IDT CORPORATION

Red flags

• NRS Advertising & Data revenue declined in fiscal 2026 as CPMs fell and a demand partner ceased operations; a limited number of programmatic demand partners leaves monetization concentrated.
• The five largest customers rose to 12.5% of consolidated revenue in fiscal 2026 from 8.9%; the five largest receivables were 9.9% of gross trade receivables, creating meaningful nonpayment exposure.
• IDT Global's five largest customers represented 4.4% of total revenue and their five largest receivables represented 6.8% of gross trade receivables; the wholesale customer base includes smaller, less financially stable companies.
• Class B holders receive one-tenth of a vote per share versus three votes for Class A, and Howard S. Jonas controls more than a majority of combined voting power, limiting minority-holder influence over capital allocation.
• NRS depends on its payment facilitator, sponsor bank, card networks, third-party sales channels, and equipment and service availability; failures can raise retailer churn and impair payment revenue.