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How Delaware Ruling Ending Straight Path Case Will Impact IDT (IDT) Investors

Simply Wall St · 1d ago
  • In the past few days, the Delaware Supreme Court upheld the dismissal of all claims against IDT in the class action tied to its former subsidiary Straight Path Communications and the 2017 sale to Verizon, concluding Straight Path shareholders suffered no damages.
  • This ruling removes a long-running legal overhang and potential financial liability for IDT, clarifying its legal standing and bolstering management’s stance that the lawsuit lacked merit.
  • With this legal uncertainty cleared by the Supreme Court decision, we’ll examine how the resolved liability risk affects IDT’s investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

IDT Investment Narrative Recap

IDT’s story appeals to investors who believe in its mix of telecom, fintech and software cash flows, supported by experienced management and ongoing capital returns. The Supreme Court’s dismissal of the Straight Path claims removes a legal overhang but does not materially alter the near term focus on execution in NRS, BOSS Money and net2phone, or the key risks around competition, working capital needs and capital allocation.

The most relevant near term catalyst alongside this court decision is the upcoming December 4, 2025 earnings release, where attention centers on whether IDT can rebuild confidence after a prior miss. Against that backdrop, the company’s continued dividends of US$0.06 per share and history of buybacks highlight how management is currently balancing shareholder payouts with funding growth in its core segments.

Yet, while the legal risk has eased, investors should be aware that IDT’s reliance on working capital intensive BOSS Money growth could still...

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

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

Uncover how IDT's forecasts yield a $80.00 fair value, a 59% upside to its current price.

Exploring Other Perspectives

IDT Community Fair Values as at Dec 2025
IDT Community Fair Values as at Dec 2025

Seven members of the Simply Wall St Community value IDT anywhere from about US$80 to over US$56,000 per share, underscoring just how far apart individual views can be. Against that wide spread, the cleared Straight Path liability and the upcoming earnings catalyst may both influence how you weigh IDT’s business momentum against its capital intensive BOSS Money model going forward.

Explore 7 other fair value estimates on IDT - why the stock might be worth just $80.00!

Build Your Own IDT Narrative

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

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

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