orders and sanctions on us. Any change to our business practices that makes our service
less attractive to customers or prohibits use of our services by residents of a particular jurisdiction could decrease our transaction
volume and harm our business, financial condition, and operating results.

 Our
disbursement partners generally are regulated institutions in their home jurisdiction, and money transfers are regulated by governments
in both the United States and in the jurisdiction of the recipient. If our disbursement partners fail to comply with applicable laws,
it could harm our business, results of operations, and financial condition.

 Money
transfers are regulated by state, federal and foreign governments. Many of our disbursement partners are banks that are heavily regulated
by their home jurisdictions. Our non-bank disbursement partners are also subject to money transfer regulations. We require regulatory
compliance as a condition to our continued relationship, perform due diligence on our disbursement partners, and monitor them periodically
with the goal of meeting regulatory expectations. However, there are limits to the extent to which we can monitor their regulatory compliance.
Any determination that our disbursement partners or their sub-disbursement partners have violated laws and regulations could seriously
damage our reputation, resulting in diminished revenue and profit and increased operating costs. While our services are not directly
regulated by governments outside the United States, except with respect to IDT Financial Services Limited, or IDTFS, our Gibraltar-based
bank as discussed below, it is possible that in some cases we could be liable for the failure of our disbursement partners or their sub-disbursement
partners to comply with laws, which also could harm our business, financial condition, and results of operations.

 IDTFS
is a licensed bank regulated by the Gibraltar Financial Services Commission ("GFSC"). As a deposit-taking institution, IDTFS
is authorized to provide a wide range of regulated banking and financial services, including the issuance of electronic money, payment
services and foreign exchange services. As a regulated bank, IDTFS is subject to stringent supervisory oversight and is required to maintain
robust governance, risk management, anti-money laundering (AML) controls, and capital adequacy in accordance with Gibraltarian and EU
financial regulations. The GFSC's oversight extends to all aspects of IDTFS' operations, including customer due diligence,
transaction monitoring, and safeguarding of client funds. Failure to comply with regulatory obligations could result in fines, enforcement
actions, reputational damage, or, in severe cases, revocation of the banking license.

 IDT
Services Limited (IDTS) is regulated by the Malta Financial Services Authority (MFSA) and operates under the Maltese and EU legal framework
for financial services providers. It was licensed by the MFSA as an Electronic Money Institution (EMI) in May 2025, authorizing it to
issue electronic money and provide payment services. While its operational scope differs from that of IDTFS, IDTS is nonetheless subject
to similar regulatory expectations regarding AML compliance, internal governance, data protection, and financial reporting. The MFSA
conducts regular supervision to ensure ongoing compliance with applicable regulations. Non-compliance could result in regulatory sanctions
or, ultimately, the withdrawal of authorization.

 We
receive, store, process, and use personal information and other data, which subjects us to governmental regulation and other legal obligations
related to privacy. Our actual or perceived failure to comply with such obligations could harm our business, financial condition, and
results of operations.

 We
receive, store, and process personal information and other customer data, including bank account numbers, credit and debit card information,
identification numbers, and images of government identification cards. As a result, we are required to comply with the privacy provisions
of the Gramm-Leach-Bliley Act of 1999, or the Gramm-Leach-Bliley Act, and the Payment Card Industry Data Security Standard, or PCI DSS.
There are also numerous other federal, state, local, and international laws, such as the California Consumer Privacy Act, or CCPA and
the EU's General Data Protection Regulation, or GDPR, regarding privacy and the storing, sharing, use, processing, disclosure,
and protection of personal information and other customer data, the scope of which are changing, subject to differing interpretations,
and may be inconsistent among different jurisdictions or conflict with other applicable rules. It is possible that these obligations
may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other rules or
our business practices.

 Additionally,
with advances in computer capabilities and data protection requirements to address ongoing threats, we may be required to expend significant
capital and other resources to protect against potential security breaches or to alleviate problems caused by security breaches.

 Any
failure or perceived failure by us to comply with our privacy policies, our privacy-related obligations to customers or other third parties,
or our privacy-related legal obligations, or any compromise of security that results in the unauthorized release or transfer of personally
identifiable information or other customer data, may result in governmental enforcement actions, fines, or litigation. If there is a
breach of credit or debit card information that we store, we could also be liable to the issuing banks for their cost of issuing new
cards and related expenses. In addition, a significant breach could result in our being prohibited from processing transactions for any
of the relevant network organizations, such as Visa or MasterCard, which would harm our business. If any third parties with whom we work,
such as marketing partners, vendors, or developers, violate applicable laws or our policies, such violations may put our customers'
information at risk and could harm our business. Any negative publicity arising out of a data breach or failure to comply with applicable
privacy requirements could damage our reputation and cause our customers to lose trust in us, which could harm our business, results
of operations, financial position, and potential for growth.

 We
may be harmed by certain imminent FCC Orders and rules that effect the telecommunications marketplace.

 In
the Telephone Robocall Abuse Criminal Enforcement and Deterrence, or TRACED, Act, Congress gave the FCC new tools to fight unwanted,
and often illegal, robocalls, the top consumer complaint reported to the FCC annually. The TRACED Act required the FCC to mandate the
STIR/SHAKEN caller identification framework. STIR/SHAKEN enables phone companies to verify that the caller ID information transmitted
with a call matches the caller's real phone number. The FCC has issued a series of Orders and adopted several rules to implement
the TRACED Act.

 The
FCC's rules present several concerns to all carriers. Notably, the FCC has prohibited STIR/SHAKEN compliant carriers, such as IDT,
from doing business with non-compliant carriers.

 Additionally,
the rules extend to many foreign carriers, and it is unclear whether foreign carriers will be sufficiently educated and experienced to
implement U.S. rules and regulations. Foreign carrier compliance, or the lack thereof, could impact U.S. carriers as they seek to meet
their own regulatory obligations. There may also be changes in the marketplace as foreign carriers may look to limit U.S. carrier partners
to whom they transmit calls for termination in the U.S. that are subject to the STIR/SHAKEN rules.

 In
Canada, the Canadian Radio-Television and Telecommunications Commission, or CRTC is implementing near-identical STIR/SHAKEN rules as
the FCC is implementing in the U.S. although it is not apparent whether the CRTC will punish service providers who fail to meet their
obligations with the zealousness of the FCC. We expect that additional national communications regulators will implement similar, if
not identical, STIR/SHAKEN legislation.

 We
anticipate meeting our regulatory obligations under the STIR/SHAKEN rules and we are undertaking efforts to prevent us from being harmed
by potential changes in the marketplace. Nevertheless, the FCC's rules allow for the possibility that well-prepared carriers with
anti-robocalling procedures in place may fail and be punished for their failure, despite their best efforts. Moreover, because the STIR/SHAKEN
rules may have a significant impact on the telecommunications marketplace, it is difficult to predict their outcome. We are prepared
for the implementation of STIR/SHAKEN but are concerned about its impact on the market as a whole and on us specifically.

 Federal
and state regulations may be passed that could harm our business, financial condition, and results of operations.

 Our
ability to provide VoIP communications services at attractive rates arises in large part from the fact that VoIP services are not currently
subject to the same level of regulation as traditional, switch-based telephony. The use of the Internet and private IP networks to provide
voice communications services is largely unregulated within the United States, although several foreign governments have adopted laws
and/or regulations that could restrict or prohibit the provision of voice communications services over the Internet or private IP networks.
In the United States, the California PUC has initiated a proceeding under which we believe the PUC will expand its authority to regulate
interconnected VOIP. Other states are expected to follow the California PUC's lead. If interconnected VoIP services become subject
to state regulation and/or additional regulation by the FCC, such regulation will likely lead to higher costs and reduce or eliminate
the competitive advantage interconnected VoIP holds over traditional telecommunications services by virtue of its lesser regulatory oversight.
More aggressive regulation of the Internet in general, and Internet telephony providers and services specifically, may materially and
adversely affect our business, financial condition, and results of operations.

 Our
ability to offer services outside of the United States is subject to the local regulatory environment, which may be unfavorable, complicated,
and often uncertain.

 Regulatory
treatment outside the United States varies from country to country. We distribute our products and services through resellers that may
be subject to telecommunications regulations in their home countries. The failure of these resellers to comply with these laws and regulations
could reduce our revenue and profitability or expose us to audits and other regulatory proceedings. Regulatory developments such as these
could have a material adverse effect on our operating results.

 In
many countries in which we operate, or our services are sold, the status of the laws that may relate to our services is unclear. We cannot
be certain that our customers, resellers, or other affiliates are currently in compliance with regulatory or other legal requirements
in their respective countries, that they or we will be able to comply with existing or future requirements, and/or that they or we will
continue in compliance with any requirements. Our failure or the failure of those with whom we transact business to comply with these
requirements could materially adversely affect our business, financial condition, and results of operations.

 While
we expect additional regulation of our industry in some or all these areas, and we expect continuing changes in the regulatory environment
as new and proposed regulations are reviewed, revised and amended, we cannot predict with certainty what impact new laws in these areas
will have on us, if any.

VoIP services are subject to regulation in the United States and Canada. Future legislative, regulatory, or judicial actions could adversely
affect net2phone's business and expose it to liability and limit its growth potential.

 The
United States and Canada have applied some traditional telephone company regulations to VoIP and continue to evaluate how VoIP should
be regulated, as are other countries as we expand globally. The effects of future regulatory developments are uncertain. At the federal
level in the United States, the FCC has imposed certain telecommunications regulations on VoIP services including, but not limited to:

 Requirements to provide E-911
 service;

 Communications Assistance
 for Law Enforcement Act obligations;

 Obligation to support Universal
 Service;

 Customer Proprietary Network
 Information, or CPNI, requirements;

 Disability access obligations;

 Local Number Portability
 requirements; and

 Consumer protection, including
 protection from unwanted telemarketing and other calls.

 In
Canada, the CRTC regulates VoIP Service. These regulated services are similar to those regulated in the United States discussed above.
We are subject to a variety of other federal, state and international laws and regulations as well as oversight from a variety of governmental
agencies and public service commissions. The laws governing our business may change in ways that harm our business. Federal, state, or
international governmental agencies administering and enforcing such laws may also choose to interpret and apply them in ways that harm
our business. These interpretations are also subject to change. Regulatory action could materially impair or force us to change our business
model and may adversely affect our revenue, increase our compliance costs, and reduce our profitability. In addition, governmental agencies
such as the Securities and Exchange Commission, Internal Revenue Service, FTC, FCC, and state taxing authorities may conclude that we
have violated federal laws, state laws or other rules and regulations, and we could be subject to fines, penalties or other actions that
could adversely impact our financial results or our ability to conduct business.

 We
are subject to legal proceedings in the ordinary course of business that may have a material adverse effect on our business, results
of operations, cash flows, or financial condition.

 Various
legal proceedings that have arisen or may arise in the ordinary course of business have not been finally adjudicated, which may have
a material adverse effect on our results of operations, cash flows, or financial condition (see Note 22 to our Consolidated Financial
Statements in Item 8 to Part II of this Annual Report).

 Our
telecommunications services are required to comply with industry standards, FCC regulations, privacy laws as well as certain state and
local jurisdiction specific regulations. Failure to comply with existing laws and any new laws that may become applicable to us may subject
us to penalties, increase our operating costs, and may also require us to modify existing products and/or service.

 The
acceptance of telecommunications services is dependent upon our meeting certain industry standards. We are required to comply with certain
rules and regulations of the FCC regarding safety standards. Standards are continuously being modified and replaced. As standards evolve,
we may be required to modify our existing products or develop and support new versions of our products. We must comply with certain federal,
state, and local requirements regarding how we interact with our customers, including marketing practices, consumer protection, privacy,
and billing issues, the provision of emergency 911 service, and the quality of service we provide to our customers. The failure of our
products and services to comply, or delays in compliance with various existing and evolving standards could delay future offerings and
impact our revenues and profitability. Changes to the Universal Service Fund by the FCC or various state Universal Service Funds may
require us to increase our costs which could negatively affect revenue and profitability.

 We
are subject to Federal laws and FCC regulations that require us to protect customer information. While we have protections in place to
protect customer information there is no assurance that our systems will not be subject to failure or intentional fraudulent attack.
The failure to protect required information could subject us to penalties and diminish the confidence our customers have in our systems,
which could negatively affect results. While we try to comply with all applicable data protection laws, regulations, standards, and codes
of conduct, as well as our own posted privacy policies and contractual commitments to the extent possible, any failure by us to protect
our customers' privacy and data, including as a result of our systems being compromised by hacking or other malicious or surreptitious
activity, could result in a loss of customer confidence in our services and ultimately in a loss of customers, which could materially
and adversely affect our business as well as subject us to law suits, civil fines and criminal penalties.

 Governmental
entities, class action lawyers, and consumer advocates are reviewing the data collection and use by companies that must maintain such
data. Our own requirements as well as regulatory codes of conduct, enforcement actions by regulatory agencies, and lawsuits by other
parties could impose additional compliance costs on us as well as subject us to unknown potential liabilities. These evolving laws, rules,
and practices may also curtail our current business activities, which may delay or affect our ability to become profitable as well as
affect customers and other business opportunities.

 In
addition, several foreign countries and governmental bodies, including the EU, Brazil, and Canada, have laws and regulations concerning
the collection and use of personally identifiable information obtained from their residents, including payment card information, which
are often more restrictive than those in the U.S. Laws and regulations in these jurisdictions apply broadly to the collection, use, storage,
disclosure, and security of personally identifiable information, including payment card information identifying, or which may be used
to identify, an individual, such as names, email addresses, and, in some jurisdictions, IP addresses, device identifiers, and other data.
As we conduct business or become deemed to conduct business in foreign jurisdictions, including through websites that we host that may
be available in these locations, we may become subject to those laws and regulations.

 We
are also subject to privacy and data protection-related obligations in our contracts with our customers and other third parties. Any
failure, or perceived failure, to comply with federal, state, or international laws, or to comply with our contractual obligations related
to privacy, could result in proceedings or actions against us which could result in significant liability to us as well as harm to our
reputation. Additionally, third parties with whom we contract may violate or appear to violate laws or regulations which could subject
us to the same risks. Any new laws, regulations, other legal obligations or industry standards, or any changed interpretation of existing
laws, regulations or other standards may require us to incur additional costs and restrict our business operations.

 Our
collection, processing, storage, use, and transmission of personal data could give rise to liabilities because of governmental regulation,
conflicting legal requirements, differing views on data privacy, or security breaches.

 We
engage in electronic billing and processing of our customers using secure transmission of sometimes confidential information over public
networks. We have systems and processes in place that are designed to protect consumer information and prevent fraudulent credit card
transactions and other security breaches. However, there is no guarantee that such systems and processes will not experience a failure.
Our failure to protect against fraud or breaches may subject us to costly breach notification and other mitigation obligations, class
action lawsuits, investigations, fines, forfeitures, or penalties from governmental agencies that could adversely affect our operating
results. We may be unable to prevent our customers from fraudulently receiving goods and services. Personal data is increasingly subject
to legal and regulatory protections around the world, which vary widely in approach and which possibly conflict with one another. In
recent years, for example, U.S. legislators and regulatory agencies, such as the FTC, as well as U.S. states have increased their focus
on protecting personal data by law and regulation and have increased enforcement actions for violations of privacy and data protection
requirements. The CCPA requires, among other things, covered companies to provide new disclosures to California consumers, and afford
such consumers new abilities to opt-out of certain sales of personal information. While we believe that we are not a covered entity under
the law, the effects of the CCPA potentially are significant, and may require us to modify our data processing practices and policies
and to incur substantial costs and expenses to comply. We may also from time to time be subject to, or face assertions that we are subject
to, additional obligations relating to personal data by contract or due to assertions that self-regulatory obligations or industry standards
apply to our practices.

 We
may also experience losses due to customer fraud and theft of service, such as fraudulent credit card transactions. Customers have, in
the past, obtained access to our service without paying for monthly service and international toll calls by unlawfully using fraudulently
obtained codes. If our existing anti-fraud procedures are not adequate or effective, consumer fraud and theft of service could have a
material adverse effect on our business, financial condition, and operating results.

 The
GDPR and the Data Protection Act in the United Kingdom are intended to protect the privacy and security of personal data, including credit
card information that is collected, processed, and transmitted in or from the relevant jurisdiction. We stopped hosting websites in GDPR-complaint
countries or countries from which the bulk of business came from countries subject to GDPR. We also took steps to block those countries
from accessing any other sites we host. While we do not currently provide services in countries where compliance would be required and
are therefore not required to be compliant, if we did provide those services or otherwise were required to become complaint, implementation
of and compliance with these laws and regulations may be more costly or take longer than we anticipate, or could otherwise adversely
affect our business operations, which could negatively impact our financial position or cash flows.

 Additionally,
media coverage of data breaches has escalated, in part because of the increased number of enforcement actions, investigations, and lawsuits.
As this focus and attention on privacy and data protection increases, we also risk exposure to potential liabilities and costs resulting
from compliance with or any failure to comply with applicable legal requirements, conflicts among these legal requirements, or differences
in approaches to privacy.

 We
could fail to comply with requirements for debit card, credit card, and other digital payment methods, which could have a material adverse
effect on our revenues, results of operations, and financial condition.

 A
significant and increasing portion of our transactions are processed using debit cards, credit cards, and other digital payment methods.
The banks, credit card companies, networks, and other payment processing providers impose strict regulatory, compliance, system, and
other requirements to participate in such parties' payment systems. We are required to comply with the privacy provisions of various
federal and state privacy statutes and regulations, and the PCI DSS, each of which is subject to change at any time. Compliance with
PCI DSS does not guarantee a completely secure environment and notwithstanding the results of this assessment there can be no assurance
that payment card brands will not request further compliance assessments or set forth additional requirements to maintain access to credit
card processing services. Compliance with PCI DSS is an ongoing effort, and the requirements evolve as new threats are identified. Compliance
with these requirements is often difficult and costly, and our failure, or our counterparty's failure, to comply may result in
significant fines or civil penalties, regulatory enforcement action, or liability under or termination of necessary agreements, each
of which could have a material adverse effect on our financial position and/or operations and that of our distributors who could be liable
as well.

 Further,
our payment services are subject to stringent requirements by regulators and trade organizations in various jurisdictions. Our payment
services unit is subject to federal and state banking regulations, and we are also subject to further regulation by those states in which
we are licensed as a money transmitter. We may not be able to comply with all such requirements in a timely manner or remain in compliance.
If we are not in compliance, we could be subject to penalties or the termination of our rights to participate in such payment systems
or provide such services, which could have a material negative impact on our ability to grow our businesses and our revenues and profits.

 We
face risks in our sales to certain market segments including, but not limited to, sales subject to HIPAA Regulations.

 Our
customers can use our services to store contact and other personal or identifying information, and to process, transmit, receive, store,
and retrieve a variety of communications and messages, including information about their own customers and other contacts. In addition,
customers may use our services to store protected health information, or PHI, that is protected under the Health Insurance Portability
and Accountability Act, or HIPAA. We have sold and will continue to attempt to sell to certain customer segments which may have requirements
for additional privacy or security. In addition, sales may be made to customers that are subject to additional security requirements.
Selling into segments with additional requirements increases potential liability that in some instances may be unlimited. While we believe
we meet or exceed all requirements for sales to such segments, there is no assurance that our systems fully comply with all requirements.
Noncompliance with laws and regulations relating to privacy and HIPAA may lead to significant fines, penalties, or civil liability.

 Our
ability to offer services outside the United States is subject to different regulations which may be unknown and uncertain.

 Regulatory
treatment of VoIP providers outside the United States varies from country to country, and local jurisdictions. Many times, the laws are
vague, unclear and regulations are not enforced uniformly. We are licensed as a VoIP seller in our international markets and are considering
expanding to other countries. We also cannot control if our customers take their devices out of the United States and use them abroad.
Our resellers may sell to customers who maintain facilities outside the United States. The failure by us or our customers and resellers
to comply with laws and regulations could reduce our revenue and profitability. As we expand to additional countries there may be additional
regulations that we are required to comply with, the failure to comply or properly assess regulations may subject us to penalties, fines,
and other actions that could materially affect our business.

 Examinations
by relevant tax authorities may result in material changes in related tax reserves for tax positions taken in previously filed tax returns
or may impact the valuation of certain deferred income tax assets, such as net operating loss carry-forwards.

 Based
on the outcome of examinations by relevant tax authorities, or because of the expiration of statutes of limitations for specific jurisdictions,
it is reasonably possible that the related tax reserves for tax positions taken regarding previously filed tax returns will materially
change from those recorded in our financial statements. In addition, the outcome of examinations may impact the valuation of certain
deferred income tax assets (such as net operating loss carry-forwards) in future periods. It is not possible to estimate the impact of
the amount of such changes, if any, on previously recorded uncertain tax positions.

 There
may be a negative effect on our business going forward because of changes to net neutrality.

 The
principle that Internet service providers should treat all Internet communications equally and not charge users different rates for various
tiers of service or prioritize certain traffic while blocking or slowing down others, is called net neutrality. On January 4, 2018, the
FCC released an order that largely repealed prior FCC rules that prevented broadband internet access providers from degrading or otherwise
disrupting a broad range of services provisioned over consumers' and enterprises' broadband internet access lines. In January
2025, the U.S. Court of Appeals for the Sixth Circuit struck down the FCC's January 2018 order.

 Many
of the largest providers of broadband services, like cable companies and traditional telephone companies, have publicly stated that they
will not degrade or disrupt their customers' use of applications and services, like ours. However, there was no guarantee that
they would not do so in the future. If such providers were to degrade, impair, or block our services, it would negatively impact our
ability to provide services to our customers, and we would likely lose revenue and profits. We would probably incur legal fees in an
attempt to restore our customers' access to our services. Broadband internet access providers may also attempt to charge us or
our customers additional fees to access services like ours that may result in the loss of customers and revenue, or increase our costs
thereby reducing our profitability, or make our services less competitive if we increase our rates to our customers.

 Following
the adoption of the FCC's January 2018 order, several states passed state-level net neutrality laws. However, we cannot rely on
those state laws because of potential opposition from the federal government. We cannot predict the ultimate outcome of these disputes.

are adding regulations for VoIP providers which could increase our costs and change certain aspects of our service.

states take the position that offerings by VoIP providers may include intrastate communications and should therefore be subject to state
regulation including state taxes or surcharges. We have registered as an interconnected VoIP provider in those states where registration
is required; however, our rates are not regulated in the same manner as traditional telephone service providers. We believe that the
FCC has pre-empted states from regulating VoIP providers in the same manner as providers of traditional telecommunications services.
We cannot predict how this issue will be resolved or its impact on our business at this time.

 Taxing
authorities may successfully assert that we should have collected or in the future should collect sales and use, value added, or similar
taxes, and any such assessments could adversely affect our business, financial condition, and results of operations.

 Jurisdictions
in which we do not collect sales, use, value added, or similar taxes on VoIP services or other products may assert that such taxes are
applicable, which could result in tax assessments, penalties, and interest, and we may be required to collect such taxes in the future.
Such tax assessments, penalties, interest, or future requirements could adversely affect our financial condition and results of operations.
Further, in June 2018, the Supreme Court held in South Dakota v. Wayfair, Inc. that states could impose sales tax collection obligations
on out-of-state sellers even if those sellers lack any physical presence within the states imposing the sales taxes. Under Wayfair,
a person requires only a "substantial nexus" with the taxing state before the state may subject the person to sales tax collection
obligations therein. An increasing number of states (both before and after the publication of Wayfair) have considered or adopted
laws that attempt to impose sales tax collection obligations on out-of-state sellers. The Supreme Court's Wayfair decision
has removed a significant impediment to the enactment and enforcement of these laws, and it is possible that states may seek to tax out-of-state
sellers on sales that occurred in prior tax years, which could create additional administrative burdens for us, put us at a competitive
disadvantage if such states do not impose similar obligations on our competitors, and decrease our future sales, which would adversely
impact our business, financial condition, and results of operations.

 Risks
Related to Our Capital Structure

 Holders
of our Class B common stock have significantly less voting power than holders of our Class A common stock.

 Holders
of our Class B common stock are entitled to one-tenth of a vote per share on all matters on which our stockholders are entitled to vote,
while holders of our Class A common stock are entitled to three votes per share. As a result, the ability of holders of our Class B common
stock to influence our management is limited.

 We
are controlled by our principal stockholder, which limits the ability of other stockholders to affect the management of the Company.

S. Jonas, our Chairman and Chairman of the Board of Directors, controls a majority of the voting power of our capital stock. As of September
24, 2025, Mr. Jonas has voting power over 1,574,326 shares of our Class A common stock (which are convertible into shares of our Class
B common stock on a 1-for-1 basis) and 2,630,045 shares of our Class B common stock, representing approximately 70.3% of the combined
voting power of our outstanding capital stock. Mr. Jonas will be able to control all matters requiring approval by our stockholders,
including the election of all the directors and the approval of significant corporate matters, including any merger, consolidation or
sale of all or substantially all of our assets. As a result, the ability of any of our other stockholders to influence our management
is limited.

 Item
1B. Unresolved Staff Comments.

 None.

 Item
1C. Cybersecurity.

 Cybersecurity
risk management and strategy

 Our
cybersecurity risk management is based on recognized cybersecurity industry frameworks and standards, including those of the National
Institute of Standards and Technology, the Center for Internet Security Controls, and the International Organization for Standardization.
We use these frameworks, together with information collected from internal assessments, to develop policies for the use of our information
assets (for example, business information and information resources such as mobile phones, computers and workstations), access to specific
intellectual property or technologies, and protection of personal information. We protect these information assets through industry-standard
techniques, such as multifactor authentication and malware defenses. We also work with internal stakeholders across the company to integrate
foundational cybersecurity principles throughout our organization's operations, including the employment of multiple layers of
cybersecurity defenses, restricted access based on business needs, and integrity of our business information. We also regularly train
our employees on cybersecurity awareness, confidential information protection and simulated phishing attacks.

 We
regularly engage third-party assessors to conduct penetration testing and measure our program to industry standard frameworks. We also
have standing engagements with incident response experts and external counsel. We frequently collaborate with industry experts and cybersecurity
practitioners at other companies to exchange information about potential cybersecurity threats, best practices and trends.

 Our
cybersecurity risk management extends to risks associated with our use of third-party service providers. For instance, we conduct risk
and compliance assessments of third-party service providers that request access to our information assets.

 Our
cybersecurity risk management is an important part of our comprehensive business continuity program and enterprise risk management. Our
global information security team periodically engages with a cross-functional group of subject matter experts and leaders to assess and
refine our cybersecurity risk posture and preparedness. For example, we regularly evaluate and update contingency strategies for our
business in the event that a portion of our information resources were to be unavailable due to a cybersecurity incident. We practice
our response to potential cybersecurity incidents through regular tabletop exercises, threat hunting and red team exercises.

 Governance
of cybersecurity risk management

 Our
Board of Directors, as a whole, has oversight responsibility for our strategic and operational risks. Our Audit Committee of our Board
of Directors assists the Board of Directors with this responsibility by reviewing and discussing our risk assessment and risk management
practices, including cybersecurity risks, with members of management. The Audit Committee, in turn, periodically reports on its review
with the Board of Directors.

 Management
is responsible for day-to-day assessment and management of cybersecurity risks and reports regularly to our Audit Committee.

 Item
2. Properties.

 Our
headquarters is located at 520 Broad Street, Newark, New Jersey. We occupy approximately 42,300 square feet of space in this building
and have parking rights in a parking garage located across the street at 36 Atlantic Street, Newark, New Jersey.

 We
also occupy approximately 3,600 square feet of office space in Jerusalem, Israel that is owned by Rafael Holdings.

 We
lease space in New York, New York for corporate purposes as well as a number of other locations in metropolitan areas. These leased spaces
are utilized primarily to house telecommunications equipment and retail operations.

 We
maintain our European headquarters in London, England. We also maintain other international office locations and telecommunications facilities
in regions of Europe, Latin America, the Middle East, Asia, and Africa where we conduct operations.

 Item
3. Legal Proceedings.

 Legal
proceedings disclosure is presented in Note 22 to our Consolidated Financial Statements in Item 8 to Part II of this Annual Report.

 Item
4. Mine Safety Disclosures.

 Not
applicable.

 Part
II

 Item
5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 Our
Class B common stock trades on the New York Stock Exchange under the symbol "IDT."

 On
September 22, 2025, there were 254 holders of record of our Class B common stock and one holder of record of our Class A common stock.
All shares of Class A common stock are beneficially owned by Howard S. Jonas, our Chairman and the Chairman of the Board. The number
of holders of record of our Class B common stock does not include the number of persons whose shares are in nominee or in "street
name" accounts through brokers. On September 22, 2025, the last sales price reported on the New York Stock Exchange for our Class
B common stock was $68.30 per share.

 In
fiscal 2018, our Board of Directors discontinued our quarterly dividend, electing instead to repurchase shares of our Class B common
stock when warranted by market conditions, available resources, and our business outlook and results, as well as to invest in our growth
business initiatives. Accordingly, no dividends were paid since fiscal 2018 until fiscal 2024.

 In
March 2024, our Board of Directors initiated a quarterly cash dividend of $0.05 per share on our Class A and Class B common stock. In
fiscal 2024, we paid aggregate cash dividends of $2.5 million on our Class A and Class B common stock.

 In
fiscal 2025, we paid a dividend of $0.05 per share on our Class A and Class B common stock on each of October 7, 2024 and December 31,
2024 and a dividend of $0.06 per share on our Class A and Class B common stock on each of March 25, 2025 and June 18, 2025. In fiscal
2025, we paid aggregate cash dividends of $5.6 million on our Class A and Class B common stock.

 In
September 2025, we declared a dividend of $0.06 per share on our Class A and Class B common stock that is payable on October 10, 2025.

 The
information required by Item 201(d) of Regulation S-K will be contained in our Proxy Statement for our Annual Stockholders Meeting, which
we will file with the Securities and Exchange Commission within 120 days after July 31, 2025, and which is incorporated by reference
herein.

 Performance
Graph of Stock

 Issuer
Purchases of Equity Securities

 The
following table provides information with respect to purchases by us of our shares during the fourth quarter of fiscal 2025.

 Total
 Number of
 Purchased

 Average
 Price
 per Share

 Total Number of Shares Purchased as part of Publicly Announced
 Plans
 or Programs

 Maximum
 Number of Shares that May Yet Be Purchased Under the Plans
 or Programs (1)

 May 1 – 31, 2025

 —

 —

 —

 4,496,621

 June 1 – 30, 2025

 —

 —

 —

 4,416,114

 July 1 – 31, 2025

 —

 —

 —

 4,403,786

 Total

 —

 —

 —

 (1)

 On January 22, 2016, our
 Board of Directors approved a stock repurchase program to purchase up to 8.0 million shares of our Class B common stock.

 Item
6. [Reserved]

 Item 7. Management's Discussion and Analysis
of Financial Condition and Results of Operations.

 This Annual Report contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements
that contain the words "believes," "anticipates," "expects," "plans," "intends"
and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results
to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the
forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are
not limited to, those discussed under Item 1A to Part I "Risk Factors" in this Annual Report. The forward-looking statements
are made as of the date of this Annual Report, and we assume no obligation to update the forward-looking statements, or to update the
reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information
set forth in this report and the other information set forth from time to time in our reports filed with the Securities and Exchange
Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934, including our periodic and current reports
on Forms 10-Q and 8-K.

 The following discussion should be read in conjunction
with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Annual Report.

 Our Management's Discussion and Analysis of
Financial Condition and Results of Operations included in this Annual Report generally discusses fiscal 2025 and fiscal 2024 items and
year-to-year comparisons between fiscal 2025 and fiscal 2024. Discussions of fiscal 2023 items and year-to-year comparisons between fiscal
2024 and fiscal 2023 that are not included in this Annual Report can be found in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31,
2024.

 CRITICAL ACCOUNTING ESTIMATES

 Our financial statements and accompanying notes are
prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. The preparation of
financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue,
and expenses as well as the disclosure of contingent assets and liabilities. Critical accounting estimates are estimates made in accordance
with U.S. GAAP that involve a significant level of estimation uncertainty and have had, or are reasonably likely to have, a material
impact on our financial condition or results of operations. Our critical accounting estimates include those related to goodwill impairment
testing, valuation of long-lived assets, allowance for credit losses, and income taxes, sales taxes, and regulatory agency fees. See
Note 1 to the Consolidated Financial Statements in Item 8 to Part II of this Annual Report for a complete discussion of our significant
accounting policies.

 Goodwill Impairment Testing

 Under U.S. GAAP, goodwill is not amortized but is
reviewed annually for impairment at a level of reporting referred to as a reporting unit. A reporting unit is an operating segment, or
one level below the operating segment, depending on whether certain criteria are met.

 Our annual assessment date is May 1. An interim impairment
test would be required whenever events or circumstances make it more likely than not that an impairment may have occurred. The goodwill
impairment test compares the fair value of a reporting unit with its carrying amount. We would recognize an impairment charge for the
amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized would not exceed the
total amount of goodwill. Additionally, we consider income tax effects from any tax-deductible goodwill on the carrying amount of the
reporting unit when measuring the goodwill impairment loss, if applicable.

 We have the option to perform a qualitative assessment
to determine whether it is necessary to perform the quantitative goodwill impairment test. However, we may elect to perform the quantitative
goodwill impairment test even if no indications of a potential impairment exist.

 The carrying amount of our goodwill by reporting
unit was as follows:

 2025

 2024

 Retail Communications

 $
 11.3

 $
 11.2

 9.9

 9.8

 3.2

 3.2

 IDT Digital Payments

 2.1

 2.1

 TOTAL

 $
 26.5

 $
 26.3

 For our annual goodwill impairment test as of May
1, 2025, we performed qualitative assessments for all of our reporting units that indicated that it was more likely than not that the
fair values of our reporting units exceeded their respective carrying values and, therefore, did not result in an impairment.

 For our annual goodwill impairment test as of May
1, 2024, we performed quantitative assessments of our Retail Communications and net2phone reporting units and qualitative assessments
for our Fintech and IDT Digital Payments reporting units. Our assessments did not indicate any goodwill impairment as of May 1, 2024.
For the quantitative assessments, we calculated the fair value of the reporting unit using a discounted cash flow method as a form of
the income approach. The discounted cash flow method is based on the present value of projected cash flows and a terminal value. The
terminal value represents the expected normalized future cash flows of the reporting unit beyond the projection period. We used a discount
rate based on the weighted-average cost of capital of comparable companies by Global Industry Classification Standard code that represented
our estimate of the expected return a marketplace participant would have required.

 We do not believe we are currently at risk of goodwill
impairment based on qualitative assessments of our reporting units for the three months ended July 31, 2025. We considered several factors
in these qualitative assessments including (i) the business enterprise value of the reporting unit from the last quantitative test and
the excess of the fair value over carrying value, (ii) macroeconomic conditions including changes in interest rates and discount rates,
(iii) industry and market considerations including industry revenue, EBITDA margins, and multiples based on business enterprise value
to revenues and to EBITDA, and (iv) the recent financial performance and budget of the reporting unit.

 Calculating the fair value of a reporting unit requires
significant estimates and assumptions by management. The key assumptions and judgments underlying our quantitative assessment include
the discount rates and terminal growth rates used in our discounted cash flow analysis, the revenue and EBITDA projections for our reporting
units, and estimates of future levels of gross and operating profits and capital expenditures. Should the estimates and assumptions regarding
the fair value of the reporting units prove to be incorrect, we may be required to record impairments to goodwill in future periods.

 Valuation of Long-Lived Assets

 We test the recoverability of our long-lived assets
whenever events or changes in circumstances indicate that the carrying value of any such asset may not be recoverable. Such events or
changes in circumstances include:

 §
 significant
 actual underperformance relative to expected performance or projected future operating results;

 §
 significant
 changes in the manner or use of the asset or the strategy of our overall business;

 §
 significant
 adverse changes in the business climate in which we operate; and

 §
 loss
 of a significant contract.

 There were no such events or changes in circumstances
in fiscal 2025 or fiscal 2024. If we determine that events or changes in circumstances indicate the carrying value of certain long-lived
assets may not be recoverable, we test for impairment based on the projected undiscounted cash flows to be derived from such asset. If
the projected undiscounted future cash flows are less than the carrying value of the asset, we will record an impairment loss based on
the difference between the estimated fair value and the carrying value of the asset. We generally measure fair value by considering sale
prices for similar assets or by discounting estimated future cash flows from the asset using an appropriate discount rate. Cash flow
projections for specific assets and fair value estimates of assets require significant estimates and assumptions by management that have
a significant level of estimation uncertainty. Should our estimates and assumptions prove to be incorrect, we may be required to record
impairments in future periods and such impairments could be material.

 Allowance for Credit Losses on Accounts Receivable

 Our allowance for credit losses was $9.1 million
and $6.4 million at July 31, 2025 and 2024, respectively, partially due to an increase in credit losses related to ads and data. The allowance as a percentage of gross trade accounts receivable increased
to 17.5% at July 31, 2025 from 13.1% at July 31, 2024 because, at July 31, 2025 compared to July 31, 2024, gross trade accounts receivable
increased 7.0% and the allowance increased 43.2%. The most significant increase in the trade accounts receivable balance at July 31,
2025 compared to July 31, 2024 was in NRS.

 For our allowance for trade accounts receivable,
we record an expense based on a forward-looking current expected credit loss model to maintain our allowance for credit losses. We consider
the probability of recoverability of accounts receivable based on past experience, considering current collection trends and general
economic factors, including bankruptcy rates. We also consider future economic trends to estimate expected credit losses over the lifetime
of the asset. Credit risks are assessed based on historical write-offs, net of recoveries, as well as an analysis of the aged accounts
receivable balances with allowances generally increasing as the receivable ages. Accounts receivable may be fully reserved for when specific
collection issues are known to exist, such as pending bankruptcies. Account balances are written off against the allowance when it is
determined that the receivable will not be recovered.

 Our allowance for credit losses estimate is subject
to change due to new developments, changes in assumptions or changes in our strategy. We continually assess the likelihood of potential
amounts or ranges of recoverability and adjust our allowance accordingly; however, actual collections and write-offs of trade accounts
receivables may materially differ from our estimates.

 Income Taxes, Sales Taxes, and Regulatory Agency
Fees

 Our current and deferred income taxes and associated
valuation allowance, accruals for sales taxes, and telecom regulatory agency fee accruals, are impacted by events and transactions arising
in the normal course of business as well as in connection with special and non-routine items. Assessment of the appropriate amount of
income taxes, sales taxes, and regulatory agency fees is dependent on several factors, including estimates of the timing and realization
of deferred income tax assets, judgments about the potential results of audits and applicability of regulatory agency rules and regulations,
as well as judgments and assumptions about changes in income tax, sales tax, and regulatory agency laws, rules, or regulations.

 The valuation allowance on our deferred income tax
assets was $14.9 million and $13.6 million at July 31, 2025 and 2024, respectively. In fiscal 2025, we decreased the valuation allowance
by $3.4 million, due to profitability in the United Kingdom, offset by $4.7 million of additions in other jurisdictions. In fiscal 2024, we increased the valuation allowance by $3.0 million, which
included the establishment of a valuation allowance of $3.5 million for deferred income tax assets that were not more likely than not
going to be utilized prior to expiration, net of a decrease of $0.2 million due to the utilization or disposal of previously valued deferred
income tax assets and a release of $0.3 million for profitability in the United Kingdom.

 On June 21, 2018, the United States Supreme Court
rendered a decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the
state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning certain existing court precedent.
It is possible that one or more jurisdictions may assert that we have liability for periods for which we have not collected sales, use
or other similar taxes, and if such an assertion or assertions were successful it could materially and adversely affect our business,
financial position, and operating results. One or more jurisdictions may change their laws or policies to apply their sales, use
or other similar taxes to our operations, and if such changes were made it could materially and adversely affect our business, financial
position, and operating results.

 Our 2017 FCC Form 499-A, which reported our calendar
year 2016 revenue, was audited by the USAC. The USAC's final decision imposed a $2.9 million charge on us for the Federal Telecommunications
Relay Service, or TRS, Fund. We have appealed the USAC's final decision to the FCC and we do not intend to remit payment for the
TRS Fund fees unless and until a negative decision on our appeal has been issued. We have made certain changes to our filing policies
and procedures for years that remain potentially under audit. At July 31, 2025 and 2024, our accrued expenses included $21.1 million
and $25.9 million, respectively, for FCC-related regulatory fees for the year covered by the audit, as well as prior and subsequent years.

 RECENTLY ISSUED ACCOUNTING STANDARD NOT YET
ADOPTED

 In September 2025, the FASB issued ASU 2025-06 – Intangibles – Goodwill and Other – Internal-Use
Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance
by removing all references to software development project stages so that the guidance is neutral to different software development methods.
The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods
within those annual reporting periods, with early adoption permitted. The amendments in this update permit an entity to apply the new
guidance using a prospective, retrospective or modified transition approach. We are currently in the process of evaluating the effects
of this pronouncement on our consolidated financial statements.

 In November 2024, the Financial Accounting Standards
Board, or FASB, issued Accounting Standards Update, or ASU, No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense
Disaggregation Disclosures (Subtopic 220-40), to improve the disclosures about an entity's expenses including more detailed
information about the types of expenses in commonly presented expense captions. At each interim and annual reporting period, entities
will disclose in tabular format disaggregating information about prescribed categories underlying relevant income statement captions,
as well as the total amount of selling expense and a description of the composition of its selling expense. We will adopt the amendments
in this ASU for our fiscal year beginning on August 1, 2027. We are evaluating the impact that this ASU will have on our consolidated
financial statements.

 RESULTS OF OPERATIONS

 We evaluate the performance of our business segments
based primarily on income (loss) from operations. Accordingly, the income and expense line items below income (loss) from operations
are only included in our discussion of consolidated results of operations.

 As of July 31, 2025, we owned 94.0% of the outstanding
shares of our subsidiary, net2phone 2.0, Inc., or net2phone 2.0, which owns and operates the net2phone segment, and 81.6% of the outstanding
shares of NRS. On a fully diluted basis assuming all the vesting criteria related to various rights granted have been met, we would own
90.1% of the equity of net2phone 2.0 and 79.5% of the equity of NRS.

 Reclassifications

 From and after August 1, 2024, we reclassified certain
customer funds for pending money transfers in our consolidated financial statements. In the consolidated balance sheet at July 31, 2024,
$8.9 million previously included in "Settlement liabilities" was reclassified to "Customer funds deposits,"
and in the consolidated statements of cash flows in fiscal 2024 and fiscal 2023, cash provided by "Trade accounts payable, accrued
expenses, settlement liabilities, other current liabilities, and other liabilities" of $1.6 million and $2.0 million, respectively,
was reclassified to cash used in "Customer funds deposits". These amounts were reclassified to conform to the current year's
presentation.

 Concentration of Customers

 While they may vary from quarter to quarter, our
five largest customers collectively accounted for 8.9%, 10.3%, and 10.8% of our consolidated revenues in fiscal 2025, fiscal 2024, and
fiscal 2023, respectively. Our customers with the five largest receivables balance collectively accounted for 20.4% and 22.7% of our
consolidated gross trade accounts receivable at July 31, 2025 and 2024, respectively. This concentration of customers increases our risk
associated with nonpayment by those customers. In an effort to reduce our risk, we perform ongoing credit evaluations of our significant
customers, and in some cases, do not offer credit terms to customers, choosing instead to require prepayment. Historically, when we have
issued credit, we have not required collateral to support trade accounts receivable from our customers. However, when necessary, we have
imposed stricter credit restrictions on our customers. In some cases, this has resulted in our sharply curtailing, or ceasing completely,
sales to certain customers.

 Explanation of Performance Metrics

 Our results of operations discussion include the
following performance metrics:

 §
 for
 NRS, active POS terminals, payment processing accounts, and recurring revenue,

 §
 for
 net2phone, seats and subscription revenue, and

 §
 for
 Traditional Communications, minutes of use.

 NRS uses three key metrics to measure the size of its
customer base, including two that are non-GAAP measures: active POS terminals and payment processing accounts. Active POS terminals are the number of POS terminals that have completed
at least one transaction in the calendar month. It excludes POS terminals that have not been fully installed by the end of the month.
Payment processing accounts are accounts that can generate revenue. It excludes accounts that have been approved but not activated. In addition to the foregoing, NRS uses
recurring revenue as a performance metric, which consist of NRS' revenue in accordance with U.S. GAAP, excluding its revenue from POS terminal sales.

 net2phone's cloud communications offerings
are priced on a per-seat basis, with customers paying based on the number of users in their organization. net2phone's subscription
revenue is its revenue in accordance with U.S. GAAP excluding its equipment revenue and revenue generated by a legacy SIP trunking offering
in Brazil.

 The trends and comparisons between periods for the
number of active POS terminals, payment processing accounts, seats served, recurring revenue, and subscription revenue are used in the
analysis of NRS' or net2phone's revenues and direct cost of revenues and are strong indications of the top-line growth and
performance of the business.

 Minutes of use is a nonfinancial metric that measures
aggregate customer usage during a reporting period. Minutes of use is an important factor in BOSS Revolution's and IDT Global's
revenue recognition since satisfaction of our performance obligation occurs when the customer uses our service. Minutes of use trends
and comparisons between periods are used in the analysis of revenues and direct cost of revenues.

 Year Ended July 31, 2025 compared to Year Ended
July 31, 2024

 The following table sets forth certain items in our
statements of income as a percentage of our total revenues:

 2025

 2024

 2023

 REVENUES:

 10.5
 %

 8.6
 %

 6.2
 %

 12.6

 10.0

 7.0

 7.1

 6.8

 5.8

 Traditional Communications

 69.8

 74.6

 81.0

 TOTAL REVENUES

 100.0

 100.0

 100.0

 DIRECT COST OF REVENUES

 63.8

 67.6

 71.2

 GROSS PROFIT

 36.2

 32.4

 28.8

 OPERATING EXPENSES:

 23.4

 22.4

 19.6

 4.1

 4.2

 3.9

 —

 0.1

 —

 Other operating expense, net

 0.5

 0.3

 0.4

 TOTAL OPERATING EXPENSES

 28.0

 27.0

 23.9

 INCOME FROM OPERATIONS

 8.2

 5.4

 4.9

 Interest income, net

 0.5

 0.4

 0.3

 Other expense, net

 (0.1
)

 (0.7
)

 (0.3
)

 INCOME BEFORE
 INCOME TAXES

 8.6
 %

 5.1
 %

 4.9
 %

 National Retail Solutions Segment

 NRS, which represented 10.5%, 8.6%, and 6.2% of our
total revenues in fiscal 2025, fiscal 2024, and fiscal 2023, respectively, is an operator of a nationwide POS network providing independent
retailers with POS equipment, store management software, electronic payment processing, and other ancillary merchant services. NRS'
POS platform also provides marketers with digital out-of-home advertising and transaction data.

 2025

 2024

 2023

 $/#

 %

 $/#

 %

 Revenues:

 Recurring

 $
 122.6

 $
 96.9

 $
 71.4

 $
 25.7

 26.6
 %

 $
 25.5

 35.6
 %

 Other

 6.2

 6.2

 5.7

 —

 (1.5
)

 0.5

 10.5

 Total revenues

 128.8

 103.1

 77.1

 25.7

 24.9

 26.0

 33.7

 (11.9
)

 (11.6
)

 (10.7
)

 0.3

 2.6

 0.9

 8.3

 Gross profit

 116.9

 91.5

 66.4

 25.4

 27.7

 25.1

 37.9

 (78.0
)

 (62.6
)

 (47.0
)

 15.4

 24.5

 15.6

 33.3

 (8.7
)

 (7.1
)

 (5.0
)

 1.6

 22.8

 2.1

 42.5

 Other operating expense

 (2.4
)

 (0.2
)

 —

 2.2

 nm

 0.2

 nm

 Income from operations

 $
 27.8

 $
 21.6

 $
 14.4

 $
 6.2

 28.3
 %

 $
 7.2

 50.2
 %

 Gross margin percentage

 90.7
 %

 88.7
 %

 86.1
 %

 2.0
 %

 2.6
 %

 nm—not meaningful

 2025

 2024

 2023

 #

 %

 #

 %

 Active POS terminals

 37.2

 32.1

 25.7

 5.1

 15.8
 %

 6.4

 25.1
 %

 Payment processing accounts

 26.5

 21.3

 15.8

 5.2

 24.1
 %

 5.5

 35.3
 %

 Revenues.
Revenues increased in fiscal 2025 compared to fiscal 2024 driven primarily by revenue growth from NRS' merchant services, as well
as the expansion of NRS' POS network.

Cost of Revenues. Direct cost of revenues increased in fiscal 2025 compared to fiscal 2024 primarily due to the increases
in the direct costs of NRS' merchant services and advertising, partially offset by a decrease in the direct costs of NRS'
POS terminal sales.

 Selling,
General and Administrative. Selling, general and administrative expense increased in fiscal 2025 compared to fiscal 2024 primarily
due to increases in sales commissions, bad debt expense, employee compensation, and marketing expense. The increase in bad debt expense
was related to a large programmatic advertising partner. As a percentage of NRS' revenue, NRS' selling, general and administrative
expense was 60.6%, 60.7%, and 61.0% in fiscal 2025, fiscal 2024, and fiscal 2023, respectively.

 Technology
and Development. Technology and development expense increased in fiscal 2025 compared to fiscal 2024 primarily due to
increases in employee compensation and depreciation and amortization expense, partially offset by a decrease in consulting expense.

 Other
Operating Expense. In fiscal 2025, we recorded an aggregate expense of $4.0 million related to the settlement of litigation,
of which $2.4 million was included in the NRS segment and $1.6 million was included in Corporate. In fiscal 2024, NRS recorded expense
of $0.2 million for the cost of capitalized internal use software and certain other assets that were no longer in use.

 Fintech Segment

 Fintech, which represented 12.6%, 10.0%, and 7.0%
of our total revenues in fiscal 2025, fiscal 2024, and fiscal 2023, respectively, 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
a variable interest entity ("VIE"), that processes disbursement payments, which we refer to as the Disbursement Payments VIE, (iii) IDT Financial Services Limited, or IDT Financial
Services, a Gibraltar-based bank and (iv) IDT Services Limited ("IDTS"), a Malta-based electronic money institution.

 2025

 2024

 2023

 $/#

 %

 $/#

 %

 Revenues:

 BOSS Money

 $
 139.8

 $
 108.3

 $
 76.9

 $
 31.5

 29.1
 %

 $
 31.4

 40.8
 %

 Other

 14.8

 12.4

 9.7

 2.4

 19.3

 2.7

 28.0

 Total revenues

 154.6

 120.7

 86.6

 33.9

 28.1

 34.1

 39.4

 (63.9
)

 (53.4
)

 (36.6
)

 10.5

 19.6

 16.8

 45.9

 Gross profit

 90.7

 67.3

 50.0

 23.4

 34.8

 17.3

 34.6

 (66.2
)

 (59.6
)

 (47.2
)

 6.6

 11.0

 12.4

 26.3

 (9.1
)

 (9.5
)

 (7.2
)

 (0.4
)

 (4.6
)

 2.3

 30.6

 Other operating gain, net

 —

 1.7

 1.9

 (1.7
)

 (100.0
)

 (0.2
)

 (13.2
)

 $
 15.4

 $
 (0.1
)

 $
 (2.5
)

 $
 15.5

 nm

 $
 2.4

 94.9
 %

 Gross margin percentage

 58.7
 %

 55.8
 %

 57.7
 %

 2.9
 %

 (1.9
)%

 nm—not meaningful

 Revenues.
Revenues increased in fiscal 2025 compared to fiscal 2024 primarily because of increased transaction volume at BOSS Money, which included
increases in both its digital and retail channel transactions.

Cost of Revenues. Direct cost of revenues increased in fiscal 2025 compared to fiscal 2024 primarily due to an increase in
BOSS Money's direct cost of revenues, which reflected the increase in BOSS Money's revenue.

 Selling,
General and Administrative. Selling, general and administrative expense increased in fiscal 2025 compared to fiscal 2024 primarily
due to increases in debit and credit card processing charges, employee compensation, bank fees, and marketing expenses. The increase
in card processing charges was the result of increased credit and debit card transactions through our BOSS Money app and other digital
channels. As a percentage of Fintech's revenue, Fintech's selling, general and administrative expense was 42.8%, 49.4%, and
54.5% in fiscal 2025, fiscal 2024, and fiscal 2023, respectively.

 Technology
and Development. Technology and development expense decreased in fiscal 2025 compared to fiscal 2024 primarily due to
a decrease in employee compensation expense, partially offset by increases in depreciation and amortization expense, software license
and maintenance expense, and cloud services expense.

 Other
Operating Gain, net. In fiscal 2024, we determined that the requirements for contingent consideration payments related
to the Leaf Global Fintech Corporation, or Leaf, acquisition would not be met. We recognized a gain of $1.8 million on the write-off
of these contingent consideration payment obligations. In addition, in fiscal 2024, we completed a portion of the integration of the
Leaf Wallet platform into the BOSS Money app, including replacing the Leaf tradename with BOSS Money. The Leaf tradename balance of $0.1
million was written off in fiscal 2024.

 net2phone Segment

 The net2phone segment, which represented 7.1%, 6.8%,
and 5.8% of our total revenues in fiscal 2025, fiscal 2024, and fiscal 2023, respectively, is comprised of net2phone's integrated
cloud communications and contact center services.

 2025

 2024

 2023

 $/#

 %

 $/#

 %

 Revenues:

 Subscription

 $
 85.7

 $
 78.4

 $
 66.8

 $
 7.3

 9.4
 %

 $
 11.6

 17.3
 %

 Other

 2.2

 3.9

 5.6

 (1.7
)

 (46.0
)

 (1.7
)

 (28.9
)

 Total revenues

 87.9

 82.3

 72.4

 5.6

 6.7

 9.9

 13.7

 (18.2
)

 (17.2
)

 (15.3
)

 1.0

 5.4

 1.9

 12.9

 Gross profit

 69.7

 65.1

 57.1

 4.6

 7.1

 8.0

 14.0

 (52.4
)

 (52.6
)

 (49.7
)

 (0.2
)

 (0.4
)

 2.9

 5.8

 (11.7
)

 (10.8
)

 (10.0
)

 0.9

 8.3

 0.8

 8.1

 (0.1
)

 (0.1
)

 (0.1
)

 —

 5.7

 —

 72.1

 Other operating (expense) gain, net

 (0.6
)

 0.1

 (0.1
)

 (0.7
)

 nm

 0.2

 142.3

 $
 4.9

 $
 1.7

 $
 (2.8
)

 $
 3.2

 194.4
 %

 $
 4.5

 161.0
 %

 Gross margin percentage

 79.3
 %

 79.1
 %

 78.9
 %

 0.2
 %

 0.2
 %

 nm—not meaningful

 2025

 2024

 2023

 #

 %

 #

 %

 Seats served

 6.4
 %

 12.6
 %

 Revenues.
net2phone's revenues increased in fiscal 2025 compared to fiscal 2024 due to the growth in subscription revenue, most significantly
in the U.S. market, and from its contact center services' revenue, which reflected the increase in seats served at July 31, 2025
compared to July 31, 2024.

Cost of Revenues. Direct cost of revenues increased in fiscal 2025 compared to fiscal 2024 primarily due to the increase in
revenues, with the largest increase in the U.S. market. net2phone's revenue growth exceeded the increase in direct cost of revenues.

 Selling,
General and Administrative. Selling, general and administrative expense slightly decreased in fiscal 2025 compared to fiscal
2024 primarily due to decreases in marketing, bad debt, and consulting expenses, partially offset by increases in sales commissions and
depreciation and amortization expenses. As a percentage of net2phone's revenues, net2phone's selling, general and administrative
expense decreased to 59.6% from 63.9% and 68.7% in fiscal 2025, fiscal 2024, and fiscal 2023, respectively.

 Technology
and Development. Technology and development expense increased in fiscal 2025 compared to fiscal 2024 primarily due to increases
in employee compensation, software license and maintenance, cloud services, and depreciation and amortization expenses.

 Other
Operating (Expense) Gain, net. In fiscal 2025 and fiscal 2023, we recorded expense of $0.6 million and $0.1 million, respectively,
for telephone equipment used in operations that was taken out of service. In fiscal 2024, we determined that the requirement for a contingent
consideration payment related to an acquisition in a prior period would not be met. We recognized a gain of $0.1 million on the write-off
of this contingent consideration payment obligation.

 Traditional Communications Segment

 The Traditional Communications segment, which represented
69.8%, 74.6%, and 81.0% of our total revenues in fiscal 2025, fiscal 2024, and fiscal 2023, respectively, 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, 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.

 Traditional Communications' most significant
revenue streams are from IDT Digital Payments, BOSS Revolution, and IDT Global. IDT Digital Payments and BOSS Revolution are sold directly
to consumers and through distributors and retailers. We receive payments for BOSS Revolution and IDT Digital Payments prior to providing
the services. We recognize the revenue when services are provided to the customer. Traditional Communications' revenues tend to
be somewhat seasonal, with the second fiscal quarter (which contains Christmas and New Year's Day) and the fourth fiscal quarter
(which contains Mother's Day and Father's Day) typically showing higher minute volumes.

 2025

 2024

 2023

 $/#

 %

 $/#

 %

 Revenues:

 IDT Digital Payments

 $
 416.3

 $
 407.4

 $
 417.1

 $
 8.9

 2.2
 %

 $
 (9.7
)

 (2.3
)%

 BOSS Revolution

 211.2

 263.2

 322.1

 (52.0
)

 (19.8
)

 (58.9
)

 (18.3
)

 IDT Global

 209.6

 201.1

 230.3

 8.5

 4.2

 (29.2
)

 (12.7
)

 Other

 23.1

 27.9

 33.2

 (4.8
)

 (16.9
)

 (5.3
)

 (16.4
)

 Total revenues

 860.2

 899.6

 1,002.7

 (39.4
)

 (4.4
)

 (103.1
)

 (10.3
)

 (691.3
)

 (733.4
)

 (819.0
)

 (42.1
)

 (5.7
)

 (85.6
)

 (10.5
)

 Gross profit

 168.9

 166.2

 183.7

 2.7

 1.6

 (17.5
)

 (9.5
)

 (79.9
)

 (84.9
)

 (89.9
)

 (5.0
)

 (5.9
)

 (5.0
)

 (5.6
)

 (21.5
)

 (23.1
)

 (25.7
)

 (1.6
)

 (7.0
)

 (2.6
)

 (10.2
)

 (0.8
)

 (1.6
)

 (0.9
)

 (0.8
)

 (53.0
)

 0.7

 78.6

 Other operating expense, net

 (0.2
)

 (0.2
)

 (5.9
)

 —

 (11.6
)

 (5.7
)

 (96.9
)

 Income from operations

 $
 66.5

 $
 56.4

 $
 61.3

 $
 10.1

 17.9
 %

 $
 (4.9
)

 (7.9
)%

 Gross margin percentage

 19.6
 %

 18.5
 %

 18.3
 %

 1.1
 %

 0.2
 %

 Minutes of use:

 BOSS Revolution

 1,303

 1,772

 2,299

 (469
)

 (26.4
)%

 (527
)

 (22.9
)%

 IDT Global

 5,681

 5,702

 6,328

 (21
)

 (0.4
)

 (626
)

 (9.9
)

 Revenues.
Revenues from IDT Digital Payments increased in fiscal 2025 compared to fiscal 2024 primarily due to increases in revenues from the direct-to-consumer
and enterprise and wholesale channels, partially offset by a decrease in revenues from the retail channel.

 Revenues and minutes of use from BOSS Revolution
decreased in fiscal 2025 compared to fiscal 2024. BOSS Revolution continues to be impacted by persistent, market-wide trends, including
the proliferation of unlimited calling plans offered by wireless carriers and mobile virtual network operators, and the increasing penetration
of free and paid over-the-top voice, video conferencing, and messaging services.

 Revenues from IDT Global increased in fiscal 2025
compared to fiscal 2024, although IDT Global's minutes of use decreased in fiscal 2025 compared to fiscal 2024. IDT Global mitigated
the impacts of the ongoing industry-wide declines in paid-minute voice through a traffic mix shift to higher margin routes and new service
offerings. However, we expect IDT Global to continue to be adversely impacted by this industry-wide trend, and minutes of use and revenues
will likely continue to decline from quarter-to-quarter, as we seek to maximize economics rather than necessarily sustain minutes of
use or revenues.

Cost of Revenues. Direct cost of revenues decreased in fiscal 2025 compared to fiscal 2024 primarily due to the decreases
in BOSS Revolution's minutes of use and direct cost of revenues.

 Selling,
General and Administrative. Selling, general and administrative expense decreased in fiscal 2025 compared to fiscal 2024 primarily
due to decreases in stock-based compensation, sales commissions, and debit and credit card processing charges, partially offset by an
increase in bad debt expense. As a percentage of Traditional Communications' revenue, Traditional Communications' selling,
general and administrative expense was 9.3%, 9.4%, and 9.0% in fiscal 2025, fiscal 2024, and fiscal 2023, respectively.

 Technology
and Development. Technology and development expense decreased in fiscal 2025 compared to fiscal 2024 primarily due to decreases
in employee compensation, cloud services expense, and depreciation and amortization expense.

Expense. Traditional Communications incurred severance expense of $0.8 million and $1.6 million in fiscal 2025 and fiscal
2024, respectively.

 Other
Operating Expense, net. In fiscal 2025, Traditional Communications recorded expense of $0.2 million for certain equipment
that was taken out of service. In fiscal 2024, Traditional Communications recorded expenses of $0.2 million for internal use software
that was taken out of service.

 2025

 2024

 2023

 $

 %

 $

 %

 General and administrative

 $
 (11.1
)

 $
 (10.5
)

 $
 (9.4
)

 $
 0.6

 6.3
 %

 $
 1.1

 12.2
 %

 Other operating expense, net

 (3.1
)

 (4.4
)

 (0.3
)

 (1.3
)

 (28.8
)

 4.1

 nm

 Loss from operations

 $
 (14.2
)

 $
 (14.9
)

 $
 (9.7
)

 $
 0.7

 4.3
 %

 $
 (5.2
)

 (53.9
)%

 nm—not meaningful

 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.

 General
and Administrative. Corporate general and administrative expense increased in fiscal 2025 compared to fiscal 2024 primarily
because of increases in employee compensation and legal fees. As a percentage of our consolidated revenues, Corporate general and administrative
expense was 0.9%, 0.9%, and 0.8% in fiscal 2025, fiscal 2024, and fiscal 2023, respectively.

 Other
Operating Expense, net. In fiscal 2025, we recorded an aggregate expense of $4.0 million related to the settlement of litigation,
of which $1.6 million was included in Corporate and $2.4 million was included in the NRS segment.

 As discussed in Note 22 to the Consolidated Financial
Statements included in Item 8 to Part II of this Annual Report, we (as well as other defendants) were named in a class action on behalf
of the stockholders of our former subsidiary Straight Path. We incurred legal fees of $0.5 million and $7.2 million in fiscal 2025 and
fiscal 2024, respectively, related to this action. Also, we recorded offsetting gains from insurance claims for this matter of nil and
$2.9 million in fiscal 2025 and fiscal 2024, respectively. In fiscal 2024, we received the final payment from our insurance policy for
these claims. On October 3, 2023, the Court of Chancery of the State of Delaware dismissed all claims against us, and found that, contrary
to the plaintiffs' allegations, the class suffered no damages. On January 14, 2025, the plaintiff filed a notice of appeal of the
Final Order and Judgment to the Supreme Court of the State of Delaware to appeal the Final Order and Judgment. On April 22, 2025, we
filed our answering brief to the appeal. Oral argument is scheduled for October 2025.

 Consolidated

 The following is a discussion of our consolidated
stock-based compensation expense, and our consolidated income and expense line items below income from operations.

 Stock-Based
Compensation Expense. Total stock-based compensation expense included in consolidated selling, general and administrative
expense and technology and development expense was $3.1 million and $7.4 million in fiscal 2025 and fiscal 2024, respectively. The decrease
in stock-based compensation expense was primarily due to a decrease in expense related to certain equity grants made in fiscal 2024 to
an executive officer, and a decrease in stock-based compensation expense from the grant of deferred stock units, or DSUs, that entitle
the grantees to receive shares of our Class B common stock. As of July 31, 2025, there was $0.4 million of total unrecognized compensation
cost related to non-vested DSUs, which is being recognized on a graded vesting basis over the requisite service periods that end in October
2027.

 Effective as of June 30, 2022, restricted shares
of NRS' Class B common stock were granted to certain NRS employees. The restrictions on the shares lapse in three installments,
the first was on June 1, 2024, and the others are June 1, 2026 and June 1, 2027. As of July 31, 2025, unrecognized compensation cost
related to NRS' non-vested Class B common stock was an aggregate of $1.2 million. The unrecognized compensation cost is expected
to be recognized over the remaining vesting period that ends in fiscal 2027.

 As of July 31, 2025, there was an aggregate of $0.5
million in unrecognized compensation cost related to non-vested stock options and restricted stock, which is expected to be recognized
over the remaining vesting periods that end in fiscal 2028.

 2025

 2024

 2023

 $

 %

 $

 %

 Income from operations

 $
 100.4

 $
 64.7

 $
 60.7

 $
 35.7

 55.1
 %

 $
 4.0

 6.6
 %

 Interest income, net

 6.1

 4.8

 3.2

 1.3

 28.5

 1.6

 51.5

 Other expense, net

 (0.7
)

 (7.6
)

 (3.1
)

 6.9

 90.6

 (4.5
)

 (146.9
)

 (Provision for) benefit from income taxes

 (24.7
)

 6.4

 (16.4
)

 (31.1
)

 (488.7
)

 22.8

 138.6

 Net income

 81.1

 68.3

 44.4

 12.8

 18.9

 23.9

 53.9

 Net income attributable to noncontrolling
 interests

 (5.0
)

 (3.8
)

 (3.9
)

 (1.2
)

 (32.4
)

 0.1

 1.7

 Net income attributable to IDT Corporation

 $
 76.1

 $
 64.5

 $
 40.5

 $
 11.6

 18.1
 %

 $
 24.0

 59.2
 %

 Other
Expense, net. Other expense, net consists of the following:

 2025

 2024

 2023

 Foreign currency transaction gains (losses)

 $
 0.3

 $
 (3.8
)

 $
 3.3

 Equity in net loss of investee

 (2.7
)

 (3.5
)

 (3.1
)

 Gains (losses) on investments

 1.6

 0.2

 (2.6
)

 Other

 0.1

 (0.5
)

 (0.7
)

 TOTAL

 $
 (0.7
)

 $
 (7.6
)

 $
 (3.1
)

 We have an investment in shares of convertible preferred
stock of a communications company (the equity method investee, or EMI). As of both July 31, 2025 and 2024, our ownership was 33.4% of
the EMI's outstanding shares on an as converted basis. We account for this investment using the equity method since we can exercise
significant influence over the operating and financial policies of the EMI but do not have a controlling interest. We determined that
on the dates of the acquisitions of the EMI's shares, there were differences between our investment in the EMI and our proportional
interest in the equity of the EMI of an aggregate of $8.2 million, which represented the share of the EMI's customer list on the
dates of the acquisitions attributed to our interest in the EMI. These basis differences are being amortized over the 6-year estimated
life of the customer list. "Equity in the net loss of investee" includes the amortization of equity method basis difference.

 (Provision
for) Benefit from Income Taxes. With our reacquisition of net2phone in March 2006, its losses were limited under IRC Section
382 to approximately $7 million per year. In fiscal 2024, we had an IRC Section 382 study conducted on the reacquisition and the limitation
was adjusted to $9 million per year. We recorded a tax benefit related to the adjusted amount of $23.6 million in fiscal 2024. The change
in income tax expense in fiscal 2025 compared to fiscal 2024, excluding the income tax benefit in fiscal 2024, was primarily due to differences
in the amount of taxable income earned in the various taxing jurisdictions.

 Net
Income Attributable to Noncontrolling Interests. The change in the net income attributable to noncontrolling interests in
fiscal 2025 compared to fiscal 2024 was primarily due to increases in net income attributable to the noncontrolling interests in NRS,
net2phone 2.0, and the Disbursement Payments VIE, partially offset by the change in the amounts attributable to the noncontrolling interests
in Sochitel.

 LIQUIDITY AND CAPITAL RESOURCES

 As of the date of this Annual Report, we expect our
cash from operations and the balance of cash, cash equivalents, debt securities, and current equity investments that we held on July
31, 2025 will be sufficient to meet our currently anticipated working capital and capital expenditure requirements during fiscal 2026.

 At July 31, 2025, we had cash, cash equivalents,
debt securities, and current equity investments of $253.8 million and working capital (current assets in excess of current liabilities)
of $227.3 million.

 Contractual Obligations and Commitments

 The following table includes our anticipated material
cash requirements from contractual obligations and other commitments at July 31, 2025:

 Payments due by period

 Total

 Less than
 1 year

 1—3 years

 4—5 years

 After 5 years

 Purchase commitments

 $
 14.5

 $
 4.2

 $
 8.6

 $
 1.7

 $
 —

 Connectivity obligations under service agreements

 1.9

 1.2

 0.6

 0.1

 —

 Operating leases including short-term
 leases

 2.6

 1.3

 1.0

 0.3

 —

 TOTAL (1)

 $
 19.0

 $
 6.7

 $
 10.2

 $
 2.1

 $
 —

 (1)
 The above table does not include up to $10
 million for the potential redemption of shares of NRS' Class B common stock, an aggregate
 of $33.8 million in performance bonds, and up to $2.7 million for potential contingent consideration
 payments related to a business acquisition, due to the uncertainty of the amount and/or timing
 of any such payments.

 Consolidated Financial Condition

 2025

 2024

 2023

 Cash flows provided by (used in):

 Operating activities

 $
 127.1

 $
 78.2

 $
 52.4

 Investing activities

 (20.7
)

 (0.8
)

 (33.4
)

 Financing activities

 (23.4
)

 (17.2
)

 (14.1
)

 Effect of exchange rate changes
 on cash, cash equivalents, and restricted cash
 and cash equivalents

 3.4

 (3.6
)

 4.4

 Increase in
 cash, cash equivalents, and restricted cash and cash equivalents

 $
 86.4

 $
 56.6

 $
 9.3

 Operating Activities

 Our cash flows from operations vary
significantly from quarter to quarter and from year to year, depending on our operating results and the timing of operating cash
receipts and payments, generally trade accounts receivable, trade accounts payable, and disbursements prefunding.

 Gross trade accounts receivable increased to $52.0
million at July 31, 2025 from $48.6 million at July 31, 2024 primarily due to amounts billed in fiscal 2025 that were greater than collections
during fiscal 2025, partially offset by uncollectible accounts written off.

 Deferred revenue arises from sales of prepaid products
and varies from period to period depending on the mix and the timing of revenues. Deferred revenue decreased to $27.7 million at July
31, 2025 from $30.4 million at July 31, 2024 primarily due to a decrease in BOSS Revolution's deferred revenue balance.

 Customer funds deposits liabilities increased to
$114.7 million at July 31, 2025 from $91.9 million at July 31, 2024. Our restricted cash and cash equivalents included an aggregate of
$115.2 million and $90.7 million at July 31, 2025 and 2024, respectively, held by IDT Financial Services and our Disbursement Payments
VIE for these customer funds.

 In September 2017, we and certain of our subsidiaries
were certified by the New Jersey Economic Development Authority, or NJEDA, as having met the requirements of the Grow New Jersey Assistance
Act Tax Credit Program. The program provides for credits against a corporation's New Jersey corporate business tax liability for
maintaining a minimum number of employees in New Jersey, and that tax credits may be sold subject to certain conditions. On June 5, 2023,
we received a 2019 tax credit certificate for $1.8 million from NJEDA. In August 2023, we sold the certificate for cash of $1.6 million.

 On June 21, 2018, the United States Supreme Court
rendered a decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the
state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning certain existing court precedent.
It is possible that one or more jurisdictions may assert that we have liability for periods for which we have not collected sales, use
or other similar taxes, and if such an assertion or assertions were successful it could materially and adversely affect our business,
financial position, and operating results. One or more jurisdictions may change their laws or policies to apply their sales, use
or other similar taxes to our operations, and if such changes were made it could materially and adversely affect our business, financial
position, and operating results.

 As discussed in Note 22 to the Consolidated Financial
Statements included in Item 8 to Part II of this Annual Report, we (as well as other defendants) were named in a class action on behalf
of the stockholders of our former subsidiary Straight Path. On October 3, 2023, the Court of Chancery of the State of Delaware dismissed
all claims against us, and found that, contrary to the plaintiffs' allegations, the class suffered no damages. On January 14, 2025,
the plaintiff filed a notice of appeal of the Final Order and Judgment to the Supreme Court of the State of Delaware to appeal the Final
Order and Judgment. On April 22, 2025, we filed our answering brief to the appeal. Oral argument is scheduled for October 2025.

 Investing Activities

 Our capital expenditures were $20.8 million in fiscal
2025 and $18.9 million in fiscal 2024. We currently anticipate that total capital expenditures in fiscal 2026 will be $19 million to
$21 million. We expect to fund our capital expenditures with net cash provided by operating activities and cash, cash equivalents, debt
securities, and current equity investments on hand.

 In February 2025, we entered into a loan agreement
with the EMI for a revolving credit facility. The aggregate principal amount available under the facility is $2.0 million. The loans
will incur interest at 12% per annum payable semiannually and are due and payable in February 2027. In fiscal 2025, we loaned the EMI
an aggregate of $1.9 million under the revolving credit facility.

 In fiscal 2025 and fiscal 2024, each of the EMI's
shareholders, including us, purchased additional shares of the EMI's convertible preferred stock. We paid an aggregate of $0.9
million and $2.0 million in fiscal 2025 and fiscal 2024, respectively, to purchase additional shares.

 Purchases of debt securities and equity investments
were $33.5 million and $29.9 million in fiscal 2025 and fiscal 2024, respectively. Proceeds from maturities and sales of debt securities
and redemptions of equity investments were $36.3 million and $50.1 million in fiscal 2025 and fiscal 2024, respectively.

 Financing Activities

 In March 2025, our Board of Directors increased our
quarterly cash dividend on our Class A and Class B common stock to $0.06 per share from $0.05 per share. In fiscal 2025 and fiscal 2024,
we paid aggregate cash dividends per share of $0.22 and $0.10, respectively, on our Class A and Class B common stock. In fiscal 2025
and fiscal 2024, we paid aggregate cash dividends of $5.6 million and $2.5 million, respectively, on our Class A and Class B common stock.
In September 2025, our Board of Directors declared a cash dividend on our Class A and Class B common stock of $0.06 per share payable
on or about October 10, 2025 to stockholders of record as of the close of business on September 30, 2025.

 We distributed cash of $0.1 million and $0.1 million
in fiscal 2025 and fiscal 2024, respectively, to the noncontrolling interests in certain of our subsidiaries.

 Our subsidiary, IDT Telecom, Inc., or IDT Telecom,
entered into a credit agreement, dated as of May 17, 2021, with TD Bank, N.A. for a revolving credit facility for up to a maximum principal
amount of $25.0 million. As of July 15, 2024, and July 28, 2023, IDT Telecom and TD Bank, N.A. amended certain terms of the credit agreement.
IDT Telecom may use the proceeds to finance working capital requirements and for certain closing costs of the facility. At July 31, 2025
and 2024, there were no amounts outstanding under this facility. In fiscal 2025 and fiscal 2024, IDT Telecom borrowed and repaid an aggregate
of $24.6 million and $32.9 million, respectively, under the facility. The revolving credit facility is secured by primarily all of IDT
Telecom's assets. The principal outstanding bears interest per annum at the secured overnight financing rate published by the Federal
Reserve Bank of New York plus 10 basis points, plus, depending upon IDT Telecom's leverage ratio as computed for the most recent
fiscal quarter, 125 to 175 basis points. Interest is payable monthly, and all outstanding principal and any accrued and unpaid interest
is due on May 16, 2026. IDT Telecom pays a quarterly unused commitment fee of 10 basis points on the average daily balance of the unused
portion of the $25.0 million commitment. IDT Telecom is required to comply with various affirmative and negative covenants as well as
maintain certain targets based on financial ratios during the term of the revolving credit facility. As of July 31, 2025, IDT Telecom
was in compliance with all the covenants.

 In the first quarter of fiscal 2026 through September
29, 2025, IDT Telecom borrowed and repaid an aggregate of $12.7 million under the facility.

 In January 2024, the restrictions lapsed on the 0.5
million restricted shares of net2phone 2.0 Class B common stock that were granted in December 2020 to each of Howard S. Jonas and Shmuel
Jonas, our Chief Executive Officer, and Bill Pereira was granted 50,000 shares of net2phone 2.0 Class B common stock. We repurchased
a portion of these shares representing an aggregate of 4.5% of the outstanding shares of net2phone 2.0 with an aggregate fair value of
$3.6 million to satisfy the grantees' tax withholding obligations in connection with the lapsing of restrictions on restricted
stock or the grant of shares. In addition, in connection with the vesting of restricted shares of NRS Class B common stock on June 1,
2024, we repurchased a portion of the shares representing an aggregate of 0.17% of the outstanding shares of NRS with an aggregate fair
value of $0.6 million to satisfy the grantees' tax withholding obligations in connection with the lapsing of restrictions on restricted
stock.

 In fiscal 2024, we received cash from the exercise
of stock options of $0.2 million for which we issued 12,500 shares of our Class B common stock. There were no stock option exercises
in fiscal 2025.

 We have an existing stock repurchase program authorized
by our Board of Directors for the repurchase of shares of our Class B common stock. In January 2016, the Board of Directors authorized
the repurchase of up to 8.0 million shares in the aggregate. In fiscal 2025, we repurchased 221,823 shares of our Class B common
stock for an aggregate purchase price of $10.1 million, and in fiscal 2024, we repurchased 298,421 shares of Class B common stock for
an aggregate purchase price of $9.1 million. At July 31, 2025, 4.2 million shares remained available for repurchase under the stock repurchase
program.

 In fiscal 2025 and fiscal 2024, we paid $7.7 million
and $1.5 million, respectively, to repurchase 157,180 and 41,994 shares, respectively, of our Class B common stock that were tendered
by employees of ours to satisfy the employees' tax withholding obligations in connection with the vesting of DSUs, the lapsing
of restrictions on restricted stock, and shares issued for bonus payments. Such shares were repurchased by us based on their fair market
value as of the close of business on the trading day immediately prior to the vesting date.

 In April 2025, we exchanged an aggregate of 8,589
shares of our Class B common stock with a value of $0.4 million for shares of NRS' Class B common stock that were held by employees
of NRS representing an aggregate of 0.09% of NRS' outstanding shares. In June 2024, we exchanged an aggregate of 12,267 shares
of our Class B common stock with a value of $0.4 million for shares of NRS' Class B common stock that were held by employees of
NRS representing an aggregate of 0.09% of NRS' outstanding shares. In January 2024, we exchanged an aggregate of 192,433 shares
of our Class B common stock with a value of $6.3 million for shares of NRS' Class B common stock that were held by management employees
of NRS representing an aggregate of 1.25% of NRS' outstanding shares.

 Other Sources and Uses of Resources

 From time to time, we consider spin-offs and other
potential dispositions of certain of our subsidiaries. A spin-off may include the contribution of a significant amount of cash, cash
equivalents, debt securities, and/or equity securities to the subsidiary prior to the spin-off, which would reduce our capital resources.
There is no assurance that a transaction will be completed.

 We intend to, where appropriate, make strategic investments
and acquisitions to complement, expand, and/or enter into new businesses. In considering acquisitions and investments, we search for
opportunities to profitably grow our existing businesses and/or to add qualitatively to the range and diversification of businesses in
our portfolio. We cannot guarantee that we will be presented with acquisition opportunities that meet our return-on-investment criteria,
or that our efforts to make acquisitions that meet our criteria will be successful.

 Item 7A. Quantitative and Qualitative Disclosures
about Market Risks.

 Foreign Currency Risk

 Revenues from our international operations were 21%,
23%, and 28% of our consolidated revenues in fiscal 2025, fiscal 2024, and fiscal 2023, respectively. A significant portion of our revenues
is in currencies other than the U.S. Dollar. Our foreign currency exchange risk is somewhat mitigated by our ability to offset a portion
of these non-U.S. Dollar-denominated revenues with operating expenses that are paid in the same currencies. While the impact from fluctuations
in foreign exchange rates affects our revenues and expenses denominated in foreign currencies, the net amount of our exposure to foreign
currency exchange rate changes at the end of each reporting period is generally not material.

 Investment Risk

 We hold a portion of our assets in debt and equity
securities for strategic and speculative purposes. At July 31, 2025 and 2024, the value of our debt and equity security holdings was
an aggregate of $33.9 million and $35.0 million, respectively, which represented 5% and 6% of our total assets at July 31, 2025 and 2024,
respectively. Investments in debt and equity securities carry a degree of risk and depend to a great extent on correct assessments of
the future course of price movements of securities and other instruments. There can be no assurance that our investment managers will
be able to accurately predict these price movements. The securities markets have in recent years been characterized by great volatility
and unpredictability. Accordingly, the value of our investments may go down as well as up and we may not receive the amounts originally
invested upon redemption.

 Item 8. Financial Statements and Supplementary
Data.

 The Consolidated Financial Statements of the Company
and the report of the independent registered public accounting firm thereon starting on page F-1 are included herein.

 Item 9. Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure.

 None.

 Item 9A. Controls and Procedures.

 Evaluation of Disclosure Controls and Procedures

 Our Chief Executive Officer and Chief Financial Officer
have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities
Exchange Act of 1934, as amended), as of the end of the period covered by this Annual Report on Form 10-K. Based on this evaluation,
our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as
of July 31, 2025.

 Report of Management on Internal Control over
Financial Reporting

 We, the management of IDT Corporation and subsidiaries
(the "Company"), are responsible for establishing and maintaining adequate internal control over financial reporting of the
Company.

 The Company's internal control over financial
reporting is defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by,
or under the supervision of, the Company's principal executive and principal financial officers and effected by the Company's
board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of the Company's financial statements for external purposes in accordance with generally accepted accounting
principles in the United States and includes those policies and procedures that:

 1.
 Pertain to the maintenance of records that
 in reasonable detail accurately and fairly reflect the transactions and dispositions of assets
 of the Company;

 2.
 Provide reasonable assurance that transactions
 are recorded as necessary to permit preparation of financial statements in accordance with
 generally accepted accounting principles, and that receipts and expenditures of the Company
 are being made only in accordance with authorizations of management and directors of the
 Company; and

 3.
 Provide reasonable assurance regarding prevention
 or timely detection of unauthorized acquisition, use or disposition of the Company's
 assets that could have a material effect on the financial statements.

 Management has assessed the effectiveness of the
Company's internal control over financial reporting as of July 31, 2025. In making this assessment, the Company's management
used the criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission ("COSO").

 Under the supervision and with the participation
of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our internal
control over financial reporting, as prescribed above, as of July 31, 2025. Based on our evaluation, our principal executive officer
and principal financial officer concluded that the Company's internal control over financial reporting as of July 31, 2025
was effective based on the criteria established in the Internal Control-Integrated Framework (2013) issued by COSO.

 Because of its inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies
or procedures may deteriorate.

 Grant Thornton LLP has provided an attestation report
on the Company's internal control over financial reporting as of July 31, 2025.

 Changes in Internal Control over Financial Reporting

 There were no changes in our internal control over
financial reporting during the fourth quarter of fiscal 2025 that have materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 Board of Directors and Stockholders

 IDT Corporation

 Opinion on internal control over financial reporting

 We have audited the internal control over financial
reporting of IDT Corporation (a Delaware corporation) and subsidiaries (the "Company") as of July 31, 2025, based on criteria
established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission ("COSO"). In our opinion, the Company maintained, in all material respects, effective internal control
over financial reporting as of July 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework
issued by COSO.

 We also have audited, in accordance with the standards
of the Public Company Accounting Oversight Board (United States) ("PCAOB"), the consolidated financial statements of the
Company as of and for the year ended July 31, 2025, and our report dated September 29, 2025 expressed an unqualified opinion on those
financial statements.

 Basis for opinion

 The Company's management is responsible for
maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over
financial reporting, included in the accompanying Report of Management on Internal Control over Financial Reporting. Our responsibility
is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit in accordance with the standards
of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal
control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.

 Definition and limitations of internal control
over financial reporting

 A company's internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal
control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the company's assets that could have a material effect on the financial statements.

 Because of its inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods
are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

 /s/ GRANT THORNTON LLP

 New York, New York

 September 29, 2025

 Item
9B. Other Information.

 None.

 Item
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Not
applicable.

 Part
III

 Item
10. Directors, Executive Officers and Corporate Governance.

 The
following is a list of our directors and executive officers along with the specific information required by Rule 14a-3 of the Securities
Exchange Act of 1934:

 Executive
Officers

 Shmuel
Jonas—Chief Executive Officer

S. Jonas—Chairman

 Marcelo
Fischer—Chief Financial Officer

 Bill
Pereira—President and Chief Operating Officer

 Mitch
Silberman—Chief Accounting Officer and Controller

 Joyce
J. Mason—Executive Vice President, General Counsel and Corporate Secretary

 Menachem
Ash—Executive Vice President of Strategy and Legal Affairs

 Nadine
Shea – Executive Vice President of Global Human Resources

 David
Wartell —Chief Technology Officer

 Directors

S. Jonas—Chairman of the Board

 Elaine
Yatzkan —Member of the Board

 Eric
F. Cosentino—Former Rector of the Episcopal Church of the Divine Love, Montrose, New York

 Irwin
Katsof— Rabbi and former Director of The Jerusalem Fund, author of four best-selling books on business and spirituality, somatic
psychotherapist, and President of trademissions.org, a business networking initiative that assists tech startups and alternative asset
fund managers raise capital internationally

 Judah
Schorr—Founder of Judah Schorr MD PC, an anesthesia provider to hospitals, ambulatory surgery centers and medical offices, and
has been its President and owner since its inception

 Bill
Pereira – Ex Officio (non-voting) member of the Board

 The
remaining information required by this Item will be contained in our Proxy Statement for our Annual Stockholders Meeting, which will
be filed with the Securities and Exchange Commission within 120 days after July 31, 2025, and which is incorporated by reference herein.

 Insider
Trading Policies and Procedures

 We
have insider trading policies and procedures that govern the purchase, sale, and other dispositions of its securities by directors, officers,
employees, and consultants, as well as our own. We believe these policies and procedures are reasonably designed to promote compliance
with insider trading laws, rules and regulations and applicable listing standards. See "Index of Exhibits" within this Annual
Report on Form 10-K for our Insider Trading Policy.

Governance

 We
have included as exhibits to this Annual Report on Form 10-K certificates of our Chief Executive Officer and Chief Financial Officer
certifying the quality of our public disclosure.

 We
make available free of charge through the investor relations page of our web site (www.idt.net/ir) our Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports, and all beneficial ownership reports on Forms
3, 4, and 5 filed by directors, officers and beneficial owners of more than 10% of our equity, as soon as reasonably practicable after
such reports are electronically filed with the Securities and Exchange Commission. We have adopted codes of business conduct and ethics
for all of our employees, including our principal executive officer, principal financial officer and principal accounting officer. Copies
of the codes of business conduct and ethics are available on our web site.

 Our
web site and the information contained therein or incorporated therein are not intended to be incorporated into this Annual Report on
Form 10-K or our other filings with the Securities and Exchange Commission.

 Item
11. Executive Compensation.

 The
information required by this Item will be contained in our Proxy Statement for our Annual Stockholders Meeting, which will be filed with
the Securities and Exchange Commission within 120 days after July 31, 2025, and which is incorporated by reference herein.

 Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

 The
information required by this Item will be contained in our Proxy Statement for our Annual Stockholders Meeting, which will be filed with
the Securities and Exchange Commission within 120 days after July 31, 2025, and which is incorporated by reference herein.

 Item
13. Certain Relationships and Related Transactions, and Director Independence.

 The
information required by this Item will be contained in our Proxy Statement for our Annual Stockholders Meeting, which will be filed with
the Securities and Exchange Commission within 120 days after July 31, 2025, and which is incorporated by reference herein.

 Item
14. Principal Accountant Fees and Services.

 The
information required by this Item will be contained in our Proxy Statement for our Annual Stockholders Meeting, which will be filed with
the Securities and Exchange Commission within 120 days after July 31, 2025, and which is incorporated by reference herein.

 Part
IV

 Item
15. Exhibit and Financial Statement Schedules.

 (a)
 The
 following documents are filed as part of this Report:

 1.
 Report
 of Management on Internal Control Over Financial Reporting

 Report
of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting

 Report
of Independent Registered Public Accounting Firm on Consolidated Financial Statements

 Consolidated
Financial Statements covered by Report of Independent Registered Public Accounting Firm

 2.
 Financial
 Statement Schedule.

 All
schedules have been omitted since they are either included in the Notes to Consolidated Financial Statements or not required or not applicable.

 3.
 Exhibits.
 Exhibit Numbers 10.01, 10.02, 10.03 and 10.4 are management contracts or compensatory plans
 or arrangements.

 The
exhibits listed in paragraph (b) of this Item are filed, furnished, or incorporated by reference as part of this Form 10-K.

of the agreements filed as exhibits to this Form 10-K contain representations and warranties by the parties to the agreements that have
been made solely for the benefit of the parties to the agreement. These representations and warranties:

 may
 have been qualified by disclosures that were made to the other parties in connection with
 the negotiation of the agreements, which disclosures are not necessarily reflected in the
 agreements;

 may
 apply standards of materiality that differ from those of a reasonable investor; and

 were
 made only as of specified dates contained in the agreements and are subject to subsequent
 developments and changed circumstances.

 Accordingly,
these representations and warranties may not describe the actual state of affairs as of the date that these representations and warranties
were made or at any other time. Investors should not rely on them as statements of fact.

 (b)
 Exhibits.

 Exhibit

 Number

 Description
 of Exhibits

 3.01(1)

 Third Restated Certificate of Incorporation of the Registrant.

 3.02(2)

 Eighth Amended and Restated By-laws of the Registrant.

 4.2(3)

 Description of the Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.

 10.01(4)

 Fifth Amended and Restated Employment Agreement, dated December 16, 2020, between the Registrant and Howard S. Jonas.

 10.02(5)

 2015 Stock Option and Incentive Plan, as amended and restated, of IDT Corporation.

 10.03(6)

 2024 Equity Incentive Plan of IDT Corporation.

 10.04(7)

 Amended and Restated Agreement, dated December 21, 2023, between IDT Corporation and Bill Pereira.

 19.01*

 Insider Trading Policy

 21.01*

 Subsidiaries of the Registrant.

 23.01*

 Consent of Grant Thornton LLP

 31.01*

 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 31.02*

 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 32.01*

 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 32.02*

 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 97(8)

 Compensation Clawback Policy.

 101.SCH*

 101.CAL*

 101.DEF*

 101.LAB*

 101.PRE*

 Cover

 *
 filed
 herewith.

 (1)
 by reference to Form 8-K, filed April 5, 2011.

 (2)
 by reference to Form 8-K, filed September 23, 2022.

 (3)
 by reference to Form 10-K/A, filed December 22, 2020.

 (4)
 by reference to Form 8-K, filed December 22, 2020.

 (5)
 by reference to Form S-8, filed October 16, 2023.

 (6)
 by reference to Form S-8, filed October 15, 2024.

 (7)
 by reference to Form 8-K, filed December 28, 2023.

 (8)
 by reference to Form 10-K, filed October 15, 2024.

 Item
16. Form 10-K Summary.

 None.

 Signatures

 Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report
on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

 IDT

 By:

 /s/
 Shmuel Jonas

 Shmuel
 Jonas

 Chief
 Executive Officer

 Date:
September 29, 2025

 Pursuant
to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed by the following persons
on behalf of the Registrant and in the capacities and on the dates indicated.

 Signature

 Titles

 Date

 /s/
 Shmuel Jonas

 Chief
 Executive Officer

 Shmuel
 Jonas

 (Principal
 Executive Officer)

 /s/
 Marcelo Fischer

 Chief
 Financial Officer

 Marcelo
 Fischer

 (Principal
 Financial Officer)

 /s/
 Mitch Silberman

 Chief
 Accounting Officer and Controller

 Mitch
 Silberman

 (Principal
 Accounting Officer)

 /s/
 Howard S. Jonas

 Chairman
 of the Board

 S. Jonas

 /s/
 Elaine Yatzkan

 Director

 Elaine
 Yatzkan

 /s/
 Eric F. Cosentino

 Director

 Eric
 F. Cosentino

 /s/
 Irwin Katsof

 Director

 Irwin
 Katsof

 /s/
 Judah Schorr

 Director

 Judah
 Schorr

 IDT
Corporation

 Index to Consolidated Financial Statements

 Report of Independent Registered Public Accounting Firm (PCAOB ID 248)

 Consolidated Balance Sheets as of July 31, 2025 and 2024

 Consolidated Statements of Income for the years ended July 31, 2025, 2024 and 2023

 Consolidated Statements of Comprehensive Income for the years ended July 31, 2025, 2024 and 2023

 Consolidated Statements of Equity for the years ended July 31, 2025, 2024 and 2023

 Consolidated Statements of Cash Flows for the years ended July 31, 2025, 2024 and 2023

 Notes to Consolidated Financial Statements

 F- 1

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 Board
of Directors and Stockholders

 IDT
Corporation

 Opinion
on the financial statements

 We
have audited the accompanying consolidated balance sheets of IDT Corporation (a Delaware corporation) and subsidiaries (the "Company")
as of July 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, equity, and cash flows for each of
the three years in the period ended July 31, 2025, and the related notes (collectively referred to as the "consolidated financial
statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position
of the Company as of July 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the
period ended July 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

 We
also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"),
the Company's internal control over financial reporting as of July 31, 2025, based on criteria established in the 2013 Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"),
and our report dated September 29, 2025 expressed an unqualified opinion.

 Basis
for opinion

 These
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion
on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits
included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.

 Critical
audit matters

 Critical
audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be
communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

 /s/
 GRANT THORNTON LLP

 We
have served as the Company's auditor since 2020.

 New
York, New York

 F- 2

 IDT

 CONSOLIDATED BALANCE SHEETS

 (in thousands, except per share data)

 2025

 2024

 ASSETS

 CURRENT ASSETS:

 Cash and cash equivalents

 $
 226,505

 $
 164,557

 Restricted cash and cash equivalents

 115,327

 90,899

 Debt securities

 21,649

 23,438

 Equity investments

 5,637

 5,009

 Trade accounts receivable, net of allowance for credit losses of $ 9,097 and $ 6,352 at July 31, 2025 and 2024, respectively

 42,867

 42,215

 Settlement assets, net of reserve of $ 1,367 and $ 1,866 at July 31, 2025 and 2024, respectively

 28,014

 22,186

 Disbursement prefunding

 37,097

 30,736

 Prepaid expenses

 14,505

 17,558

 Other current assets

 28,702

 25,927

 TOTAL CURRENT ASSETS

 520,303

 422,525

 Property, plant, and equipment, net

 38,869

 38,652

 Goodwill

 26,488

 26,288

 Other intangibles, net

 5,056

 6,285

 Equity investments

 6,658

 6,518

 Operating lease right-of-use assets

 1,878

 3,273

 Deferred income tax assets, net

 18,790

 35,008

 Other assets

 8,161

 11,546

 TOTAL ASSETS

 $
 626,203

 $
 550,095

 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY

 CURRENT LIABILITIES:

 Trade accounts payable

 $
 19,435

 $
 24,773

 Accrued expenses

 97,295

 103,176

 Deferred revenue

 27,726

 30,364

 Customer funds deposits

 114,708

 91,893

 Settlement liabilities

 13,922

 12,764

 Other current liabilities

 19,910

 16,374

 TOTAL CURRENT LIABILITIES

 292,996

 279,344

 Operating lease liabilities

 1,103

 1,533

 Other liabilities

 1,688

 2,662

 TOTAL LIABILITIES

 295,787

 283,539

 Commitments and contingencies

 -

 -

 Redeemable noncontrolling interest

 11,459

 10,901

 EQUITY:

 IDT Corporation stockholders' equity:

 Preferred stock, $.01 par value; authorized shares— 10,000; no shares issued

 —

 —

 Class A common stock, $.01 par value; authorized shares— 35,000; 3,272 shares issued and 1,574 shares outstanding at July 31, 2025 and 2024

 Class B common stock, $.01 par value; authorized shares— 200,000; 28,528 and 28,177 shares issued and 23,656 and 23,684 shares outstanding at July 31, 2025 and 2024, respectively

 Common stock

 Additional paid-in capital

 308,111

 303,510

 Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,872 and 4,493 shares of Class B common stock at July 31, 2025 and 2024, respectively

 ( 143,853

)

 ( 126,080
)

 Accumulated other comprehensive loss

 ( 16,569

)

 ( 18,142
)

 Retained earnings

 157,124

 86,580

 Total IDT Corporation stockholders' equity

 305,131

 246,183

 Noncontrolling interests

 13,826

 9,472

 TOTAL EQUITY

 318,957

 255,655

 TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY

 $
 626,203

 $
 550,095

 See

 F- 3

 IDT

 CONSOLIDATED STATEMENTS OF INCOME

 (in thousands, except per share data)

 2025

 2024

 2023

 REVENUES

 $

 $

 $

 DIRECT COST OF REVENUES

 785,300

 815,621

 881,614

 GROSS PROFIT

 446,195

 390,157

 357,240

 OPERATING EXPENSES:

 Selling, general and administrative (i)

 287,567

 270,207

 243,159

 Technology and development (i)

 50,964

 50,554

 47,988

 1,698

 Other operating expense, net (see Note 13)

 6,342

 2,945

 4,415

 TOTAL OPERATING EXPENSES

 345,771

 325,404

 296,497

 Income from operations

 100,424

 64,753

 60,743

 Interest income, net

 6,127

 4,769

 3,147

 Other expense, net

 ( 713

)

 ( 7,612
)

 ( 3,083
)

 Income before income taxes

 105,838

 61,910

 60,807

 (Provision for) benefit from income taxes

 ( 24,699

)

 6,354

 ( 16,441
)

 NET INCOME

 81,139

 68,264

 44,366

 Net income attributable to noncontrolling interests

 ( 5,045

)

 ( 3,810
)

 ( 3,874
)

 NET INCOME ATTRIBUTABLE TO IDT CORPORATION

 $
 76,094

 $
 64,454

 $
 40,492

 Earnings per share attributable to IDT Corporation common stockholders:

 Basic

 $
 3.02

 $
 2.55

 $
 1.59

 Diluted

 $
 3.01

 $
 2.54

 $
 1.58

 Weighted-average number of shares used in calculation of earnings per share:

 Basic

 25,188

 25,241

 25,517

 Diluted

 25,295

 25,398

 25,577

 (i) Stock-based compensation included in total operating expenses

 $
 3,074

 $
 7,397

 $
 4,518

 See

 F- 4

 IDT

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 2025

 2024

 2023

 NET INCOME

 $
 81,139

 $
 68,264

 $
 44,366

 Other comprehensive income (loss):

 Change in unrealized loss on available-for-sale securities

 ( 99
)

 Foreign currency translation adjustments

 1,418

 ( 1,215
)

 ( 5,788
)

 Other comprehensive income (loss)

 1,573

 ( 950
)

 ( 5,887
)

 COMPREHENSIVE INCOME

 82,712

 67,314

 38,479

 Comprehensive income attributable to noncontrolling interests

 ( 5,045

)

 ( 3,810
)

 ( 3,874
)

 COMPREHENSIVE INCOME ATTRIBUTABLE TO IDT CORPORATION

 $
 77,667

 $
 63,504

 $
 34,605

 See

 F- 5

 IDT

 CONSOLIDATED STATEMENTS OF EQUITY (in thousands)

 Amount

 Amount

 Capital

 Stock

 Loss

 Earnings

 Interests

 IDT Corporation Stockholders

 Class A
 Common Stock

 Class B
 Common Stock

 Additional
 Paid-In

 Treasury

 Accumulated
 Other
 Comprehensive

 (Accumulated Deficit) Retained

 Noncontrolling

 Total

 Amount

 Amount

 Capital

 Stock

 Loss

 Earnings

 Interests

 BALANCE AT JULY 31, 2022

 3,272

 $

 27,725

 $

 $
 296,005

 $
 ( 101,565
)

 $
 ( 11,305
)

 $
 ( 15,830
)

 $
 3,022

 $
 170,637

 Exercise of stock options

 —

 —

 —

 —

 —

 —

 —

 Repurchases of Class B common stock through repurchase program

 —

 —

 —

 —

 —

 ( 13,082
)

 —

 —

 —

 ( 13,082
)

 Restricted Class B common stock purchased from employees

 —

 —

 —

 —

 —

 ( 814
)

 —

 —

 —

 ( 814
)

 Stock issued to certain executive officers for bonus payments

 —

 —

 —

 —

 —

 —

 Business acquisition

 —

 —

 —

 —

 —

 —

 —

 Stock-based compensation

 —

 —

 4,517

 —

 —

 —

 —

 4,518

 Distributions to noncontrolling interests

 —

 —

 —

 —

 —

 —

 —

 —

 ( 348
)

 ( 348
)

 Other comprehensive loss

 —

 —

 —

 —

 —

 —

 ( 5,887
)

 —

 —

 ( 5,887
)

 Net income for the year ended July 31, 2023

 —

 —

 —

 —

 —

 —

 —

 40,492

 3,593

 44,085

 BALANCE AT JULY 31, 2023

 3,272

 27,851

 301,408

 ( 115,461
)

 ( 17,192
)

 24,662

 6,267

 199,996

 Dividends declared ($ 0.10 per share)

 —

 —

 —

 —

 —

 —

 —

 ( 2,536
)

 —

 ( 2,536
)

 Exercise of stock options

 —

 —

 —

 —

 —

 —

 —

 Repurchases of Class B common stock through repurchase program

 —

 —

 —

 —

 —

 ( 9,087
)

 —

 —

 —

 ( 9,087
)

 Restricted Class B common stock purchased from employees

 —

 —

 —

 —

 —

 ( 1,532
)

 —

 —

 —

 ( 1,532
)

 Restricted net2phone and National Retail Solutions common stock purchased from employees

 —

 —

 —

 —

 ( 4,163
)

 —

 —

 —

 ( 4,131
)

 Exchange of National Retail Solutions shares for Class B common stock

 —

 —

 —

 —

 —

 ( 96
)

 —

 Stock issued/to be issued to an executive officer for bonus payment

 —

 —

 —

 1,494

 —

 —

 —

 —

 1,494

 Business acquisition holdback payment

 —

 —

 —

 —

 —

 —

 —

 Stock-based compensation

 —

 —

 4,405

 —

 —

 —

 —

 4,406

 Distributions to noncontrolling interests

 —

 —

 —

 —

 —

 —

 —

 —

 ( 112
)

 ( 112
)

 Other comprehensive loss

 —

 —

 —

 —

 —

 —

 ( 950
)

 —

 —

 ( 950
)

 Net income for the year ended July 31, 2024

 —

 —

 —

 —

 —

 —

 —

 64,454

 3,381

 67,835

 BALANCE AT JULY 31, 2024

 3,272

 28,177

 303,510

 ( 126,080
)

 ( 18,142
)

 86,580

 9,472

 255,655

 3,272

 28,177

 303,510

 ( 126,080
)

 ( 18,142
)

 86,580

 9,472

 255,655

 Dividends declared ($ 0.22 per share)

 —

 —

 —

 —

 —

 —

 —

)

 —

)

 Dividends declared

 —

 —

 —

 —

 —

 —

 —

)

 —

)

 Repurchases of Class B common stock through repurchase program

 —

 —

 —

 —

 —

 ( 10,097

)

 —

 —

 —

 ( 10,097

)

 Restricted Class B common stock purchased from employees

 —

 —

 —

 —

 —

 ( 7,676

)

 —

 —

 —

 ( 7,676

)

 Exchange of National Retail Solutions shares for Class B common stock

 —

 —

 —

 —

 —

 —

 ( 33

)

 —

 Stock issued to an executive officer for bonus payment

 —

 —

 —

 1,824

 —

 —

 —

 —

 1,824

 Stock-based compensation

 —

 —

 2,744

 —

 —

 —

 —

 2,747

 Distributions to noncontrolling interests

 —

 —

 —

 —

 —

 —

 —

 —

 ( 100

)

 ( 100

)

 Other comprehensive income

 —

 —

 —

 —

 —

 —

 1,573

 —

 —

 1,573

 Net income for the year ended July 31, 2025

 —

 —

 —

 —

 —

 —

 —

 76,094

 4,487

 80,581

 Net
 income for the year ended

 —

 —

 —

 —

 —

 —

 —

 76,094

 4,487

 80,581

 BALANCE AT JULY 31, 2025

 3,272

 $

 28,528

 $

 $
 308,111

 $
 ( 143,853
)

 $
 ( 16,569
)

 $
 157,124

 $
 13,826

 $
 318,957

 3,272

 $

 28,528

 $

 $
 308,111

 $
 ( 143,853
)

 $
 ( 16,569
)

 $
 157,124

 $
 13,826

 $
 318,957

 See

 F- 6

 IDT

 CONSOLIDATED STATEMENTS OF CASH FLOWS

 2025

 2024

 2023

 OPERATING ACTIVITIES

 Net income

 $
 81,139

 $
 68,264

 $
 44,366

 Adjustments to reconcile net income to net cash provided by operating activities:

 Depreciation and amortization

 21,008

 20,351

 20,136

 Deferred income taxes

 16,217

 ( 10,907
)

 12,601

 Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets

 7,090

 4,390

 2,198

 Stock-based compensation

 3,074

 7,397

 4,518

 Other

 2,199

 4,579

 6,543

 Changes in assets and liabilities:

 Trade accounts receivable

 ( 6,459

)

 ( 12,701
)

 4,726

 Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets

 ( 8,556

)

 12,735

 ( 17,503
)

 Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities

 ( 4,814

)

 ( 9,081
)

 ( 21,001
)

 Customer funds deposits

 19,235

 ( 1,820
)

 ( 2,152
)

 Deferred revenue

 ( 3,072

)

 ( 5,016
)

 ( 2,029
)

 Net cash provided by operating activities

 127,061

 78,191

 52,403

 INVESTING ACTIVITIES

 Capital expenditures

 ( 20,770

)

 ( 18,922
)

 ( 21,958
)

 Notes receivable from equity method investment

 ( 1,900

)

 —

 —

 Purchase of convertible preferred stock in equity method investment

 ( 926

)

 ( 2,017
)

 ( 840
)

 Purchases of debt securities and equity investments

 ( 33,453

)

 ( 29,921
)

 ( 59,872
)

 Proceeds from maturities and sales of debt securities and redemption of equity investments

 36,310

 50,112

 49,211

 Net cash used in investing activities

 ( 20,739

)

 ( 748
)

 ( 33,459
)

 FINANCING ACTIVITIES

 Dividends paid

)

 ( 2,536
)

 —

 Distributions to noncontrolling interests

 ( 100

)

 ( 112
)

 ( 348
)

 Proceeds from borrowings under revolving credit facility

 24,551

 32,864

 27,383

 Repayments of borrowings under revolving credit facility

 ( 24,551
)

 ( 32,864
)

 ( 27,383
)

 Purchase of restricted shares of net2phone and National Retail Solutions common stock

 —

 ( 4,131
)

 —

 Proceeds from exercise of stock options

 —

 Repurchases of Class B common stock

 ( 17,773

)

 ( 10,619
)

 ( 13,896
)

 Net cash used in financing activities

 ( 23,423

)

 ( 17,226
)

 ( 14,072
)

 Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents

 3,477

 ( 3,584
)

 4,389

 Net increase in cash, cash equivalents, and restricted cash and cash equivalents

 86,376

 56,633

 9,261

 Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year

 255,456

 198,823

 189,562

 Cash, cash equivalents, and restricted cash and cash equivalents at end of year

 $
 341,832

 $
 255,456

 $
 198,823

 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 Cash payments made for interest

 $

 $

 $

 Cash payments made for income taxes

 $

 $

 $

 SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

 Value of the Company's Class B common stock exchanged for National Retail Solutions shares

 $

 $
 6,696

 $
 —

 Conversion of equity method investment's secured promissory notes into convertible preferred stock

 $
 —

 $
 —

 $
 4,038

 Shares of the Company's Class B common stock issued to certain executive officers for bonus payments

 $
 1,824

 $
 1,494

 $

 Shares of the Company's Class B common stock issued for business acquisitions

 $
 -

 $

 $

 See

 F- 7

 IDT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 Note
1— Description of Business and Summary of Significant Accounting Policies

 Description
of Business

 IDT is a provider of fintech and communications solutions focused on certain under-served consumer and B2B markets.
Our offerings were built around, and continue to leverage, a common core of strategic assets, and we seek to maximize the synergies among
them to achieve exceptional growth and profitability.

 As
of July 31, 2025, the Company owned 94.0 % of the outstanding shares of its subsidiary, net2phone 2.0, Inc. ("net2phone 2.0"),
which owns and operates the net2phone segment, and 81.6 % of the outstanding shares of NRS. On a fully diluted basis assuming all the
vesting criteria related to various rights granted have been met, the Company would own 90.1 % of the equity of net2phone 2.0 and 79.5 %
of the equity of NRS.

 Basis
of Consolidation

 The
method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant
terms of each investment that explicitly grant or suggest evidence of control or influence over the operations of the entity in which
the Company owns an interest and includes the identification of any variable interests in which the Company is the primary beneficiary.
The consolidated financial statements include the Company's controlled subsidiaries and the variable interest entity in which the
Company is the primary beneficiary (see Note 12). All significant intercompany accounts and transactions between the consolidated entities
are eliminated.

 Use
of Estimates

 The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S.
GAAP") requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates.

 Reclassifications

 From
and after August 1, 2024, the Company reclassified certain customer funds for pending money transfers in its consolidated financial statements.
In the consolidated balance sheet at July 31, 2024, $ 8.9 million previously included in "Settlement liabilities" was reclassified
to "Customer funds deposits," and in the consolidated statements of cash flows in fiscal 2024 and fiscal 2023, cash provided
by "Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities" of
$ 1.6 million and $ 2.0 million, respectively, was reclassified to cash used in "Customer funds deposits". These amounts were
reclassified to conform to the current year's presentation.

 Accounting
for Investments

 Investments
in businesses that the Company does not control, but in which the Company has the ability to exercise significant influence over operating
and financial matters, are accounted for using the equity method. Investments in which the Company does not have the ability to exercise
significant influence over operating and financial matters are accounted for using the cost method. Investments in hedge funds are accounted
for using the equity method unless the Company's interest is so minor that it has virtually no influence over operating and financial
policies, in which case these investments are accounted for using the cost method. The Company periodically evaluates its equity and
cost method investments for impairment due to declines considered to be other than temporary. If the Company determines that a decline
in fair value is other than temporary, then a charge to earnings is recorded in "Other expense, net" in the accompanying
consolidated statements of income, and a new basis in the investment is established.

 Revenue
Recognition

 The
Company recognizes revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the Company expects to be entitled in exchange for those goods or services, in accordance with a five-step process as follows:
(i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction
price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as,
the Company satisfies a performance obligation.

Cost of Revenues

cost of revenues consists primarily of termination and origination costs, toll-free costs, and network costs—including customer/carrier
interconnect charges and fiber circuit charges. These costs include an estimate of charges for which invoices have not yet been received
and estimated amounts for pending disputes with other carriers. Direct cost of revenues also includes the cost of airtime top-up minutes,
the cost of NRS' POS terminals sold, the costs of cloud computing arrangements hosted by a vendor in the production environment
incurred by the net2phone segment and NRS, net2phone's colocation costs for data centers where net2phone is not fully operational
in the cloud, net2phone's cost of equipment sold, and commissions paid to disbursement agents, sales agents, and retailers for
BOSS Money's originations and distributions.

 F- 8

 Cash
and Cash Equivalents

 The
Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

 Debt
Securities

 The
Company's investments in debt securities are classified as "available-for-sale." Available-for-sale debt securities
are required to be carried at their fair value, with unrealized gains that are considered temporary in nature recorded in "Accumulated
other comprehensive loss" in the accompanying consolidated balance sheets. For available-for-sale debt securities with unrealized
losses, the portion of the unrealized loss that is the result of a credit loss is recognized as an allowance and a corresponding expense
is recorded in "Other expense, net" in the consolidated statement of income, and unrealized loss that is not the result of
a credit loss is recorded in "Accumulated other comprehensive loss" in the consolidated balance sheets.

 The
Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of debt
securities.

Investments

 Investments
in equity securities (except those accounted for under the equity method or that result in consolidation) are measured at fair value,
with changes in fair value recognized in net income. For investments in equity securities without a readily determinable fair value,
the Company elects the measurement alternative and measures these investments at cost, less any impairment, plus or minus changes resulting
from observable price changes in orderly transactions for an identical or similar investment of the same issuer. At each reporting date,
the Company reassesses whether the investment still qualifies for this measurement alternative. Further, at each reporting date, the
Company performs a qualitative assessment to evaluate whether the investment is impaired. If the qualitative assessment indicates that
the investment is impaired and the fair value of the investment is less than its carrying value, the carrying amount of the investment
will be reduced and the resulting loss recognized in "Other expense, net" in the accompanying consolidated statements of
income in the period the impairment is identified.

 Settlement
Assets and Settlement Liabilities

 Settlement
assets represent funds to be received for unsettled international money remittance and related value/payment transfer services. The receivables
are due from financial institutions and agents for payment instruments sold and amounts advanced by the Company to certain agents for
operational and local regulatory purposes. These receivables are outstanding from the day of the sale of the payment instrument until
the financial institution or agent remits the funds to the Company. The Company provides an allowance for the portion of the receivable
estimated to become uncollectible based on its history of collection experience, known collection issues, consumer credit card chargebacks
and insufficient funds, and other matters the Company identifies in its routine collection monitoring.

 Settlement
liabilities represent obligations relating to amounts payable under international money remittance and related value/payment transfer
services. These obligations are recognized by the Company at the time the underlying transaction occurs. The Company records corresponding
settlement assets for the funds to be received.

 Disbursement
Prefunding

 The
Company maintains relationships with disbursement partners in various countries for its BOSS Money and IDT Digital Payments services.
The Company maintains prefunding balances with these disbursement partners, so they can satisfy the Company's customer liabilities.
The Company does not earn interest on these balances. The balances are not compensating balances and are not legally restricted.

 Inventory

 Inventory
consists of NRS' POS terminals that it sells to retailers. Inventory is measured at the lower of cost and net realizable value.
Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion,
disposal, and transportation. Inventory is included in Other current assets on the consolidated balance sheets.

 Property,
Plant, and Equipment and Intangible Assets

 Equipment,
computer software, and furniture and fixtures are recorded at cost and are depreciated on a straight-line basis over their estimated
useful lives, which are as follows: equipment— 5 and 7 years; computer software— 3 years; and furniture and fixtures— 5
years. Leasehold improvements are recorded at cost and are depreciated on a straight-line basis over the term of their lease or their
estimated useful lives, whichever is shorter.

 F- 9

 Non-compete
agreements, customer relationships, and tradenames are amortized over their estimated useful lives (see Note 11).

 The
Company tests the recoverability of its property, plant, and equipment and intangible assets with finite useful lives whenever events
or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company tests for recoverability
based on the projected undiscounted cash flows to be derived from such asset. If the projected undiscounted future cash flows are less
than the carrying value of the asset, the Company will record an impairment loss, if any, based on the difference between the estimated
fair value and the carrying value of the asset. The Company generally measures fair value by considering sale prices for similar assets
or by discounting estimated future cash flows from such asset using an appropriate discount rate. Cash flow projections and fair value
estimates require significant estimates and assumptions by management. Should the estimates and assumptions prove to be incorrect, the
Company may be required to record impairments in future periods and such impairments could be material.

 Goodwill

 Goodwill
is the excess of the consideration paid for a business over the fair value of the identifiable net assets acquired. Goodwill and other
indefinite lived intangible assets are not amortized. Instead, these assets are reviewed annually (or more frequently under various conditions)
for impairment. The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative
goodwill impairment test. However, the Company may elect to perform the quantitative goodwill impairment test even if no indications
of a potential impairment exist.

 When
performing its quantitative annual, or an interim (when conditions warrant), goodwill impairment test the Company compares the fair value
of its reporting units with their carrying amounts. The Company would recognize an impairment charge for the amount by which the carrying
amount exceeds the reporting unit's fair value; however, the loss recognized would not exceed the total amount of goodwill allocated
to that reporting unit. Additionally, the Company considers income tax effects from any tax-deductible goodwill on the carrying amount
of its reporting unit when measuring the goodwill impairment loss, if applicable. The fair value of the reporting units is estimated
using discounted cash flow methodologies, as well as considering third party market value indicators. The Company's use of a discounted
cash flow methodology includes estimates of future revenue based upon budgets and projections. The Company also develops estimates for
future levels of gross and operating profits and projected capital expenditures. The Company's methodology also includes the use
of estimated discount rates based upon industry and competitor analysis as well as other factors. Calculating the fair value of the reporting
units requires significant estimates and assumptions by management. Should the estimates and assumptions regarding the fair value of
the reporting units prove to be incorrect, the Company may be required to record impairments to its goodwill in future periods and such
impairments could be material.

 Advertising
Expense

 Cost
of advertising is charged to selling, general and administrative expense in the period in which it is incurred. In fiscal 2025, fiscal
2024, and fiscal 2023, advertising expense was $ 20.9 million, $ 19.0 million, and $ 17.9 million, respectively.

 Capitalized
Internal Use Software Costs

 The
Company capitalizes the cost of internal-use software that has a useful life in excess of one year. These
costs consist of payments made to third parties and the salaries of employees working on such software development. Subsequent additions,
modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task
it previously did not perform. Software maintenance and training costs are charged to expense in the period in which they are incurred.
Capitalized internal use software costs are amortized on a straight-line basis over their estimated useful lives. Amortization expense
related to such capitalized software in fiscal 2025, fiscal 2024, and fiscal 2023 was $ 13.2 million, $ 12.8 million, and $ 13.2 million, respectively. Unamortized capitalized internal use
software costs at July 31, 2025 and 2024 were $ 18.5 million and $ 18.6 million, respectively.

 Repairs
and Maintenance

 The
Company charges the cost of repairs and maintenance, including the cost of replacing minor items not constituting substantial betterment,
to selling, general and administrative expense or technology and development expense as these costs are incurred.

Currency Translation

 Assets
and liabilities of foreign subsidiaries denominated in foreign currencies are translated to U.S. Dollars at end-of-period rates of exchange,
and their monthly results of operations are translated to U.S. Dollars at the average rates of exchange for that month. Gains or losses
resulting from such foreign currency translations are recorded in "Accumulated other comprehensive loss" in the accompanying
consolidated balance sheets. Foreign currency transaction gains and losses are reported in "Other expense, net" in the accompanying
consolidated statements of income.

 F- 10

 Income
Taxes

 The
Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between
the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is
provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization
of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become
deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning
strategies in its assessment of a valuation allowance. Deferred tax assets and liabilities are measured using the enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change.

 The
Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. The Company
determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related
appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not
recognition threshold, the Company presumes that the position will be examined by the appropriate taxing authority that has full knowledge
of all relevant information. Tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount
of tax benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater
than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts
recognized in the financial statements will generally result in one or more of the following: an increase in a liability for income taxes
payable, a reduction of an income tax refund receivable, a reduction in a deferred tax asset, or an increase in a deferred tax liability.

 The
Company classifies interest and penalties on income taxes as a component of income tax expense.

 Contingencies

 The
Company accrues for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that
it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be
estimated. When the Company accrues for loss contingencies and the reasonable estimate of the loss is within a range, the Company records
its best estimate within the range. When no amount within the range is a better estimate than any other amount, the Company accrues the
minimum amount in the range. The Company discloses an estimated possible loss or a range of loss when it is at least reasonably possible
that a loss may have been incurred.

 Earnings
Per Share

 Basic
earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted
average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is determined
in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject
to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect
of such increase is anti-dilutive.

 The
weighted-average number of shares used in the calculation of basic and diluted earnings per share attributable to the Company's
common stockholders consists of the following:

 Schedule of Weighted-average Number of Shares Used in the Calculation of Basic and Diluted Earnings Per Share

 2025

 2024

 2023

 Basic weighted-average number of shares

 25,188

 25,241

 25,517

 Effect of dilutive securities:

 Stock options

 Non-vested restricted Class B common stock

 Diluted weighted-average number of shares

 25,295

 25,398

 25,577

 There
were no shares excluded from the calculation of diluted earnings per share in fiscal 2025, fiscal 2024, or fiscal 2023.

 Stock-Based
Compensation

 The
Company recognizes compensation expense for its grants of stock-based awards based on the estimated fair value on the grant date. Compensation
cost for awards is recognized using the straight-line method over the requisite service period, which is usually the vesting period.
Stock-based compensation is included in selling, general and administrative expense and technology and development expense.

 F- 11

 Vulnerability
Due to Certain Concentrations

 Financial
instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, restricted
cash and cash equivalents, debt securities, equity investments, and trade accounts receivable. The Company holds cash and cash equivalents
at several major financial institutions, which often exceed FDIC insurance limits. Historically, the Company has not experienced any
losses due to such concentration of credit risk. The Company's temporary cash investments policy is to limit the dollar amount
of investments with any one financial institution and monitor the credit ratings of those institutions. While the Company may be exposed
to credit losses due to the nonperformance of the holders of its deposits, the Company does not expect the settlement of these transactions
to have a material effect on its results of operations, cash flows, or financial condition.

 The
concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers in various geographic
regions and industry segments comprising the Company's customer base. Revenue from no single customer accounted for more than 10%
of consolidated revenues in fiscal 2025, fiscal 2024 or fiscal 2023. However, revenue from the Company's five largest customers
collectively accounted for 8.9 %,
 10.3 %,
and 10.8 % of its consolidated revenues in fiscal 2025, fiscal 2024, and
fiscal 2023, respectively. The Company's customers with the five largest receivable balances collectively accounted for 20.4 % and 22.7 % of the consolidated gross trade accounts receivable at July
31, 2025 and 2024, respectively. This concentration of customers increases the Company's risk associated with nonpayment by those
customers. In an effort to reduce such risk, the Company performs ongoing credit evaluations of its significant customers.

 Allowance
for Credit Losses

 For
its allowance for trade accounts receivable, the Company records an expense based on a forward-looking current expected credit loss model
to maintain its allowance for credit losses. The Company considers the probability of recoverability of accounts receivable based on
experience, taking into account current collection trends and general economic factors, including bankruptcy rates. The Company also
considers future economic trends to estimate expected credit losses over the lifetime of the asset. Credit risks are assessed based on
historical write-offs, net of recoveries, as well as an analysis of the aged accounts receivable balances with allowances generally increasing
as the receivable ages. Accounts receivable may be fully reserved for when specific collection issues are known to exist, such as pending
bankruptcies. Account balances are written off against the allowance when it is determined that the receivable will not be recovered.

 The
changes in the allowance and reserves deducted from asset accounts is as follows:

 Schedule of Changes In Allowance and Reserves Deducted From Asset Accounts

 Balance at beginning of year

 Additions charged to costs and expenses

 Deductions
 (1)

 Balance at end of year

 2025

 Deducted from asset accounts:

 Allowance for credit losses

 $
 6,352

 $
 6,980

 $
 ( 4,235

)

 $
 9,097

 Reserve for losses on settlement assets

 1,866

 ( 609

)

 1,367

 Total

 $
 8,218

 $
 7,090

 $
 ( 4,844

)

 $
 10,464

 2024

 Deducted from asset accounts:

 Allowance for credit losses

 $
 5,642

 $
 3,402

 $
 ( 2,692
)

 $
 6,352

 Reserve for losses on settlement assets

 1,143

 ( 265
)

 1,866

 Total

 $
 6,785

 $
 4,390

 $
 ( 2,957
)

 $
 8,218

 2023

 Deducted from asset accounts:

 Allowance for doubtful accounts

 $
 5,328

 $
 1,578

 $
 ( 1,264
)

 $
 5,642

 Reserve for losses on settlement assets

 ( 31
)

 1,143

 Total

 $
 5,882

 $
 2,198

 $
 ( 1,295
)

 $
 6,785

 (1)
 Primarily
 uncollectible accounts written off, net of recoveries.

 F- 12

 Fair
Value Measurements

 Fair
value of financial and non-financial assets and liabilities is defined as an exit price, which is the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier
hierarchy for inputs used to measure fair value, which prioritizes the inputs to valuation techniques used to measure fair value, is
as follows:

 Level

 –

 quoted
 prices (unadjusted) in active markets for identical assets or liabilities.

 Level

 –

 quoted
 prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly
 or indirectly through market corroboration, for substantially the full term of the financial instrument.

 Level

 –

 unobservable
 inputs based on the Company's assumptions used to measure assets and liabilities at fair value.

 A
financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant
to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment
and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

 Leases

 The
Company determines whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract.
A contract contains a lease if there is an identified asset which the Company has the right to control. The Company records a right-of-use
("ROU") asset and a lease liability on the balance sheet on the lease commencement date for all leases with terms longer
than 12 months. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition
in the income statement. The ROU asset and lease liability are recorded based on the present value of the Company's obligation
to make payments over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate based
on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis
over a similar term. The Company recognizes lease cost for its leases on a straight-line basis over the lease term.

 Recently
Adopted Accounting Standard

 As
of May 1, 2025, the Company adopted ASU No. 2023-08, Intangibles-Goodwill and Other-Crypto
Assets (Subtopic 350-60), Accounting for and Disclosure of Crypto Assets, that changed the accounting for crypto assets from
a cost-less-impairment model to fair value, with changes recognized in net income each reporting period. The ASU also requires enhanced
disclosures including, among other things, the name, cost basis, fair value, and number of units for each significant holding, and a
rollforward of annual activity including additions, dispositions, gains, and losses. The Company does not hold, nor has it held during the period presented, any significant amounts of cryptocurrency
or other digital assets and as such, the adoption of this ASU did not impact the Company's
results of operations, cash flows, or financial condition.

 In November 2023, the Financial Accounting Standards
Board ("FASB") issued ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures,
which enhances reportable segment disclosure requirements, primarily through disclosures of significant segment expenses. The Company
adopted the new guidance in its annual financial statements for its fiscal year ended July 31, 2025. The adoption of this ASU did not
have an impact on the Company's consolidated financial statements but required additional disclosures.

 Recently
Issued Accounting Standard Not Yet Adopted

 In September 2025, the FASB issued ASU
2025-06 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the
Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing all references to software development
project stages so that the guidance is neutral to different software development methods. The amendments in this ASU are effective for
annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with
early adoption permitted. The amendments in this update permit an entity to apply the new guidance using a prospective, retrospective
or modified transition approach. The Company is currently in the process of evaluating the effects of this pronouncement on its consolidated
financial statements.

 In
November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive
Income-Expense Disaggregation Disclosures (Subtopic 220-40), to improve the disclosures about an entity's expenses including
more detailed information about the types of expenses in commonly presented expense captions. At each interim and annual reporting period,
entities will disclose in tabular format disaggregating information about prescribed categories underlying relevant income statement
captions, as well as the total amount of selling expense and a description of the composition of its selling expense. The Company will
adopt the amendments in this ASU for its fiscal year beginning on August 1, 2027. The Company is evaluating the impact that this ASU
will have on its consolidated financial statements.

 In December 2023, the FASB issued ASU No. 2023-09, Income Taxes
(Topic 740), Improvements to Income Tax Disclosures, which enhances income tax disclosures primarily related to the rate reconciliation
and income taxes paid information. This guidance also includes certain other amendments to improve the effectiveness of income tax disclosures.
This guidance will be effective for the Company in its annual financial statements for its fiscal year ended 2026 and should be applied
on a prospective basis, with retrospective application permitted. The amendments in this update do not change interim disclosure requirements.
The Company is evaluating the impact this ASU will have on its consolidated financial statements.

 Note
2— Business Segment Information

 The
Company's reportable segments are distinguished by types of service, customers, and methods used to provide their services. The
operating results of the business segments are regularly reviewed by the Company's chief operating decision maker ("CODM"),
which is a group of the Company's executives that includes the Chairman of the Board of Directors, Chief Executive Officer, Chief
Operating Officer, and Chief Financial Officer. The Company's CODM uses actual and budgeted income (loss) from operations to evaluate
the performance of the business segments and allocate resources, including capital allocations, primarily by monitoring actual results compared to prior periods and
expected results. 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.

 F- 13

 The
NRS segment is an operator of a nationwide POS network providing independent retailers with POS equipment, 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 a variable interest entity ("VIE") that processes
disbursement payments (the "Disbursement Payments VIE"), (iii) IDT Financial Services Limited ("IDT Financial Services"),
a Gibraltar-based bank and (iv) IDT Services Limited ("IDTS"), a Malta-based electronic money institution.

 The
net2phone segment is comprised of net2phone's integrated cloud -based Unified Communications as a Service ("UCaaS") and Contact Center as a Service ("CCaaS") offerings.

 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, 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.

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.

results for the business segments of the Company are included in the tables below. The significant expense categories align with the
segment-level information that is regularly provided to the CODM. The significant expense categories include depreciation and amortization.
Other segment items, which is the difference between segment revenues less the segment expenses disclosed and segment income (loss) from
operations, includes severance expense and other operating expense, net. The reconciliation of the total income (loss) from operations to income before income taxes is reflected in the consolidated
statements of income.

of Operating Results of Business Segments

 Traditional Communications

 Total

 Year ended July 31, 2025

 $
 128,793

 $
 154,610

 $
 87,875

 $
 860,217

 $
 —

 $

 ( 11,933)

 ( 63,868
)

 ( 18,165
)

 ( 691,334
)

 —

 ( 785,300
)

 Selling, general and administrative expense

 ( 78,015
)

 ( 66,209
)

 ( 52,354
)

 ( 79,875
)

 ( 11,114
)

 ( 287,567
)

 Technology and development expense

 ( 8,682
)

 ( 9,064
)

 ( 11,671
)

 ( 21,540
)

 ( 7
)

 ( 50,964
)

 Other segment items

 ( 2,410
)

 ( 49
)

 ( 736
)

 ( 942
)

 ( 3,103
)

 ( 7,240
)

 $
 27,753

 $
 15,420

 $
 4,949

 $
 66,526

 $
 ( 14,224
)

 $
 100,424

 Depreciation and amortization

 4,071

 2,932

 6,382

 7,561

 21,008

 Capital expenditures

 $
 5,367

 $
 3,501

 $
 6,608

 $
 5,279

 $

 $
 20,770

 Traditional Communications

 Total

 Year ended July 31, 2024

 $
 103,141

 $
 120,721

 $
 82,325

 $
 899,591

 $
 —

 $

 ( 11,625
)

 ( 53,387
)

 ( 17,236
)

 ( 733,373
)

 —

 ( 815,621
)

 Selling, general and administrative expense

 ( 62,652
)

 ( 59,650
)

 ( 52,588
)

 ( 84,864
)

 ( 10,453
)

 ( 270,207
)

 Technology and development expense

 ( 7,070
)

 ( 9,505
)

 ( 10,777
)

 ( 23,153
)

 ( 49
)

 ( 50,554
)

 Other segment items

 ( 168
)

 1,691

 ( 43
)

 ( 1,767
)

 ( 4,356
)

 ( 4,643
)

 $
 21,626

 $
 ( 130
)

 $
 1,681

 $
 56,434

 $
 ( 14,858
)

 $
 64,753

 Depreciation and amortization

 3,200

 2,872

 6,133

 8,064

 20,351

 Capital expenditures

 $
 3,606

 $
 3,650

 $
 6,334

 $
 5,332

 $
 —

 $
 18,922

 F- 14

 Traditional Communications

 Total

 Year ended July 31, 2023

 $
 77,115

 $
 86,610

 $
 72,388

 $
 1,002,741

 $
 —

 $

 ( 10,734
)

 ( 36,599
)

 ( 15,272
)

 ( 819,009
)

 —

 ( 881,614
)

 Selling, general and administrative expense

 ( 47,017
)

 ( 47,213
)

 ( 49,711
)

 ( 89,901
)

 ( 9,317
)

 ( 243,159
)

 Technology and development expense

 ( 4,961
)

 ( 7,278
)

 ( 9,969
)

 ( 25,780
)

 —

 ( 47,988
)

 Other segment items

 ( 3
)

 1,947

 ( 190
)

 ( 6,764
)

 ( 340
)

 ( 5,350
)

 $
 14,400

 $
 ( 2,533
)

 $
 ( 2,754
)

 $
 61,287

 $
 ( 9,657
)

 $
 60,743

 Depreciation and amortization

 2,363

 2,683

 5,608

 9,428

 20,136

 Capital expenditures

 $
 4,252

 $
 3,856

 $
 6,652

 $
 7,198

 $
 —

 $
 21,958

 Total
assets for the reportable segments are not provided because a significant portion of the Company's assets service multiple segments
and the Company does not track such assets separately by segment.

 Geographic
Information

 Net
long-lived assets and total assets held outside of the United States, which are located primarily in Western Europe, were as follows:

 Schedule of Net Long-lived Assets and Total Assets by Geographic Areas

 Other
 Countries

 Total

 July 31, 2025

 Long-lived assets, net

 $
 28,306

 $
 12,441

 $
 40,747

 Total assets

 345,218

 280,985

 626,203

 July 31, 2024

 Long-lived assets, net

 $
 28,825

 $
 13,100

 $
 41,925

 Total assets

 305,738

 244,357

 550,095

 Note
3— Revenue Recognition

 Contracts
with Customers

 The
Company earns revenue from contracts with customers, primarily through the provision of retail telecommunications and payment offerings
as well as wholesale international voice and SMS termination. BOSS Money, NRS, and net2phone are technology-driven, synergistic businesses
that leverage the Company's core assets. BOSS Money's and NRS' revenues are primarily recognized at a point in time,
and net2phone's revenue is mainly recognized over time. Traditional Communications' offerings are mostly minute-based, paid-voice
communications services, and revenue is primarily recognized at a point in time. The Company's most significant revenue streams
are from IDT Digital Payments, BOSS Revolution, and IDT Global. IDT Digital Payments and BOSS Revolution are sold direct-to-consumers
and through distributors and retailers.

 F- 15

 IDT
Digital Payments

 IDT
Digital Payments is sold direct-to-consumer and through distributors and retailers in the same manner as BOSS Revolution (see below).
The Company does not terminate the minutes in its IDT Digital Payments transactions. The Company's performance obligation is to
recharge (top-up) the airtime balance of a mobile account on behalf of the Company's customer. The Company has contracts with various
mobile operators or aggregators to provide the IDT Digital Payments service. The Company determined that it is the principal in primarily
all its IDT Digital Payments transactions as the Company controls the service to top-up a mobile account on behalf of the Company's
customer. However, for the portion of its IDT Digital Payments business where the Company has no customer service responsibilities, no
inventory risk, and does not establish the price, the Company determined that, as the Company is not considered to control the arrangement,
it acts as an agent of the mobile operators. The Company records gross revenues based on the amount billed to the customer when it is
the principal in the arrangement and records revenue net of the associated costs incurred when it acts as an agent in the arrangement.
The transfer of control happens at the point in time that the airtime is recharged, which is when the Company has a right to payment
and the customer has accepted the service. Accordingly, the performance obligation is satisfied, and revenue is recognized when the recharge
of the mobile account occurs.

 BOSS
Revolution direct-to-consumer

 BOSS
Revolution direct-to-consumer is offered on a pay-as-you-go basis or in unlimited plans. The customer prepays for service in both cases,
which results in a contract liability (deferred revenue). The contract term for pay-as-you-go plans is minute-to-minute and includes
separate performance obligations for the series of material rights to renew the contract. The performance obligation is satisfied immediately
after it arises, and the amount of consideration is known when the obligation is satisfied. Since the Company's satisfaction of
its performance obligation and the customer's use of the service occur simultaneously, the Company recognizes revenue at the point
in time when minutes are utilized, since the customer obtained control and the Company has a present right to payment. For unlimited
plans, the Company has a stand-ready obligation to provide service over time for an agreed upon term. Unlimited plans include fixed consideration
over the term. Plan fees for unlimited plans are generally refundable at the request of the customer up to three days after payment if
there was no usage. Since the Company's satisfaction of its performance obligation and the customer's use of the service
occur over the term of the plan, the Company recognizes revenue over a period of time as the service is rendered. The Company uses an
output method as time elapses because it reflects the pattern by which the Company satisfies its performance obligation through the transfer
of service to the customer. The fixed upfront consideration is recognized evenly over the service period, which is generally 24 hours,
7 days, or one month.

 BOSS
Revolution sold through distributors and retailers

 BOSS
Revolution sold through distributors and retailers is the same service as BOSS Revolution sold direct-to-consumer. The Company sells
capacity to international calling minutes to retailers, or to distributors who resell to retailers. The retailer or distributor is the
Company's customer in these transactions. The Company's sales price to retailers and distributors, net of discounts, is less
than the end user rate for BOSS Revolution minutes. The customer or the Company may terminate their agreement at any time upon thirty
days written notice without penalty. Retailers may sell BOSS Revolution on a pay-as-you-go basis or in unlimited plans. As described
above, for pay-as-you-go, the Company recognizes revenue at the point in time when minutes are utilized, and for unlimited plans, the
Company recognizes revenue over a period of time as the service is rendered. Retailers and distributors also receive initial commissions
upon sale to end users, and renewal commissions when certain end users subsequently purchase minutes directly from the Company. Initial
and renewal commission payments are accounted for as a reduction of the transaction price over time as the end user uses the service.

 IDT
Global

 IDT
Global services are offered to both postpaid and prepaid customers. Postpaid customers are billed in arrears and typically consist of
credit-worthy companies such as Tier 1 carriers and mobile network operators. Prepaid customers are typically smaller communications
companies and independent call aggregators. There is no performance obligation until the transport and termination of international long-distance
calls commences. The initial contract durations range from six months to one year, and generally have successive extensions. During the
initial term, the contract can only be terminated in certain instances (such as bankruptcy of either party, damage to the other party's
network, fraud, or breach of contract). However, no penalties are applied if the agreement is terminated in the initial term. After the
initial term has expired, either party may terminate the agreement with notice of 30 days to 60 days depending on the agreement. The
term of the contract is essentially minute-to-minute as there is no penalty for an early termination and no obligation to send traffic.

 Each
iteration is a separate optional purchase that occurs over the contract duration (that is, minute-by-minute). The satisfaction of the
performance obligation is occurring at a point in time (as the minutes are transferred) because the provision of the service and the
satisfaction of the performance obligation are essentially occurring simultaneously. Revenue is recognized at the point in time upon
delivery of the service.

 F- 16

 The
Company has not generally entered into contracts that have retroactive pricing features. Additionally, as the performance obligations
are considered minute-by-minute obligations in the original contract, any modification of the original contract that leads to a conclusion
that there is a new contract would not result in any adjustment related to the original contract's consideration.

 The
Company provides discounts to its larger customers based on the expectation of a significant volume of minutes that are consistent with
that class of customer in the wholesale carrier market. The discounts do not provide a material right to the customer because the customer
receives the same pricing for all usage under the contract.

 IDT
Global's contracts may include tiered pricing based on minute volumes. The Company determined that its retroactive tiered pricing
should be accounted for as variable consideration because the final transaction price is unknown until the customer completes or fails
to complete the specified threshold. Currently, contracts with retroactive tiered pricing are not material. The Company estimates the
amount of variable consideration to include in the transaction price only to the extent that it is probable that a subsequent change
in the estimate would not result in a significant revenue reversal.

 The
Company enters into Notification of Reciprocal Transmission ("NORT") transactions, in which the Company commits to purchase
a specific number of wholesale carrier minutes to specific destinations at specified rates, and the counterparty commits to purchase
from the Company a specific number of minutes to specific destinations at specified rates. The number of minutes purchased and sold is
not necessarily the same. The rates in these reciprocal transactions are generally not at prevailing market rates, and the amounts paid
to the counterparty in excess of market rates are reflected as a reduction in revenue received from the customer. In addition, the Company
enters into transactions in which it swaps minutes with another carrier. The Company recognizes revenue and the related direct cost of
revenue for these reciprocal and swap transactions based on the fair value of the minutes.

 IDT
Global's NORT contracts include the promise of minimum guaranteed amounts of traffic. The performance obligation represents a stand
ready obligation to provide the specified number of minutes over the contractual term. The initial terms of NORT contracts generally
range from one month to six months. Since the Company's satisfaction of its performance obligation of routing calls to their destination
includes a minimum guaranteed amount of traffic, the Company recognizes revenue over a period of time as the service is rendered. The
customer simultaneously receives and consumes the benefits provided by the Company's performance as the Company performs. The Company
uses an output method as the usage of minutes occur because it reflects the pattern by which the Company satisfies its performance obligation
through the transfer of service to the customer.

Retail Solutions

 NRS
earns revenue from (1) merchant services' commissions for the processing of credit and debit card transactions on the POS
terminals, (2) a monthly recurring charge for its software license, software upgrades, and help desk support
(collectively, the "Software services"), (3) fees for advertising on the POS terminals, (4) sales of the data collected
by the POS terminals to data aggregators and others, and (5) the sale of POS terminals to retailers.

 NRS' merchant services enable retailers to accept and process
payments made by credit cards, debit cards, electronic benefits transfer, and other forms of electronic payment. Merchant services revenue
includes a monthly fee plus a percentage of the transaction amount plus a flat rate per transaction. There is no separate charge
for the credit card reader provided to the retailers, which remains NRS' property and must be returned upon termination of the services.
Merchant services are provided as an agent of the payment processor or funding bank, therefore NRS records revenue net of the associated
costs incurred. The performance obligation is satisfied, and revenue is recognized when the payment is processed.

 The retailers' use of the credit card reader is a separate
performance obligation that meets the definition of a lease. The lease consideration is included in the merchant services' monthly
recurring charge. NRS accounts for the non-lease and lease components as a single performance obligation in accordance with Accounting
Standards Codification Revenue from Contracts with Customers (Topic 606) ("ASC 606") because the timing and pattern
of transfer of both components is the same, and the non-lease component is the predominant component.

 NRS
sells advertising on the POS terminal's high-definition screens through internal sales agents, third-party brokers, and real-time
auctions on exchange platforms known as programmatic advertising. For advertising sold through its agents or a broker, as well as for
a portion of its programmatic advertising, NRS is the principal because it is responsible for performing the service by delivering advertisements
according to the customer's requirements. For the portion of its programmatic advertising where NRS does not control the ad space
before it is provided to the customer, NRS acts as an agent of the advertising exchange. NRS records gross revenues based on the amount
billed to the customer when it is the principal in the arrangement and records revenue net of the associated costs incurred when it acts
as an agent in the arrangement. The performance obligation is satisfied, and revenue is recognized during the period of time when the
advertisement is broadcast on the POS terminal.

 F- 17

 NRS
captures targeted, daily data from the POS terminals that it sells to customers. The performance obligation is the provision of a data
report, generally one report per POS terminal per week, where each report is a distinct good that is not interrelated with another report.
Customers purchase data reports generally for an annual fee per POS terminal. The consideration is variable because it depends on the
number of POS terminals selected. The performance obligation is satisfied, and revenue is recognized, at the point in time when the customer
receives a data report because the customer obtains control and has the benefit of the data. The amount recognized per report is the
same for each report since each report has the same standalone value to the customer.

 NRS sells its POS terminals to retailers. The terminals include
a cash register, a barcode scanner, retailer and customer-facing hi-definition screens, a receipt printer, and a credit card reader. The
arrangement with the customer includes the equipment sale including embedded POS software, as well as the Software services. Each hardware
component and the Software services is a separate performance obligation because each is a distinct good or service that can be obtained
from alternate providers. The transaction price is allocated to each performance obligation based on the relative standalone selling price
("SSP"). The SSP reflects the amount the Company would charge for each performance obligation if it were sold separately in
a standalone sale to similar customers in similar circumstances. The SSP for POS terminals is generally estimated using the cost plus
expected gross margin approach. Equipment revenue is recognized at the point in time when the customer has physical possession of the
POS terminal, which is when the customer can use the POS terminal and embedded software and has the risks and rewards of ownership. Revenue
from the Software services is recognized ratably over the term of the contract because satisfaction of the performance obligation and
the customer's use of the service occur evenly over the term.

earns revenue primarily through the provision of integrated cloud-based UCaaS and CCaaS
offerings for businesses. The services are priced on
a per-seat basis, and its subscription revenue is a monthly fee per seat. Revenue is primarily recognized over the monthly service
period. Revenue from the sale of telephone equipment is recognized at a point in time when the equipment is delivered to the
customer.

leases telephone equipment to certain customers, which is a separate performance obligation that meets the definition of a lease. The
lease consideration is included in the monthly recurring charge. net2phone accounts for the non-lease and lease components as a single
performance obligation in accordance with ASC 606 because the timing and pattern of transfer of both components is the same, and the
non-lease component is the predominant component.

 BOSS
Money

from international money transfers are primarily from transaction fees charged to the customer based on the amount sent and the send
and receive locations. In addition, revenues are earned on the foreign currency exchange based on the difference between purchasing currency
at wholesale exchange rates and selling the currency at retail exchange rates. The Company satisfies its international money transfer
performance obligations and recognizes revenue at a point in time when the designated recipient receives the funds, as the Company has
a right to payment and the customer has use of the service.

 Disaggregated

 The
following table shows the Company's revenues disaggregated by business segment and service offered to customers:

 Schedule of Revenues Disaggregated by Business Segment and Service Offered to Customers

 2025

 2024

 2023

 $
 128,793

 $
 103,141

 $
 77,115

 BOSS Money

 139,828

 108,332

 76,928

 Other

 14,782

 12,389

 9,682

 Total Fintech

 154,610

 120,721

 86,610

 87,875

 82,325

 72,388

 IDT Digital Payments

 416,312

 407,430

 417,057

 BOSS Revolution

 211,163

 263,215

 322,134

 IDT Global

 209,609

 201,119

 230,281

 Other

 23,133

 27,827

 33,269

 Total Traditional Communications

 860,217

 899,591

 1,002,741

 TOTAL

 $

 $

 $

 $

 $

 $

 F- 18

 The
following table shows the Company's revenues disaggregated by geographic region, which is determined based on selling location:

of Revenues Disaggregated by Geographic Region

 (in

 Retail Solutions

 Communications

 Total

 Year
 ended July 31, 2025

 $
 128,793

 $
 149,503

 $
 50,665

 $
 643,245

 $
 972,206

 Outside
 the United States:

 -

 -

 -

 -

 -

 Kingdom

 —

 —

 —

 184,181

 184,181

 Other

 —

 5,107

 37,210

 32,791

 75,108

 Total
 outside the United States

 —

 5,107

 37,210

 216,972

 259,289

 TOTAL

 $
 128,793

 $
 154,610

 $
 87,875

 $
 860,217

 $

 Year
 ended July 31, 2024

 $
 103,141

 $
 116,732

 $
 44,617

 $
 658,460

 $
 922,950

 Outside
 the United States:

 Kingdom

 —

 —

 —

 209,493

 209,493

 Other

 —

 3,989

 37,708

 31,638

 73,335

 Total
 outside the United States

 —

 3,989

 37,708

 241,131

 282,828

 TOTAL

 $
 103,141

 $
 120,721

 $
 82,325

 $
 899,591

 $

 Year
 ended July 31, 2023

 $
 77,115

 $
 83,883

 $
 38,029

 $
 693,193

 $
 892,220

 Outside
 the United States:

 Kingdom

 —

 —

 —

 267,697

 267,697

 Other

 —

 2,727

 34,359

 41,851

 78,937

 Total
 outside the United States

 —

 2,727

 34,359

 309,548

 346,634

 TOTAL

 $
 77,115

 $
 86,610

 $
 72,388

 $
 1,002,741

 $

 Remaining
Performance Obligations

 The
following table includes revenue by business segment expected to be recognized in the future from performance obligations that were unsatisfied
or partially unsatisfied as of July 31, 2025. The table excludes contracts that had an original expected duration of one year or less.

of Estimated Revenue by Business Segment

 (in

 Retail Solutions

 Total

 Year
 ending July 31:

 2026 1

 $
 9,400

 $
 43,470

 $
 52,870

 2027 1

 7,805

 23,522

 31,327

 Thereafter 0

 7,629

 8,575

 16,204

 TOTAL 0

 $
 24,834

 $
 75,567

 $
 100,401

 F- 19

 Accounts
Receivable and Contract Balances

 The
timing of revenue recognition may differ from the time of billing to the Company's customers. Trade accounts receivable in the
Company's consolidated balance sheets represent unconditional rights to consideration. The Company records a contract asset
when revenue is recognized in advance of its right to bill and receive consideration. The Company has not currently identified any contract
assets.

 Contract
liabilities arise when the Company receives consideration or bills its customers prior to providing the goods or services promised in
the contract. The Company's contract liability balance is primarily payments received for prepaid BOSS Revolution. Contract liabilities
are recognized as revenue when services are provided to the customer. The contract liability balances are presented in the Company's
consolidated balance sheets as "Deferred revenue". The Company's revenue recognized in fiscal 2025, fiscal 2024, and
fiscal 2023 from amounts included in the contract liability balance at the beginning of the period was $ 17.5 million, $ 22.1 million, and
$ 23.5 million, respectively.

 The
Company estimates its expected breakage revenue by revenue stream recorded each month, based on inputs and assumptions about usage of
the deferred revenue balances. The Company used its historical deferred revenue usage data by revenue stream to calculate the percentage
of deferred revenue by month that will become breakage. The historical data indicated that customers utilized a very high percentage
of minutes purchased in the first three months. The Company periodically reviews its estimates based on updated data and adjusts the
monthly estimates accordingly.

 Receivables and contract balances from
contracts with customers for the fiscal years ended July 31, 2025 and 2024, were as follows:

of Receivables Contract from Customer

 Accounts Receivable, net

 Deferred Revenue

 2025

 2024

 2025

 2024

 Beginning of year

 $
 42,215

 $
 32,092

 $
 30,364

 $
 35,343

 End of year

 $
 42,867

 $
 42,215

 $
 27,724

 $
 30,364

Customer Contract Acquisition and Fulfillment Costs

 The
Company recognizes as an asset its incremental costs of obtaining a contract with a customer that it expects to recover. The Company's
incremental costs of obtaining a contract with a customer are sales commissions paid to employees and third parties on sales to end users.
If the amortization period were one year or less for the asset that would be recognized from deferring these costs, the Company applies
the practical expedient whereby the Company charges these costs to expense when incurred. Costs to obtain a contract are capitalized and amortized on a straight-line basis over the estimated period of benefit.

 The
Company's costs to fulfill its contracts do not meet the criteria to be recognized as an asset, therefore these costs are charged
to expense as incurred.

 The
Company's deferred customer contract acquisition costs were as follows:

 Schedule of Deferred Customer Contract Acquisition Costs

 July

 (in

 2025

 2024

 customer contract acquisition costs included in "Other current assets"

 $
 6,547

 $
 4,823

 customer contract acquisition costs included in "Other assets"

 4,789

 4,276

 TOTAL

 $
 11,336

 $
 9,099

 In
fiscal 2025, fiscal 2024, and fiscal 2023, the Company's amortization of deferred customer contract acquisition costs was $ 5.7
million, $ 5.8 million, and $ 4.9 million, respectively.

 Note
4— Leases

 The
Company's leases primarily consist of operating leases for office space. These leases have remaining terms from less than one year
to approximately five years. Certain of these leases contain renewal options that may be exercised and/or options to terminate the lease.
The Company has concluded that it is not reasonably certain that it would exercise any of these options.

 The Company has also elected to apply the practical expedient
for short-term leases whereby we do not recognize a lease liability or a right-of-use asset for leases with a term of 12 months or less.
The Company recognizes short-term leases on a straight-line basis.

 Supplemental
disclosures related to the Company's operating leases were as follows:

 Schedule of Supplemental
Disclosures Related to the Company's Operating Leases

 Year
 ended July 31

 (in

 2025

 2024

 2023

 lease cost

 $
 2,081

 $
 2,557

 $
 3,175

 Short-term
 lease cost

 1,367

 1,095

 TOTAL
 LEASE COST

 $
 3,448

 $
 3,481

 $
 4,270

 Cash
 paid for amounts included in the measurement of lease liabilities:

 cash flows from operating leases

 $
 2,147

 $
 2,588

 $
 3,262

 Cash
paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases

 $
 2,147

 $
 2,588

 $
 3,262

of Supplemental Disclosure Related Weighted Average Operating Leases

 July

 2025

 2024

 Weighted-average
 remaining lease term-operating leases

 2.7
 years

 2.6
 years

 Weighted-average
 discount rate-operating leases

 5.2
 %

 5.6
 %

 F- 20

 In
fiscal 2025, fiscal 2024, and fiscal 2023, the Company obtained right-of-use assets of $ 0.6 million, $ 0.9 million, and $ 1.8 million,
respectively, in exchange for new operating lease liabilities. In fiscal 2024, the Company modified its lease at 520 Broad St, Newark,
New Jersey and reduced the related right-of-use asset by $ 0.8 million and the related operating lease liability by $ 0.9 million.

 The
Company's aggregate operating lease liability was as follows:

 Schedule of Aggregate
Operating Lease Liability

 July

 (in

 2025

 2024

 lease liabilities included in " Other current liabilities "

 $

 $
 1,866

 lease liabilities included in noncurrent liabilities

 1,103

 1,533

 TOTAL

 $
 1,945

 $
 3,399

 Future
minimum maturities of operating lease liabilities were as follows:

of Future Minimum Maturities of Operating Lease Liabilities

 (in

 Year
 ending July 31:

 2026

 $

 2027

 2028

 2029

 2030

 Thereafter

 —

 Total
 lease payments

 2,113

 Less
 imputed interest

 ( 168

)

 Total
 operating lease liabilities

 $
 1,945

 Note
5— Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents

 The
following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported in the consolidated
balance sheets that equal the total of the same amounts reported in the consolidated statements of cash flows:

of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents

 July

 (in

 2025

 2024

 Cash
 and cash equivalents

 $
 226,505

 $
 164,557

 Restricted
 cash and cash equivalents

 115,327

 90,899

 TOTAL
 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS

 $
 341,832

 $
 255,456

 Restricted
cash and cash equivalents included the following:

of Restricted Cash And Cash Equivalents

 July

 2025

 2024

 IDT
 Financial Services (Gibraltar)

 $
 104,161

 $
 83,284

 Disbursement
 Payments VIE

 11,000

 7,426

 Other

 TOTAL
 RESTRICTED CASH AND CASH EQUIVALENTS

 $
 115,327

 $
 90,899

 F- 21

of the electronic money financial services regulations in Gibraltar require IDT Financial Services to safeguard cash held for
customer deposits, segregate cash held for customer deposits from any other cash that IDT Financial Services holds and utilize the
cash only for the intended payment transaction. IDTS is subject to similar regulatory obligations under the Maltese
financial services regulations, which also mandate the safeguard of electronic money, the segregation of the cash held for customer
deposits from any other cash that IDTS holds and utilize the cash only for the intended payment transaction. In addition, the
Disbursement Payments VIE is contractually required to use customer funds only for the customers' pending money
disbursements.

 Note
6— Debt Securities

 The
following is a summary of available-for-sale debt securities:

of Available-for-sale Securities

 (in

 Amortized
 Cost

 Gross
 Unrealized Gains

 Gross
 Unrealized Losses

 Fair
 Value

 July

 U.S.

 $
 12,953

 $
 —

 $
 ( 27

)

 $
 12,926

 sponsored enterprise notes

 5,554

 —

 ( 4

)

 5,550

 bonds

 3,367

 ( 196

)

 3,173

 TOTAL

 $
 21,874

 $

 $
 ( 227
)

 $
 21,649

 July

 U.S.

 $
 16,641

 $

 $
 ( 66
)

 $
 16,585

 sponsored enterprise notes

 3,356

 —

 ( 3
)

 3,353

 bonds

 3,821

 ( 322
)

 3,500

 TOTAL

 $
 23,818

 $

 $
 ( 391
)

 $
 23,438

 The
gross unrealized losses in the table above are recorded in "Accumulated other comprehensive loss" in the consolidated balance
sheets. As of July 31, 2025, the Company determined that the unrealized losses were due to changes in interest rates or market liquidity
and were not due to credit losses. In addition, as of July 31, 2025 and 2024, the Company did not intend to sell any of the securities
with unrealized losses, and it is not more likely than not that the Company will be required to sell any of these securities before recovery
of the unrealized losses, which may be at maturity.

 Proceeds
from maturities and sales of debt securities and redemptions of equity investments were $ 36.3 million, $ 50.1 million, and $ 49.2 million
in fiscal 2025, fiscal 2024, and fiscal 2023, respectively. The realized gains and realized losses from sales of debt securities in fiscal
2025 were not significant. There were no realized gains or realized losses from sales of debt securities in fiscal 2024 or fiscal 2023.

 The
contractual maturities of the Company's available-for-sale debt securities at July 31, 2025 were as follows:

 Schedule of Contractual Maturities of Available-for-sale Debt Securities

 (in

 Fair
 Value

 Within
 one year

 $
 18,671

 After
 one year through five years

 2,653

 After
 five years through ten years

 After
 ten years

 TOTAL

 $
 21,649

 The
following table includes the fair value of the Company's available-for-sale debt securities that were in an unrealized loss position:

 Schedule of Available-for-sale Securities, Unrealized Loss Position

 (in

 Losses

 Fair

Value

 July

 U.S.

 $

 $
 12,926

 sponsored enterprise notes

 5,550

 bonds

 2,976

 TOTAL

 $

 $
 21,452

 July

 U.S.

 $

 $
 12,936

 sponsored enterprise notes

 2,634

 bonds

 3,310

 TOTAL

 $

 $
 18,880

 F- 22

 The
following available-for-sale debt securities included in the table above were in a continuous unrealized loss position for 12 months
or longer:

of Continuous Unrealized Loss Position for 12 Months or Longer

 (in

 Losses

 Fair

Value

 July

 U.S.

 $

 $

 bonds

 2,967

 TOTAL

 $

 $
 3,296

 July

 U.S.

 $

 $
 4,827

 bonds

 3,209

 TOTAL

 $

 $
 8,036

 Note
7— Equity Investments

investments consist of the following:

 Schedule of Equity Investments

 July

 (in

 2025

 2024

 Zedge,
 Inc. Class B common stock, 42,282 shares at July 31, 2025 and 2024

 $

 $

 Rafael
 Holdings, Inc. ("Rafael") Class B common stock, 446,932 and 278,810 shares at July 31, 2025 and 2024, respectively

 Other
 marketable equity securities

 Fixed
 income mutual funds

 4,566

 4,370

 Current
 equity investments

 $
 5,637

 $
 5,009

 Visa
 Inc. Series C Convertible Participating Preferred Stock ("Visa Series C Preferred")

 $

 $

 Visa
 Inc. Series A Convertible Participating Preferred Stock ("Visa Series A Preferred")

 —

 Convertible
 preferred stock—equity method investment

 —

 1,338

 Hedge
 funds

 3,031

 2,883

 Other

 2,725

 Noncurrent
 equity investments

 $
 6,658

 $
 6,518

Jonas, the Chairman of the Company and the Chairman of the Company's Board of Directors is also the Vice-Chairman of the Board
of Directors of Zedge, Inc. and the Chairman of the Board of Directors, Executive Chairman, Chief Executive Officer, and President
of Rafael.

 In
June 2025, pursuant to Rafael's rights offering that was announced on April 29, 2025, the Company purchased 168,122 shares of Rafael
Class B common stock for an aggregate of $ 0.2 million.

 In
June 2016, upon the acquisition of Visa Europe Limited by Visa, Inc. ("Visa"), IDT Financial Services received 1,830 shares
of Visa Series C Preferred among other consideration. In July 2024, in connection with Visa's mandatory release assessments, the
Company received 33 shares of Visa's Series A Preferred. In August 2024, the 33 shares of Visa Series A Preferred were converted
into 3,300 shares of Visa Class A common stock, which the Company sold for $ 0.9 million.

 F- 23

 The
changes in the carrying value of the Company's equity investments without readily determinable fair values for which the Company
elected the measurement alternative was as follows:

 Schedule of Carrying Value of Equity Investments

 Year
 ended July 31

 (in

 2025

 2024

 2023

 Balance,
 beginning of period

 $

 $
 1,632

 $
 1,501

 Upward
 adjustment

 —

 —

 Redemption
 for Visa Series C Preferred mandatory release assessment

 —

 ( 877
)

 —

 Adjustment
 for observable transactions involving a similar investment from the same issuer

 Redemptions

 —

 ( 230
)

 —

 Impairments

 —

 —

 —

 BALANCE,
 END OF PERIOD

 $
 1,171

 $

 $
 1,632

 The
Company adjusted the carrying value of the shares of Visa Series C Preferred it held based on the fair value of Visa Class A common stock,
including a discount for lack of current marketability, which is classified as "Adjustment for observable transactions involving
a similar investment from the same issuer" in the table above. The Certificate of Designation with respect to the shares of Visa
Series C Preferred restricts the transferability of the shares, there is no public market for the shares, and none is expected to develop.
The shares become fully convertible into shares of Visa Class A common stock in June 2028.

 In
 connection with the acquisition of Regal Bancorp by SR Bancorp, the Company received cash of $ 0.2 million in fiscal 2024
in exchange for shares of Regal Bancorp common stock it held.

gains and losses for all equity investments measured at fair value included the following:

 Schedule of Unrealized Gains (losses) Gains for All Equity Investments

 Year
 ended July 31

 (in

 2025

 2024

 2023

 Net
 gains (losses) recognized during the period on equity investments

 $
 1,598

 $

 $
 ( 2,613
)

 Less:
 net (loss) gains recognized during the period on equity investments sold during the period

 ( 2
)

 gains (losses) recognized during the period on equity investments still held at the reporting date

 $
 1,600

 $

 $
 ( 2,631
)

 The
unrealized gains and losses for all equity investments measured at fair value in the table above included the
following:

 Year
 ended July 31

 (in

 2025

 2024

 2023

 gains (losses) recognized during the period on equity investments:

 Rafael
 Class B common stock

 $

 $
 ( 142
)

 $
 ( 7
)

 Zedge
 Class B common stock

 $

 $

 $
 ( 28
)

 Equity securities unrealized gain loss

 ( 28
)

Method Investment

 The
Company has an investment in shares of convertible preferred stock of a communications company (the equity method investee, or "EMI").
As of July 31, 2025 and 2024, the Company's ownership was 33.4 % of the EMI's outstanding shares on an as converted basis.
The Company accounts for this investment using the equity method since the Company can exercise significant influence over the operating
and financial policies of the EMI but does not have a controlling interest.

 F- 24

 The
Company determined that on the dates of the acquisitions of the EMI's shares, there were differences between its investment in
the EMI and its proportional interest in the equity of the EMI of an aggregate of $ 8.2 million, which represented the share of the EMI's
customer list on the dates of the acquisitions attributed to the Company's interest in the EMI. These basis differences are being
amortized over the 6-year estimated life of the customer list. In the accompanying consolidated statements of income, amortization of
equity method basis difference is included in the equity in the net loss of investee, which is recorded in "Other expense, net"
(see Note 17).

 As
of April 6, 2023, the Company was the holder of secured promissory notes made by the EMI in exchange for loans of an aggregate of $ 4.0
million including accrued interest. The notes provided for interest on the principal amount at 15 % per annum payable monthly. The notes
were due and payable in February 2023 and April 2023. On April 6, 2023, in accordance with an Agreement and Plan of Merger dated as of
April 5, 2023, the EMI merged with and into its subsidiary, with the subsidiary being the surviving corporation. Effective with the merger,
the principal and accrued interest of the EMI's secured promissory notes was converted into shares of the EMI's convertible
preferred stock.

 The
following table summarizes the change in the balance of the Company's equity method investment. The balance as of July 31, 2025 is classified as other current liabilities in the consolidated balance sheets.

 Summary
of Changes in Equity Method Investments

 Year
 ended July 31 (in thousands)

 2025

 2024

 2023

 Balance,
 beginning of period

 $
 1,338

 $
 2,784

 $
 1,001

 Purchase
 of convertible preferred stock

 2,017

 Conversion
 of secured promissory notes into convertible preferred stock

 —

 —

 4,038

 in the net loss of investee

 ( 1,291
)

 ( 2,093
)

 ( 2,153
)

 Amortization
 of equity method basis difference

 ( 1,370
)

 ( 1,370
)

 ( 942
)

 BALANCE,
 END OF PERIOD

 $
 ( 397
)

 $
 1,338

 $
 2,784

 In
February 2025, the Company entered into a loan agreement with the EMI for providing the EMI with a revolving credit facility. The
aggregate principal amount available under the facility is $ 2.0
million. The loans will incur interest at 12 %
per annum payable semiannually and are due and payable in February
2027. In fiscal 2025, the Company loaned the EMI an aggregate of $ 1.9
million under the revolving credit facility.

 Note
8— Fair Value Measurements

 The
following table presents the balance of assets and liabilities measured at fair value on a recurring basis:

 Schedule of Balance of Assets Measured at Fair Value on a Recurring Basis

 (in

 Level

 Level

 Level

 Total

 July

 Debt
 securities

 $
 12,926

 $
 8,723

 $
 —

 $
 21,649

 investments included in current assets

 5,637

 —

 —

 5,637

 investments included in noncurrent assets

 —

 2,500

 3,402

 TOTAL

 $
 18,563

 $
 11,223

 $

 $
 30,688

 Acquisition
 consideration included in:

 Other
 current liabilities

 $
 —

 $
 —

 $
 —

 $
 —

 Other
 noncurrent liabilities

 —

 —

 ( 610
)

 ( 610
)

 TOTAL

 $
 —

 $
 —

 $
 ( 610
)

 $
 ( 610

)

 July

 Debt
 securities

 $
 16,585

 $
 6,853

 $
 —

 $
 23,438

 investments included in current assets

 5,009

 —

 —

 5,009

 investments included in noncurrent assets

 —

 1,377

 2,072

 TOTAL

 $
 21,594

 $
 8,230

 $

 $
 30,519

 Acquisition
 consideration included in:

 Other
 current liabilities

 $
 —

 $
 —

 $
 ( 222
)

 $
 ( 222
)

 Other
 noncurrent liabilities

 —

 —

 ( 684
)

 ( 684
)

 TOTAL

 $
 —

 $
 —

 $
 ( 906
)

 $
 ( 906
)

 F- 25

 At
July 31, 2025 and 2024, the Company had $ 3.0 million and $ 2.9 million, respectively, in investments in hedge funds, which were included
in noncurrent "Equity investments" in the accompanying consolidated balance sheets. The Company's investments in hedge
funds were accounted for using the equity method, therefore they were not measured at fair value.

 The
following tables summarize the change in the balance of the Company's assets measured at fair value on a recurring basis using
significant unobservable inputs (Level 3):

 Schedule of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

 (in

 2025

 2024

 2023

 Year
 ended July 31,

 (in

 2025

 2024

 2023

 Balance,
 beginning of period

 $

 $
 1,263

 $
 1,132

 Redemption
 for Visa mandatory release assessment

 —

 ( 877
)

 —

 Total
 gains included in " Other expense, net "

 BALANCE,
 END OF PERIOD

 $

 $

 $
 1,263

 Change
 in unrealized gains or losses for the period included in earnings for assets held at the end of the period

 $
 —

 $
 —

 $
 —

 The
following tables summarize the change in the balance of the Company's liabilities measured at fair value on a recurring basis using
significant unobservable inputs (Level 3):

 Schedule of Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

 Year
 ended July 31,

 (in

 2025

 2024

 2023

 Balance,
 beginning of period

 $

 $
 4,805

 $
 8,546

 Payments

 ( 296
)

 ( 2,104
)

 ( 2,494
)

 Total
 (gains) losses included in:

 " Other
 operating expense, net "

 —

 ( 1,838
)

 ( 1,349
)

 Interest
 expense included in "Interest income, net"

 —

 " Foreign
 currency translation adjustments "

 —

 ( 1
)

 BALANCE,
 END OF PERIOD

 $

 $

 $
 4,805

 Change
 in unrealized gains or losses for the period included in earnings for liabilities at the end of the period

 $
 —

 $
 —

 $
 —

 In
fiscal 2025, fiscal 2024, and fiscal 2023, the Company paid an aggregate of $ 0.3 million, $ 2.1
million, and $ 2.5
million, respectively, for contingent consideration related to prior acquisitions, which included 2,679
and 3,051
shares in fiscal 2024 and fiscal 2023, respectively, of the Company's Class B common stock with an issue date value of $ 0.1
million in both fiscal 2024 and fiscal 2023. In addition, the Company recorded gains of $ 1.8
million and $ 1.6
million in fiscal 2024, and fiscal 2023, respectively, on the write-off of contingent consideration payment obligations. Also, in
fiscal 2023, the Company increased the estimated fair value of acquisition-related contingent consideration by $ 0.2
million. These write-offs of contingent consideration net of the increase in the contingent consideration were included in
"Other operating expense, net" in the accompanying consolidated statements of income.

 Fair
Value of Other Financial Instruments

 The
estimated fair value of the Company's other financial instruments was determined using available market information or other appropriate
valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently,
the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

 Cash
and cash equivalents, restricted cash and cash equivalents, settlement assets, disbursement prefunding, other current assets, customer
funds deposits, settlement liabilities, and other current liabilities. At July 31, 2025 and 2024, the carrying amount of these assets
and liabilities approximated fair value because of the short period of time to maturity. The fair value estimates for cash, cash equivalents,
and restricted cash and cash equivalents were classified as Level 1 and settlement assets, disbursement prefunding, other current assets,
customer funds deposits, settlement liabilities, and other current liabilities were classified as Level 2 of the fair value hierarchy.

 F- 26

 Other
assets and other liabilities. At July 31, 2025 and 2024, the carrying amount of these assets and liabilities approximated fair value.
The fair values were estimated based on the Company's assumptions, which were classified as Level 3 of the fair value hierarchy.

 Note
9— Property, Plant, and Equipment

 Property,
plant, and equipment consist of the following:

 Schedule of Property, Plant and Equipment

 July
 31 (in thousands)

 2025

 2024

 Equipment

 $
 45,879

 $
 45,881

 Computer
 software

 194,339

 181,081

 Leasehold
 improvements

 1,837

 1,635

 Furniture
 and fixtures

 Property, plant and equipment, gross

 242,750

 229,327

 Less
 accumulated depreciation and amortization

 ( 203,881
)

 ( 190,675
)

 Property,
 plant, and equipment, net

 $
 38,869

 $
 38,652

 The
Company reduced its gross property, plant, and equipment and accumulated depreciation and amortization by $ 6.1 million and $ 4.6 million
in fiscal 2025 and fiscal 2024, respectively, for property, plant, and equipment that was fully depreciated and no longer in service.

 Depreciation
and amortization expense of property, plant, and equipment was $ 19.5 million, $ 19.1 million, and $ 18.6 million in fiscal 2025, fiscal
2024, and fiscal 2023, respectively.

 In
fiscal 2023, the Company recorded an expense of $ 0.1 million for telephone equipment that was taken out of service, which was included
in "Other operating expense, net" in the accompanying consolidated statements of income.

 Note
10— Goodwill

 The
table below reconciles the change in the carrying amount of goodwill by operating segment:

 Schedule of Change in Carrying Amount of Goodwill by Operating Segment

 (in

 Communications

 Total

 at July 31, 2022

 $
 3,199

 $
 9,743

 $
 13,438

 $
 26,380

 currency translation adjustments

 —

 ( 24
)

 at July 31, 2023

 3,199

 9,844

 13,414

 26,457

 currency translation adjustments

 —

 ( 22
)

 ( 147
)

 ( 169
)

 at July 31, 2024

 3,199

 9,822

 13,267

 26,288

 Balance at beginning

 3,199

 9,822

 13,267

 26,288

 currency translation adjustments

 —

 at July 31, 2025

 $
 3,199

 $
 9,899

 $
 13,390

 $
 26,488

 Balance at end

 $
 3,199

 $
 9,899

 $
 13,390

 $
 26,488

 Note
11— Other Intangible Assets

 The
table below presents information on the Company's amortized intangible assets:

 Schedule of Company's Amortized Intangible Assets

 (in

 Weighted
 Average Amortization Period

 Gross
 Carrying Amount

 Accumulated
 Amortization

 Net

 July

 Tradenames

 14.6
 years

 $
 1,391

 $
 ( 585

)

 $

 Non-compete
 agreements

 6.0
 years

 ( 376
)

 Customer
 relationships

 9.9 years

 8,220

 ( 4,254
)

 3,966

 TOTAL

 10.3
 years

 $
 10,271

 $
 ( 5,215
)

 $
 5,056

 July

 Tradenames

 14.5
 years

 $
 1,400

 $
 ( 445
)

 $

 Non-compete
 agreements

 6.0
 years

 ( 266
)

 Customer
 relationships

 7.5
 years

 11,377

 ( 6,441
)

 4,936

 TOTAL

 8.1
 years

 $
 13,437

 $
 ( 7,152
)

 $
 6,285

 F- 27

 In
March 2024, the Company completed a portion of the integration of the Leaf Wallet platform into the BOSS Money app, including replacing
the Leaf tradename with BOSS Money. The Leaf tradename balance of $ 0.1 million was written-off in fiscal 2024.

 Amortization
expense of intangible assets was $ 1.5 million, $ 1.3 million,
and $ 1.5 million
in fiscal 2025, fiscal 2024, and fiscal 2023, respectively. The Company estimates that amortization expense of intangible assets
with finite lives will be $ 1.2 million,
$ 1.1 million,
$ 1.0 million,
$ 0.5 million, and $ 0.2 million
in fiscal 2026, fiscal 2027, fiscal 2028, fiscal 2029, and fiscal 2030, respectively.

 Note
12— Variable Interest Entity

 The
Company is the primary beneficiary of the Disbursement Payments VIE. The Company determined that, effective May 31, 2021, it had the
power to direct the activities of the Disbursement Payments VIE that most significantly impact its economic performance, and the Company
has the obligation to absorb losses of and the right to receive benefits from the Disbursement Payments VIE that could potentially be
significant to it. As a result, the Company consolidates the Disbursement Payments VIE. The Company does not currently own any interest
in the Disbursement Payments VIE and thus the net income incurred by the Disbursement Payments VIE was attributed to noncontrolling interests
in the accompanying statements of income.

 The
Disbursement Payments VIE's net income and aggregate funding provided by the Company were as follows:

 Schedule of Net Income and Aggregate Funding Repaid to the Company by VIE

 Year
 ended July 31 (in thousands)

 2025

 2024

 2023

 Net
 income of the Disbursement Payments VIE

 $

 $

 $

 Aggregate
 funding provided by the Company, net

 $

 $

 $

 The
Disbursement Payments VIE's summarized consolidated balance sheet amounts are as follows:

 VIE's Summarized Consolidated Balance Sheet

 July

 (in

 2025

 2024

 ASSETS

 Cash
 and cash equivalents

 $
 3,116

 $
 2,626

 Restricted
 cash

 11,000

 7,426

 Trade
 accounts receivable, net

 Disbursement
 prefunding

 1,400

 2,587

 Prepaid
 expenses

 Other
 current assets

 Property,
 plant, and equipment, net

 Other
 intangibles, net

 TOTAL
 ASSETS

 $
 17,051

 $
 14,028

 LIABILITIES
 AND NONCONTROLLING INTERESTS

 Trade
 accounts payable

 $

 $

 Accrued
 expenses

 Customer
 funds deposits

 10,701

 9,195

 Due
 to the Company

 Accumulated
 other comprehensive income

 Noncontrolling
 interests

 5,377

 4,437

 TOTAL
 LIABILITIES AND NONCONTROLLING INTERESTS

 $
 17,051

 $
 14,028

 F- 28

 The
Disbursement Payments VIE's assets may only be used to settle the Disbursement Payments VIE's obligations and may not be
used for other consolidated entities. The Disbursement Payments VIE's liabilities are non-recourse to the general credit of the
Company's other consolidated entities.

 Note
13— Other Operating Expense, Net

 The
following table summarizes the other operating expense, net by business segment:

 Schedule of Other Operating (Expense) Gain, Net

 Year
 ended July 31 (in thousands)

 2025

 2024

 2023

 —Straight Path Communications Inc. class action legal fees

 $
 ( 527
)

 $
 ( 7,237
)

 $
 ( 5,785
)

 —Straight Path Communications Inc. class action insurance claims

 —

 2,869

 3,845

 Corporate—legal fees associated with settlement of litigation

 ( 1,575

)

 —

 —

 Corporate—Grow
 New Jersey Assistance Act tax credit

 —

 —

 1,600

 Corporate—other

 ( 1,000

)

 —

 Fintech—write-off
 of intangible asset

 —

 ( 74
)

 —

 Fintech—write-off
 of contingent consideration liability

 —

 1,765

 1,565

 Fintech—government
 grants

 —

 —

 net2phone—write-off
 of equipment

 ( 635
)

 —

 ( 133
)

 net2phone—write-off
 of contingent consideration liability

 —

 —

 net2phone—other

 ( 17
)

 —

 National Retail Solutions—settlement of litigation

 ( 2,401

)

 —

 —

 Retail Solutions—write-off of capitalized internal use software costs

 —

 ( 45
)

 —

 Retail Solutions—other

 —

 ( 105
)

 —

 Traditional Communications—write-off of equipment

 ( 222
)

 —

 —

 Communications—write-off of capitalized internal use software costs

 —

 ( 237
)

 ( 1,419
)

 Communications—cable telephony customer indemnification claim

 —

 —

 ( 3,925
)

 Communications—increase in contingent consideration liability

 —

 —

 ( 216
)

 Communications—other

 ( 329
)

 TOTAL

 $
 ( 6,342
)

 $
 ( 2,945
)

 $
 ( 4,415
)

 Straight
Path Communications Inc. Class Action

 As
discussed in Note 22, the Company (as well as other defendants) was named in a class action on behalf of the stockholders of the Company's
former subsidiary, Straight Path Communications Inc. ("Straight Path"). The Company incurred legal fees and recorded offsetting
gains from insurance claims related to this action. In fiscal 2024, the Company received the final payment from its insurance policy
for these claims. On October 3, 2023, the Court of Chancery of the State of Delaware dismissed all claims against the Company, and found
that, contrary to the plaintiffs' allegations, the class suffered no damages. On January 14, 2025, the plaintiff filed a notice
of appeal of the Final Order and Judgment to the Supreme Court of the State of Delaware to appeal the Final Order and Judgment. On April
22, 2025, the Company filed its answering brief to the appeal. Oral argument is scheduled
for October 2025.

 Settlement of Litigation

 In fiscal 2025, the Company recorded an aggregate expense of
$ 4.0 million related to the settlement of litigation, of which $ 1.6 million was included in Corporate and $ 2.4 million was included in
the NRS segment.

 Grow
New Jersey Assistance Act Tax Credit

 In
September 2017, the Company, the Company's subsidiary IDT Domestic Telecom, Inc. ("IDT DT"), and certain other affiliates
were certified by the New Jersey Economic Development Authority ("NJEDA") as having met the requirements of the Grow New
Jersey Assistance Act Tax Credit Program. The program provides for credits against a corporation's New Jersey corporate business
tax liability for maintaining a minimum number of employees in New Jersey, and that tax credits may be sold subject to certain conditions.
On June 5, 2023, the Company received a 2019 tax credit certificate for $ 1.8 million from the NJEDA. In August 2023, the Company sold
the certificate for cash of $ 1.6 million.

 Contingent
Consideration Liabilities

 In
fiscal 2024 and fiscal 2023, the Company recognized gains on the write-off of contingent consideration payment obligations in the Fintech
segment of $ 1.8 million and $ 1.6 million, respectively, and, in fiscal 2024, the Company recognized a gain on the write-off of a contingent
consideration payment obligation in the net2phone segment of $ 0.1 million. In fiscal 2023, the Company increased the estimated fair value
of acquisition-related contingent consideration in its Traditional Communications segment by $ 0.2 million.

 F- 29

Grants

 In
fiscal 2023, the Fintech segment received payments from government grants for the development and commercialization of blockchain-backed
financial technologies.

 Write-off
of Capitalized Internal Use Software Costs

 In
fiscal 2024 and fiscal 2023, the Company reduced its unamortized capitalized internal use software costs for internal use software that
was taken out of service and recorded expense of $ 0.3 million and $ 1.4 million, respectively.

 Indemnification
Claim

 Beginning
in June 2019, as part of a commercial resolution, the Company indemnified a cable telephony customer related to patent infringement claims
brought against the customer. On May 8, 2023, the Company and the customer agreed to release the Company from the indemnification agreement
in exchange for $ 3.9 million.

 Note
14— Revolving Credit Facility

 The
Company's subsidiary, IDT Telecom, Inc. ("IDT Telecom"), entered into a credit agreement, dated as of May 17, 2021,
with TD Bank, N.A. for a revolving credit facility for up to a maximum principal amount of $ 25.0 million. As of July 15, 2024 and July
28, 2023, IDT Telecom and TD Bank, N.A. amended certain terms of the credit agreement. IDT Telecom may use the proceeds to finance working
capital requirements and for certain closing costs of the facility. At July 31, 2025 and 2024, there were no amounts outstanding under
this facility. In fiscal 2025, fiscal 2024, and fiscal 2023, IDT Telecom borrowed and repaid an aggregate of $ 24.6 million, $ 32.9 million,
and $ 27.4 million, respectively, under the facility. The revolving credit facility is secured by primarily all of IDT Telecom's
assets. The principal outstanding bears interest per annum at the secured overnight financing rate published by the Federal Reserve Bank
of New York plus 10 basis points, plus depending upon IDT Telecom's leverage ratio as computed for the most recent fiscal quarter,
125 to 175 basis points. Interest is payable monthly, and all outstanding principal and any accrued and unpaid interest is due on May
16, 2026. IDT Telecom pays a quarterly unused commitment fee of 10 basis points on the average daily balance of the unused portion of
the $ 25.0 million commitment. IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain
targets based on financial ratios during the term of the revolving credit facility. As of July 31, 2025 and 2024, IDT Telecom was in
compliance with all of the covenants.

 In
the first quarter of fiscal 2026 through September 29, 2025, IDT Telecom borrowed and repaid an aggregate of $ 12.7 million under the facility.

 Note
15— Accrued Expenses

 Accrued
expenses consist of the following:

 Schedule of Accrued Expenses

 2025

 2024

 Carrier minutes termination

 $
 14,229

 $
 18,301

 Regulatory fees and taxes

 36,450

 44,020

 Compensation costs

 20,350

 18,994

 Maintenance and support

 1,637

 Commissions

 7,732

 6,128

 Legal and professional fees

 6,858

 3,539

 Other

 11,611

 10,557

 TOTAL

 $
 97,295

 $
 103,176

 Note
16— Redeemable Noncontrolling Interest

 On
September 29, 2021, NRS sold shares of its Class B common stock representing 2.5 % of its outstanding capital stock on a fully diluted
basis to Alta Fox Opportunities Fund LP ("Alta Fox") for cash of $ 10 million. Alta Fox has the right to request that NRS
redeem all or any portion of the NRS common shares that it purchased at the per share purchase price during a period of 182 days following
the fifth anniversary of this transaction. The redemption right shall terminate upon the consummation of (i) a sale of NRS or its assets
for cash or securities that are listed on a national securities exchange, (ii) a public offering of NRS' securities, or (iii) a
distribution of NRS' capital stock following which NRS' common shares are listed on a national securities exchange.

 F- 30

 The
shares of NRS' Class B common stock sold to Alta Fox have been classified as mezzanine equity in the accompanying consolidated
balance sheet because they may be redeemed at the option of Alta Fox, although the shares are not mandatorily redeemable. The carrying
amount of the shares includes the noncontrolling interest in the net income of NRS. The net income attributable to the mezzanine equity's
noncontrolling interest during the periods were as follows:

 Schedule of Net Income Attributable to Mezzanine Equity's Noncontrolling Interest

 2025

 2024

 2023

 Net income of NRS attributable to the mezzanine equity's noncontrolling interest

 $

 $

 $

 Note
17— Other Expense, Net

 Other
expense, net consists of the following:

 Schedule of Other (Expense) Income, Net

 2025

 2024

 2023

 Foreign currency transaction gains (losses)

 $

 $
 ( 3,787
)

 $
 3,353

 Equity in net loss of investee

 ( 2,661

)

 ( 3,463
)

 ( 3,095
)

 Gains (losses) on investments

 1,598

 ( 2,613
)

 Other

 ( 591
)

 ( 728
)

 TOTAL

 $
 ( 713

)

 $
 ( 7,612
)

 $
 ( 3,083
)

 Note
18— Income Taxes

 The
components of income before income taxes are as follows:

 Components
of Income Before Income Taxes

 2025

 2024

 2023

 Domestic

 $
 96,891

 $
 56,316

 $
 48,036

 8,947

 5,594

 12,771

 INCOME BEFORE INCOME TAXES

 $
 105,838

 $
 61,910

 $
 60,807

 Significant
components of the Company's deferred income tax assets consist of the following:

 Significant
Components of Deferred Income Taxes

 2025

 2024

 Deferred income tax assets:

 Bad debt reserve

 $
 1,699

 $
 1,588

 Accrued expenses

 4,239

 2,897

 Stock options and restricted stock

 Charitable contributions

 Depreciation

 Unrealized gain

 5,867

 5,405

 Net operating loss

 20,217

 36,967

 Total deferred income tax assets

 33,695

 48,610

 ( 14,905)

 ( 13,602
)

 NET DEFERRED INCOME TAX ASSETS

 $
 18,790

 $
 35,008

 The
(provision for) benefit from income taxes consist of the following:

of (Provision for) Benefits from Income Taxes

 2025

 2024

 2023

 Current:

 Federal

 $
 ( 1,272
)

 $
 ( 38
)

 $
 ( 47
)

 State and local

 ( 4,598

)

 ( 2,716
)

 ( 1,511
)

 ( 2,611
)

 ( 724
)

 ( 1,275
)

 Current

 ( 8,481
)

 ( 3,478
)

 ( 2,833
)

 Deferred:

 Federal

 ( 19,493
)

 9,725

 ( 14,340
)

 State and local

 ( 261
)

 2,764

 ( 16,218

)

 9,832

 ( 13,608
)

 (PROVISION FOR) BENEFIT FROM INCOME TAXES

 $
 ( 24,699

)

 $
 6,354

 $
 ( 16,441
)

 F- 31

 The
differences between income taxes expected at the U.S. federal statutory income tax rate and income taxes provided are as follows:

of Differences Between Income Taxes Expected Federal Statutory Income Taxes

 2025

 2024

 2023

 U.S. federal income tax at statutory rate

 $
 ( 22,226
)

 $
 ( 13,001
)

 $
 ( 12,770
)

 1,303

 2,984

 Foreign tax rate differential

 ( 1,544

)

 ( 1,636
)

 ( 1,068
)

 Nondeductible expenses

 ( 903

)

 ( 1,159
)

 ( 1,767
)

 Revaluation of existing foreign attributes

 2,027

 ( 2,886
)

 —

 Prior year benefit

 —

 23,622

 —

 State and local income tax, net of federal benefit

 ( 3,228

)

 ( 1,855
)

 ( 1,181
)

 Other

 ( 128

)

 ( 625
)

 (PROVISION FOR) BENEFIT FROM INCOME TAXES

 $
 ( 24,699
)

 $
 6,354

 $
 ( 16,441
)

 The
Company's cumulative undistributed foreign earnings are included in retained earnings in the Company's consolidated balance
sheets and consisted of approximately $ 304 million at July 31, 2025. The Company has concluded that the earnings remain permanently reinvested.

 At
July 31, 2025, the Company had no U.S. federal net operating loss carryforwards. The Company has foreign net operating loss carryforwards
of approximately $ 71 million, of which approximately $ 62
million does not expire, and approximately $ 9
million expires in two to ten years. These foreign loss carryforwards are available to offset future taxable income in the countries
in which the losses were incurred.

 In fiscal 2024, the Company had
an IRC Section 382 study conducted on the reacquisition and the limitation was adjusted to $ 9.0
million per year. The Company recorded a tax benefit related to the adjusted amount of $ 23.6
million in fiscal 2024. The net operating loss carryforwards do not include any excess benefits related to stock options or restricted
stock.

 F- 32

 The
change in the valuation allowance is as follows:

 Summary
of Changes in Valuation Allowance

 Balance at beginning of year

 Additions charged to costs and expenses

 Deductions

 Balance at end of year

 2025

 Reserves deducted from deferred income taxes, net:

 $
 13,602

 $
 4,655

 $
 ( 3,352
)

 $
 14,905

 2024

 Reserves deducted from deferred income taxes, net:

 $
 10,618

 $
 2,984

 $
 —

 $
 13,602

 2023

 Reserves deducted from deferred income taxes, net:

 $
 11,588

 $
 2,537

 $
 ( 3,507
)

 $
 10,618

 In
fiscal 2025, the Company decreased the valuation allowance by $ 3.4 million due to profitability in the United Kingdom, offset by $ 4.7 million of additions in other jurisdictions.

 In
fiscal 2024, the Company increased the valuation allowance by $ 3.0 million, which included the establishment of a valuation allowance
of $ 3.5 million for deferred income tax assets that were not more likely than not going to be utilized prior to expiration, net of a
decrease of $ 0.2 million due to the utilization or disposal of previously valued deferred income tax assets and a release of $ 0.3 million
for profitability in the United Kingdom.

 In
fiscal 2023, the Company decreased the valuation allowance by $ 1.0 million, which included a decrease of $ 2.8 million due to the utilization
or disposal of previously valued deferred income tax assets and a release of $ 0.7 million for profitability in the United Kingdom, net
of an establishment of $ 2.5 million for deferred income tax assets that were not more likely than not going to be utilized prior to expiration.

 At
July 31, 2025 and 2024, the Company did not have any unrecognized income tax benefits. There were no changes in the balance of unrecognized
income tax benefits in fiscal 2025, fiscal 2024, and fiscal 2023. At July 31, 2025, the Company did not expect any changes in unrecognized
income tax benefits during the next twelve months. In fiscal 2025, fiscal 2024, and fiscal 2023, the Company did not record any interest
and penalties on income taxes. At July 31, 2025 and 2024, there was no accrued interest included in current income taxes payable.

 The
Company currently remains subject to examinations of its tax returns as follows: U.S. federal tax returns for fiscal 2022 to fiscal 2025,
state and local tax returns generally for fiscal 2021 to fiscal 2025, and foreign tax returns generally for fiscal 2021 to fiscal 2025.

 On July 4, 2025, the "One Big Beautiful
Bill Act" (OBBBA) was signed into law. This new legislation made several changes to the U.S. tax code, including the return of
100% bonus depreciation, the ability to immediately deduct domestic research and development costs, a more favorable rule for deducting
interest expenses, and updates to international tax rules around GILTI and FDII. While the Company is currently evaluating the impact
of the OBBBA, the Company does not expect these changes to have a significant impact on its financial statements. Any effects have been
recorded in the period ended July 31, 2025.

 Note
19— Equity

 Class
A Common Stock and Class B Common Stock

 The
rights of holders of Class A common stock and Class B common stock are identical except for certain voting and conversion rights and
restrictions on transferability. The holders of Class A common stock and Class B common stock receive identical dividends per share when
and if declared by the Company's Board of Directors. In addition, the holders of Class A common stock and Class B common stock
have identical and equal priority rights per share in liquidation. The Class A common stock and Class B common stock do not have any
other contractual participation rights. The holders of Class A common stock are entitled to three votes per share and the holders of
Class B common stock are entitled to one-tenth of a vote per share. Each share of Class A common stock may be converted into one share
of Class B common stock, at any time, at the option of the holder. Shares of Class A common stock are subject to certain limitations
on transferability that do not apply to shares of Class B common stock.

 Dividend
Payments

 In
March 2024, the Company's Board of Directors initiated a quarterly cash dividend of $ 0.05 per share on the Company's Class
A and Class B common stock. In March 2025, the Company's Board of Directors increased the quarterly cash dividend on the Company's
Class A and Class B common stock to $ 0.06 per share from $ 0.05 per share. In fiscal 2025 and fiscal 2024, the Company paid aggregate
cash dividends per share of $ 0.22 and $ 0.10, respectively, on its Class A and Class B common stock. In fiscal 2025 and fiscal 2024, the
Company paid aggregate cash dividends of $ 5.6 million and $ 2.5 million, respectively.

 F- 33

 In
September 2025, the Company's Board of Directors declared a cash dividend on the Company's Class A and Class B common
stock of $ 0.06
per share payable on or about October
10, 2025 to stockholders of record as of the close of business on September 30, 2025.

 Stock
Repurchases

 The
Company has an existing stock repurchase program authorized by its Board of Directors for the repurchase of shares of the Company's
Class B common stock. In January 2016, the Board of Directors authorized the repurchase of up to 8.0 million shares in the aggregate. In fiscal 2025, the Company
repurchased 221,823 shares of its Class B common stock for an aggregate purchase
price of $ 10.1 million. In fiscal 2024, the Company repurchased 298,421 shares of its Class B common stock for an aggregate purchase
price of $ 9.1 million. In fiscal 2023, the Company repurchased 511,546 shares of its Class B common stock for an aggregate purchase
price of $ 13.1 million. At July 31, 2025, 4.2 million shares remained available for repurchase under the
stock repurchase program.

 In
fiscal 2025, fiscal 2024, and fiscal 2023, the Company paid $ 7.7
million, $ 1.5
million, and $ 0.8
million, respectively, to repurchase 157,180; 41,994;
and 28,227 shares,
respectively, of the Company's Class B common stock that were tendered by employees of the Company to satisfy the
employees' tax withholding obligations in connection with the vesting of deferred stock units ("DSUs"), the
lapsing of restrictions on restricted stock, and shares issued for bonus payments. Such shares were repurchased by the Company based
on their fair market value as of the close of business on the trading day immediately prior to the vesting date.

 Exchange
of NRS Equity for Shares of the Company's Class B Common Stock and Cash

 In
June 2024, the Company initiated a tender offer to purchase 10 % of each qualified holder's outstanding DSUs that are to be settled
in shares of NRS common stock ("NRS DSUs") in exchange for cash or shares (depending on the number of NRS DSUs held by each
holder) of the Company's Class B common stock. In July 2024, certain qualified holders tendered and sold an aggregate of 199,687
NRS DSUs to the Company, and, as a condition of the tender offer, each NRS DSU seller granted to the Company an option, exercisable in
the Company's sole discretion for a period of one year, to purchase an additional aggregate 199,687 NRS DSUs at the same purchase
price. In addition, in July 2024, certain holders of NRS DSUs and shares of NRS' Class B common stock sold an aggregate of 10,000
NRS DSUs and 142,500 shares of NRS' Class B common stock to the Company, and, each of these sellers granted to the Company an option,
exercisable in the Company's sole discretion for a period of one year, to purchase an additional aggregate 10,000 NRS DSUs and
 142,500 shares of NRS' Class B common stock with the purchase price to be paid in shares of the Company's Class B common
stock with a value based on an average closing price of the Company's Class B common stock at the time of the exercise notice.
The NRS DSUs and shares in the exchange represented an aggregate of 0.2 % of NRS' outstanding capital stock on a fully diluted basis.
The NRS DSUs and shares were exchanged for an aggregate of 13,042 and 12,094 shares of the Company's Class B common stock that
were issued in July 2024 and August 2024, respectively, and cash of $ 0.1 million, with an aggregate value of $ 1.0 million based on agreed-upon
valuations of the NRS DSUs and NRS Class B common stock and the market value of the Company's Class B common stock at the time
of issuance.

 In
April 2025, the Company exercised its rights and purchased an aggregate of 209,317 additional NRS DSUs and 142,500 additional shares
of NRS' Class B common stock. The NRS DSUs and shares represented an aggregate of 0.2 % of NRS' outstanding capital stock
on a fully diluted basis. The NRS DSUs and shares were exchanged for an aggregate of 17,584 shares of the Company's Class B common
stock that were issued in April 2025, and cash of $ 0.1 million, with an aggregate value of $ 1.0 million based on agreed-upon valuations
of the NRS DSUs and NRS Class B common stock and the average price of the Company's Class B common stock during the 10 days immediately
before the notice of the additional exercise.

 The
Company accounted for the exchange of NRS' Class B common stock for shares of the Company's Class B common stock as an equity
transaction and recorded a decrease in "Noncontrolling interests" and an increase in "Additional paid-in capital"
of $ 33,000 in fiscal 2025 and $ 13,000 in fiscal 2024, based on the carrying amount of the 0.1 % and 0.09 % noncontrolling interest in NRS
in fiscal 2025 and fiscal 2024, respectively. The Company accounted for the exchange of NRS' DSUs for shares of the Company's
Class B common stock and cash as compensation expense and recorded stock-based compensation expense of $ 0.5 million in both fiscal 2025
and fiscal 2024, based on the closing price of the shares of the Company's Class B common stock on the date prior to the date that
the shares were issued plus the cash paid.

 In
January 2024, three management employees of NRS exchanged shares of NRS' Class B common stock that they held for shares of the
Company's Class B common stock with an equal value. The NRS shares in the exchange represented an aggregate of 1.25 % of NRS'
outstanding shares ( 1.21 % on a fully diluted basis), which were exchanged for an aggregate of 192,433 shares of the Company's Class
B common stock. The Company accounted for the exchange as an equity transaction and recorded a decrease in "Noncontrolling interests"
and an increase in "Additional paid-in capital" of $ 0.1 million, based on the carrying amount of the 1.25 % noncontrolling
interest in NRS.

 F- 34

 Stock
Issued to Certain Executive Officers for Bonus Payments

 In
fiscal 2023, certain executive officers of the Company received performance bonuses for fiscal 2022 of an aggregate of $ 1.2 million,
of which one-half was paid in cash and one-half was paid in shares of the Company's Class B common stock. The Company issued 24,543
shares of its Class B common stock with an issue date value of $ 0.6 million for the bonus payments.

 Note
20— Stock-Based Compensation

 2024
Equity Incentive Plan

 The
2024 Equity Incentive Plan is intended to provide incentives to officers, employees, directors, and consultants of the Company,
including stock options, stock appreciation rights, DSUs, and restricted stock. At July 31, 2025, the Company had 250,000
shares of Class B common stock reserved for the grant of awards under the 2024 Equity Incentive Plan, and 23,934 shares were
available for future grants. In September 2025, the Company's Board of Director's approved an amendment to the Company's 2024
Equity Incentive Plan to increase the number of shares of the Company's Class B common stock available for the grant of awards thereunder
by an additional 175,000 shares, subject to approval by the Company's stockholders at its annual meeting in December 2025.

 Stock
Options

 Option
awards are generally granted with an exercise price equal to the market price of the Company's stock on the date of grant. Option
awards generally vest on a graded basis over three years of service and have ten-year contractual terms. No option awards were granted
in fiscal 2024 or fiscal 2023. The fair value of stock options granted in fiscal 2025 was estimated on the date of the grant using a
Black-Scholes valuation model and the assumptions in the following table. Expected volatility is based on historical volatility of the
Company's Class B common stock and other factors. The Company uses historical data on exercise of stock options, post vesting forfeitures
and other factors to estimate the expected term of the stock options. The risk free rate is based on the U.S. Treasury yield curve in
effect at the time of grant.

of Stock Options Valuation Assumptions

 Year ended July 31, 2025

 ASSUMPTIONS

 Average risk-free interest rate

 3.49
 %

 Expected dividend yield

 0.5
 %

 Expected volatility

 53.2
 %

 Expected term

 4.0 years

 Weighted-average grant date fair value

 $
 16.58

 A
summary of stock option activity for the Company is as follows:

of Stock Option Activity

 Number of Options

 Weighted- Average Exercise Price

 Weighted- Average Remaining Contractual Term (in years)

 Aggregate Intrinsic Value

 Outstanding at July 31, 2024

 —

 $
 —

 Granted

 38.43

 Exercised

 —

 —

 Cancelled / Forfeited

 —

 —

 OUTSTANDING AT JULY 31, 2025

 $
 38.43

 4.2

 $

 EXERCISABLE AT JULY 31, 2025

 —

 $
 —

 0 —

 $
 —

 In
fiscal 2025, fiscal 2024, and fiscal 2023, the Company received cash from the exercise of stock options of nil, $ 0.2 million,
and $ 0.2 million, respectively, for which the Company issued nil; 12,500; and 12,500 shares, respectively, of its Class B common stock.

 F- 35

 The
total intrinsic value of options exercised during fiscal 2025, fiscal 2024, and fiscal 2023 was nil, $ 0.1 million, and $ 0.2
million, respectively. At July 31, 2025, there was $ 0.4 million of total unrecognized compensation cost related to non-vested stock options,
which is expected to be recognized over a weighted-average period of 1.2 years.

 Restricted
Stock

 The
fair value of restricted shares of the Company's Class B common stock is determined based on the closing price of the Company's
Class B common stock on the grant date. Share awards generally vest on a graded basis over three years of service.

 A
summary of the status of the Company's grants of restricted shares of Class B common stock is presented below:

of Grants of Restricted Shares

 Number of Non-vested

 Weighted-

 Average

 Grant-

 Date Fair

 Value

 Non-vested restricted shares at July 31, 2024

 $
 21.50

 Granted

 36.13

 Vested

 ( 29
)

 22.99

 Forfeited

 —

 —

 NON-VESTED RESTRICTED SHARES AT JULY 31, 2025

 25.54

 At
July 31, 2025, there was $ 0.1 million of total unrecognized compensation cost related to non-vested restricted shares, which is expected
to be recognized over a weighted-average period of 0.8 years. The total grant date fair value of shares vested in fiscal 2025, fiscal
2024, and fiscal 2023 was $ 0.7 million, $ 0.7 million, and $ 0.5 million, respectively.

Stock Units Equity Incentive Programs

 The
Company has an equity incentive program in the form of grants of DSUs that, upon vesting, will entitle the grantees to receive shares
of the Company's Class B common stock. The number of shares issuable on each vesting date varies between 50% to 200% of the number
of DSUs that vested on that vesting date, depending on the market price for the underlying Class B common stock on the vesting date relative
to the base price approved by the Compensation Committee of the Company's Board of Directors, which is based on the market price
at the time of the grants. In fiscal 2025, fiscal 2024, and fiscal 2023, in accordance with the program and based on certain elections
made by grantees, the Company issued 276,960; 55,039; and 43,278 shares, respectively, of its Class B common stock for vested DSUs. The
Company estimated that the fair value of the DSUs on the date of grants was an aggregate of $ 0.8 million, $ 0.8 million, and $ 5.4 million
in fiscal 2025, fiscal 2024, and fiscal 2023, respectively, which is being recognized on a graded vesting basis over the requisite service
periods. The Company uses a risk neutral Monte Carlo simulation method in its valuation of the DSUs, which simulates the range of possible
future values of the Company's Class B common stock over the life of the DSUs.

 A
summary of the status of the Company's grants of DSUs is presented below:

of Grants of Restricted Shares

 Number of Non-vested

 DSUs

 Weighted-

 Average

 Grant-

 Date Fair

 Value

 Non-vested DSUs at July 31, 2024

 $
 28.79

 Granted

 44.58

 Vested

 ( 148
)

 28.98

 Forfeited

 ( 1
)

 29.22

 NON-VESTED DSUs AT JULY 31, 2025

 $
 43.64

 At
July 31, 2025, there was $ 0.4 million of total unrecognized compensation cost related to non-vested DSUs, which is expected to be recognized
over a weighted-average period of 0.9 years. The total grant date fair value of DSUs vested in fiscal 2025, fiscal 2024, and fiscal 2023
was $ 4.3 million, $ 1.1 million, and $ 0.9 million, respectively.

 On September 18, 2025, the Company adopted
the IDT 2025 Equity Growth Program (under its 2024 Equity Incentive Plan) in the form of grants of DSUs that, upon vesting, will entitle
the grantees to receive shares of the Company's Class B common stock. On September 18, 2025, the Company granted 108,500 DSUs to
certain of its executive officers and other employees. Subject to continued full time employment or other service to the Company, the
DSUs will be eligible to vest in three substantially equal amounts on each of February 17, 2026, February 16, 2027, and February 15,
2028. The number of shares that will be issuable on each vesting date will vary between 50% to 267% of the number of DSUs that vest on
that vesting date, depending on the market price for the underlying Class B common stock on the vesting date relative to the grant price
of $ 50.90 per share (the price that was approved by the Compensation Committee of the Company's Board of Directors). For certain
executive officers of the Company, the number of shares that will be issuable on each vesting date will vary between 50% to 400% of the
number of DSUs that vest on that vesting date. In addition, the grantee will have the option to elect a later vesting date no later than
January 19, 2026 for the February 17, 2026 vesting date, and no later than January 18, 2027 for the February 16, 2027 vesting date. A
grantee will have the option to elect a later vesting date for one-half or all of the DSUs scheduled to vest on the then upcoming vesting
date and any DSUs that do not vest based on the grantee's election will be eligible to vest on the subsequent scheduled vesting
date. The Company is currently in the process of determining the estimated fair value of these grants, which will be recognized in compensation
expense over the respective vesting periods.

 F- 36

 Amended
and Restated Employment Agreement with Abilio ("Bill") Pereira

 On
December 21, 2023, the Company entered into an Amended and Restated Employment Agreement with Bill Pereira, the Company's President
and Chief Operating Officer. The agreement provides for, among other things, certain equity grants, including 23,500 DSUs that, upon
vesting, represent the right to receive shares of the Company's Class B common stock, and 50,000 shares of Class B common stock
of net2phone 2.0, as well as a contingent bonus subject to the completion of certain financial milestones as set forth in the agreement.
In fiscal 2024, two of these milestones were achieved, for which the Company issued to Mr. Pereira 39,155 shares of its Class B common
stock in fiscal 2024 with an issue date value of $ 1.5 million, and 39,155 shares of its Class B common stock in fiscal 2025 with an issue
date value of $ 1.8 million. In addition, in fiscal 2025, the Company accrued $ 1.0 million in connection with the achievement of an additional
milestone. In fiscal 2024, the Company accrued aggregate stock-based compensation expense of $ 4.1 million related to these equity grants
and the contingent bonus, which is included in "Selling, general and administrative expense" in the accompanying consolidated
statements of income.

 Stock
Issued to an Employee

 In
fiscal 2023, the Company granted 15,000 shares of its Class B common stock to an employee. The Company recorded stock-based compensation
expense and an increase in "Additional paid-in capital" of $ 0.4 million for this grant, which was the fair value of the shares
on the grant date.

 NRS
Restricted Common Stock

 Effective
as of June 30, 2022, restricted shares of NRS' Class B common stock representing 1.2 % of its outstanding capital stock on a fully
diluted basis were granted to certain NRS employees. The restrictions on the shares will lapse in three installments, the first was on
June 1, 2024, and the others are June 1, 2026, and June 1, 2027. The estimated fair value of the restricted shares on the grant date
was $ 3.3 million, which is being recognized over the vesting period. At July 31, 2025, unrecognized compensation cost related to NRS'
non-vested Class B common stock was an aggregate of $ 1.2 million. The unrecognized compensation cost is expected to be recognized over
the remaining vesting period that ends in fiscal 2027.

 In
connection with the vesting of the restricted shares of NRS Class B common stock on June 1, 2024, the Company repurchased a portion of
the shares representing an aggregate of 0.17 % of the outstanding shares of NRS with an aggregate fair value of $ 0.6 million to satisfy
the grantees' tax withholding obligations in connection with the lapsing of restrictions on restricted stock. The fair value per
share of the NRS Class B common stock was based on a valuation of the total equity of NRS using a market approach and income approach.
The Company recorded a decrease in "Noncontrolling interests" of $ 21,000 and a decrease in "Additional paid-in capital"
of $ 0.6 million, and an offsetting income tax withholding liability of $ 0.6 million.

2.0, Inc. Restricted Common Stock

 On
December 31, 2020, a compensatory arrangement with each of Howard S. Jonas and Shmuel Jonas, the Company's Chief Executive Officer,
was finalized. Howard S. Jonas and Shmuel Jonas each received 0.5 million restricted shares of net2phone 2.0's Class B common stock,
which represented an aggregate of 10 % of net2phone 2.0's issued and outstanding common stock at the time of the grant. The shares
entitle each grantee to proceeds only on a sale, spin-off, initial public offering, or other monetization of net2phone 2.0 and have protection
from dilution for the first $15 million invested in net2phone 2.0 following the grant. In January 2024, the restrictions lapsed on these
restricted shares. In addition, in January 2024, Bill Pereira was granted 50,000 shares of net2phone 2.0 Class B common stock in connection
with the agreement described above. The Company repurchased a portion of these shares representing an aggregate of 4.5 % of the outstanding
shares of net2phone 2.0 with an aggregate fair value of $ 3.6 million to satisfy the grantees' tax withholding obligations in connection
with the lapsing of restrictions on restricted stock or the grant of shares. The fair value per share of the net2phone 2.0 Class B common
stock was based on a valuation of the business enterprise using a market approach and income approach. The Company recorded an increase
in "Noncontrolling interests" of $ 53,000 and a decrease in "Additional paid-in capital" of $ 3.6 million, and
an offsetting income tax withholding liability of $ 3.6 million.

 Note
21— Accumulated Other Comprehensive Loss

 The
accumulated balances for each classification of other comprehensive (loss) income were as follows:

of Accumulated Balances for Each Classification of Other Comprehensive Income (Loss)

 loss on available-for-

 sale securities

 currency translation

 Accumulated

 other comprehensive loss

 Balance at July 31, 2022

 $
 ( 546
)

 $
 ( 10,759
)

 $
 ( 11,305
)

 Other comprehensive loss attributable to IDT Corporation

 ( 99
)

 ( 5,788
)

 ( 5,887
)

 Balance at July 31, 2023

 ( 645
)

 ( 16,547
)

 ( 17,192
)

 Other comprehensive income (loss) attributable to IDT Corporation

 ( 1,215
)

 ( 950
)

 Balance at July 31, 2024

 ( 380
)

 ( 17,762
)

 ( 18,142
)

 Other comprehensive income attributable to IDT Corporation

 1,418

 1,573

 BALANCE AT JULY 31, 2025

 $
 ( 225

)

 $
 ( 16,344
)

 $
 ( 16,569

)

 F- 37

 Note
22— Commitments and Contingencies

 Legal
Proceedings

 On
July 5, 2017, plaintiff JDS1, LLC, on behalf of itself and all other similarly situated stockholders of Straight Path, and
derivatively on behalf of Straight Path as nominal defendant, filed a putative class action and derivative complaint in the Court of
Chancery of the State of Delaware (the "Court of Chancery") against the Company, The Patrick Henry Trust (a trust formed
by Howard S. Jonas that held record and beneficial ownership of certain shares of Straight Path he formerly held), Howard S. Jonas,
and each of Straight Path's directors. The complaint alleged that the Company aided and abetted Straight Path Chairman of the
Board and Chief Executive Officer Davidi Jonas, and Howard S. Jonas in his capacity as controlling stockholder of Straight Path, in
breaching their fiduciary duties to Straight Path in connection with the settlement of claims between Straight Path and the Company
related to potential indemnification claims concerning Straight Path's obligations under the Consent Decree it entered into
with the Federal Communications Commission ("FCC"), as well as the sale of Straight Path's subsidiary Straight
Path IP Group, Inc. to the Company in connection with that settlement. The Plaintiffs sought, among other things, (i) a declaration
that the action may be maintained as a class action or in the alternative, that demand on the Straight Path Board is excused; (ii)
that the term sheet is invalid; (iii) awarding damages for the unfair price stockholders received in the merger between Straight
Path and Verizon Communications Inc. for their shares of Straight Path's Class B common stock; and (iv) ordering Howard S.
Jonas, Davidi Jonas, and the Company to disgorge any profits for the benefit of the class Plaintiffs. The trial was held in August
and December 2022. On October 3, 2023, the Court of Chancery issued a Memorandum Decision (the "Post-Trial Decision")
dismissing all claims against the Company, and finding that, contrary to the plaintiffs' allegations, the class suffered no
damages. The Court of Chancery denied
plaintiff's request for attorney's fees (the "Attorney's Fee Decision"). On December 16, 2024, the
Court of Chancery issued a Final Order and Judgment, embodying the Post-Trial Decision and Attorney's Fee Decision. On January
14, 2025, the plaintiff filed a notice of appeal of the Final Order and Judgment to the Supreme Court of the State of Delaware to
appeal the Final Order and Judgment. On April 22, 2025, the Company filed its answering brief to the appeal. Oral argument is
scheduled for October 2025.

 In fiscal 2025, the Company recorded
an aggregate expense of $ 4.0 million in "Other operating expense, net" in the consolidated statement of income related
to the settlement of litigation, of which $ 1.6 million was included in Corporate and $ 2.4 million was included in the NRS segment.

 In
addition to the foregoing, the Company is subject to other legal proceedings that have arisen in the ordinary course of business and
have not been finally adjudicated. Although there can be no assurance in this regard, the Company believes that none of the other legal
proceedings to which the Company is a party will have a material adverse effect on the Company's results of operations, cash flows,
or financial condition.

 Sales
Tax Contingency

 On
June 21, 2018, the United States Supreme Court rendered a decision in South Dakota v. Wayfair, Inc., holding that a state may require
a remote seller with no physical presence in the state to collect and remit sales tax on goods and services provided to purchasers in
the state, overturning certain existing court precedent. It is possible that one or more jurisdictions may assert that the Company has
liability for periods for which it has not collected sales, use or other similar taxes, and if such an assertion or assertions were successful
it could materially and adversely affect the Company's business, financial position, and operating results. One or more jurisdictions
may change their laws or policies to apply their sales, use or other similar taxes to the Company's operations, and if such changes
were made it could materially and adversely affect the Company's business, financial position, and operating results.

 Regulatory
Fees Audit

 The
Company's 2017 FCC Form 499-A, which reported its calendar year 2016 revenue, was audited by the Universal Service Administrative
Company ("USAC"). The USAC's final decision imposed a $ 2.9 million charge on the Company for the Federal Telecommunications
Relay Service ("TRS") Fund. The Company has appealed the USAC's final decision to the FCC and does not intend to remit
payment for the TRS Fund fees unless and until a negative decision on its appeal has been issued. The Company has made certain changes
to its filing policies and procedures for years that remain potentially under audit. At July 31, 2025 and 2024, the Company's accrued
expenses included $ 21.1 million and $ 25.9 million, respectively, for FCC-related regulatory fees for the year covered by the audit, as
well as prior and subsequent years.

 F- 38

 Purchase
Commitments

 At
July 31, 2025, the Company had purchase commitments of $ 14.5 million primarily for services.

 Performance
Bonds

 The
Company has performance bonds issued through third parties for the benefit of various states in order to comply with the states'
financial requirements for money remittance licenses and telecommunications resellers. At July 31, 2025 and 2024, the Company had aggregate
performance bonds outstanding of $ 33.8 million and $ 32.4 million, respectively.

 Note
23— Related Party Transactions

 Rafael
Holdings, Inc.

 In
connection with the spin-off of Rafael Holdings, Inc. ("Rafael") in March 2018, the Company and Rafael entered into a transition
services agreement pursuant to which certain administrative and other services are provided by the Company and Rafael. This constitutes
a related person transaction because Howard Jonas is a chairman and executive chairman of Rafael. The Company charged Rafael $ 0.3 million in each of fiscal 2025, fiscal 2024, and fiscal 2023
for services provided, net of the amounts charged by Rafael to the Company. At July 31, 2025 and 2024, other current assets reported
in the Company's consolidated balance sheets included net receivable from Rafael of nil and $ 0.1 million, respectively.

 Genie
Energy Ltd.

 The
Company entered into a transition services agreement with Genie Energy Ltd. ("Genie") prior to the spin-off of Genie in October
2011, which provides for certain services to be performed by the Company and Genie. This constitutes a related person transaction because
Howard Jonas is a chairman of Genie. The Company charged Genie $ 0.9 million, $ 0.9 million, and $ 1.2 million in fiscal 2025, fiscal 2024, and fiscal 2023, respectively,
for services provided and other items, net of the amounts charged by Genie to the Company. At both July 31, 2025 and 2024, other current
assets reported in the Company's consolidated balance sheets included receivables from Genie of $ 0.3 million.

 Zedge,
Inc.

 On
June 1, 2016, the Company spun off its subsidiary, Zedge, Inc. (Zedge"). Zedge and the Company entered into a transition services
agreement, effective June 1, 2016. This constitutes a related person transaction because Howard Jonas is a director and vice chairman
of Zedge and his son, Michael Jonas, is the chairman of the board of directors, executive chairman, and the controlling stockholder of
Zedge. Pursuant to the agreement, the Company provides legal services to Zedge. Zedge paid the Company a total of $ 126,000 for legal services provided by the Company during fiscal 2025.
In addition, the Company paid Zedge $ 86,000 for consulting services provided to the Company by a Zedge
employee. As of July 31, 2025, Zedge owed the Company $ 1,000.

 In
fiscal 2024, NRS and Zedge entered into a marketing relationship. During fiscal 2025, Zedge received $ 0.2 million from this agreement. In fiscal 2024, there were no
monetary transactions between the parties.

 CTM
Media Group

 In
fiscal 2024, NRS and CTM Media Group ("CTM") entered into a marketing relationship. This constitutes a related person transaction
because Howard Jonas is the owner of CTM. NRS billed CTM a total of $ 0.5 million pursuant to the marketing relationship during
fiscal 2025. As of July 31, 2025, CTM owed NRS $ 0.5 million for such services. In fiscal 2024, there were no monetary
transactions between the parties.

 Other
Related Party Transactions

 The
Company provides office space, certain connectivity and other services to Jonas Media Group, a publishing firm owned by Howard Jonas.
Billings for such services were $ 1,180;
$ 1,300;
and $ 2,000 in fiscal 2025, fiscal 2024, and fiscal 2023, respectively.
The balance owed to the Company by Jonas Media Group was $ 6,461 and $ 5,300 as of July 31, 2025 and 2024, respectively.

 Mason
and Company Consulting, LLC ("Mason and Co."), a company owned solely by Jonathan Mason, receives annual commissions and
fees for the insurance brokerage referral and placement of certain of the Company's insurance policies. Jonathan Mason is the husband
of Joyce J. Mason, the Company's General Counsel, and brother-in-law of Howard S. Jonas. Based on information the Company received
from Jonathan Mason, the Company believes that Mason and Co. received commissions and fees from payments made by the Company in the aggregate
amount of $ 54,000 in fiscal 2025, $ 57,000 in fiscal 2024, and $ 62,000 in fiscal 2023. Neither Howard S. Jonas nor Joyce Mason has
any ownership or other interest in Mason and Co., or the commissions paid to Mason and Co., other than via the familial relationships
with Jonathan Mason. On
April 28, 2025, the Company exercised its option pursuant to an Exchange and Option Agreement with Alexander Mason, son of Joyce Mason,
pursuant to which the Company exchanged 127,500 shares of NRS, a subsidiary of the Company, for 7,685 shares of Class B Common Stock
of IDT Corporation (valued at $395,250).

 IDT
DT leases space in a building in the Bronx, New York that is owned by a limited liability company that is jointly owned by Howard S.
Jonas and Shmuel Jonas. The annual rent is $ 18,600.

 The
Company had loans receivable from employees aggregating $ 0.4 million and $ 0.5 million at July 31, 2025 and 2024, respectively, which are
included in "Other current assets" in the accompanying consolidated balance sheets.

 Note
24— Defined Contribution Plans

 The
Company maintains a 401(k) Plan available to all U.S.-based employees meeting certain eligibility criteria. The plan permits participants
to contribute up to the maximum amount allowed by law. The plan provides for discretionary matching contributions that vest over the
first five years of employment. In fiscal 2025, fiscal 2024, and fiscal 2023, the Company's expense related to the plan was $ 1.0 million, $ 1.0 million, and $ 1.1 million, respectively.

 F- 39